Hesperia City Council
February 20, 2024

Tuesday, February 20, 2024
Meeting Agenda
Closed Session - 6:00 PM

HESPERIA CITY COUNCIL

SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY

HOUSING AUTHORITY

COMMUNITY DEVELOPMENT COMMISSION

WATER DISTRICT

HESPERIA FIRE PROTECTION DISTRICT - SPECIAL MEETING
City Council Chambers
9700 Seventh Ave., Hesperia CA, 92345
City Clerk's Office: (760) 947-1007
City Council Members
Larry Bird, Mayor
Rebekah Swanson, Mayor Pro Tem
Brigit Bennington, Council Member
Cameron Gregg, Council Member
Allison Lee, Council Member
Rachel Molina, City Manager
Pam K. Lee, City Attorney
NOTE: In compliance with the Americans with Disability Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office at (760) 947-1007 or (760) 947-1026. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility.

To leave a Public Comment by phone, call and leave a recorded message at (760) 947-1056 up to 5:30 pm on the day of the scheduled meeting. City Council meetings may be viewed live or after the event on the City’s website at www.cityofhesperia.us.

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February 20, 2024City Council Meeting Agenda

REGULAR MEETING AGENDA

HESPERIA CITY COUNCIL

SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY

HESPERIA HOUSING AUTHORITY

HESPERIA COMMUNITY DEVELOPMENT COMMISSION

HESPERIA WATER DISTRICT

HESPERIA FIRE PROTECTION DISTRICT - SPECIAL MEETING
9700 7th Avenue, Council Chambers, Hesperia, CA 92345
As a courtesy, please silence your cell phones and other electronic devices while the meeting is in session. Thank you.

Prior to action of the Council, any member of the audience will have the opportunity to address the legislative body on any item listed on the agenda, including those on the Consent Calendar.

Individuals wishing to speak during General Public Comments or on a particular numbered item must submit a speaker slip to the City Clerk with the agenda item noted. Speaker slips should be turned in prior to the public comment portion of the agenda or before an agenda item is discussed. Comments will be limited to three minutes for General Public Comments, Consent Calendar items and New Business items. Comments are limited to five minutes for Public Hearing items.

In compliance with the Brown Act, the City Council may not discuss or take action on non-agenda items or engage in question and answer sessions with the public. The City Council may ask brief questions for clarification; provide a reference to staff or other resources for factual information and direct staff to add an item to a subsequent meeting.

CLOSED SESSION - 6:00 PM
Roll Call
Mayor Larry Bird
Mayor Pro Tem Rebekah Swanson
Council Member Brigit Bennington
Council Member Cameron Gregg
Council Member Allison Lee
Conference with Legal Counsel – Existing Litigation
Government Code Section 54956.9(d)1

1. City of Barstow, et al. v City of Adelanto, et al. (Mojave Basin Water Cases) (SBSC Case No. CIV208568)
CALL TO ORDER - 6:30 PM
A. Invocation
B. Pledge of Allegiance to the Flag
C. Roll Call
Mayor Larry Bird
Mayor Pro Tem Rebekah Swanson

February 20, 2024City Council Meeting Agenda
Council Member Brigit Bennington
Council Member Cameron Gregg
Council Member Allison Lee
D. Agenda Revisions and Announcements by City Clerk
E. Closed Session Reports by City Attorney

ANNOUNCEMENTS/PRESENTATIONS

1. Recognition of Armando and Dolores Compean for serving the City of Hesperia at La Casita Cafe for 41 years.
2 . Presentation by Department of Transportation on I-15 Pavement Rehab Project.

GENERAL PUBLIC COMMENTS (For items and matters not listed on the agenda) Individuals wishing to speak during General Public Comments or on a particular numbered item are requested to submit a speaker slip to the City Clerk with the agenda item noted. Speaker slips should be turned in prior to the public comment portion of the joint agenda or before an agenda item is discussed. Comments will be limited to three minutes for General Public Comments, Consent Calendar items and New Business items. Comments are limited to five minutes for Public Hearing items.

In compliance with the Brown Act, the City Council may not discuss or take action on non-agenda items or engage in question and answer sessions with the public. The City Council may ask brief questions for clarification; provide a reference to staff or other resources for factual information and direct staff to add an item to a subsequent meeting.

JOINT CONSENT CALENDAR

1. Consideration of the Draft Minutes from the Regular Meeting held Tuesday, February 6, 2024.

Recommended Action:

It
is recommended that the City Council approve the Draft Minutes from the Regular Meeting held Tuesday, February 6, 2024.

Staff Person: Assistant City Clerk Erin Baum
Draft CC Min 2024-2-6Attachments:

2. Warrant Run Report (City - Successor Agency - Housing Authority - Community Development Commission - Water)
Recommended Action:

It is recommended that the Council/Board ratify the warrant run and payroll report for the City, Successor Agency to the Hesperia Community Redevelopment Agency, Hesperia Housing Authority, Community Development Commission, and Water District.

Staff Person: Assistant City Manager Casey Brooksher

February 20, 2024City Council Meeting Agenda
SR Warrant Run 2-20-2024
Attachment 1 - Warrant Run
Attachments:

3. Treasurer’s Cash Report for the unaudited period ended December 31, 2023 Recommended Action:

It
is recommended that the Council/Board accept the Treasurer’s Cash Report for the City, Successor Agency to the Hesperia Community Redevelopment Agency, Hesperia Housing Authority, Community Development Commission, and Water District.

Staff Person: Assistant City Manager Casey Brooksher
SR Treasurer's Report 2-20-2024
Attachment 1- Treasurer's Report
Attachments:

4. Renewal of Disaster Recovery Service for the City's Computing Systems Recommended Action:

It
is recommended that the City Council authorize the City Manager to renew the City's subscription to Nutanix Xi Leap Disaster Recovery as a Service (DRaaS) from Xentegra, for a not-to-exceed amount of $49,674.

Staff Person: Assistant City Manager Casey Brooksher
SR Renewal Disaster Recovery Service 2-20-2024Attachments:

5. Guardian Records Management and Storage Contract Amendment Recommended Action:

It
is recommended that the City Council and Board of Directors of the Hesperia Water District authorize the City Manager to approve an amendment of $7,000 to the existing contract with Guardian Records Management and Storage (Guardian), for a revised not-to-exceed contract amount of $92,200, for the storage, maintenance, and destruction of City records.

Staff Person: Deputy City Manager/City Clerk Melinda Sayre SR Guardian Records Contract Amendment 2-20-2024Attachments:

7. Vehicle Procurement - Mid-Size Truck Replacement
Recommended Action:

It
is recommended that the Board of Directors of the Hesperia Water District (HWD) authorize the City Manager to approve the procurement of one (1) 2024 Chevrolet Colorado mid-size 4 x 4 truck for the Production Program, awarding the bid to Victorville Chevrolet, and enter into an agreement for the not-to-exceed amount of $41,047.

Staff Person: Interim Director of Public Works Mark Faherty SR Vehicle Procurement - Mid-Size Truck Replacement 2-20-2024Attachments:

8. Dr. Jaime Velasco Spay/Neuter and Telemedicine Contract

February 20, 2024City Council Meeting Agenda
Recommended Action:

It is
recommended that the City Council authorize the City Manager to approve a contract with Dr. Jaime Velasco in the not-to-exceed amount of $42,500 for spay, neuter procedures and telemedicine for animals in the care of the City ’s animal shelter.

Staff Person: Acting Code Compliance Manager Caleb Enriquez SR Dr. Jaime Velasco Spay/Neuter and Telemedicine Contract 2-20-2024Attachments:

PUBLIC HEARING
Individuals wishing to comment on public hearing items must submit a speaker slip to the City Clerk with the numbered agenda item noted. Speaker slips should be turned in prior to an agenda item being taken up.

Comments will be limited to five minutes for Public Hearing items.

WAIVE READING OF ORDINANCES
Approve the reading by title of all ordinances and declare that said titles which appear on the public agenda shall be determined to have been read by title and further reading waived.

9. Amendments to Title 14, Chapter 14 of the Hesperia Municipal Code related to Ownership and Maintenance of Sewer Laterals
Recommended Action:

It is recommended that the City Council and the Board of Directors of the Hesperia Water District (District) introduce and place on first reading Ordinance No. 2024-01 regarding the maintenance of sewer lateral lines; amending Title 14, Chapter 14.02 and Title 14, Chapter 14.08 of the Hesperia Municipal Code.

Staff Person: Assistant Project Manager Bethany Hudson
SR Amendments to Title 14 Sewer Lateral 2-20-2024
Ordinance 2024-01
Attachment 2 - Section 14.02.020 Definitions and Redlines Attachments:

NEW BUSINESS

10. Fiscal Year 2023-24 Mid-Year Budget Review
Recommended Action:

It is recommended that the Fiscal Year (FY) 2023-24 Mid-Year Budget Review be received and filed and the related following resolutions, which amend the respective FY 2023-24 Budgets for the City of Hesperia and the Hesperia Water District be approved:
1) City of Hesperia Resolution No. 2024-03
2) Hesperia Water District HWD No. 2024-02
Staff Person: Assistant City Manager Casey Brooksher

February 20, 2024City Council Meeting Agenda
SR Fiscal Year 2023-24 Mid-Year Budget Review 2-20-2024 Attachment 1 - FY 2023-24 Mid-Year Budget Review
Resolution 2024-03
Resolution HWD 2024-02
Attachments:

11. Consideration of the 2024 Legislative Platform and Funding Priorities Recommended Action:

It is recommended
that the City Council adopt the 2024 Legislative Platform consisting of Legislative Policy Statements and Funding Priorities Staff Person: Assistant to the City Manager Tammy Pelayes SR Consideration of Legislative Platform and Funding Priorities 2-20-2024 Attachment 1 - 2024 Legislative Platform
Attachments:

12. Resolution in support of San Bernardino County Fire in opposition to Measure W (FP5).

Recommended Action:

It is recommended that the City Council consider Resolution No. 2024-05 to oppose Proposed Measure W, a ballot measure listed on the Presidential Primary Election Ballot on March 5, 2024, for residents living in San Bernardino County Fire services areas where Service Zone FP-5 supports fire service.

Staff Person: Deputy City Manager/City Clerk Melinda Sayre SR Resolution in support of SBC Fire in opposition to Measure W 2-20-2024 Resolution 2024-05
Attachments:

COUNCIL COMMITTEE REPORTS AND COMMENTS
The Council may report on their activities as appointed representatives of the City on various Boards and Committees and/or may make comments of general interest or report on their activities as a representative of the City.

CITY MANAGER/CITY ATTORNEY/STAFF REPORTS
The City Manager, City Attorney or staff may make announcements or reports concerning items of interest to the Council and the public.

ADJOURNMENT

February 20, 2024City Council Meeting Agenda
I, Erin Baum, Assistant City Clerk of the City of Hesperia, California do hereby certify that I caused to be posted the foregoing agenda on Wednesday, February 14, 2023 at 5:30 p.m. pursuant to California Government Code §54954.2.
_____________________________
Erin Baum,
Assistant City Clerk
Documents produced by the City and distributed less than 72 hours prior to the meeting regarding items on the agenda will be made available in the City Clerk's Office during normal business hours.

City of Hesperia
City of Hesperia
Meeting Minutes - Draft
City Council
Tuesday, February 6, 2024 6:30 PM

REGULAR MEETING AGENDA

HESPERIA CITY COUNCIL

SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY

HESPERIA HOUSING AUTHORITY

HESPERIA COMMUNITY DEVELOPMENT COMMISSION
9700 7th Avenue, Council Chambers, Hesperia, CA 92345
CLOSED SESSION - 5:00 PM
Roll Call

Present: 5 - Mayor Bird, Mayor Pro Tem Swanson, Council Member Gregg, Council Member Bennington and Council Member Lee
Conference
with Legal Counsel - Potential Litigation: Government Code Section 54956.9(d)2

1. One (1) Case
Conference
with Legal Counsel – Existing Litigation: Government Code Section 54956.9(d)1

1. NuLevel Partners, Inc. v. City of Hesperia, et al. (SBSC No. CIVSB2133905)

2. Assistant
Secretary for FHEO v. City of Hesperia, California, et al.; Case Number 09 16 4717 8 CALL TO ORDER - 6:30 PM
A. Invocation
B. Pledge of Allegiance to the Flag
C. Roll Call

Present: 5 - Mayor Bird, Mayor Pro Tem Swanson, Council Member Gregg, Council Member Bennington, and Council Mem
ber Lee
D. Agenda Revisions and Announcements by City Clerk
E. Closed Session Reports
by City Attorney
City Council Chambers
9700 Seventh Ave.

Hesperia CA, 92345

City of Hesperia
GENERAL PUBLIC COMMENTS (For items and matters not listed on the agenda) The following members of the public commented:

Yolette Rios, via voicemail

JOINT CONSENT CALENDAR
A motion was made by Gregg, seconded by Bennington, that the Joint Consent Calendar be approved. The motion carried by the following vote:

Aye: 5 - Bird, Swanson, Gregg, Bennington, and Lee
Nay: 0

1. Consideration of the Draft Minutes from the Regular Meeting held Tuesday, January 16, 2024.

Recommended Action:

It is recomm
ended that the City Council approve the Draft Minutes from the Regular Meeting held Tuesday, January 16, 2024.

Sponsors: Assistant City Clerk Erin Baum

2. Warrant Run Report (City-Successor Agency- Housing Authority- Community Developm ent Comm
ission- Water)
Recommended A
ction:

It is recommended that the Council/Board ratify the warrant run and payroll report for the City, Succes sor Agency to the Hesperia Co
mmunity Redevelopment
Agency, Hesperia Housing Authority, Comm unity
Developm
ent Commission, and Water District.

Sponsors: Assistant City Manager Casey Brooksher

3. Resolution Defining HJPFA Regular Meeting Schedule
Recommended Action:

It is recommended that the City Council adopt Hesperia Joint Public Finance Authority (HJPF A)
Resolution 2024-01
defining the specific
regular meeting schedule for the Hesperia Joint Public Financ e Authorit
y.

Sponsors: Deputy City Manager/City Clerk Melinda Sayre

4. Antony's Animal Hospital Contract Amendment
Recommended Action:

It is recommended that the City Council authorize the City Manager to approve an amendment of $25,360 to the
existing contrac t
with Antony’s Animal Hospital, for a revised not-to-exceed contract amount of $75,360 for spa
y, neuter, exams and emergency animal care.

Sponsors: Acting Code Compliance Manager Caleb Enriquez

City of Hesperia

PUBLIC HEARING

5. Urgency Ordinance Single Price Overstock/Discount Stores Moratorium Recommended Action:

It is recommended that the City Council waive further reading and adopt Urgency Ordinance 2024-02 pursuant to
California Government Code Section 65858 establishing a forty-five (45) day moratorium on the establishment or expansion of Single Price overstock/discount stores, or store as appropriate (SPODS); and to authorize the City Manager to direct staff to review and survey the development standards for SPODS from surrounding jurisdictions.

Sponsors: Principal Planner Ryan Leonard
A motion was made by Gregg, seconded by Swanson, that this item be approved. The motion carried by the following vote:

Aye: 5 - Bird, Swanson, Gregg, Bennington and Lee
Nay: 0

COUNCIL COMMITTEE REPORTS AND COMMENTS
The Mayor, Mayor Pro Tem, and Council members reported from various events and Committees.

Council Member Lee requested a report on traffic accidents and injuries for the section of Mariposa, between Verde and Bear Valley Road and would like to discuss potential measures to make the stretch safer.

Mayor Bird announced the upcoming Youth in Government Day.

CITY MANAGER/CITY ATTORNEY/STAFF REPORTS
The City Manager announced the promotion of Staff Member Cassandra Sanchez to her new position of Director of Public Works.

ADJOURNMENT
The meeting was adjourned in honor of Cameron Gregg, Bill Holland, Rachel Molina, Larry Bird’s brother, and Brigit’s daughter Ashley’s birthdays, and Rebekah Swanson’s anniversary at 7:17 p.m. _____________________________
Erin Baum,
Assistant City Clerk

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City of Hesperia

STAFF REPORT
DATE: February 20, 2024
TO: Mayor and Council Members
City Council, as Successor Agency to the Hesperia Community Redevelopment Agency
Chair and Commissioners, Hesperia Housing Authority
Chair and Commissioners, Community Development Commission Chair and Board Members, Hesperia Water District
FROM: Rachel Molina, City Manager
BY: Casey Brooksher, Assistant City Manager
Anne Duke, Deputy Finance Director
Shirley Domacio Calderon, Accountant
SUBJECT: Warrant Run Report (City – Successor Agency – Housing Authority – Community Development Commission – Water)

RECOMMENDED ACTION
It is recommended that the Council/Board ratify the warrant run and payroll report for the City, Successor Agency to the Hesperia Community Redevelopment Agency, Hesperia Housing Authority, Community Development Commission, and Water District.

BACKGROUND
The Warrant Run totals represented below are for th e period December 30, 2023 through January 19, 2024.

ATTACHMENT(S)

1. Warrant Runs
Agency/District Accounts Payable Payroll Wires Totals
City of Hesperia $1,040,954.03 $592,760.73 $0.00 $1,633,714.76 Successor Agency 0.00 0.00 0.00 0.00
Housing Authority 1,236.26 378.86 0.00 1,615.12
Community Development Commission 0.00 0.00 0.00 0.00
Water 1,783,884.08 237,138.69 0.00 2,021,022.77
Totals $2,826,074.37 $830,278.28 $0.00 $3,656,352.65

YEAR-TO PRIOR FY YTD

W/E W/E W/E WARRANT DATE DATE
FUND # FUND NAME 1/5/2024 1/12/2024 1/19/2024 TOTALS Wires TOTALS * TOTALS Accounts Payable
100 GENERAL 58,275.00$ 142,483.03$ 121,810.02$ 322,568.05$ - $ 19,773,407.22$ 17,031,301.64$ 204 MEASURE I - RENEWAL 1,303.12$ 1,254.50$ -$ 2,557.62$ - $ 443,762.48$ 238,127.36$ 207 LOCAL TRANSPORT-SB 325 -$ -$ -$ -$ - $ 967,882.81$ 27,839.18$ 209 GAS TAX-RMRA -$ -$ -$ -$ - $ -$ -$
210 HFPD (PERS) -$ -$ -$ -$ -$ 907,316.00$ 1,093,204.87$ 251 CDBG 7,126.76$ 1,692.83$ -$ 8,819.59$ - $ 290,151.44$ 173,574.87$ 254 AB2766 - TRANSIT -$ -$ -$ -$ - $ -$ -$
255 AB3229 SUPPLEMENTAL LAW -$ -$ -$ -$ - $ -$ -$ 256 ENVIRONMENTAL PROGRAMS GRANT 62.56$ 1.50$ 382.22$ 446.28$ - $ 19,640.75$ 22,518.31$ 262 SB 1383 LOCAL ASSISTANCE GRANT -$ -$ -$ -$ - $ -$ 31,598.69$ 263 STREETS MAINTENANCE 5,800.95$ 40,767.66$ 27,298.26$ 73,866.87$ - $ 1,286,901.95$ 1,138,963.61$ 300 DEV. IMPACT FEES - STREET -$ -$ -$ -$ - $ 3,600.00$ 30,261.18$ 301 DEV. IMPACT FEES - STORM DRAIN -$ -$ -$ -$ - $ -$ 17,460.50$ 303 DEV. IMPACT FEES - POLICE -$ -$ -$ -$ - $ -$ -$ 304
DEV. IMPACT FEES - PUBLIC WKS. -$ -$ -$ -$ - $ -$ -$ 306 DEV. IMPACT FEES - 2018-STREETS -$ 1,254.50$ -$ 1,254.50$ - $ 1,799,762.15$ 2,631,645.96$ 312 DIF 2018-POLICE FACILITIES -$ -$ -$ -$ -$ -$ 7,969.11$ 313 DIF A-04 DRAINAGE -$ -$ -$ -$ - $ 317,748.35$ 6,270.00$ 402 WATER RIGHTS ACQUISITION -$ 2,190.00$ -$ 2,190.00$ - $ 1,220,101.69$ 1,094,323.17$ 403 2013 REFUNDING LEASE REV BONDS -$ -$ 250.00$ 250.00$ - $ 571,151.39$ 657,175.62$ 504 CITY WIDE STREETS - CIP -$ -$ -$ -$ - $ 8,346,104.67$ 6,774,267.05$ 509 CITY FACILITIES CIP -$ -$ -$ -$ - $ -$ -$
800 EMPLOYEE BENEFITS 26,402.43$ 413,257.47$ 25,993.73$ 465,653.63$ - $ 4,988,917.64$ 4,995,210.50$ 801 TRUST/AGENCY 238.45$ 119,149.78$ 1,515.70$ 120,903.93$ - $ 1,347,522.29$ 1,435,253.97$ 802 AD 91-1 AGENCY -$ -$ -$ -$ - $ -$ -$
804
TRUST-INTEREST BEARING 38,642.00$ -$ -$ 38,642.00$ - $ 245,719.00$ 82,777.50$ 807 CFD 2005-1 -$ 3,801.56$ -$ 3,801.56$ - $ 990,190.30$ 973,357.75$ 808 HFPD (TRANSITION) -$ -$ -$ -$ - $ 347,796.19$ 317,384.59$ 815 PLAN REVIEW TRUST - FRONTIER -$ -$ -$ -$ -$ -$ 6,584.08$ CITY 137,851.27$ 725,852.83$ 177,249.93$ 1,040,954.03$ - $ 43,867,676.32$ 38,787,069.51$ 163 REDEVELOP OBLIG RETIREMENT-2018 -$ -$ -$ -$ - $ 8,085,433.89$ 7,746,169.98$ SUCCESSOR AGENCY -$ -$ -$ -$ - $ 8,085,433.89$ 7,746,169.98$ 370 HOUSING AUTHORITY -$ -$ 1,236.26$ 1,236.26$ - $ 21,410.76$ 33,629.06$ HOUSING AUTHORITY -$ -$ 1,236.26$ 1,236.26$ - $ 21,410.76$ 33,629.06$ 170 COMMUNITY DEVELOPMENT COMMISSION -$ -$ -$ -$ - $ -$ -$ COMMUNITY DEVELOPMENT COMMISSION -$ -$ -$ -$ - $ -$ -$ 700 WATER OPERATING 64,978.85$ 858,603.59$ 65,397.32$ 988,979.76$ - $ 6,777,690.26$ 5,053,772.55$ 701 WATER CAPITAL -$ -$ -$ -$ - $ 313,800.00$ 29,024.00$ 710 SEWER OPERATING 31,146.44$ 503,269.61$ 6,696.59$ 541,112.64$ - $ 3,668,483.62$ 2,987,292.46$ 711 SEWER CAPITAL 6,202.50$ 915.85$ 8,030.00$ 15,148.35$ - $ 1,127,230.35$ 207,644.07$ 720 RECLAIMED WATER OPERATIONS -$ 237,905.44$ 737.89$ 238,643.33$ - $ 269,714.10$ 253,031.17$ WATER 102,327.79$ 1,600,694.49$ 80,861.80$ 1,783,884.08$ - $ 12,156,918.33$ 8,530,764.25$ ACCOUNTS PAYABLE TOTAL 240,179.06$ 2,326,547.32$ 259,347.99$ 2,826,074.37$ - $ 64,131,439.30$ 55,097,632.80$ REG. PAYROLL
City 301,018.28$ -$ 291,742.45$ 592,760.73$ - $ 4,491,083.20$ 4,126,394.75$ Housing Authority 188.34$ -$ 190.52$ 378.86$ - $ 2,912.98$ 2,723.12$ Water 120,249.97$ -$ 116,888.72$ 237,138.69$ - $ 1,887,899.91$ 1,688,114.76$ PAYROLL TOTAL 421,456.59$ -$ 408,821.69$ 830,278.28$ - $ 6,381,896.09$ 5,817,232.63$ *No payments were issued on July 1, 2023.

City of Hesperia

WARRANT RUNS
12/30/2023-1/19/2024
Attachment 1

City of Hesperia

STAFF REPORT

DATE: February 20, 2024
TO: Mayor and Council Members
City Council, Serving as Successor Agency to the Hesperia Community Redevelopment Agency
Chair and Commissioners, Hesperia Housing Authority
Chair and Commissioners, Community Development Commission Chair and Board Members, Hesperia Water District

FROM: Rachel Molina, City Manager

BY: Casey Brooksher, Assistant City Manager
Anne Duke, Deputy Finance Director
Jacob Weatherbie, Accountant

SUBJECT: Treasurer’s Cash Report for the unaudited period ended December 31, 2023.

RECOMMENDED ACTION

It is recommended that the Council/Board accept the Treasurer’s Cash Report for the City, Successor Agency to the Hesperia Community Redevelopment Agency, Hesperia Housing Authority, Community Development Commission, and Water District.

BACKGROUND

This report is presented to the City Council pursuant to Government Code Section 5 3646 (b) setting forth the City’s investment portfolio.

ISSUES/ANALYSIS

The Treasurer’s Cash Reports are presented on the following pages for each agency.

FISCAL IMPACT

These reports reflect unaudited cash balances as of December 31, 2023.

ALTERNATIVE(S)

Provide alternative direction to staff.

ATTACHMENT(S)

1. City of Hesperia Investment Report

2. Successor Agency to the Hesperia Community Redevelopment Agency Investment Report

3. Hesperia Housing Authority Investment Report

4. Community Development Commission Investment Report

5. Hesperia Water District Investment Report

Staff Report to the Mayor and City Council/Board Members Treasurer’s Cash Report
February 20, 2024

Staff Report to the Mayor and City Council/Board Members Treasurer’s Cash Report
February 20, 2024

Staff Report to the Mayor and City Council/Board Members Treasurer’s Cash Report
February 20, 2024

I
Type of Investment
Investments under the direction of the City:

Institution/
Fiscal Agent
Interest
Rate
City of Hesperia
Investment Report
Unaudited
December 3 t 2023
Date of
Purchase
Date of
Maturity
Par Value
at Maturity
Book
Value
Market
Value
Local Agency Investment Funds State of Calif. I 3.929% Demand $ 86,730,245.57 • 86,730,245.57 86,730,245.57 Local Bank Checking Accounts U.S. Bank n/a Demand 4,377,674.49 4,377,674.49 4,377,674.49 Total Unaudited Investments under the direction or the City $ 91,107,920.06 $ 91,107,920.06 $ 91,107,920.06 Investments under the direction of fiscal agents:
2012 Lease Revenue Bonds -.- U
2012 Lease Revenue Bonds U
S Bank 0.417% 31-Dec-23 _ __pemand 7~MH 703.86 703.86
S Bank 0.431% 31-Dec-23 Demand 62,060.74 62,060.74 62,060.74 2012 Lease Revenue Bonds u S Bank 0.431% 31-Dec-23 Demand 1,471,413.17 1,471,413.17 1,471,413.17 2012 Lease Revenue Bonds U S Bank 0.431% 31-Dec-23 Demand 981.48 981.48 981.48 + -2014 CFD 2005-1 Refunding , U S Bank 0.431% 31-Dec-23 Demand 37,018.16 37,018.16 37,018.16 2014 CFO 2005-1 Refunding .. U S Bank 0.763% 31-Dec-23 Demand 1.32 1.32 1.32 !--
S Bank 0.431% 31-Dec-23 Demand 1,453,357.28 1,453,357.28 1,453,357.28 S Bank 0.431% ~ 31-Dec-23 Demand 25,354.95 25,354.95 25,354~ S Bank 0.381%- 31-Dec-23 Demand 179.07 I 179.07 179.07
2014 CFO 2005-1 Refunding --+-- U
2014 CFD 2005-1 Refunding U
2023 Refunding Lease Revenue Bonds U - 13,926.58 I S Bank 0.403% 31-Dec-23 Demand 13,926.58 13,926.58_ ~RMA n/a 31-Dec-23 n/a 706,439.071 706,439.07 706,439.07 , Bank 0.000% 31-Dec-23 n/a 1.08 1.08 1.08
'"" 3,632,719.78 I 3,632,719.78 lS Schwab n/a 31-Dec-23 n/a 3,632,719.78 ---- ~ 2023 Refunding Lease Revenue Bonds __,___ ~
Deposits - Worllers' Comp -----+- Pl
Sully Miller Retention - Ranchero t- U
City of Hesperia Stabalized Trust ---+-- Char_!
City of Hesperia OPEB Trust Chari lS Schwab nla 31-Dec-23 n/a 641,058.02 641,058.02 641,058.02 es Schwab n/a 31-Dec-23 n/a ~ 1,281,789::*92 1,281,789.92 1,281,789.92 - S Bank 0.000% 31-Dec-23 n/a 300,012.91 300,012.91 300,012.91 Hesperia Fire Protection PST Chari
City of Hesperia Settlement Escrow Account U
- Total Unaudited Investments under the direction or fiscal agents $ 9,627,017.39 $ 9,627,017.39 $ 9,627,017.39 Please Note: All market value data Is provided courtesy of the City's fiscal agent, US Bank.

I certify that this investment portfolio is in compliance with the statement of investment policy of the City of Hesperia and the investment program provides sufficient liquidity to meet expenditure requirements for the next six months, as required by the California Government Code sections 53646(b}(2) and (3), respectively. • Note: 2005 Certificates of Participation began in May 2005 for the finacing of the Civic Plaza.

Investment - City
ATTACHMENT 1
Account
Description
2012 - Water Rights Revenue Fund
2012-Water Rights Interest Fund
2012-Water Rights Reserve Fund
2012-Water Rights Surplus Revenue Fun d
2014 CFD 05-1 - Special Tax Fund
2014 CFD 05-1 - Bond Fund
2014 CFD 05-1 - Reserve Fund
_ 2014 CFO 05-1 Administrative Expense B onds
2023 Refunding Lease Revenue Bonds R evenue Fund
unds 2023 Refunding Lease Revenue Interest F_
GL 1352
Ranchero Road - Escrow Account
City Pension
City OPEB
Rre Pension
Settlement Escrow Account
- _,
i
i

Issuer/
Type of Investment Institution
Investments under the direction of the City:

I
Local Agency Investment Funds State of Calif.

Local Bank Checking Accounts U.S. Bank
Successor Agency to the Redevelopment Agency
Investment Report
Unaudited
December 31 ~ 2023
Interest Date of Date of Par Value Book
·Rate Purchase Maturity at Maturity Value
1 3.929% l 31-Dec-23 ] Demand $ 3,116,956.15 $ 3,116,956.15 I n/a 31-Dec-23 Demand 157,327.12 157,327.12
Total Unaudited Investments under the direction of the City $ 3,274,283.27 $ 3,274,283.27 Investments under the direction of fiscal agents:

12.63 I - I r
2018 Refunding Bonds US Bank 0.396% 31-Dec-23 Demand 12.63 2018 Refunding Bonds
I
US Bank 0.430% . 31-Dec-23 I Demand T 10,194.99 T 10,194.99 31-Dec-23 I Demand T 2018 Refunding Bonds US Bank 0.000% 1.00 1.00 $
Total Unaudited Investments under the direction of fiscal agents $ 10,208.62 $ 10,208.62 $ Please Note: All market value data is provided courtesy of the City's fiscal agent US Bank.

The 2018 Refunding Bonds are supported by a $9,799,443.76 bond insurance policy.

I certify that this investment portfolio is in compliance with the statement of investment policy of the City of Hesperia and the investment program provides sufficient liquidity to meet expenditure requirements for the next six months, as required by the California Government Code sections 53646(b}(2) and (3), respectively. • Note: The 2005 and 2007 Series Bonds were refinanced to 2018 Series Bonds in November 2018. :,,,
Investment - SA
ATTACHMENT 2
Market Account
Value Description
3,116,956.15
157,327.12
3,274,283.27

12.63 t 2018A & 2018B - Debt Service Account
10,194.99 • • 2018A & 2018B - Interest Account -• 1.00 2018A & 2018B - Reserve Account 10,208.62
nt

TYQ.e of Investment
Issuer/
Institution
Investments under the direction of the City:

Hesperia Housing Authority
Investment Report
Unaudited
December 31:. 2023
Interest Date of Date of
Rate Purchase Maturity
Par Value
at Maturity
Book
Value
ATTACHMENT 3
Market
Value
L
Local Agency Investment Funds J _ Stateo-f C_a_li_fo_rn_ia--~-3.-92_9_%--3-1--D-ec--2-3--De_m_a_n_d --$- 5-,6-9-5,-14-5-.9-9--5-,69_5_, 1-4-5.-99--5-,6-9-5,-14-5.99 Local Bank Checking Accounts ___ U.S. Bank n/a 31-Dec-23 Demand 287,460.22 287,460.22 287,460.22 Total Unaudited Investments under the direction of the City • $ 5,982,606.21 $ 5,982,606.21 $ 5,982,606.21 I certify that this investment portfolio is in compliance with the statement of investment policy of the City of Hesperia and the investment program provides sufficient liquidity to meet expenditure requirements for the next six months, as required by the California Government Code sections 53646(b)(2) and (3), respectively. l/!J(~ ~ Nichole Sheppar,,Senio Acounfant
Investment - HHA

T yg_e of Investment
Hesperia Community Development Comission
Investment Report
Unaudited
Issuer/
Institution
December 31~ 2023
Interest
Rate
Date of Date of
Purchase Maturiti
Par Value
at Maturi!Y
Investments under the direction of the City:

Book
Value
ATTACHMENT 4
Market
Value
Local Agency Investment Funds State of California r_ 3.929% 31-Dec-23 Demand $ 91,409.98 91,409.98 ··1 91,409.98 Local Bank Checking Accounts U.S. Bank . n/a 31-Dec-23 Demand 4,613.88 4,613.88 4,613.88 Total Unaudited Investments under the direction of the City $ 96,023.86 $ 96,023.86 $ 96,023.86 I certify that this investment portfolio is in compliance with the statement of investment policy of the City of Hesperia and the investment program provides sufficient liquidity to meet expenditure requirements for the next six months, as required by the California Government Code sections 53646(b)(2) and (3), respectively.

Nichole Sheppard, Se'nibr Accountant
Investment - CDC

T YQe of Investment
Investments under the direction of the City:

Issuer/
Institution
Hesperia Water District
Investment Report
Unaudited
December 31) 2023
Interest Date of Date of
Rate Purchase Maturity
Par Value
at Maturity
" Local Agencl Investment Funds J - State of California _j_ 3.929% _, L Local Bank Checking Accounts I U.S. Bank n/a
31-Dec-23 Demand $ 39,375,004.40
31-Dec-23 Demand T 1,987,437.61
Book
Value
39,375,004.40 .
1,987,437.s1T
Market
Value
ATTACHMENT 5
Account
DescriQtion
39,375,004.40
1,987,437.61
Total Unaudited Investments under the direction of the City $ 41,362,442.01 $ 41,362,442.01 $ 41,362,442.01 Investments under the direction of fiscal agents:
r Deposits - Workers' Comp PERMA n/a 31-Dec-23 I n/a I 1,222,852.54 j Total Unaudited Investments under the direction of fiscal agents $ 1,222,852.54 $ Please Note: All market value data is provided courtesy of the City's fiscal agent, US Bank.

I certify that this investment portfolio is in compliance with the statement of investment policy of the City of Hesperia and the investment program provides sufficient liquidity to meet expenditure requirements for the next six months, as required by the California Government Code sections 53646(b)(2) and (3), respectively.

Investment - ENT
1,222,ss2.54 I 1,222,852.54 ] GL 1352
1,222,852.54 $ 1,222,852.54

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City of Hesperia

STAFF REPORT

DATE: February 20, 2024
TO: Mayor and Council Members

FROM: Rachel Molina, City Manager
BY: Casey Brooksher, Assistant City Manager
Michael Assumma, Information Systems Manager

SUBJECT: Renewal of Disaster Recovery Service for the City’s Computing Systems

RECOMMENDED ACTION

It is recommended that the City Council authorize the City Manager to renew the City’s subscription to Nutanix Xi Leap Disaster Recovery as a Service (DRaaS) from Xentegra, for a not-to-exceed amount of $49,674.

BACKGROUND

When developing an organization’s disaster recovery plan, industry best-practices dictate a hybrid model that places multiple copies of mission critical data in both on-site and off-site repositories.

As part of its ongoing initiative to strengthen the City’s cyber defenses, the Information Technology Division implemented the Nutanix Xi Leap DRaaS solution to create an extra layer of resiliency protecting critical data and applications. Nutanix Xi Leap is procured as an annual subscription through Xentegra, a leading reseller of Nutanix products and solutions.

ISSUES/ANALYSIS

As the solution primarily responsible for moving and storing critical City data to the cloud, Nutanix Xi Leap plays a key role in the IT Division’s comprehensive data backup and disaster recovery strategy. Broadly, Xi Leap orchestrates the transfer of vital data to the cloud, and allows easy retrieval of that data in the event of a disaster. To a limited extent, Xi Leap can restore access to certain applications and databases during a major data loss incident at the City Hall Datacenter.

Xi Leap is provisioned on an annual basis through Xentegra, and as such need to be renewed for the coming year.

FISCAL IMPACT

Funding for this subscription renewal is included in the Adopted FY 2023-24 Budget.

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENT(S)

None

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City of Hesperia

STAFF REPORT

DATE: February 20, 2024
TO: Mayor and Council Members
Chair and Board Members, Hesperia Water District

FROM: Rachel Molina, City Manager
BY: Melinda Sayre, Deputy City Manager/City Clerk
Erin Baum, Assistant City Clerk

SUBJECT: Guardian Records Management and Storage Contract Amendment

RECOMMENDED ACTION

It is recommended that the City Council and Board of Directors of the Hesperia Water District authorize the City Manager to approve an amendment of $7,000 to the existing contract with Guardian Records Management and Storage (Guardian) , for a revised not -to-exceed contract amount of $92,200 for the storage, maintenance and destruction of City records.

BACKGROUND

In 2017, the City entered into a three-year contract with Guardian for the storage, maintenance and eventual destruction (where applicable) of City records after the sale of the Eagle Plaza facility where records were previously stored. This contract was renewed as a sole source in 2020 for an additional three years.

ISSUES/ANALYSIS

The current contract with Guardian expires at the end of Fiscal Year (FY) 2023-24. An increase in the contract amount is requested due to an increase in the quantity of records being stored and a backlog of records destruction lingering from COVID-19 closures. Staff has been pleased with the performance and security of the services offered by Guardian during the term of the contract.

FISCAL IMPACT

Funding for records storage, maintenance, and destruction is included in the City Clerk’s annual operating budget.

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENT(S)

None

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City of Hesperia

STAFF REPORT

DATE: February 20, 2024
TO: Chair and Board Members, Hesperia Water District

FROM: Rachel Molina, City Manager
BY: Mark Faherty, Director of Public Works – Part-Time Retired Annuitant Robert Worby, Fleet/Warehouse Supervisor

SUBJECT: Vehicle Procurement – Mid-Size Truck Replacement

RECOMMENDED ACTION

It is recommended that the Board of Directors of the Hesperia Water District (HWD) authorize the City Manager to approve the procurement of one (1) 2024 Chevrolet Colorado mid-size 4 x 4 truck for the Production Program, awarding the bid to Victorville Chevrolet, and enter into an agreement for the not-to-exceed amount of $41,047.

BACKGROUND

On January 5, 2024, vehicle 1168 was involved in a traffic accident. The 2006 Ford F-150 is approaching 123,000 miles and is eighteen (18) years old. This vehicle has reached the end of its useful li fespan as estimated accident repair costs along with annual costs attributed to maintaining the asset exceed the salvage value.

ISSUES/ANALYSIS

The Public Works Division released an informal request for quote (RFQ) on January 10, 2024, and solicited bids from seven vendors both locally and out of the area to maximize the bid response. The bid closed on January 16, 2024, with Victorville Chevrolet deemed to be the lowest responsive/responsible vendor.

FISCAL IMPACT

Funding for the purchase of the replacement vehicle is not included in the FY 2023-24 Budget. A budget amendment will be presented to the Board during the FY 2023 -24 Mid -Year Budget Review.

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENT (S

None

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City of Hesperia

STAFF REPORT

DATE: February 20, 2024
TO: Mayor and Council Members

FROM: Rachel Molina, City Manager
BY: Melinda Sayre, Director of Government Services/City Clerk Caleb Enriquez, Acting Code Compliance Manager

SUBJECT: Dr. Jaime Velasco Spay/Neuter and Telemedicine Contract

RECOMMENDED ACTION

It is recommended that the City Council authorize the City Manager to approve a contract with Dr.

Jaime Velasco in the not -to-exceed amount of $42,500 for spay, neuter procedures and telemedicine for animals in the care of the City’s animal shelter.

BACKGROUND

Beginning in calendar year 2011 through early September 2023, the City contracted with an onsite veterinarian. Through the onsite veterinarian, the City was afforded the benefit of proximity of the veterinarian, priority of services, premise permitting, and volume discounting. The premise permit allowed Animal Control staff the ability to order certain supplies and medication to maintain the health and well-being of the shelter animals.

During the beginning of FY 2023 -24, t he onsite veterinarian notified the City that they were ceasing operations and relocating their practice outside of the City, resulting in the termination of the contract. The City issued a request for bids (RFB) to twelve (12) local veterinarians for replacement services on August 24, 2023. Of the twelve (12) RFBs distributed, Antony’s Animal Hospital was the sole respondent to which the City entered into contract for spay and neuter services during September 2023.

While Antony’s Animal Hospital provided spay and neuter services, the contract did not allow for the ability to seek a new premise permit to order certain supplies and medication. To remedy this issue, during December 2023, the City executed a contract with Dr. Jaime Velasco in the amount of $24,000 to provide the City the use of their Veterinary premise permit.

ISSUES/ANALYSIS

During January 2024, Antony’s Animal Hospital notified the City that their practice could no longer fulfill the contract. The City engaged in conversations Dr. Jaime Velasco to provide spay and neuter services. Through negotiations, Dr. Jaime Velasco agreed to provide spay/neuter services on-site every Thursday of the month, along with offering Telemedicine, and providing a low -cost rabies clinic once a month. Telemedicine is the ability to videoconference with the veterinarian to assist with triaging animal care.

While this staff report is requesting to contract with Dr. Jaime Velasco for $42,500 and within the City Manager's approval authority, the total amongst both contracts, if approved, will be $66,500.

Staff Report to the Mayor and Council Members
Dr. Jaime Velasco Spay/Neuter and Telemedicine Contract February 20, 2024

In efforts to continue to offer robust animal care solutions, t he City is currently working on a Request for Proposal (RFP) for additional veterinary services with a projected release timeframe of March 2024.

FISCAL IMPACT

Sufficient funding exists in the City’s FY 2023-24 Operating Budget.

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENT(S)

None

City of Hesperia

STAFF REPORT

DATE: February 20, 2024
TO: Mayor and Council Members
Chair and Board Members, Hesperia Water District

FROM: Rachel Molina, City Manager
BY: Nathan R. Freeman, Director of Development Services Cassandra Sanchez, Director of Public Works
Bethany Hudson, Assistant Project Manager

SUBJECT: Amendments to Title 14, Chapter 14 of the Hesperia Municipal Code related to Ownership and Maintenance of Sewer Laterals

RECOMMENDED ACTION

It is recommended that the City Council and the Board of Directors of the Hesperia Water District (District) introduce and place on first reading Ordinance No. 2024-01 regarding the maintenance of sewer lateral lines; amending Title 14, Chapter 14.0 2 and Title 14, Chapter 14.08 of the Hesperia Municipal Code.

BACKGROUND

Throughout the District’s service area there are currently 9,400 sewer lateral lines, with a potential for this to increase to over 25,000 connections in the next twenty ( 20) years based on the Silverwood Master Planned Community (Silverwood) . A sewer lateral line refers to a pipe that conveys wastewater from a customer’s property to the public sewer mainline. Maintenance typically includes the clearing of blockages created by the accumulation of fats, oils, and grease, poor waste discharge practices, the removal of tree roots, and the repair of cracked or separated joints. Historically, the sewer lateral line responsibility has been shared where the property owner has maintained and repaired lines from the building or home to the property line and the District has maintained and repaired lines from the property line to the sewer main line.

Most of the historical work undertaken in association with removing blockages in sewer laterals has been a result of poor waste discharge practices by the property owner. Each blockage costs over $1,500 to repair and takes on average twenty (20) labor hours to remedy, taking staff away from other job duties and maintenance of main lines. As future development, such as Silverwood, connects to the sewer system, these costs and staff time are anticipated to increase substantially.

ISSUES/ANALYSIS

The City is currently experiencing economic growth with the addition of various commercial and industrial projects as well as new housing developments including Silverwood. Upon total build out, Silverwood will add an additional 15,663 homes that will connect to the District’s sewer infrastructure bringing the total sewer lateral connections to just over 25,000, not including any other development that would be required to connect to sewer. Based on the anticipated growth in development, maintenance, and replacement costs, inclusive of both normal deterioration and minor rate of failure, the anticipated long term financial impacts will result in an ongoing deficit for

Staff Report to the Mayor, Council, and Board of Directors Ownership and Maintenance of Sewer Laterals
February 20, 2024

Public Works and debt burden to the District’s annual budget that is not currently identified for long term fund dedication.

Anticipating the substantial impact of the Silverwood project, and in an effort to be proactive and adopt industry-wide policies employed by most California cities, staff recommends an amendment to the City’s Municipal Code to transfer all sewer lateral ownership (from the building or home to the sewer main) to property owners, which promotes a culture of responsible waste management.

If approved, p roperty owners would have a vested interest in maintaining the functionality and efficiency of their private sewer laterals, as they would essentially bear the costs of negligence or improper waste discharge. This is likely to promote better waste disposal practic es, reduce blockages or backups, and prevent costly damage to the entire sewer infrastructure. All existing commercial, industrial, multi-family, and single-family residential properties will be subject to the new Municipal Code requirements as of the effective date.

In anticipation of this recommended action, staff has begun developing a Private Lateral Maintenance Program to partner with the community to provide public education and outreach through a series of social media posts, communi ty events, and educational material handouts located at City Hall and the Public Works Yard. The Private Lateral Maintenance Program will launch immediately upon approval and will be a key component to the success of the program for the District to see a benefit of cost savings through the use of staff time and resources.

FISCAL IMPACT

It is anticipated that the District will realize annual cost savings with an expected long-term benefit due to the substantial growth rate of economic development within the City.

ALTERNATIVE(S)

1. The District will retain responsibility for all currently connected single -family residential properties and continue to maintain and service sewer lateral blockages from the property line to the sewer main. All existing Commercial, Industrial, and Multi-family properties shall be subject to the new municipal code language on the effective date.

2. Provide alternative direction to staff.

ATTACHMENT(S)

1. Ordinance 2024-01

2. Attachment 2 – Exhibit “A” Municipal Code Title 14, Chapter 14.02. Section 14.02.020 and Title 14, Chapter 14.08. Section 14.08.030 redlines and alternative language

ORDINANCE NO. 2024-01

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

HESPERIA AND THE BOARD OF DIRECTORS OF THE HESPERIA
WATER DISTRICT, CALIFORNIA, AMENDING TITLE 14,
CHAPTER 14.02 AND TITLE 14, CHAPTER 14.08 OF THE

HESPERIA MUNICIPAL CODE, RELATED TO THE OWNERSHIP

AND MAINTENANCE OF SEWER LATERAL LINES

WHEREAS, Title 14 of the Hesperia Municipal Code contains definitions related to water and wastewater terms; and

WHEREAS, Title 14 of the Hesperia Municipal Code contains regulations related to the maintenance of sewer laterals; and

WHEREAS, staff continues to experience blockages within sewer laterals as a result of negligently discharged liquids; and

WHEREAS, continuing to maintain sewer laterals will prohibit staff from performing routine maintenance of sewer main lines.

WHEREAS, transferring sewer lateral ownership to property owners promotes a culture of responsible waste management.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF HESPERIA DOES ORDAIN AS FOLLOWS:

Section 1. All of the facts set forth in this Ordinance are true, correct and are adopted as findings.

Section 2. Title 14, Chapter 14.02 of the Hesperia Municipal Code is hereby amended by replacing 14.02.020 as set forth in Exhibit “A”, attached hereto.

Section 3. Title 14, Chapter 14.08 of the Hesperia Municipal Code is hereby amended by replacing 14.08.030 as set forth in Exhibit “A”, attached hereto.

Section 4. This Ordinance shall take effect thirty (30) days from the date of adoption.

Section 5. The City Clerk shall certify to the adoption of the Ordinance and shall cause the same to be posted in three (3) public places within the City of Hesperia pursuant to the provisions of Resolution No. 2007-101.

ADOPTED AND APPROVED this 20th day of February 2024.

______________________________
Larry Bird, Mayor

ATTEST:

______________________________
Erin Baum, Assistant City Clerk

Attachment 2

14.02.020 Definitions.

Unless otherwise defined herein, terms related to water quality shall be as adopted in the latest edition of Standard Methods for the Examination of Water and Wastewater, published by the American Public Health Association, the American Water Works Association (A.W.W.A.) and the Water Pollution Control Federation. The testing procedures for waste constituents shall be performed pursuant to the Victor Valley Wastewater Reclamation Authority (VVWRA) guidelines and may be amended from time to time.

The words and phrases appearing hereinafter are defined and shall be construed as hereinafter set forth, unless it shall be apparent from the context that they have a different meaning. Words not defined in this section shall use definitions found in Section 1.04.050 of the Hesperia Municipal Code. "Applicant" means any person applying for water or wastewater service. "Backflow device" means any backflow device as defined in compliance with Title 17 of the Administrative Code of the state of California.
"Biochemical oxygen demand" or "B.O.D." means the quantity of oxygen utilized in the biological oxidation of organic matter under standard laboratory procedure in five days at twenty (20) degrees centigrade expressed in terms of mass per volume (mg/L). "Board" means the Board of Directors of the Hesperia Water District. "By-Pass" means any tool, apparatus, or similar device not authorized by the district, used to connect to the curb stop, to obtain water from the district. "Capital facilities charge" means a fee as established by the board payable to the district upon application for and before installation or approval of installation of any new water or wastewater service. "Chair" means the chairperson of the district or other person designated by the board to pe rform the services or to make the determinations as permitted or required under this code. "City" means the City of Hesperia.
"Code" means the Hesperia Municipal Code.
"Construction meter" means a temporary meter rendered for grading construction work a nd other uses of limited duration, as authorized by the district. "Consumption charge" means the charge for water consumed, both actual and estimated. "Contractor" means any person who performs the work of installing or connecting mains, submains, laterals, or building sewers to the public sewer.
"Cost" means the cost of labor, material, transportation, supervision, engineering, and all other necessary overhead expenses.
"County" means the County of San Bernardino.
"Critical wastewater discharger" means a collection system non-residential discharger that generates either a significant amount of flow and/or constituents of the flow require pre -treatment to meet the requirements of the Victor Valley Wastewater Reclamation Authority, and state and federal Clean Water Acts.
"Cross connection" means 1) any physical connection between the piping system from the district service and that of any other water supply which is not, or cannot be, approved as safe and potable for human consumption, whereby water from the unapproved source may be forced or drawn into the district's distribution mains, and 2) any connection or arrangement, physical or otherwise, between a potable water supply system (the district) and any plumbing fixture; or any tank, receptor, equipme nt, or

device, through which it may be possible for non-potable, used, unclean, polluted, and/or contaminated water, or other substance to enter any party of such potable water supply system under any condition. "Curb stop" means a shut-off valve located on the district's side of the meter, for the district to control water service to the meter.
"Customer" means any person supplied or entitled to be supplied with water or wastewater service by the district.
"Customer's shut-off valve" means a shut-off valve independent of the district property and located on the customers' side of the water meter, for the convenience of the customer to control their water supply.
"Deposit" means funds held by the district as a guarantee. "Developer" means any person who shall construct or develop any property which may require water or wastewater service from the district.
"Development" means a parcel of land on which one or more dwelling units, commercial or industrial buildings, or other improvements are built.
"Discharger" means any person who discharges or causes a discharge of wastewater directly or indirectly to a public or private sewer.
"Disconnection of service" means discontinuing water supply to the customer by locking meter, pulling meter, crimping and capping district service line, turning off at the curb stop, or any other necessary means.
"District" means the Hesperia Water District.
"District engineer" means the city engineer.
"District property" means any and all water components related to the water system, commencing at the check valve or water meter, if no check valve is present, continuing throughout the entire network of the district, including but not limited to plant sites and related properties. District property also includes any and all components related to the district wastewater system commencing at the lateral cleanout, continuing throughout the entire network of district wastewater system. "District sewerage facility" or "district wastewater facility" means any property belonging t o the district used in the treatment, reclamation, reuse, transportation, or disposal of wastewater. "Domestic wastewater" means liquid wastes: (a) from the non-commercial preparation, cooking and handling of food; and/or (b) containing human excrement and similar matter from sanitary conveniences of dwellings, commercial buildings, industrial facilities and institutions. "Effluent" means wastewater discharged from the district. "Equivalent dwelling unit" or "EDU" means the quantity and quality of domest ic wastewater discharged from a standard or average single-family dwelling unit, having approximately twenty-two (22) plumbing fixture units capable of contributing two hundred fifty (250) gallons per day of domestic sewage. "Fats, oils, and grease (FOG)" means any vegetable or animal product that is used in or is a by- product of the cooking of food preparation process, and that turns or may turn viscous or solidifies with a change in temperature or other conditions.
"Fee schedule" means the schedule of fees, rates, and charges established by the district, city, VVWRA, or other agency related to water and wastewater services, including but not limited to service charges, consumption charges, connection fees, and inspection fees. "Garbage" means solid wastes from the domestic or commercial preparation, cooking and dispensing of food, or from the handling, storage or sale of food.

"General manager" or "district manager" means the city manager. "Improvement agreement" means a written agreement entered into by and between the district and an applicant for water service from the district, whereby the applicant agrees to furnish or pay for such improvements and appurtenances to the water system of the district as may be required to enable the district to furnish the requested water service.
"Improvement district" means any territory formed into a district pursuant to Section 31575 of the California Water Code.
"Ingress and egress" means the right to enter and exit an owner's or customer's premises. "Interruptions in service" means a time period without water available or with a substantial change in water pressure or flow.
"Main" means pipelines located in streets, highways, alleys, easements or rights -of-way which are used for water distribution and transmission.
"Mass emission rate" means a weight of material discharged to the wastewater system during a given time interval. Unless otherwise specified, the mass emission rate is expressed in pounds per day of a particular constituent or combination of constituents. "May" denotes that the related conduct or procedure is permissive and not mandatory. "Milligrams per liter" or "mg/L" means the number of milligrams of a substance in one liter of water or other liquid.
"National Pollution Discharge Elimination System" or "NPDES" means the Federal Pollution Regulation System as detailed in Public Law 92-500 Section 402. "Owner" means the person or persons whose name(s) are recorded on the deed for a given property, and/or the person in legal possession of the property, or an executor, administrator, guardian, or trustee of the owner.
"Permit" means any written authorization required pursuant to this chapter, the code, or any other regulation of the district.
"Person" means an individual or company, association, co-partnership, or public or private corporation.
"Pollutant" means any constituent or characteristic of wastewater on which a discharge limitation may be imposed either by the district or by a regulatory body of competent jurisdiction. "Premises" means a lot or parcel of real property under one ownership, except where there are well defined boundaries or partitions such as fences, hedges or other restrictions preventing the common use of the property by several occupants, in which case, each portion shall be deemed separate premises.

Apartment houses, offices, commercial and industrial buildings may be classified as single premises. "Pressure regulator valve" means a valve used to control water pressure. "Pretreatment" means treatment that the district may require prior to permitting discharge of sewerage into any district sewerage facility.
"Private fire protection service" means water service and facilities for building sprinkler systems, hydrants, hose reels, and other facilities installed on private property for fire protection, and the water available therefor.
“Private sewer lateral” or “PSL” means that part of sewer piping that extends from the building or structure to the connection point of the sewer main.
"Public agency" means the district or other governmental body duly organized under the laws of the state of California.
"Public sewer" means a sewer owned and operated by the district or other local governmental agency, and as to which the district possesses direct or indirect regulatory powers.

"Reconnection" means restoring water/sewer service.
"Secretary" shall be the city clerk.
"Section" means a section of this code unless some other chapter, ordinance, or statute is intended from the content.
"Service charge" means the flat rate based upon the size or type of meter. "Sewage" means wastewater.
"Sewer charge" means the flat rate charged based on the number of equivalent dwelling units (EDU) assigned to an account.
"Shall" denotes that the related conduct or procedure is mandatory and not permissive. "Standard methods" means methods and procedures described in the current edition of Standard Methods for the Examination of Water and Wastewater, as published by the American Public Health Association, the American Water Works Association and the Water Pollution Control Federation. "Street" means any public highway, road, street, drive, avenue, alleyway, court, easement or right - of-way.
"Storm water" means rain water, surface water, ground water, roof run-off, sub-surface drainage, cooling water or unpolluted industrial process water.
"Tampering" means any unauthorized bending, cutting, stretching, removing, damaging, or similar actions of locking devices, meter, or other district property. Tampering also includes any u nauthorized use of the curb stop, breaking a seal on a meter, or removing the head of a water meter or any other property of the district.
"Termination of service" means the period for which the customer's responsibility for the water/sewer service terminates, either by written request of the customer or at the district's discretion. "User" means any person, firm, partnership, association, corporation, or political entity, who discharges, causes, or permits a discharge directly or indirectly to a district sewer. "Vice chair" means the mayor pro tem of the city.
"VVWRA" means the Victor Valley Wastewater Reclamation Authority. "Water waste" means any unreasonable or non-beneficial use of water, or any unreasonable method of use of water, including, but not limited to the specific uses prohibited and restricted by this chapter as hereinafter set forth.
"Wastewater" means sewage and/or waste substances and water, whether treated or untreated, discharged into or permitted to enter a district sewer, or private system. "Wastewater facilities" or "sewage facilities" means any facility or facilities used in the conveyance, pumping, and treatment of wastewater.
"Water" means that water supplied by the Hesperia Water District. "Water/sewer service" means water/sewer and facilities rendered for normal domestic, commercial, irrigation, and industrial purposes on a permanent basis, and the water/sewer available therefor. "Water supply shortage" means any water shortage caused by drought or any other threatened or existing water shortage, disaster or facility failure, earthquake, extended loss of electrical power, pipe line failure, or other condition which results in or threatens to result in the district's inability to meet the water demands of its customers.
"Water user" means any person, firm, partnership association corporation or political entity using water obtained from the water system of the district.

14.08.030 Maintenance of private sewer laterals (PSL).

The owner of any property connecting to the local wastewater collection system shall be required to maintain the wastewater laterals from their building or structure to the connection point of the sewer main wastewater cleanout required at the property line at their own expense. The district's responsibility is shall be limited to maintain wastewater laterals within street rights-of-way, manholes, and district main line sewers, and appurtenances related to the conveyance of wastewater.

Each property owner shall, at the property owner’s expense, inspect, maintain in good working order, repair, and replace, as necessary, the PSL so that it does not cause or contribute to any sewage overflow from the PSL or the public sewer. The PSL shall be free of open joints, cracks, leaks, root intrusion, inflow, infiltration of groundwater, fats, oil, grease, or any other similar conditions, defects, or obstructions likely to cause or contribute to blockage of the PSL or the district’s main line sewer. Where such maintenance requires excavation or replacement of existing sewer facilities, the owner shall apply for and receive an encroachment permit as per Title 12, Chapter 12.12. Section 12.12.060.

Alternative Municipal Code Language

14.08.030 Maintenance of private sewer laterals (PSL).

The owner(s) of any existing commercial, industrial, or multi-family property along with any new commercial, industrial, multi-family and single-family residential property connecting to the local wastewater collection system shall be required to maintain the wastewater laterals from their building or structure to the connection point of the sewer main wastewater cleanout required at the property line at their own expense. The district's responsibility is shall be limited to maintain wastewater laterals within street rights-of-way, manholes, and district main line sewers, and appurtenances related to the conveyance of wastewater. The district will retain responsibility for the maintenance of the private sewer laterals from the property line to the sewer main for existing single-family residential properties that were connected prior to the effective date of this ordinance.

Each property owner shall, at the property owner’s expense, inspect, maintain in good working order, repair, and replace, as necessary, the PSL so that it does not cause or contribute to any sewage overflow from the PSL or the public sewer. The PSL shall be free of open joints, cracks, leaks, root intrusion, inflow, infiltration of groundwater, fats, oil, grease, or any other similar conditions, defects, or obstructions likely to cause or contribute to blockage of the PSL or the district’s main line sewer. Where such maintenance requires excavation or replacement of existing sewer facilities, the owner shall apply for and receive an encroachment permit as per Title 12, Chapter 12.12. Section 12.12.060.

City of Hesperia

STAFF REPORT

RECOMMENDED ACTION

It is recommended that the Fiscal Year (FY) 2023-24 Mid-Year Budget Review be received and filed and the related following resolutions, which amend the respective FY 2023-24 Budgets for the City of Hesperia and the Hesperia Water District be approved:

1) City of Hesperia Resolution No. 2024-03
2) Hesperia Water District HWD No. 2024-02

BACKGROUND
In compliance with the City Council’s policy direction, staff has prepared the FY 2023-24 Mid-Year Budget Review for the City Council , the Hesperia Housing Authority , Community Development Commission, the Hespe ria Fire Protection District and the Hesperia Water District Board’s consideration and action.

ISSUES/ANALYSIS
The attached document entitled “ FY 2023-24 Mid-Year Budget Review” includes a report on the status of the City’s FY 2023-24 Budget and financia l plan for the first six months of the current fiscal year. The report format is designed to facilitate the review of complex financial information for an efficient and effective financial review process.

FISCAL IMPACT
See FY 2023-24 Mid-Year Budget Review attached.

ALTERNATIVE

1. Provide alternative direction to staff.

ATTACHMENTS

1. FY 2023-24 Mid-Year Budget Review

2. Resolution No. 2024-03

3. Resolution HWD No. 2024-02
DATE: February 20, 2024
TO: Mayor and Council Members
Chair and Commission, Hesperia Housing Authority
Chair and Commission, Community Development Commission
Chair and Board Members, Hesperia Fire Protection District Chair and Board Members, Hesperia Water District
FROM: Rachel Molina, City Manager
BY: Casey Brooksher, Assistant City Manager
Lorraine Carmona, Budget/Finance Specialist
SUBJECT: Fiscal Year 2023-24 Mid-Year Budget Review

FISCAL YEAR 2023-24

MID-YEAR B

UDGET REVIEW
Februa
ry 20, 2024
Attachment 1

T A B L E O F C O N T E N T S

Page
Executive Summary ............................................................................................................................ 3 Status of FY 2023-24 Budget, Budget Amendments, and Reserves:

General Fund .......................................................................................................................... 5 Water District .......................................................................................................................... 6 Streets Maintenance ............................................................................................................... 7 FY 2023-24 December 31, 2023 Year-To-Date Revenue Review:

Major Funds Revenue Summary ............................................................................................ 8 General Fund Revenues ......................................................................................................... 9 Community Development Block Grant Revenue ..................................................................... 10 Community Development Commission Revenue .................................................................... 11 Hesperia Housing Authority Revenue ..................................................................................... 11 Street Related Funds Revenue ............................................................................................... 12 Other City Funds Revenue ..................................................................................................... 13 Water District Revenue ........................................................................................................... 15 Department FY 2023-24 Budget Expenditure Status Summary ........................................................... 18 Total Expenditures By Department and Program ................................................................................. 18 Proposed Budget Amendments – Summary ........................................................................................ 23 Proposed Budget Amendments – Narrative ......................................................................................... 23 2024-25 Tentative Budget Calendar ................................................................................................ .... 26

EXECUTIVE SUMMARY
The following chart compares the FY 2023-24 Budget and December 2023 year-to-date (YTD) revenue and expenditure totals. The percentage comparisons for revenues and expenditures are based on comparing the December 202 3 YTD to the FY 202 3-24 Amended Budget. The Amended Budget is used to accurately reflect any changes to the adopted budget that occur from City Council approving budget amendments during the first six months of the fiscal year.

Status of Overall City Fiscal Year 2023-24 B udget

• Revenue: Bas ed upon the analysis of the revenue performance through December 2023, total revenue collected is $48.5 million, which is $7.9 million or 14% less than December 2022 YTD revenue of $56.4 million. Overall, revenue is at 35% collected of the budget, which is typical due to the timing of payments related to some larger revenue sources such as several tax -based revenues, Development Impact Fees, and Capital Improvement Projects. Additional details are provided further within the report.

• Expenditures: As referenced in the chart above, expenditures are 44% of the amended budget through December 2023. Operating expenditures are 46% expended which is typical for the first half of the fiscal year. Non-operating expenditures are 40% expended YTD, which is due to multiple capital improvement projects (CIP) funds that have minimal expenditures through the second quarter and will increase as projects move forward. It should be noted that there are eight (8) budget amendments totaling $12,030,600 included in this report.

• Reserves: The General Fund and Water District (operating and capital) exceed the City Council’s R eserve Policy which established that a minimum of two (2) months of the annual expenditures be held in cash. The following estimated reserve calculations are based on the June 30, 2023 ending cash balances included in the June 30, 2023 audited Annual Comprehensive Financial Report (ACFR). Using the ACFR audited data assures that the estimated reserves are based on actual information. In addition, t he eight (8) Mid-Year Budget Amendments, totaling $12,030,600, are reflected below where appropriate:

*This total includes strategic res erves, such as permanent water right purchases, as well as the operating funds, contamination mitigation funds, asset rehab funds, and capital funds. 2023-24 2023-24 December Revised %
Budget Revised 2023 YTD Received/Expended
Revenue 137,967,681$ 139,041,808$ 48,501,142$ 35% Use of Reserves 11,356,960 13,664,929
Total Resources 149,324,641 152,706,737
Expenditures 136,996,564 138,028,227 60,133,803 44% Difference 12,328,077$ 14,678,510$
10% Cash Reserves 4,914,038$ 10% 3,830,270$ 10%
Cash Reserves Above 10% Reserve 16,814,643 34% 31,469,818 79% Total Estimated Cash Reserves 21,728,681 $ 44% 35,300,088$ 89% Months of Cash 5.3 11.3 *
Water DistrictGeneral Fund

EXECUTIVE SUMMARY (Continued)

Proposed Budget Amendments – 8 Budge t Amendments are proposed for $12,030,600 The FY 2023-24 Mid-Year Budget Review includes eight (8) items as proposed budget amendments totaling $12,030,600. The proposed budget amendments are included in the fund balance analyses where appropriate:

Revenues and Expenditures through December 31, 2023 for the City’s main funds are summarized as follows:

General Other
FY 2023-24 Mid-Year Budget Requests Fund Funds Totals

1. Goals and Priorities Consultant $ 16,900 0$ 16,900$

2. Golf Course (driving range purchase, booster pump 844,869 0 844,869 repairs, property taxes)

3. General Plan Update 398,076 0 398,076

4. Spay/Neuter Supplies and Equipment 38,122 0 38,122

5. Contract Services Increase 76,000 0 76,000

6. County Contract Amendment 100,926 0 100,926

7. 2013 Refunding Lease Revenue Bonds (Refinancing) 0 10,514,660 10,514,660

8. Vehicle Replacement 0 41,047 41,047 Total Mid-Year Amendment Requests $ 1,474,893 $ 10,555,707 12,030,600$ General Fund Revised Budget December
% of Revised
Received
Amended
Budget December
%
Expended
City Council 819,204$ 692,263$ 85%
City Manager 1,682,770 891,316 53%
Management Services 10,056,774 6,399,300 64% Economic Development 422,711 239,965 57% D.S.-Community Development 2,502,575 1,173,977 47% D.S.-Code Compliance 5,237,933 2,239,763 43% D.S.-Public Works (G.F.) 2,585,545 1,073,451 42% Police 21,972,838 10,716,496 49%
Total General Fund 47,466,791$ 14,320,482 $ 30% 45,280,350$ 23,426,531$ 52% Community Development Block Grant 997,511 82,615 8% 100,932 61,723 61% Community Development Commission 696,696 696,696 0% 0 0 n/a Hesperia Housing Authority 301,021 273,812 91% 75,781 24,652 33% D.S.-Public Works 14,890 21,536 145% 4,265,058 1,851,164 43% Streets CIP Funds 48,973,924 9,948,344 20% 42,675,699 10,061,912 24% Other City Related Funds 4,085,355 3,752,990 92% 6,431,097 11,366,179 177% D.S.-Water Operating and Capital 28,287,028 15,713,374 56% 25,324,837 9,012,236 36% D.S.-Sewer Operating and Capital 8,162,264 3,570,421 44% 12,936,815 3,422,091 26% Fire District 56,328 120,872 215% 937,658 907,316 97% Total 139,041,808$ 48,501,142 $ 35% 138,028,227$ 60,133,803$ 44% 2023-24 Revenue 2023-24 Expenditures

STATUS OF CITY GENERAL FUND 2023-24 BUDGET, BUDGET AMENDMENTS, AND RESERVES

2023-24 2023-24
Budget Revised Dollars Pe rcent

RESOURCES
General Fund Operating Revenue 47,466,791$ 47,466, 791$ 0$ 0% Transfers In

1. Fund 255 - AB 3229 COPS Grant 200,000 200,000 Total Transfers In 200,000 200,000
Budgeted Reserves

1. Budgeted Reserves 0$ 0$

2. Mid-Year Budget Amendment Reserves 0 1,474,893 Total Budgeted Reserves 0$ 1,474,893$ Total General Fund Resources 47,666,791$ 49,141, 684$ 1,474,893$ 3%

EXPENDITURES
Total General Fund Operating Expenses 45,131,664$ 45,131, 664$ Transfers Out

1. Fund 210 - HFPD CalPERS 937,658 937,658
1,447,475 1,447,4 75
Total Transfers Out 2,385,133 2,385, 133
Approved Adjustments to Expenditure Budget
First Quarter Budget Amendments - Approved 0 148,686 Total Approved Amendments 0$ 148,686$ Total Approved Budget 47,516,797$ 47,665, 483$
Mid-Year Budget Amendment Requested

1. Goals and Priorities Consultant 0 16,900 2 . Golf Course 0 844,869

3. General Plan Update 0 398,076

4. Spay/Neuter Supplies and Equipment 0 38,122

5. Contract Services Increase 0 76,000

6. County Contract Amendment 0 100,926
Total Mid-Year Budget Amendments - Requested 0 1,474,893 Total Recommended Expenditure Budget 47,516,797$ 49,140, 376$ 1,623,579$ 3% DIFFERENCE TOTAL RESOURCES/TOTAL EXPENDITURES 149,994$ 1,308$ Fund Balance
July 1 Beginning Balance 33,783,024$ 36,134, 450$
Total Budgeted Reserves 0 (1,474,893) Difference Total Resources/Total Expenditures 149,994 1,308 Estimated June 30 Ending Fund Balance 33,933,018$ 34,660, 865$ Months of Cash to Pay Expenditures and Transfers Out
Beginning Cash July 01, 21,899,077$ 23,202, 266$
Estimated Resources Less Budgeted Reserves 47,666,791 47,666, 791 Estimated Expenditures (47,516,797) (49,140, 376)
22,049,071$ 21,728,6 81$
Months of Cash to Pay Expenditures and Transfers Out 5.6 5.3 Estimated Cash Reserves Percentage 46% 44%
Estimated Ending Cash June 30,
Change

2. Fund 402 - 2012 Water Rights Acquisition Debt Service

STATUS OF WATER DISTRICT 2023-24 BUDGET, BUDGET AMENDMENTS, AND RESERVES

2023-24 2023-24
Resources Budget Revised Dollars Percent
Revenue
Water Operating and Capital 27,947,839$ 27,947,839$ Sewer Operating and Capital 8,162,264 8,162,264 Reclaimed Water Operations 339,189 339,189 Total Revenue 36,449,292 36,449,292 0 0% Budgeted Reserves
Budgeted Reserves 4,785,619$ 4,785,619$
First Quarter Budget Amendment-Approved 0 110,500 Total Budgeted Reserves 4,785,619$ 4,896,119$ 110,500$ 2% Total Water District Resources 41,234,911$ 41,345,411$ 110,500$ 0% Expenditures by Program
Water Operating and Capital and Transfer Out 24,370,831$ 24,370,831$ 0$ 0% Sewer Operating and Capital 12,936,815 12,936,815 Reclaimed Water Operations 289,116 289,116 Total Water District Expenditures & Transfers Out 37,596,762$ 37,596,762$ 0$ 0% Approv
ed Adjustments to Water Operating Expenditure Budget
Board Approved Budget Amendments - Staff Reports 0$ 554,390$ First Quarter Budget Amendments - Approved 0 110,500 Total Approved Amendments 0$ 664,890$ Total Approved Budget 37,596,762$ 38,261,652$ 664,890$ 2% Mid-Year Budget Amendments - Requested
0 41,047
0 41,047
To
tal Expenditures and Amendments 37,596,762$ 38,302,699$ 705,937$ 2% Establishment of Reserve Balances
Permanent Water Rights $ 1,146,888 1,146,888$ Total Reserve Balances 1,146,888 1,146,888 Total Water Expenditures & Reserve Balance Funding $ 38,743,650 $ 39,449,587 Difference Total Resources/Total Expenditures 2,491,261$ 1,895,824$ July 1 Beginning Balance 116,800,903$ 119,433,922$ Budgeted Reserves (4,785,619) (4,896,119)
Difference Resources/Expenditures 2,491,261 1,895,824 Reserve Balances 1,146,888 1,146,888
Estimated June 30 Ending Fund Balance 115,653,433$ 117,580,515$ Months of Cash to Pay Expenditures
Beginning Cash July 01, 26,848,587$ 37,153,495$ Estimated Resources Less Budgeted Reserves 36,449,292 36,449,292 Estimated Expenditures (37,596,762) (38,302,699) 25,701,117$ 35,300,088$
Months of Cash to Pay Expenditures and Transfers Out 8.2 11.3 Estimated Ending Cash June 30,
Change

1. Vehicle Replacement
Total Mid-Year Budget Amendments - Requested

STATUS OF STREETS MAINTENANCE FUND 2023-24 BUDGET, FUND BALANCE, AND RESERVES

2023-24 2023-24
RESOURCES Budget Revised Dollar s Percent
Street Maintenance Operating Revenue 14,890$ 14,890$ 0$ 0% Transfers In
Fund 100 - General Fund 0$ 0$
Fund 204 - Measure I - Renewal 1,750,000 1,750,000
Fund 205 - Gas Tax Fund 1,400,000 1,400,000
Fund 206 - Gas Tax Swap 600,000 600,000
Fund 207 - Local Transportation Fund 226,883 226,883 Total Transfers In 3,976,883 3,976,883
Total Revenues 3,991,773 3,991,773
Budgeted Reserves

1. Budgeted Reserves 253,785$ 253,785$

2. First Quarter Budget Amendment Reserves 0 19,500 Total Budgeted Reserves 253,785$ 273,285$
Total Street Maintenance Resources 4,245,558$ 4,265,058 $ EXPENDITURES 4,245,558$ 4,245,558 $ 0$ 0% Approved Adjustments to Expenditure Budget
First Quarter Budget Amendments - Approved 0$ 19,500$ Total Approved Amendments 0$ 19,500$
Total Approved Budget 4,245,558$ 4,265,058 $ 19,500$ 0% Total Recommended Expenditure Budget 4,245,558$ 4,265,058 $ DIFFERENCE RESOURCES/EXPENDITURES 0$ 0$ 0$ n/a Fund Balance
July 1 Beginning Balance 295,183$ 608,077$
Total Budgeted Reserves (253,785) (273,285)
Difference Resources/Expenditures 0 0 Estimated June 30 Ending Balance 41,398$ 334,792$ Change

FISCAL YEAR 2023-24 DECEMBER 31, 2023 YEAR-TO-DATE REVENUE REVIEW

Overall – Through December 2023, total revenue is $ 48.5 million, or 35% percent of the total budgeted revenue of $138.0 million. It should be noted that changes in the local, state, and national economic environments can impact each of these revenue sources and trends going forward. I n this section, discussions will pertain to the revenue activity through the 2nd quarter of FY 2023-24.

As of December 31, 2023, the General Fund received revenues of $14.3 million which is 30% of the annual budget.

This is typical as several major revenues such as Vehicle License Fees and Franchise Fees are primarily received in the second half of the Fiscal Year. The Other General Fund Revenues are currently performing above original budget estimates primarily due to $0.5 million in one -time revenue from the Army Corps of Engineers to reimburse the City for project-related funds previously held in trust.

Street Related Funds revenue is at $10.0 million, or 20% of the $49.0 million originally budgeted, which is expected as a majority of the budgeted revenue is attributed to Street related CIP projects. Development Impact Fees for streets and storm drains is another aspect of this revenue group. This revenue group is largely driven by the timing of the completion of various projects.

As a whole, the Water District revenue is performing as anticipated through December 2023 with 53% of budgeted revenue received to date.

The following pages will detail the current revenue collections for each fund.

December Change From
2023-24 2023-24 Percen t 2023-24 Budget To
Budget Actual Received Revised Revised
General Fund 47,466,791$ 14,320,482$ 30% 47,466,791$ 0$ Community Development Block Grant 997,511 82,615 8% 997,511 0 Community Development Commission 0 696,696 n/a 696,696 696,696 Hesperia Housing Authority 173,590 273,812 158% 301,021 127,431 Street Related Funds 48,988,814 9,969,880 20% 48,988,814 0 Other City Related Funds 3,363,977 3,334,779 99% 3,613,977 250,000 Water Operating 26,662,353 14,870,307 56% 26,662,353 0 Water Capital 1,221,486 495,922 41% 1,221,486 0 Water Reserves 64,000 116,700 182% 64,000 0 Reclaimed Water 339,189 230,445 68% 339,189 0 Total Water Operating & Capital 28,287,028 15,713,374 56% 28,287,028 0 Sewer Operating 6,135,096 3,174,770 52% 6,135,096 0 Sewer Capital 2,021,200 382,439 19% 2,021,200 0 Sewer Reserves 5,968 13,212 221% 5,968 0 Total Sewer Operating & Capital 8,162,264 3,570,421 44% 8,162,264 0 Water District 36,449,292 19,283,795 53% 36,449,292 0 Sub-total 137,439,975 47,962,059 35% 138,514,102 1,074,127 American Rescue Plan Grant 527,706 539,083 102% 527,706 0 Total All Funds 137,967,681$ 48,501,142$ 35% 139,041,808$ 1,074,127$

MAJOR FUNDS REVENUE SUMMARY

FISCAL YEAR 2023-24 DECEMBER 31, 2023 YEAR-TO-DATE REVENUE REVIEW (Continued)

General Fund Revenue Comments:

General Fund Revenue – Through December 2023, revenues totaled $14.3 million, or 30% of the budgeted estimate.

Overall, General Fund revenues are performing as anticipated. Several large revenue sources such as Sales Tax, Vehicle License Fees and Franchise Fees are expected to increase later in the fiscal year due to the timing of receiving the revenue.

Sales and Use Tax – Through December 2023, the City has received $4.5 million, which is 31% of the $14.4 million FY 2023-24 Budget. Due to timing of receiving revenue, the State has remitted tax payments through October 2023. Tax payments received from this revenue source is trending nearly as expected and will continue to be monitored.

Vehicle License Fee (VLF) – This revenue is bas ed on the City’s assessed valuation of the properties within the City.

As the assessed valuation changes from the prior year, this revenue changes by the same percentage. There is no revenue reported through December 2023, as the first installment of the VLF of $6.1 million, or 53% of the budget, was received in January 2024. The second installment expected to be received in May 2024.

Franchise Fees – Franchise fees for Cable TV, Advance Disposal, Southwest Gas, Southern California Edison, and Water for December 2023 YTD total $773,139 , which is a slight increase over the December 2022 of $771,654 YTD.

As mentioned, the majority of franchise fees are received in the second half of the fiscal year.

Transient Occupancy Tax (TOT) – Through December 2023, YTD revenue is $ 550,300, which is $ 197,875 less than the December 202 2 YTD of $7 48,175. TOT tax es received through December have been collected at 32 % of the budgeted amount, which is primarily due to delays in the timing of payments . The City is taking active measures by placing liens on properties that are delinquent in remittance and will continue to monitor collections.

Secured Property Tax – Through December 2023 , YTD revenue is $590,876, which is $46,608 more than the December 2022 YTD $544,268. This revenue is on track through December 2023, with 53% of the budgeted amount received.

December Change From
2023-24 2023-24 Percent 2023-24 Budget To
Budget Actual Received Revised Revised
Sales and Use Tax 14,439,963$ 4,500,676$ 31% 14,439,963$ 0$ Vehicle License Fee (VLF) 11,565,002 0 0% 11,565,002 0 Franchise Fees 4,308,213 773,139 18% 4,308,213 0 Sub-Total Top Three Revenues 30,313,178 5,273,815 17% 30,313,178 0 General & Administrative Recovery 3,750,935 1,875,468 50% 3,750,935 0 Transient Occupancy Tax 1,700,000 550,300 32% 1,700,000 0 Secured Property Tax 1,118,712 590,876 53% 1,118,712 0 Business License 824,243 378,050 46% 824,243 0 Community Facilities District 2005-1 379,185 193,982 51% 379,185 0 Leased Water Rights 2,152,605 0 0% 2,152,605 0 Development Related Revenues
Planning 563,260 290,646 52% 563,260 0 Building & Safety 1,666,784 1,046,339 63% 1,666,784 0 Engineering 955,830 354,460 37% 955,830 0 Sub-Total Development Related Revenues 3,185,874 1,691,445 53% 3,185,874 0 Sub-Total Top 10 Revenue Sources 43,424,732 10,553,936 24% 43,424,732 0 All Other General Fund Revenues 4,042,059 3,766,546 93% 4,042,059 0 Total General Fund Revenues 47,466,791$ 14,320,482$ 30% 47,466,791$ 0$

GENERAL FUND REVENUES

FISCAL YEAR 2023-24 DECEMBER 31, 2023 YEAR-TO-DATE REVENUE REVIEW (Continued)

General Fund Revenue Comments (Continued):

Business License – The City taxes businesses for conducting business within the City. YTD December 2023 collections of $378,050 is $48,574 or 11% less than the December 2022 YTD of $426,624. The decrease in revenue is due to the decrease of new business licenses paid in FY 2023-24. There were 3,044 total business licenses paid during the first six months of FY 2023- 24 compared to the 3,267 licenses paid December 2022 YTD. There are no recommendations to decrease this revenue as new rates will go into effect March 1, 2024 from adopted fee schedule.

Community Facilities District 2005-1 – This special assessment district, (generally west of Maple Avenue and south of Main Street), was formed to refinance the bonds of CFD 91- 3, and assesses the properties within the district to repay the bonds. Part of the annual assessment includes a public safety portion to offset some of the costs that residential development places on the City’s public safety providers. The December 2023 YTD of $193,982, which is 7 % more than December 2022 YTD of $180,564, is trending as expected.

Leased Water Rights – The permanent water rights owned by the General Fund can be leased annually and the lease revenue is used to pay for the 2012 Bonds, which financed the purchase of the water rights. The leasing of water rights revenue is collected at the end of the year and will be recorded in June 2024.

Development Related Revenue – This revenue source accounts primarily for development related fees such as Planning, Building and Safety , and Engineeri ng. Overall, the FY 2023- 24 revenue through December 2023 of $1.7 million represents 53% of the budget. Planning and Building & Safety revenues are trending as expected. Engineering revenue is at 37% collected through December 2023 as Construction Inspection Fees related to the Silverwood project are anticipated to be received by the end of FY 2023-24.

All Other General Fund Revenue – The numerous all other general fund revenue accounts are $ 3.8 million or 93 % collected through December 2023 . This revenue group includes various revenues such as Animal Control and Code Enforcement Administrative Fines, Vehicle Code Fines, Property Transfer Tax, Cannabis, and Police Service Fees.

Compared to the December 2022 YTD of $2. 5 million collected, this revenue is showing a $1.3 million or 49% increase.

This increase is primarily due to $0.5 million in one -time revenue from the Army Corps of Engineers to reimburse the City for mitigation and monitoring costs related to the Ranchero Road Undercrossing project previously held in trust.

Other contributing factors for the increase include reimbursements for state mandated costs from the State of California and interest-related income.

Community Development Block Grant Revenue Comments:

These revenues are grant reimbursements that promote economic and housing development and rehabilitation projects, with an emphasis on activities that create jobs, build or enhance infrastructure, and provide affordable housing to Hesperia residents. This grant must be spent prior to submitting for reimbursements. The FY 202 3-24 Budget revenue estimates represent anticipated reimbursements that are primarily expected to be received during the third and fourth quarter of the fiscal year.

All Other CDBG Revenues – This revenue includes CDBG program income and interest revenue for the HOME Grant fund and the CDBG Revolving Loan fund. These revenues are more one -time in nature and are not received on a time schedule as other revenue. December 2023 YTD revenue of $82,615 has been received, which consists of loan repayments related to the Housing Rehabilitation Loan Program , the 1999 HOME repayment program, and interest related income.

December Change From
2023-24 2023-24 Percent 2023-24 Budget To
Budget Actual Received Revised Revised
CDBG Administration Reimbursement 899,363$ 0$ 0% 899,363$ 0$ All Other CDBG Revenues 98,148 82,615 84% 98,148 0 Total CDBG Revenues 997,511$ 82,615$ 8% 997,511$ 0$

COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) REVENUE

FISCAL YEAR 2023-24 DECEMBER 31, 2023 YEAR-TO-DATE REVENUE REVIEW (Continued)

Community Development Commission (CDC) Revenue Comments:

The Community Development Commission revenue reflects the proceeds from the Maple Park property sale. The FY 2023-24 Revised has been increased to reflect the revenues received through December 2023.

Hesperia Housing Authority (HHA) Revenue Comments:

This program was developed to promote projects that improve the City’s housing stock and provide affordable housing opportunities. The budgeted revenues primarily consist of loan repayments and interest income. The increase in revenue is primarily due to $127,431 received for the sale of vacant land. The Revised revenue estimates has been increased to reflect the proceeds from the property sale.

December Change From
2023-24 2023-24 Percent 2023-24 Budget To
Budget Actual Received Revised Revised
Proceeds from Land Sale 0$ 696,696$ n/a 696,696$ 696,696$ Total CDC Revenues 0$ 696,696$ n/a 696,696$ 696,696$

COMMUNITY DEVELOPMENT COMMISSION (CDC) REVENUE
December Change From
2023-24 2023-24 Percent 2023-24 Budget To
Budget Actual Received Revised Revised
Interest Income 50,244$ 45,588$ 91% 50,244$ 0$ Loan Repayments 91,846 0 0% 91,846 0 Proceeds from Land Sale 0 127,431 n/a 127,431 127,431 Miscellaneous Income 1,500 56,458 3764% 1,500 0 Sub-Total HHA Revenue 143,590 229,477 160% 271,021 127,431 VVEDA Housing Authority Revenue 30,000 44,335 148% 30,000 0 Total HHA Revenues 173,590$ 273,812$ 158% 301,021$ 127, 431$

HESPERIA HOUSING AUTHORITY (HHA) REVENUE

F
ISCAL YEAR 2023-24 DECEMBER 31, 2023 YEAR-TO-DATE REVENUE REVIEW (Continued) S
treet Related Funds Revenue Comments:

Measure I - Renewal – This fund is used to account for the renewed Measure I sales tax based on revenue generated from the ½ cent added tax on sales tax. Measure I Renewal is received from San Bernardino County Transportation Authority (SBCTA). Through December 2023, a total of $1.2 million from three (3) monthly payments has been collected, which is the same as December 2022 total of $1.2 million. At this time, there are no revisions to this revenue source.

Gas Tax – Monthly apportionments are received throughout the fiscal year and can vary from year-to-year due to timing differences by the State schedule of monthly apportionments. The City’s apportionments through December 2023 total $662,911 from four (4) monthly apportionments , which is $55,332 or 9% more than the December 2022 total of $607,579 from four (4) month apportionments. FY 2023- 24 Gas Tax revenue is at 37% received with remittanc es trending as originally budgeted.

Gas Tax S wap – Through December 2023, the total apportionments of $391,003 from four (4) apportionments is $69,800 or 22% more than the December 2022 YTD of $321,203 from four (4) apportionments. This budgeted revenue source is at 41% with apportionments being received as expected.

Loc
al Transportation – This revenue source has been funded by the County ¼ cent sales tax, and the primary use of this revenue is transportation related, including supporting operations of the Victor Valley Transit Authority (VVTA). The FY 2023-24 Budget is comprised of only interest earnings as the City has been notified that, due to the increased transit needs, FY 2022 -23 was the last year the City would receive residual allocations for use in road improvements. The $57,668 in revenue reflects the interest income received through December 2023.

Gas Tax RMRA – This source of revenue, which is mainly State- funded and took effect in November 2017 during FY 2017-18, is used to repair and maintain roads, freeways, and bridges. SB 1, the Road Repair and Accountability Act of 2017, increased the gas tax by 12 cents and 20 cents for diesel. The vehicle registration fee also increased depending on the value of the vehicle. As of December 2023, revenue received from the State is $938,742 or 37% of the budgeted amount, an increase of $162,831 or 21% compared to December 2022 total of $775,911.

AQMD (AB2766 Transit) – The revenue in this fund is interest earnings from retained cash.

December Change From
2023-24 2023-24 Percent 2023-24 Budget To
Budget Actual Received Revised Revised
204 Measure I - Renewal 4,091,797$ 1,216,561$ 30% 4,091,797$ 0$

205 Gas Tax Fund 1,805,700 662,911 37% 1,805,700 0 206 Gas Tax Swap Fund 953,626 391,003 41% 953,626 0 207 Local Transportation Fund 70,374 57,668 82% 70,374 0 209 Gas Tax - RMRA 2,504,413 938,742 37% 2,504,413 0 254 AQMD Fund 540 552 102% 540 0 263 Public Works Street Maintenance Fund 14,890 21,536 145% 14,890 0 Sub-Total 9,441,340 3,288,973 35% 9,441,340 0 DIF Streets & Storm Drain
300 Development Impact Fee-Streets 26,682 59,333 222% 26,682 0 301 Development Impact Fee-Storm Drain 70,112 71,625 102% 70,112 0 306 Development Impact Fee 2018-Streets 13,548,158 4,899,270 36% 13,548,158 0 307 Development Impact Fee 2018-Drainage Facilit 1,059,206 882,075 83% 1,059,206 0 313 Development Impact Fee-A-04 Drainage 370,497 768,153 207% 370,497 0 Sub-Total DIF Streets & Storm Drain 15,074,655 6,680,456 44% 15,074,655 0 504 City Streets CIP 24,472,819 451 0% 24,472,819 0 Total Street Related Funds 48,988,814$ 9,969,880$ 20% 48,988,814$ 0$

STREET RELATED FUNDS REVENUE

FISCAL YEAR 2023-24 DECEMBER 31, 2023 YEAR-TO-DATE REVENUE REVIEW (Continued)

Streets Related Funds Revenue Comments (Continued):

Public Works -Street Maintenance – The estimated revenues are primarily interest earnings. This fund will occasionally receive miscellaneous reimbursements on an inconsistent basis. The revenue received YTD of $21,536, includes $17,979 in interest earnings and $3,557 in proceeds from sale of equipment and reimbursements for damaged city property and equipment.

Development Impact Fees for Streets and Storm Drain – Through December 202 3 YTD, the combined revenue received of $6.7 million is 44% of the annual budget of $15.1 million. The collections on this revenue source can vary depending on the timing of the completion of projects. The FY 2023-24 Budget of $15.1 million primarily consists of $3.9 million for Hesperia Commerce Center 1- Building 3, $1.7 million for the Pixior Industrial building, and a total of $9.5 million from Silverwood/Tapestry that is expected to be received later in the fiscal year.

City Streets CIP – This fund tracks grant and developer funded projects such as the Ranchero Road Improvements (7th Avenue to Mariposa Road), Ranchero Aqueduct crossing, a Traffic Signal at Main Street and Sultana Street/Timberlane Avenue, Ranchero Aqueduct crossing, a Traffic Signal at Ranchero Road/Cottonwood Avenue, and a Traffic S ignal at Ranchero Road/Maple Avenue. Although December 2023 YTD reimbursements have not been received from the California Department of Transportation (Caltrans), San Bernardino County Transportation Authority (SBCTA), or related grant, staff anticipates payments to start to be received by the end of FY 2023-24.

Other City Funds Revenue Comments: Many of these funds only receive interest income during the fiscal year.

December Change From
2023-24 2023-24 Percent 2023-24 Budget To
Budget Actual Received Revised Revised
105 Pension Obligation Trust 0$ 243,228$ n/a 0$ 0$ 106 OPEB Trust 0 36,051 n/a 0 0 210 HFPD (PERS) Interest Income 56,328 120,872 215% 56,328 0 230 Public Art 0 252,170 n/a 250,000 250,000 255 AB3229 Supplemental Law Fund 255,697 202,210 79% 255,697 0 256 Environmental Programs Grant 78,555 10,448 13% 78,555 0 260 Disaster Preparedness Grant 998 1,020 102% 998 0 262 SB 1383 Local Assistance Grant 28,713 2,395 8% 28,713 0 DIFs 302-304, 308-312
302 Development Impact Fee-Fire 33,079 33,794 102% 33,079 0 303 Development Impact Fee-Police 146 150 103% 146 0 304 Development Impact Fee-Public Services 373 0 0% 373 0 308 Development Impact Fee 2018-Fire Suppressio 1,439,784 1,111,585 77% 1,439,784 0 309 Development Impact Fee 2018-City Hall Facilitie 1,298,664 980,318 75% 1,298,664 0 310 Development Impact Fee 2018-Animal Control 36,932 50,866 138% 36,932 0 311 Development Impact Fee 2018-Records Storage 64,555 49,510 77% 64,555 0 312 Development Impact Fee 2018-Police Facilities 24,753 18,992 77% 24,753 0 Sub-Total DIFs 302-304, 308-312 2,898,286 2,245,215 77% 2,898,286 0 402 2012 Water Rights Debt Service 12,141 68,389 563% 12,141 0 403 2013 Refunding Debt Service 33,259 152,311 458% 33,259 0 404 2023 Refunding Lease Revenue Bonds 0 470 n/a 0 0 261 American Rescue Plan Act Grant 527,706 539,083 102% 527,706 0 Total Other City Funds 3,891,683$ 3,873,862$ 100% 4,141,683$ 250,000$

OTHER CITY FUNDS REVENUE

FISCAL YEAR 2023-24 DECEMBER 31, 2023 YEAR-TO-DATE REVENUE REVIEW (Continued)

Other City Funds Revenue Comments (Continued):

Pension Obligation Trust and OPEB Trust – These Section 115 Trust funds were established to manage and mitigate the liabilities resulting from other post-employment benefits liabilities and the unfunded pension liability. The revenue in this fund reflects investment income. Through December 2023, the rate of return from the Section 115 Trust funds of

5.97% was higher than the Local Agency Investment Fund (LAIF) interest rate of 3.59%.

HFPD (PERS) Interest Income – This revenue is investment income related to funds held for the CalPERS obligations of the former Hesperia Fire Protection District personnel.

Public Art – This fund is to manage revenue received by the City to be utilized towards public art disp lays. The revenue received as of December 2023 largely reflects a $250,000 one -time payment as part of a billboard relocation along interstate 15 (I-15).

AB3229 Supplemental Law Fund – The passage of Senate Bill (SB) 89 allowed for the continued funding of the Supplemental Law Enforcement Funding (SLE SF). Through December 2023, $202,210 or 79% of the budgeted revenue has been received as expected.

Environmental Programs Grant – This fund tracks grant reimbursements for various environmental events. Thr ough December 2023 YTD, $10,448 or 13% has been received. Reimbursements are largely received later in the fiscal year.

Disaster Preparedness Grant – The revenue in this fund is interest earnings from retained cash.

SB 1383 Local Assistance Grant – This fund is to track the grant funds related to Senate Bill 1383 to reduce organic waste. The revenue in this fund consists of investment income.

Development Impact Fees-Fire, Police, Public Services, City Hall, Animal Control, and Records Storage – At the halfway mark of the fiscal year, a total of $2.2 million, or 77% of budgeted revenue, has been received for t his revenue group. The revenue received through December 2023 is primarily due to a total of $1.8 million received from the completion of Hesperia Commerce Center 1 -Building 3. An additional $0.6 million is expected to be received for the completion of the Pixior Industrial building before the end of the Fiscal Year.

2012 Water Rights and 2013 Refunding Debt Service , and 2023 Refunding Lease Revenue Bonds – The revenue in these funds is interest earnings from cash held with the fiscal agent.

American Rescue Plan Act (ARPA) Grant – Coronavirus State and Local Fiscal Recovery Funds – This revenue is the Coronavirus State and Local Fiscal Recovery Funds in which the City received a total amount of $23.4 million in two installments of $11.7 million. The first allocation was received in September 2021, and the second allocation was received in September 2022. This ARPA funding must be spent on eligible costs incurred during the period that began on March 3, 2021, and ending on December 31, 2024 . Eligible costs include expenditures for necessary improvements to water infrastructure to improve access to clean drinking water, wastewater treatment infrastructure, projects that address the impacts of climate change, projects for managing and treating storm water or subsurface drainage water, facilitating water reuse, and securing publicly owned treatment works.

FISCAL YEAR 2023-24 DECEMBER 31, 2023 YEAR-TO-DATE REVENUE REVIEW (Continued)

Water District Revenue Comments:

Effective August 1, 2022, the Hesperia Water District began applying liens to properties with outstanding water bills.

Failure to pay within 60 days from the original bill due date results in the Water District mailing the tenant and property owner a notice of lien. If the bill remains outstanding after an additional 10 days, the Water District will apply a lien on the property. During May of each year, all outstanding property liens will be converted to property tax liens. By doing so, the County will collect outstanding balances as part of property tax collections during the following year. For FY 2023-24 as of December 31, 2023, the Water District has collected $243,350 of the $585,031 placed on the tax roll this Fiscal Year, representing collections from the first of the two property tax installment due dates. The Water District is utilizing such liens in lieu of water disconnections and traditional collection services as the primary mechanism for collections.

Overall Water District Revenue – Revenue through December 2023, is $19.3 million, which is $174,089, or 0.9% less than December 2022 YTD of $19.5 million. The overall slight decrease can primarily be attributed to decreases in Water Sales and Water Capital Charges offset by increases in tax lien collections and investment income. Overall, Water District revenue is progressing as anticipated with 53% of the budgeted amount received.

December Change From
2023-24 2023-24 Percent 2023-24 Budget To
Budget Actual Received Revised Revised
Water Sales 24,759,387$ 13,288,406$ 54% 24,759,387$ 0$ Interest Income 308,000 131,429 43% 308,000 0 Property Taxes 550,633 385,047 70% 550,633 0 Sub-Total 25,618,020 13,804,882 54% 25,618,020 0 All Other Water Operating Revenues 1,044,333 1,065,425 102% 1,044,333 0 Total Water Operating Revenues 26,662,353$ 14,870,307$ 56% 26,662,353$ 0$ Capital Facilities Charges 1,146,486 489,250 43% 1,146,486 0 Grant Reimbursement 75,000 0 0% 75,000 0 All Other Capital Facilities Revenues 0 6,672 n/a 0 0 Total Water Capital Revenues 1,221,486 495,922 41% 1,221,486 0 Reclaimed Water 339,189 230,445 68% 339,189 0 All Other Water Reserves Revenues 64,000 116,700 182% 64,000 0 Total Water Operating & Capital Revenues 28,287,028$ 15,713,374$ 56% 28,287,028$ 0$ Sewer Operating Revenue
Sewer Billing 5,670,896$ 2,789,616$ 49% 5,670,896$ 0$ All Other Sewer Operating Revenues 464,200 385,154 83% 464,200 0 Total Sewer Operating Revenue 6,135,096 3,174,770 52% 6,135,096 0 Sewer Connections 450,000 312,164 69% 450,000 0 Grant Reimbursement 1,491,200 0 0% 1,491,200 0 All Other Sewer Capital Revenues 80,000 70,275 88% 80,000 0 Total Sewer Capital Revenue 2,021,200 382,439 19% 2,021,200 0 All Other Sewer Reserves Revenues 5,968 13,212 221% 5,968 0 Total Sewer Operating & Capital Revenues 8,162,264$ 3,570,421$ 44% 8,162,264$ 0$ Total Hesperia Water District Revenue 36,449,292$ 19,283,795$ 53% 36,449,292$ 0$

WATER DISTRICT REVENUE

FISCAL YEAR 2023-24 DECEMBER 31, 2023 YEAR-TO-DATE REVENUE REVIEW (Continued)

Water District Revenue Comments (Continued):

Water Sales – Water sales through the second quarter of FY 2023 -24 were $13.3 million, which is $469,458 or 3.4%, lower than the December 2022 YTD of $13.8 million, due in large part to the decrease in Water Sales Construction that was factored into the FY 2023- 24 Budget. Through December 2023, Water Sales Construction of $286,115 was $262,377 less than the $548,492 collected through December 2022. The higher Water Sales Construction in FY 2022-23 was due to construction related to a large development project. Of the Water Sales revenue received through December 2023, $151,651 was a result of the Low Income Household Water Assistant Program (LIHWAP). On December 2020, Congress funded a program to help low -income households pay down their outstanding residential water or wastewater bills. This federal program provides financial assistance to low-income Californians to help manage their residential water and wastewater utility costs to up to $ 15,000 per qualifying household. Since t he City started collecting these payments at the beginning of Fiscal Year 2022 -23, a total of $292,448 has been received. Overall, Water sales have been collected at 54% of projection as anticipated.

Property Taxes – Property tax revenue is normally received from November 2023 through July 20 24. Through December 2023, the YTD of $385,047 is $53,499 or 1 6.1% more than the December 2022 YTD of $331,548. Property taxes revenue is on track at Mid-Year with 70% of the budgeted amount received.

All Other Water Operating Reven ue – Through December 2023, total revenue collected is $1,065,425, which is 30 % more than December 2022 YTD of $819,786. This increase is largely related to service charges and delinquency fees received as a result of County Property Tax collections. Revenue through December 2023 is 102% of the original budget.

Capital Facilities Surcharge – Revenue through December 2023 YTD is $ 489,250, which is 43% of the budgeted amount to date . The revenue received during the second quarter of 202 3 primarily consists of payments for single family residential water meters.

Reclaimed Water – R eclaimed (recycled) water is used at the Hesperia Golf Course and the Township area. As of December 31, 2023, the Water District collected $230,445, which is 68% of budgeted amount to date. Curr ent Reclaimed Water customers are the Golf Course, Hesperia Township (NW corner of 5 th & Smoke Tree) and Hesperia Recreation and Parks District (HRPD). In the future, the District anticipates that additional customers, such as Hesperia City Hall, Hesperia Civic Park, Hesperia Police Station, The High Desert Government Center, and 8th Avenue Paseo will begin utilizing the reclaimed water system.

Sewer Billing – Revenue through December 2023 is $2.8 million, which is $ 59,858, or 2.2% more than the revenue received in the Second Quarter of FY 2022- 23. Increase s in this revenue source is associated with additional sewer residential and commercial customers connected to the sewer system. Revenue received through December 2023 is at 49% of the budgeted amount and is trending as expected.

Sewer Connections – Revenue through the second quarter of FY 2023 -24, is $312,164, or 69% budget. This revenue is driven by the completion of development projects in areas served by Sewer. This budget revenue will continue to be monitored in the second half of the Fiscal Year as ongoing development projects progress.

Sewer Grant Reimbursement – This revenue source is associated with grant reimbursements related to sewer construction projects. The budgeted revenue will be anticipated as these projects move forward.

FISCAL YEAR 2023-24 DECEMBER 31, 2023 YEAR-TO-DATE REVENUE REVIEW (Continued)

Revenue Comments (Continued):

Investment Income – This revenue source reflects the activity of the cash investments of the City for the various funds.

The cash investments are held with the Local Agency Investment Fund (LAIF), which regularly earns interest income based upon the LAIF interest rates. The FY 2023-24 Budget estimated an interest rate of 2.57%. The interest income received through December 2023 reflected a higher interest rate of 3.59%. Additionally, valuation adjustments are recorded based upon the market value on the City’s investments at the end of the Fiscal Year. The investment income revenue of the various City funds is anticipated to meet the FY 2023 -24 Budget once the market valuation adjustments are completed at the end of the Fiscal Year.

2023-24 2023-24 Percent
Budget December Received
General Fund 338,600$ 518,747$ 153%
Community Development Block Grant 88,148 78,081 89% Hesperia Housing Authority 80,244 146,381 182% Street Related Funds 672,527 815,989 121% Other City Related Funds 735,972 1,321,461 180% Water District 451,968 770,665 171% Total 2,367,459$ 3,651,325$ 154%
Investment Income

DEPARTMENT FY 2023-24 BUDGET EXPENDITURE STATUS SUMMARY

Total City Expenditures – With the exception of the eight (8) mid-year budget amendments totaling $12,030,600, the overall assessment of the City’s expenditures through mid-year of the fiscal year is that expenditures are exp ected to stay within the FY 2023-24 Amended Budget.

TOTAL EXPENDITURES BY DEPARTMENT AND PROGRAMS

The City Council Department is 85% expended through December 2023. The City Council Division has expended 44%, which is due to budgeted items that are typically expended later during the fiscal year, such as annual memberships, conferences, seminars, community outreach programs, and events. The City Attorney Division is higher than expected, with 118% expended. This is mainly due to the unanticipated increase in legal fees pertaining to litigation matters , with invoices paid through November. Staff will continue to monitor the program and if needed will request an amend ment during the FY 2023-24 Fourth Quarter Budget Review as the actual amount needed will be known. There is one budget amendment of $16,900 for consultant services that are essential in updating the City goals and priorities.

The City Manager Department expenditures are on track staying within the 202 3-24 Budget at 53 % expended and proceeding as expected.

December Amended
2023-24 2023-24 2023 YTD Percent
Expenditure Summary Budget Amended Expenditures Expended City Council 819,204$ 819,204$ 692,263$ 85% City Manager 1,680,770 1,682,770 891,316 53% Management Services 9,929,488 10,056,774 6,399,300 64% Development Services - Community Development 2,502,575 2,502,575 1,173,977 47% Development Services - Code Compliance 5,239,933 5,237,933 2,239,763 43% Development Services - Public Works 6,831,103 6,850,603 2,924,615 43% Development Services - Water 23,630,947 24,295,837 8,967,394 37% Development Services - Sewer 6,952,615 6,952,615 2,799,940 40% Police 21,972,838 21,972,838 10,716,496 49% Sub-Total Operating 79,559,473 80,371,149 36,805,064 46% Economic Development 578,024 599,424 326,340 54% Streets Capital Improvement Project (CIP) Funds 42,477,112 42,675,699 10,061,912 24% Water Capital 1,029,000 1,029,000 44,842 4% Sewer Capital 5,984,200 5,984,200 622,151 10% Other City Related Funds 6,431,097 6,431,097 11,366,179 177% Fire District 937,658 937,658 907,316 97% Sub-Total Others 57,437,091 57,657,078 23,328,740 40% TOTAL CITY EXPENDITURES 136,996,564$ 138,028,227$ 60,133,803$ 44% December Amended
2023-24 2023-24 2023 YTD Percent
City Council Budget Amended Expenditures Expended
100 100 City Council 369,204$ 369,204$ 161,692$ 44% 100 102 City Attorney 450,000 450,000 530,971 118% Total City Council 819,204$ 819,204$ 692,663$ 85% December Amended
2023-24 2023-24 2023 YTD Percent
Budget Amended Expenditures Expended
City Manager 1,680,770$ 1,682,770$ 891,316$ 53%

TOTAL EXPENDITURES BY DEPARTMENT AND PROGRAMS (Continued)

The Management Services Department is currently at 64% expended. Finance is 49% expended, while Information Technology is 53% expended and both are proceeding as planned. During the November 21, 2023 First Quarter Budget Review, the budget was amended to include $127,286 for software licensing/support renewal and upgrade of secu rity cameras at Animal Services facility. The Human Resources Division is 76% expensed due to the lump sum payment to CalPERS for the unfunded accrued liability and annual insurance premiums that were paid at the beginning of the fiscal year. Non-Departmental is 78% expended and higher than expected. An amendment in the amount of $797,044 (split - funded with Economic Development, for a total of $844,869) for the purchase of the driving range, booster pump repairs, and property taxes at the Golf Course is requested as part of this Mid-Year Budget Review.

As a whole, the Economic Development Department is 54% expended through the Second Quarter. This department is made up of three (3) Divisions: Economic Development, Community Development Block Grant (CDBG), and Hesperia Housing Authority (HHA) funds.

The Economic Development Division performs the economic development functions for the City. Funded by the General Fund, Economic Development is 57% expended due in large part to the Division’s lump sum portion of the annual unfunded accrued liability assessed by CalPERS. During the first quarter budget review, a budget amendment for $21,400 was approved for the use of fair housing activity compliance . An amendment in the amount of $47,825 (split - funded with Management Services for a total of $844,869) for the purchase of the driving range, booster pump repairs, and property taxes at the Golf Course is requested as part of this Mid-Year Budget Review.

Community Development Block Grant (CDBG), which admin isters the City’s CDBG program and related activities, is 61% expended. The CDBG Annual Action Plan represents a significant use of contract services, and is nearly complete. Budgeted funds are anticipated to be adequate for the remainder of the year.

The Hesperia Housing Authority (HHA) funds oversee the affordable housing within the City. Through the end of December, the HHA funds are 33% expended, which is expected for normal housing activities.

The Community Development Division is 47% expended overall through the Second Quarter. Planning is 40% expended and Building & Safety is 53 % expended , both proceeding as expected . There is one budget amendment totaling $398,076 that is included in this report for a General Plan update.

December Amended
2023-24 2023-24 2023 YTD Percent
Management Services Budget Amended Expenditures Expended 100 220 Finance 2,633,471$ 2,634,846$ 1,288,857$ 49% 100 225 Human Resources/ Risk Mgmt. 3,509,227 3,509,227 2,652,110 76% 100 228 Information Technology 2,246,150 2,373,436 1,250,647 53% 100 229 Non-Departmental 1,540,640 1,539,265 1,207,686 78% Total Management Services 9,929,488$ 10,056,774$ 6,399,300$ 64% December Amended
2023-24 2023-24 2023 YTD Percent
E
conomic Development Budget Amended Expenditures Expended 100 Economic Development 401,311$ 422,711$ 239,965$ 57% 251 Community Development Block Grant (CDBG) 100,932 100,932 61,723 61% 370 Hes
peria Housing Authority 75,781 75,781 24,652 33% Total Economic Development 578,024$ 599,424$ 326,340$ 54% December Amended
2023-24 2023-24 2023 YTD Percent
D. S. - Community Development Budget Amended Expenditures Expended 100 3000 Planning 1,156,825$ 1,156,825$ 461,647$ 40% 100 3020 Building & Safety 1,345,750 1,345,750 712,330 53% Total D. S. - Community Development 2,502,575$ 2,502,575$ 1,173,977$ 47%

TOTAL EXPENDITURES BY DEPARTMENT AND PROGRAMS (Continued)

The Code Compliance Division, which is comprised of Code Enforcement and Animal Control, are trending as expected at 43% through mid- year. There are two budget amendment requests for Animal Control totaling $114,122. The first amendment request is $38,122 for the purchase of supplies and equipment at the Animal Shelter’s medical suite where an onsite veterinarian will perform spay and neuter surgeries . T he second request of $76,000 is to accommodate the increase in contract services related to veterinarian fees.

As shown by the table above, th e overall Public Works Division is 43% expended through December 2023 and trending as expected. Engineering, Building Maintenance, Street Maintenance, and Traffic are trending as expected. During the November 21, 2023 First Quarter Budget Review, the City Council approved the establishment of a new program, Street Repair. This program at 1% expended creates a new paving crew which will primarily be utilized to fix and repair streets impacted by service line replacements. Also during the first quarter budget review, the budget was amended to include $19,500 for the purchase of a Skip Loader for the new Street Repair Program (split-funded with Water Street Repair, for a total of $130,000). As the program progresses, the percent of budget expended will increase.

Streets Capital Improvement Project (CIP) related expenditures is 24% expended through December 2023.

Expenditures will increase as progress continues on projects such as traffic signal construction, drainage improvements, FY 202 1-22 Street Improvement Project, Ranchero Road Improvements and Aqueduct Crossing, and other streets related projects. At the November 21, 2023 Council M eeting an amendment of $198,587 was approved to add additional funding to the Cataba Road Basin (CO 7901) project for the purchase of vacant land.

This classication is largely comprised of the principal and interest payments for the 2012 Water Rights Acquisition and 2023 Refunding Lease Revenue Bonds which refinance the 2013 Refunding Lease Revenue Bonds. To achieve an overall debt service savings, in June 2023 the City Council approved a refinancing of the 2013 Bonds which resulted in a FY 2023-24 principal payment of $9,150,000, and a transfer of the remaining cash within Fund 403 to the new 2023 Bond fund (Fund 404), which was not included in the FY 2023-24 Budget due to the refinance closing during July 2023.

As such, a combined amendment in the amount of $10,514,660 is requested as a result of the refinancing and the closure of Fund 403 into the 2023 Bond Fund 404.

December Amended
2023-24 2023-24 2023 YTD Percent
D. S. - Code Compliance Budget Amended Expenditures Expended 100 3010 Code Enforcement 2,643,565$ 2,637,565$ 1,132,042$ 43% 100 5000 Animal Control 2,596,368 2,600,368 1,107,721 43% Total D. S. - Code Compliance 5,239,933$ 5,237,933$ 2,239,763$ 43% December Amended
2023-24 2023-24 2023 YTD Percent
D. S. - Public Works Budget Amended Expenditures Expended 100 3100 Engineering 963,548$ 963,548$ 381,176$ 40% 100 3110 Building Maintenance 1,621,997 1,621,997 692,275 43% 263 3150 Street Maintenance 2,164,396 2,164,396 983,560 45% 263 3160 Street Repair 0 19,500 160 1% 263 3170 Traffic 2,081,162 2,081,162 867,444 42% Total D.S. Public Works 6,831,103$ 6,850,603$ 2,924,615$ 43% December Amended
2023-24 2023-24 2023 YTD Percent
B
udget Amended Expenditures Expended
Streets Capital Improvement Project (CIP) Funds 42,477,112$ 42,675,699$ 10,061,912$ 24% December Amended
2023-24 2023-24 2023 YTD Percent
B
udget Amended Expenditures Expended
Other City Related Funds 6,431,097$ 6,431,097$ 11,366,179$ 177%

TOTAL EXPENDITURES BY DEPARTMENT AND PROGRAMS (Continued)

Overall, the Water Operating and Capital funds are 31% expended through December 31, 2023. The following narrative details the progression of each program.
• The primary responsibility of Source of Supply is to secure make- up water lease rights to remedy overproduction.

At Mid-Year, Source of Supply is only 2 % expended. Expenditures will increase significantly in the later part of the fiscal year due to the recording of leased water rights to offset the Alto and Centro Subarea replacement obligation. • Production, which is responsible for drawing the groundwater, has expended 39% of the budget by the end of the Second Quarter and is proceeding as expected. At the August 1, 2023 City Council meeting, an amendment in the amount of $64,000 was approved for the purchase of two mid -size trucks. In addition , at the September 5, 2023 City Council Meeting, an amendment of $490,390 was approved for the repair of Well 22. There is one budget amendment for the replacement of a damaged vehicle totaling $41,047. • Distribution has utilized 50% of its allocated budget and is proceeding as planned. • Through December 31, 2023, Pipeline Maintenance has expended 49% of the budget and proceeding as expected. • Engineering is currently 31% expended, which is primarily due to the timing of invoices. Expenditures are expected to increase in the second part of the fiscal year, as invoices are re ceived for contractual services and annual storm water program expenses.
• Customer Service is 35% expended and proceeding as planned , with the Advanced Metering Infrastructure (AMI) programs progress on schedule (76% of City on AMI).
• Utility Billing is 75 % expended and the increased percentage is due to the $0. 6 million in write-offs of delinquent customer accounts and the document recording costs related to placing those delinquent accounts onto the County Property Tax Roll for collection. It should be noted that the subsequent collection of the tax liens will be reflected as revenue. Through December 2023, the District has received a total of $243,350 through the County Property Tax Roll collections process, representing collections from the first of two property tax installment due dates. Additional collections will be received through fiscal year end.
• Administration is 51% expended and proceeding as planned. • Property Managem ent is 39 % e xpended at mid -year and will increase as maintenance projects are completed throughout the fiscal year.

December Amended
2023-24 2023-24 2023 YTD Percent
D
.S. Water Operating & Capital Budget Amended Expenditures Expended 4010 Source of Supply 4,477,415$ 4,477,415$ 91,227$ 2% 4020 Production 5,466,358 6,020,748 2,344, 708 39% 4030 Distribution 1,759,116 1,756,116 871,462 50% 4035 Pipeline Maintenance 1,262,485 1,269,485 625,077 49% 4040 Engineering 1,167,742 1,167,742 364,868 31% 4050 Customer Service 2,256,629 2,239,029 781,425 35% 4060 Utility Billing 1,648,761 1,648,761 1,232, 003 75% 4070 Administration 4,819,585 4,833,185 2,444,085 51% 4080 Property Management 483,740 483,740 187,857 39% 4160 Street Repair 0 110,500 904 1% 720 Reclaimed Water Operations 289,116 289,116 23,778 8% Total Water Operations 23,630,947$ 24,295,837$ 8,967, 394$ 37% 701 Water Capital 1,029,000 1,029,000 44,842 4% 711 Sewer Capital Projects 5,984,200 5,984,200 622,151 10% Total D.S. Water Operating & Capital 30,644,147$ 31,309,037$ 9,634, 387$ 31%

TOTAL EXPENDITURES BY DEPARTMENT AND PROGRAMS (Continued)

D.S. Water Operating and Capital (Continued):

• Street Repair is 1% expended through December 31, 2023 and , as the program progresses, the percent of budget expended will increase. During the November 21, 2023 First Quarter Budget Review, the City Council approved the establishment of a new program, Street Repair. This program creates a new paving crew which will primarily be utilized to fix and repair streets impacted by service line replacements. Also , during the first quarter budget review, the budget was amended to include $110,500 for the purchase of a Skip Loader for the new Street Repair Program (split-funded with Streets Maintenance, for a total of $130,000). • Reclaimed Water Operations expenditures will increase later in the second half of the fiscal year when Debt Service payment is due.
• Projects in Water and Sewer Capital have $7. 0 million allocated in capital funds and are 10% expended.

Expenditures will increase as projects such as the I -15 Corridor water and sewer, Recoating the exterior of water tank at Plant 23, Plant 5 & 18 Roof Replacement and Repair, FY 2019 -20 Water Service Line Relocation, and Maple Avenue sewer line replacement.

The Sewer Operating Funds overall are 40% expended.

• Sewer Operations expenditures are 39 % expended, which is primarily due to receiving invoices for Victor Valley Wastewater Reclamation Authority (VVWRA) sewer treatment fees through October 2023. • Sewer Engineering is currently 25 % expended and is expected to increase in the second part of the fiscal year, as invoices are received for contractual professional engineering services, along with feasibility study expenses for the Silverwood Project.
• Sewer Utility Billing is 41% expended, which is expected for the first half of the fiscal year. • Sewer Administration is proceeding as planned with 5 2% expended and mainly due to the monthly general and administrative re-payment for the annual indirect cost allocation.

The Police Department budget is 4 9% expended, which is expected for the first half of the fiscal year with the County contract invoices paid through December 2023. There is one budget amendment request to increase the County of San Bernardino contract by $100,926.

During FY 2018- 19, the City transferred all Hesperia Fire Protection District (Fire District) assets and liabilities to San Bernardino County Fire, with the exception of the former personnel obligations, for which the Fire District will continue to function with dedicated funding. The Fire District is 97 % expended, which is due to paying the annual contractual retirement obligations related to the former Fire District employees at the beginning of the fiscal year versus paying monthly. The $30,342 in savings will be placed in the District’s Section 115 trust for the payment of former Fire District personnel obligation.

December Amended
2023-24 2023-24 2023 YTD Percent
D
. S. - Sewer Operating Budget Amended Expenditures Expended 4200 Operations 5,537,541$ 5,537,541$ 2,163,131$ 39% 4240 Engineering 266,872 266,872 67,174 25% 4260 Utility Billing 274,255 274,255 113,135 41% 4270 Administration 873,947 873,947 456,500 52% Total D.S. Sewer Operating 6,952,615$ 6,952,615$ 2,799,940$ 40% December Amended
2023-24 2023-24 2023 YTD Percent
Budget Amended Expenditures Expended
Police 21,972,838$ 21,972,838$ 10,716,496$ 49%
December Amended
2023-24 2023-24 2023 YTD Percent
B
udget Amended Expenditures Expended
Fire District 937,658$ 937,658$ 907,316$ 97%

PROPOSED BUDGET AMENDMENTS – SUMMARY

The FY 2023-24 Mid-Year Budget Review includes eight (8) budget amendments totaling $12,030 ,600. The following listing categorizes the proposed budget amendments, with the following pages providing detail on each request:

PROPOSED BUDGET AMENDMENTS – NARRATIVE

City Council
 Goals and Priorities Consultant – City Council $16,900 (100-01-100) – New The City Council goals and priorities were previously updated on February 11, 2014. An update is necessary to evaluate current short and long-term goals and priorities. Since this was not included in the FY 2023 -24 Budget, a Mid-Year Budget amendment is requested.

Management Services
 Golf Course (driving range, booster pump repairs, and property taxes) – Non-Departmental and Economic Development $844,869 (100-19-229 and 100-25-251) – Unanticipated/New The amendment request includes three expenditures related to the Hesperia Golf Course. • The Hesperia Golf Course and Country Club (211.45 acres of vacant and real property) was purchased in May 2010 and the driving range (APN 0398-251-30) was not available for purchase at the time. At the beginning of FY 2023-24 the driving range became available for purchase and the City decided to purchase the property for $771,044. As indicated by the expense narrative, the amount of $771,044 has been expensed and the amendment will rectify the Non-Departmental budget.
• It was recently brought to the City’s attention that a city- owned property has outstanding property taxes. After much research, it was discovered that the property taxes from calendar years 2003, 2004, and 2005 were still outstanding from the previous owner and not included in the original purchase documents in 2010. Staff is requesting a budget amendment of $47,825 for this obligation. • The pump and electric motor at booster #2 located at the Golf Course has experienced failure and is in need of repair. Since this event was unforeseen, funding for the repair was not included in the FY 2023 -24. It is estimated that $26,000 is needed for the repair.

General Other
FY 2023-24 Mid-Year Budget Requests Fund Funds Totals
Goals and Priorities Consultant $ 16,900 0$ 16,900$ General Plan Update 398,076 0 398,076 Spay/Neuter Supplies and Equipment 38,122 0 38,122 Contract Services Increase 76,000 0 76,000 County Contract Amendment 100,926 0 100,926 Vehicle Replacement 0 41,047 41,047 Sub-Total Operating 630,024 41,047 671,071 Golf Course (driving range purchase, booster pump 844,869 0 844,869 repairs, property taxes)
Sub-Total Non-Operating 844,869 0 844,869 2013 Refunding Lease Revenue Bonds (Refinancing) 0 10,514,660 10,514,660 Sub-Total Debt 0 10,514,660 10,514,660 Total Mid-Year Amendment Requests $ 1,474,893 $ 10,555,707 12,030,600$ Source of Funds:

General Fund - 100 1,474,893$
2013 Refunding Lease Revenue Bonds - 403 10,514,660
Water Operating - 700 41,047
Total Source of Funds 12,030,600$

PROPOSED BUDGET AMENDMENTS – Narrative (Continued)

Development Services
 General Plan Update – Community Development Planning $398,076 (100-29-300) – Previous Staff Report The City’s General Plan includes seven elements: Land Use, Circulation, Housing, Noise, Conservation, OpenSpace, and Safety. Certain components or elements of Hesperia’s General Plan date back to 2010, and many changes have transpired since then. New housing developments have been built, new businesses and industries are thriving, and the City has grown significantly. To ensure the City is in compliance with State Law, updates to the General Plan’s Land Use, Safety, and Circulation Elements, as well as the creation of a new Environmental Justice Element need to be completed. This is a multi-year project with the balance (estimated at $451,851) being budgeted in FY 2024- 25. As identified in the December 19, 2023 staff report, a budget amendment would be presented with the Mid-Year report.

 Spay/Neuter Supplies and Equipment – Code Compliance Animal Control $ 38,122 (100-29-305) – Unanticipated
In August 2023, the City unexpectedly lost services of the onsite contracted veterinarian . Since then, spay and neuter services have been performed by an offsite veterinarian, causing increases in costs and staff time transporting animals. This request would supply the Animal Shelter’s medical suite with supplies and equipment needed to perform spay and neuter surgeries by a newly contracted onsite veterinarian. An amendment of $38,122 is being requested.
 Contract Services – Code Compliance Animal Control $76,000 ( 100-29-305) – Unanticipated With the unexpected departure of the onsite veterinarian in August 2023, the Animal Services FY 2023- 24 Budget was based upon the discounted contract amounts. Since then, emergency animal services costs have increased and a budget amendment of $76,000 is requested to continue to provide services through the end of the fiscal year.

Police
 Amendment to County Contract – Police $100,926 (100-51-510) – Unanticipated The FY 2023 -24 County of San Bernardino Sheriff’s Department contract will include a mid -year increase of $100,926. This amendment includes the addition of one (1) Office Specialist and two (2) unmarked units. The unmarked units will be operated by the Investigators assigned to the Adult Protective Services and Child Protective Services program.

Other Funds
 Refinancing 2013 Refunding Lease Revenue Bonds $10,514,660 (403-19-220) – Previous Staff Report At the June 6, 2023 City Council meeting, the City Council approved t he refinancing of the 2013 Refunding Lease Revenue Bonds. The refinancing resulted in a principal payment of $9,150,000, and a transfer of the remaining cash, for a combined total of $10,514,660. As identified in the staff report, an amendment would be presented with the Mid-Year report.

Water
 Water Operating – Vehicle Replacement $41,047 (700-29-4020) – Previous Staff Report On January 5, 2024, a Water District vehicle was involved in a traffic accident and since the vehicle is part of the active Water District fleet, a replacement truck is requested. The City will seek reimbursement from the insurance company. As identified in the staff report, an amendment would be presented with the Mid-Year report.

PROPOSED BUDGET AMENDMENTS – Narrative (Continued)

General Other
Requested: Fund Funds Totals
General Fund
Goals and Priorities Consultant (City Council-City Council) 16,900$ 0$ 16,900$ Golf Course (driving range purchase, booster pump repairs, property taxes) (Management Services and Economic Development)
844,869 0 844,869
General Plan Update (Community Development-Planning) 398,076 0 398,076 Spay/Neuter Supplies & Equipment (Code Compliance-Animal Control) 38,122 0 38,122 Contract Services Increase (Code Compliance-Animal Control) 76,000 0 76,000 County Contract Amendment (Police) 100,926 0 100,926 Total General Fund 1,474,893$ 0$ 1,474,893$ Other Funds
2013 Refunding Lease Revenue Bonds (Refinancing) 0$ 10,514,660$ 10,514,660$ Total Other Funds 0$ 10,514,660$ 10,514,660$ Water
Vehicle Replacement (Water Operating-Production) $ 0 41,047$ 41,047$ Total Water 0$ 41,047$ 41,047$
Total City Expenditures 1,474,893$ 10,555,707$ 12,030,600$ Source of Funds:

General Fund - 100 1,474,893$
2013 Refunding Lease Revenue Bonds - 403 10,514,660
Water Operating - 700 41,047
Total Source of Funds 12,030,600$

2024-25 Tentative Budget Calendar

While the Mid-Year report is a gauge of the current year’s activity, it does serve as the official start for planning the next year’s budget. Below is the tentative calendar for the FY 2024-25 Budget.

OpenGov Training – FY 2024-25 Proposed Budget and FY 2023-24 Revised Budget February 7-9, 2024 Council FY 2023-24 Mid-Year Budget Review February 20, 2024 2024-25 Budget Instructions (Intranet) February 29, 2024 2024-25 Draft Division and/or Program Narratives March 7, 2024 FY 2023-24 Revised Revenue and 2024-25 Proposed Budget Revenue Estimates to Departments for Review (07/01/2023 thru 02/29/2024)
March 15, 2024 (Review)
March 25, 2024 (Due)
FY 2023-24 Revised Expenditure Estimates, 2024-25 Current Level Proposed Budget Expenditures
March 28, 2024
2024-25 Budget Increments-“Requested Expenditures Above Current Level” April 2, 2024 Budget Review with Departments/Divisions (Finance) Mid-April 2024-25 Final Proposed Budget Division and/or Program Narratives completed End of April Capital Improvement Program (CIP) Due from Department to Finance April 29, 2024 Workshop #1 – Current Level Budget to Council (Operating) May 7, 2024 Workshop #2 – Above Current Levels to Council May 21, 2024 2024-25 Proposed Budget completed May 24, 2024
Council Budget Workshop June 4, 2024
Council Adopts CIP Budget June 4, 2024
Council Adopts Operating Budget June 18, 2024

With this calendar, there are two planned budget workshops prior to requesting the City Council to adopt the CIP Budget on June 4, 2024 and the operating budget on June 18, 2024. • Budget Workshop #1 will highlight the current-level operating budget. • Budget Workshop #2 will highlight the use of reserves for major purchases, as well as the capital improvement program budget.

RESOLUTION NO. 2024-03

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HESPERIA, CALIFORNIA, APPROVING THE 2023-24 MID-YEAR BUDGET REVIEW AND AMENDING THE 2023-24 CITY OF HESPERIA BUDGET TO FUND CERTAIN

RELATED EXPENDITURES

WHEREAS, the City Council of t he City of Hesperia adopted the Fiscal Year (FY) 2023-24 Budget on June 20, 2023; and

WHEREAS, the City Council of the City of Hesperia was presented the 2023-24 Mid-Year Budget Review by staff; and

WHEREAS, the City Council of the City of Hesperia has reviewed the 2023-24 Mid-Year Budget Review information and analysis and has found it acceptable; and

WHEREAS, the City Council of the City of Hesperia has reviewed and approves the budget amendments included in the 2023-24 Mid-Year Budget Review.

NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HESPERIA AS FOLLOWS:

Section 1. That the recitals above are true and correct and adopted as findings.

Section 2. That the City Council of the City of Hesperia receives the 2023-24 Mid-Year Budget Review.

Section 3. That the City Council approves the 2023-24 Mid-Year Budget Review expenditure amendments by making appropriations for:

 Goals and Priorities Consultant (100-01-100) $ 16,900  Golf Course (100-19-229) 797,044
 Golf Course (100-25-251) 47,825
 General Plan Update (100-29-300) 398,076
 Spay/Neuter Supplies and Equipment (100-29-305) 38,122  Contract Services Increase (100-29-305) 76,000
 County Contract Amendment (100-51-510) 100,926
 Refinancing 2013 Refunding Lease Revenue Bonds
(403-19-220)
10,514,660
Total $11,989,553

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

Resolution No. 2024-03

ADOPTED AND APPROVED this 20th day of February 2024.

_________________________________________
Larry Bird, Mayor
ATTEST:

___________________________________
Erin Baum, Assistant City Clerk

RESOLUTION NO. HWD 2024-02

A RESOLUTION OF THE HESPERIA WATER DISTRICT OF THE CITY OF HESPERIA, CALIFORNIA, APPROVING THE 2023-24 MID-YEAR BUDGET REVIEW AND AMENDING THE 2023-24 HESPERIA WATER DISTRICT

BUDGET TO FUND CERTAIN RELATED EXPENDITURES

WHEREAS, the Board of Directors of the Hesperia Water District adopted the Fiscal Year (FY) 2023-24 Budget on June 20, 2023; and

WHEREAS, the Board of Directors of the Hesperia Water District was presented the 2023-24 Mid-Year Budget Review by staff; and

WHEREAS, the Board of Directors of the Hesperia Water District has reviewed the 2023-24 Mid-Year Budget Review information and analysis and has found it acceptable; and

WHEREAS, the Board of Directors of the Hesperia Water District has reviewed and approves budget amendments included in the 2023-24 Mid-Year Budget Review.

NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS O F THE HESPERIA WATER DISTRICT AS FOLLOWS:

Section 1. That the recitals above are true and correct and adopted as findings.

Section 2. That the Board of Directors of the Hesperia Water District receives the 2023-24 Mid-Year Budget Review.

Section 3. That the Board of Directors of the Hesperia Water District approves the 2023-24 Mid -Year Review expenditure amendments by making appropriations for:
 Vehicle Replacement (700-29-4020) $41,047

Section 4. That the Board Secretary shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

ADOPTED AND APPROVED this 20th day of February 20, 2024.

_________________________________________
Larry Bird, Chair
ATTEST:

_______________________________
Erin Baum, Secretary to the Board

City of Hesperia

STAFF REPORT

DATE: February 20, 2024
TO: Mayor and Council Members

FROM: Rachel Molina, City Manager
BY: Melinda Sayre, Deputy City Manager/City Clerk
Tammy Pelayes, Assistant to the City Manager

SUBJECT: Consideration of the 2024 Legislative Platform and Funding Priorities

RECOMMENDED ACTION

It is recommended that the City Council adopt the 20 24 Legislative Platform consisting of Legislative Policy Statements and Funding Priorities.

BACKGROUND

The City Manager’s office is responsible for maintaining the annual Legislative P latform. The purpose of this document is to provide City Council guidance and reference when responding to State and Federal legislative proposals that have the potential to impact the City of Hesperia. To increase the efficiency and effectiveness of the City’s legislative advocacy program, the City Council adopts a Legislative Platform each year to serve as the foundation for the City’s advocacy strategy.

The 202 4 Legislative Platform outlines the City’s priorities for the coming legislative year.

Adopting the Legislative Platform provides the Mayor and City Manager with clarity on the position of the City Council regarding priority legislative issues. While this allows for consistent decision making, the adoption of the Legislative Platform also allows for flexibility to adapt to the variety of legislative and budgetary issues that arise throughout the year. Furthermore, this adoption also allows for consistency in the prompt submission of letters of support or opposition , on behalf of the City of Hesperia, to the Legislature and Congress.

The Legislative Platform p rovides direction to the City Manager’s Office when responding to legislation and when prioritizing grant and funding opportunities. Additionally, the 2024 Legislative Platform provides guidance to the City’s Federal and State legislative advocates representing the City’s interests during the year.

ISSUES/ANALYSIS

The Legislative Platform is comprised of three components: The Legislative Platform Process, the City Council Funding Priorities, and the Legislative Policy Statements.

The Legislative Platform is a long term, multi-year effort that helps the City maintain a consistent approach in pursuing its legislative priorities; consequently, the Policy Statements and Council Funding Priorities are updated each year after review and input from Senior Management and from the City’s Federal and State legislative advocates. This annual update allows for consistency

Staff Report to the Mayor and Council Members
Consideration of the 2024 Legislative Platform and Funding Priorities February 20, 2024

in City opposition and support while allowing for flexibility with new legisl ative and budgetary issues and unexpected changes to revenue and existing policies.

Additionally, Priority Projects are listed in the Legislative Platform. City projects that are of the highest priority to the City, and have the greatest potential for funding, include the following:

 Transportation
o City Wide Pavement Restoration
o Maple Avenue Sewer and Roadway Rehabilitation
o Main Street Widening and Aqueduct Bridge Construction o Bear Valley Road Rehabilitation and Widening Project
o Traffic Signal at Escondido Avenue and Sultana Street o I Avenue Widening
o Sultana Street, Muscatel Street, and Cedar Street Improvements o North-South Corridor Improvements
 Flood Control
o Cataba Road Basin
o Temecula Avenue Basin
o A-04 Corridor Flood Protection Program
 Sewer Improvements
o Mesa Area Septic to Sewer

The Policy Statements in the 2024 Legislative Platform emphasize preserving and protecting local control over City revenue, land use, economic development, and other activities that benefit and enhance Hesperia. This year’s policy statements include the advocacy of financial support to protect and increase revenue streams for local priorities.

FISCAL IMPACT

The Legislative Platform is coordinated by the City Manager’s Office. Costs for any necessary travel and other related expenses by Council Members and Staff will be discussed during the City’s budget process or on a case-by-case basis.

ALTERNATIVE(S)

1. Provide alternative direction to staff

ATTACHMENT(S)

1. 2024 Legislative Platform

ATTACHMENT 1

City of Hesperia

2024 LEGISLATIVE PLATFORM

CITY COUNCIL
Larry Bird, Mayor
Rebekah Swanson, Mayor Pro Tem
Brigit Bennington, Council Member
Cameron Gregg, Council Member
Allison Lee, Council Member

9700 Seventh Avenue, Hesperia, CA 92345. 760-947-1018. www.cityofhesperia.us

2024 Legislative Platform Process

Purpose
The Legislative Platform provides a means for summarizing the City’s core legislative principles to support advocacy efforts at the reg ional, state, and federal level. Recognizing the importance of promoting City priorities and legislative initiatives, the legislative platform focuses on the City’s commitment to service, community, and economic development initiatives. Adopted annually, the Legislative Platform serves as a reference guide for urgent request s of support, opposition, or neutrality of a legislative proposal and provides direction for the City Council and staff throughout the year.

Guiding Principles

1. Preserve and Enhance Local Control
Support measures that preserve and protect the City’s local authority t o enact policy pertaining to local affairs. Oppose measures that seek to preempt local control without the concurrence of the City.

2. Maintain Fiscal Responsibility
Support measures that promote fiscal stability, predictability, and financial independence at the local level. Support efforts that preserve and promote the City’s ability to maintain and grow its revenue base. Oppose measures that diminish the Cit y’s revenue sou rces thereby threatening its ability to provide and maintain critical services.

3. Promote Economic Development
Support legislative efforts that are designed to provide local governments with the tools necessary to bolster economic development. Support legislation and regulatory streamlining initiatives that would enhance the City’s ability to attract and retain businesses as well as encourage business expansion and job retention.

4. Support Funding Opportunities
Support measures that allow the City to compet e for its fair share of regional, state , and federal funding including competitive grants and other funding programs . Support initiatives that promote dedicated funding streams to cities for critical service areas.

5. Collaborate with Regional Partners
Support opportunities to work collaboratively with local and regional partners on areas of mutual interest. Maintain strong relationships with other municipalities, local transportation agencies, special districts, regional government agencies, local elected officials, school districts, and college boards.

Goals and Objectives
The primary o bjective is for the City Council to adopt official City positions on clearly stated legislative issues and to adopt a guideline for funding priorities at the start of the l egislative session. The Legislative Platform also sets forth the City’s legislative objectives for the 2024 legislative session and provides direction for our legislative advocates as they work to secure clear and strategic initiatives in Sac ramento and Wa shington, D.C. By doing this, the legislative approval process is strea mlined by e liminating the need for repetitive concurrence and direction from the City Council on previously approved issues.

A secondary objective is to implement a process that ensures the City Council provides input and direction on legislative issues that have not been previously reviewed by the City Council. This objective will ensure that staff will seek the Council’s guidance on issues that are not contained within the City’s ado pted legislative platform.

With the dynamic growth of the City over the years a nd planned development in the future, the City’s Legislative Platform is aimed at securing legislative policies and resources that will help the City manage this growth, fund critical infrastructure needs, keep the City safe and maintain and enhance the quality-of- life residents have come to enjoy.

Process
The following outlines the process that is used to develop and implement the various elements of the City of Hesperia’s Legislative Platform:

1. Develop Legislative Policy Statements
Each year, the City Mana ger’s Office submits the Legislative Platform with its proposed S tate and Federal Legislative Policy Statements compiled in accordance with the following:

a. Input from Senior Management and City’s legislative advocates. b. Research of current law and pending legislation.
c. A review of legislative priorities and any other issues recommended by the League of California Cities, the National League of Cities, the City’s legislative ad vocates, or any other agencies conducting legislative analysis and advocacy on behalf of cities. d. City’s adopted Mission Statement and Values.
e. Consideration of special, unique, or changing interests of the City of Hesperia.

Staff will use the 2024 Legislative Policy Statements as a guiding policy when reviewing and analyzing bills that have an impact on the City’s interests. The City will have discretion in determining on which specific bills to take official position . Official City positio ns are not aut omatically assumed on bills simply due to their similarity with the policy stateme nts contained within this document. Furthermore, the policies established within the platform do not preclude City Council consideration of additional legislative matters arising throughout the year that may be brought forward for City Council action.

2. Legislative Monitoring and Advocacy
The City Council recognizes that it is vital to the fiscal health and self-determination of the City to effectively communicate with state legislators and federal representatives in order to favorably influence state and fede ral legislation, regulations, and funding requests. Legislative Advocates at the f ederal and

state level s provide a useful service in the success of the City’s legislative g oals and objectives by providing the necessary communication link wit h our Congr essional Delegation and State Legislators to further Hesperia’s priority projects for funding consideration. To that end, funding for Legislative Advocates will be considered by the City Council on an annual basis.

Upon the Legislative Platfor m’s adoption, the City Manager’s Office will exercise day -to-day oversight of legislative matters. Staff will monitor and review state and f ederal legislation a s well as write letters, contact legislators, or otherwise communicate the City’s position, as warranted. T he City Manager is authorized to send such letters on adopted legislative positions, along the following lines:
• Support: Legislation that the City should support as drafted. • Oppose: Legislation that the City should oppose as drafted. • Oppose Unless Amended: Legislation the City should oppose unless amended. • No Position or Watch: Legislation that the City does not take a formal position on but continues to monitor for progress.

3. Staff Responsibilities in the Legislative Process
In addition t o coordinating formal action through the City Council, City staff responsibilities in the implementation of the Legislative Platform include:

1. Prepare support/opposition analyses and correspondence.

2. Seek and solicit support/opposition from other interested entities.

3. Participate in and attend legislative meetings with legislators and staff, as well as other local public officials and staff, to actively engage and stay apprised of legislative trends and upcoming legislation.

4. Prepare and present testimony on behalf of the City before the state and federal government.

5. Monitor and track key bills through the legislative process utilizing the City’s advocacy services, legislative websites, and government/professional associations.

6. Update City Council on legislatio n that th e City has taken a position on, including any significant amendments that would impact the City’s adopted positions.

7. Ensure City Council Members receive copies of all legislative correspondence.

8. Work with City’s f ederal and state lobbyists to i dentify fu nding resources for departmental projects.

4. City Council Role in the Legislative Process
Through adoption of the Legislative Platform, the City Council prohibits any of its members from lobbying, advocating, or taking a position contrary to the Council’s adopted position on any legislative item. Council Members may, as allowed for by law, take opposing positions as an individual citizen; however, said communication is discouraged and considered detrimental to the success of the City and this Legi slative Platform specifically.

Written correspondence by individual City Council Members on legislative items not adopted by the City Council may be transmitted if the correspondence identifies that it is a position as an individual citizen as opposed to an elected official of the City of Hesperia. Any individual correspondence must be on personal stationery that is free of any City of Hesperia identifying information, including logos, addresses, phone numbers, etc.

City Council Members may be asked to participate in meetings with legislators and staff, as well as other local public officials. Council Members may also be asked to present testimony on behalf of the City before the state and federal government. Council Members will be provided copies of all correspondence related to the City’s activities in the legislative process.

When proposed legislation, or a significant public policy issue, comes to th e attention of City officials that is not specifically addressed in the Legislative Platform, it may be brought to Council for consideration. If the Council determines that the proposed legislation or policy issue is of importance to the City, it will recommend that a f ormal position on the matter be taken, which may include adoption of a City Council Resolution.

5. Identify Funding Priorities
Each year, Senior Management provides input on funding priorities for the City’s major infrastructure projects. These projects and programs are identified and listed in the annual Legislative Platform and once approved b y Co uncil, become the basis for preparing the City’s annual Legislative Priorities book. The Legislative Priorities book is the vehicle by which f ederal and s tate r epresentatives are provided information on the City’s top priority projects for which the City seeks funding.

2024 City Council Funding Priorities

Transportation
City Wide Pavement Restoration
The City conducted a pavement analysis citywide that allows for a methodic categorization of streets to establish a Pavement Management Program. The Pavement Condition Index (PCI) is a snapshot of the conditions of the roadway ranging from 100 (brand new) to 0 (complete failure).

Asphalt can fail for a variety of reasons, such as: age, wear, or failure of material. There are varying levels of treatment that can be used to extend the lift of the asphalt such as slurry seal or overlays, but after roadways reach a PCI of 55 or less they deteriorate at a much faster rate and the more affordable rehabilitation methods no longer work. The City must resort to full reconstruction of the asphalt where the asphalt and the base material are removed and replaced. Full reconstruction costs are approximately $1 million per mile, to account for construction costs, and review of the asphalt design section to ensure it meets the current City needs for traffic loads.

In the most recent PCI survey of roads almost 15% fall below a PCI of 45 within the C ity limits.

The City has approximately 500 miles of asphalt roadway, meaning approximately 75 miles are in failing over the next 10 to 20 years. The City is looking for $125 million over the next 15 years to set up a program to replace the deteriorating roadway sections , assist with public safety and upgrade design sections to meet the current needs of the community.

Maple Avenue Sewer and Roadway Rehabilitation
Maple Avenue from Ranchero to Main Street is a north -south corridor used by the community and is in nee d of replacement. In conjunction a portion of the sewer under Maple Avenue contains a sag that has resulted i n backups t o the sewer system and has caused needs for additional staff time and City funding to repair.

The replacement of this sewer line and the improvement of the roadway system would cost approximately $6 million to cover the creation of the plans, specifications, and construction of the entire project. These repairs would allow for a mo re consistent sewer system, less costly repairs to the road and a safer corridor for residents.

Main Street Widening and Aqueduct Bridge Construction
Three heavily congested corridors are all that exist in the City of Hesperia (City) to move traffic east-west through the city. To improve circulation, Main Street will be widened from the Interstate 15 (I-15)
to Eleventh Avenue from four lanes to six lanes with center turn lanes and an additional aqueduct bridge adjacent to the existing bridge will be constructed consistent with the California Department of Water Resources (DWR) bridge requirements. The project will enhance capacity by more than 30% and will include raised median s to restrict traffic movements and a three-lane bridge together with shoulder, pedestrian and bicycle facilities, and aqueduct safety features.

The project will improve the critically needed east -west traffic circulation, improve air quality b y reducing greenhouse gas emissions, improve safety and safety response times for emergency vehicles, provide efficient connectivity for residents and business centers, create jobs, increase use of non- motorized transportation systems, and faci litate growth. The project will alleviate current congestion along Main Street that is anticipated to worsen due to growth. The wide ning will achieve the ultimate configuration of Main Street which is classified as a Major Arterial Roadway in the City’s Circulation Element of the General Plan.

Total project cost is $18.9 million for Main Street widening and $10.1 million for aqueduct b ridge construction. The City intends to deliver the project in three (3) phases with each phase totaling about $10 million. The first p hase would be the construction of the aqueduct bridge. The goal for the construction of the Main Street improvements is $25 million in grant funding. The City will advocate for funding for the Main Street Widening project from a variety of state and federa l sources.

Bear Valley Road Rehabilitation and Widening Project
Bear Valley Road, between Interstate 15 (I -15)
and the Mojave River, carries more traffic volume
than any other roadway in the High Desert. The roadway is shared with the City of Victorville; the north half is located and maintained by Victorville while the south half is located and maintained by the City of Hesperia. The roadway is the primary entrance to the Town of Apple Valley. The route also serves as the primary access to t he City’s large industrial area. The roadway contains three eastbound travel lanes but many areas along the street frontage are not fully improved. A large majority of the properties fronting Bear Valley Road are vacant, and roadway improvements are still to be constructed.

The City desires to partner with the City of Victorville and construct missing curb, gutter, sidewalk, and bi ke lanes along both sides of the roadway together with pavement rehabilitation to keep this vital roadway in good condition. Like other roadway improvement projects, the project will improve air quality by reducing greenhouse gas emissions, improve safety and response times for emergency vehicles, provide efficient connectivity for residents and business centers, create jobs, increase use of non- motorized transportation systems, and facilitate growth. The project is consistent with the City’s Circulation Plan of the General Plan.

Total project cost is $3.8 million. The City’s goal is to acquire $3.5 million in grants and $0.3 million of local funds to complete the project. The City continues to advocate for funding for the project from a variety of state and federal grant sources.

Traffic Signals
Traffic signals are valuable devices for the control of vehicular and pedestrian traffic. They assign the right-of-way to the various traffic movements and thereby profoundly influence traffic flow.

Traffic signals that are properly designed, located, operated, and maintained have one or more of the following advantages:

• They provide for the orderly movement of traffic.
• They increase the traffic-handling capacity of the intersection if:

a. Proper physical layouts and control measures are used; and b. The signal operational parameters are reviewed and updated (if needed) on a regular bas is (as engin eering judgement determines that significant traffic flow and/or land use changes have occurred) to maximize the ability of the traffic control signal to satisfy current traffic demands.
• They reduce the frequency and severity of certain types o f crashes, especially right-angle collisions.
• They are coordinated to provide for continuous or nearly continuous movement of traffic at a definite speed along a given route under favorable conditions. • They are used to interrupt heavy traffic at intervals to permit ot her traffic, vehicular or pedestrian, to cross.

The Traffic Signal project focuses on one intersection in the City that ha s exceeded the collision threshold which warrants traffic signal installation. A traffic signal will be installed at the following intersection:

• Escondido Avenue and Sultana Street

This intersection currently experiences a low Level of Service (LOS) which falls below general circulation plan goals coupled with numerous collisions. The project will potentially reduce all types of collisions and increase public safety. The LOS goals of D or better will be restored.

Total project cost is estimated at $3 million with the City advocating for $1 million in grant funding from a variety of state and federal sources.

I Avenue Widening
I Avenue connects a large residential area to commercial services in the City of Hesperia. It contains both horizontal and vertical sight distance deficiencies. Over the past 10 years, there were 182 accidents al ong I Avenue, of which 22 involved bicyclists and pedestrians with four resulting in fatalities. In addition, 31 of these accidents were located near schools.

To improve these safety deficiencies, I Avenue will be widened between Ranchero Road and Bear Valley Road, approximately 6.4 miles. I Avenue is currently a north -south two -lane ro adway terminating at Ranchero Road in the south and Bear Valley Road in the north. I Avenue is classified as a four -lane divided Arterial with a center turn lane for its entire length. The project will create a community vision that prioritizes safety improvements for all roadway users addressing safety concerns, travel patterns, and infrastructure. The City recently completed a planning study funded through Caltrans’ Sustain able Transportation Planning Grant. The study identified improvement segments and segment costs.

The project will focus on the following goals:

1. Provide increased capacity to improve safety conditions for both motorized and non- motorized users.

2. Create a healthy, livable, and sustainable c ommunity by providing complete streets, thereby increasing walking, biking, and transit trips while also reducing greenhouse gas emissions.

3. Improve public transit services for the entire community.

4. Connect Hesperia's r esidents to destinations that bridge the healthcare divide, provide education opportunities, and provide access to spur economic growth.

5. Promote commerce and economic vitality by facilitating goods movement along I Avenue and improving efficiency.

6. Involve the community in developing a long -term prioritized strategy and plan for promoting reliable and efficient mobility for people, goods, and services.

The total project cost is estimated at $57.4 million. Segments are:

1. Segment 1 – Ranchero Road to Danbury Avenue

2. Segment 2 – Danbury Avenue to Redbud Street

3. Segment 3 – Redbud Street to Hercules Street

4. Segment 4 – Hercules Street to “E” Street

5. Segment 5 – “E” Street to Catalpa Street
Segment 6 – Catalpa Street to Bear Valley Road . The City will endeavor to c onstruct improvements in segments. The City has elected to construct Segments two (2) and three (3) initially to
address traffic congestion, safe routes to schools, and to increase safety. These segments are estimated at $15 million. The City will pursue $10 million in grant funding fro m a variety of state and federal sources and match the amount with local funds of $5 million.

Sultana Str
eet, Muscatel Street, and Cedar Street (Mariposa Road to Escondido Avenue) Street Improvements
Over the past couple of decades, residential development has occurred in the area generally bounded by Main Street to the North, the California Aqueduct to the East, Cedar Street to the South, and Mariposa Road to the West. It is anticipated that growth in the area will continue in the future. The area contai ns a large wash (A- 04 Drainage Corridor) that prevents these developments from having improved access to Mariposa Road. To gain access to the Main Street commercial corridor and/or to Interstate 15 (I -15), residents primari ly use Escondido Avenue as alternate improved routes are not available. All eastbound routes are terminated at the California Aqueduct. These conditions have created significant traffic congestion both along Main Street and Escondido Avenue in addition to safety concerns.

The City desires to construct three roadway connections along Sultana Street, Muscatel Street, and Cedar Street together with roadway widening along Mariposa Road to facilitate traffic movements to both the Main Street commercial corri dor and to Interstate 15 (I-15) and Highway
395. The City will collaborate with San Bernardino County and San Bernardino County

Transportation Authority to complete the project. The work will include construction of drainage system improvements so that s torm water will continue to be conveyed along the A -04 wash under the new roadways to the northeast, embankment construction that must comply with State Division of Dam Safety requirements, and two -lane roadways along each street together with roadway imp rovements along Mariposa Road that will include widening to four lanes, a center turning lane, pavement rehabilitation, and traffic signals at each intersection. The roadways will also include pedestrian sidewalks and bike lanes to encourage non -motorized transportation.

Like other roadway improvement projects, the project will improve air quality by reducing greenhouse gas emissions, improve safety and response times for emergency vehicles, provide efficient connectivity for residents and business cente rs, create jobs, increase use of non - motorized transportation systems, and facilitate growth. The project is consistent with the City’s Circulation Plan of the General Plan.

Total project cost is $21.4 million. The City’s goal is to acquire $20 milli on in grants and $1.4 million of local funds to complete the project. The City continues to advocate for funding for the project from a variety of state and federal grant sources.

North-South Corridor Improvements
Between the California Aqueduct and the B urlingto
n Northern/Santa Fe Railroad c orridor, the
City lacks any improved major arterial between Ranchero Road, soon to be improved to a five - lane roadway, and Bear Valley Road, the busiest roadway in the High Desert. The City wants to study the area to determ ine which corridors should be im proved to facilitate access to and from the north and south ends of the City. Routes to be considered include Hesperia Road, Seventh Street, Cottonwood Avenue and Maple Avenue.

The roadway, consistent with the City’s Circulati
on Plan, will be widened to five lanes which will
include two travel lanes in each direction, a center tur n-lane, pedestrian and bicycle facilities, and traffic signals. Like other roadway improvement projects, the project will improve air quali ty by reducing greenhouse gas emission s, improve safety and response times for emergency vehicles, provide efficient connectivity for residents and business centers, create jobs, increase use of non-motorized transportation systems, and facilitate growth.

The estimated cost to study these corridors is estimated at $0.5 million. The City’s goal is to fund the entire project with grant funding. The City continues to advocate for funding for the project from a variety of state and federal grant sources.

Flood Control
Cataba Road Basin
The City of Hesperia experiences storm -related flooding and sediment transport through out the City. In particular, the Oro Grande Wash conveys runoff from over 30 square miles to the Mojave River. The focus of the subject project is the area just upstream of the California Aqueduct.

There are two existing box culverts under the aqueduct that restrict flow. The drainage tributary is 4,969 acres that generates a 100 -year peak flow rate of 1,671 cubic feet per second (cfs) . The

City has received numerous complaints from the State of California’s Department of Water Resources (DWR) regarding sediment and debris accumulation. The primary concern from DWR is if such accumulations block the culvert system, its system may be impacted preventing state water project del iveries to millions of Southern Californians. DWR indicates that it expends approximately $35,000 annually to ensure the system is appropriately maintained.

To address these concerns, the City proposes to construct the Cataba Road Basin to be located immediately upstream of the Aqueduct crossing to capture sediment and debris fo r proper disposal. The project includes planning, design, environmental review, site acquisition, permitting, and construction of a detention facility together with related faci lities (e.g. inlet and outlet structures and emergency spillway). The Basin will accommodate large flows reducing peak flow rates while capturing sediment and debris. The project consists of an inlet spillway system leading into the basin through energy di ssipaters, a low flow outlet, and storm drain connection to the existing dual culverts.

Total project cost is $10 million.

Temecula Avenue Basin
The City of Hesperia experiences storm related flooding and sediment transport throughout the City. To add ress these concerns, the City proposes to construct the Temecula Avenue Basin located northwest of the Arrowhead Lake Road and Mono Drive intersection. Sediment build -up occurs in the downstream storm drain systems. The Temecula Basin will accommodate larg e flows reducing peak flow rates while capturing sediment. The project consists of constructing an inlet headwall located along the existing creek and leading into a series of two basins with a combined storage capacity of 39 acre -feet together. Water will flow from the 26 -acre-foot basin to the 13 -acre-foot basin through an outlet spillway. The 13 -acre-foot basin will then discha rge storm water through a low flow outlet and storm d rain connecting to the existing 96 feet of storm drain located approximately 280 feet north of the Arrowhead Lake Road and Mono Drive intersection.

The project will enhance flood protection by eliminati ng flooding along Arrowhead Lake Road, reducing maintenance costs, improving local water supplies, improving local water quality, and reducing sediment transport to the Mojave River.

Total project cost is estimated at $3.9 million. The aggregate goal for construction of the Temecula Avenue Basin is $3.5 million in grant funding.

A-04 Corridor Flood Protection Program
Prior to the City of Hesperia’s incorporation in 1988, development occurred that only included minor alterations to natural topography. As a result, natural drainage courses meander through developed areas, and streets follow the natural contours of the land, often without culverts or bridges across drainage channels. This leads to localized flooding, property damage, road closures, erosion damage, negative economic impacts, and significant s ediment and debris accumulation even during moderate storm events. To addre ss the drainage conditions along the A-04 corridor, one of the many corridors, the City will construct various flood control

improvements including basins and conveyance pipelines. During moderate storm events, flooding occurs all along the entire drainage corridor. The project includes planning, design, site acquisition, permitting, construction of basins, and conveyance pipeli nes between basins. The basins will also be used for recharge of imported and recycled water.

The project will enhance flood protection for nearly 10 miles of developed, and to be developed, areas in the cities of Hesperia and Victorville. These areas are or will be developed with commercial and residential land uses. In addition, the flooding area includes several major arterials. The project will also improve water supply management to the High Desert region.

Total project cost is $50 million. The City will advocate for $35 million in funding from a variety of state and federal sources and pursue all eligible funding source s. Match funds will be accumulated by use of the City’s recently adopted A-04 Special Development Impact Fee.

Mesa Area Septic to Sewer
To protect groundwater quality, the City is proposing to expand its existing wastewater collection system to provide service to convert onsite wastewater treatment systems to the sewer system.

The wastewater will be treated, and effluent will be recycled for irrigation uses and aquifer recharge.

The Mesa a rea is one of the highest density communities in the City of Hes peria. Local construction of a system is cost prohibitive. In addition, the existing high- density onsite disposal systems are impacting aquifer water quality, the only water supply source for the City. The project will provide sewer service to this high-density area protecting aquifer water quality.

The project will be delivered in phases which include construction of the Peach Avenue lift station together with force mains and gravity sewers as well as a phase that includes local gravity sewers and septic to sewer conversions. The total project cost is $80 million. The project cost per phase will be $10 million for each individual phase. The City will pursue project funding from a variety of state and federal sources in multiple funding cycles.

2024 State Legislative Policy Statements
The following categories of policy statements are broad and are not intended to be all- inclusive, rather they will be used as a reference tool and guideline for the City’s State advocacy efforts in 2024.

Administrative Services
General Area of Review: Elections, Brown Act, Public Records Act, Political Reform Act, Conflict of Interest, Insurance, Tort Reform, Open and Transparent Government.

1. Support a comprehensive state performance r eview an d aud it system and l ong-range financial planning and performance budgeting to enhance accountability, efficiency, and responsiveness at all levels of government.

2. Support legislation that controls the costs of elections as long as the elections proc ess is n ot adversely affected, (e.g., purge voter rolls, limit costs for candidate statements, and prevent abuse of the mail ballot process).

3. Support legislation that woul d increase voter turnout in local elections, (e.g., mail ballots, more information to voters for judicial elections).

4. Support legislation that reduces the amount o f recall abuse while improving, streamlining , and ensuring that the public has full knowledge of the issues.

5. Support legislation that strengthens local control over election -related matters such as boundary and district requirements.

6. Support measures that enable cities to maximize their ability to administer local elections, including programs designed to encourage and increase voter education, registration, and voter turn-out efficiently and effectively.

7. Support reforms to modernize the structure, governa nce, management, and method of financing State government.

8. Support legislation that discourage s baseless and frivolous claims and demands made against municipalities, their officers, and employees.

9. Support legislation that would allow a city presented with an allegation of a violation of the California Voter Rights Act (CVRA) to address the allegat ion before any person may file a lawsuit related to the alleged violation.

10. Support legislation providing City C ouncil more flexibility to fill city council vacan cies including extending the appointment period to fill a vacancy.

11. Support limi ted tort liabili ty and provide certain tort immunities for public entities for unauthorized use of public property.

12. Support comprehensive tort reform, including limiting the joint and separate liability of governmental agencies to a liability equal to their percentage of their wrongdoing.

13. Support measures that preserve the integrity and fundamental s of the Brown Act while opposing measures that would constrain communication among staff and local officials.

14. Support measures increasing local autonomy, protecting privacy , and maintaining the City’s authority over public records. This includes measures t hat provide for the recovery of costs with regard to public records requests.

15. Support efforts to amend rules that limit and restrict local governments’ ability to achieve greater transparency of governmental business by improving the platform in which agencies can publish and advertise notices, resolutions, orders, or other matters required by law.

16. Support measures that promote transparency, public participation, and first ame ndment rights, while preserving procedures that continue to foster efficient government proceedings.

17. Support a lternative methods of meeting public notice requirem ents and enhancing them using cost effective and innovative, technology friendly methods of communication.

18. Support legislation that maintains and enhances local franchising au thority for cable television and wireless services.

19. Support legislation that provides funding and financial relief to local communities directly impacted by the C OVID-19 pandemic by assisting with budget shortfalls due to the reduction in sales and use taxes.

20. Oppose l egislation that e xpands or increases municipal liability , or, convers ely, further limits municipal immunity.

21. Oppose legislation that li mits the author ity of municipalities to enforce their own ordinances in municipal courts.

22. Oppose any legislation that diminishes or does n ot assure local franchise fees for all utilities’ us e of City right-of- way.

23. Oppose legislative efforts to impose binding arbitration that w ould remove local government authority on matters of local interest. Specifically, sup port all legislative and legal efforts to overturn any legislation that implements binding arbitration on local government.

24. Oppose legislation that seeks to lessen the City’s ability to enforce contractual language agreed to and contained within existing franchise documents.

Economic Development
General Area of Review: Economic Devel opment, Redevelopment, Enterprise and Opportunity Zones, Job Creation.

1. Support r egional economic development policies that provide for planned economic growth in the City and neighboring communities.

2. Support legislation that promotes sustainable economic development.

3. Support legislation that would enhance a city’s ability to attract a nd retain local businesses, and encourages business expansion and retention through job creat ion, inv estment in capital equipment, and employer facility development.

4. Support legislation that provides incentives (tax benefits, grants, loans, credits for aff ordable units) to local agencies to rehabilitate residential and commercial properties.

5. Support legislation that promotes business formation and growth.

6. Support legislation that promotes “re-shoring” of manufacturing processes.

7. Support legi slation t hat will establish a meaningful and useful tax increment financing (TIF) program to support local economic development.

8. Support state and federal legislation to maximize the economic benefits of Opportunity Zones for communities and businesses, in cluding e nvironmental streamlining and flexibility to expand or change existing designations.

9. Support legislation that ensures all assets (real & personal property, loans , and grants receivable, etc.) are retained by the sponsoring entity of a former redev elopment agency for the benefit of the former redevelopment project area(s) and the elimination of physical and economic blight.

10. Support legislation that clarifies and narrows the prevailing wage standard for economic development and affordable housing projects.

11. Support polices and legislation that promote an increase in housing development and subsequently an increase in commercial development.

12. Support zone changes and policies that incen tivize and encourage development of property west of the Interstate 15 (I-15) Highway, such as e-commerce and distribution centers.

13. Oppose legislation that is deemed by the City to be “anti-business” and/or “job killer.”

14. Oppose legislation that would redu ce funds dedicated to the Community Development Block Grant Program (CDBG) and the HOME program a nd support the expansion of eligibility and allowable uses under these programs.

15. Oppose le gislation th at restricts the building industry and consequently diminishes economic development in the City.

16. Oppose legislation that would contribute to a decrease in property values within the City.

Employee Relations and Risk Management
General Area of Review: Labor Relations, Employee Relations, and Human Resources.

1. Support legislation that would reform the State’s Workers’ Compensation System to d raw a balance between reasonable claimant benefits versus the increasing costs/corruption that has plagued the System to date.

2. Support legislation that improves access to, an d reduces the cost of, healthcare for public employees.

3. Support legislation tha t expands the City ’s ability to offer health, welfare , and wellness services for employees.

4. Support reform o f the California tort law system to curtail unreasonable liability ex posure for municipalities and to facilitate the ability to obtain affordable ge neral liability and workers’ compensation insurance coverage.

5. Support local government efforts to establish succession planning and mentoring programs.

6. Support efforts to provide additional flexibility in the provision and administration of retirement and medical benefit programs while ensuring those programs are sustainable for past, current, and future employees.

7. Oppose the taxability of employee benefits.

8. Oppose legislation that would add administrative burdens or taxes to self-insurance programs.

9. Oppose legislation or re gulations that would increase employer medical costs for workers’ compensation.

10. Oppose legislation that would promote workers’ compensation claim litigation.

11. Oppose legislation that presumptively expands workers’ compensation coverage to illness or injuries that are not work-related.

12. Oppose legislation that creates unnecessary burdens o n or lim its the City ’s ab ility to decide employment issues, including collective bargaining, binding arbitration, benefits, and leaves.

13. Oppose legislation im posing state-mandated costs for mandatory employee training programs when there is no guarantee of local reimbursement or offsetting benefits.

14. Oppose legislation that would cr eate additional financial burden on, or threaten the viability of, the California Public Employees’ Retirement System (CalPERS).

Environmental
General Area of Review: Air, Wa ter and Wate r Quality, Climate Change, CEQA, Energy Efficiency, Recycling, Solid Waste Management, Hazardous Materials, and Utilities.

1. Support legislation t hat pr omotes regi onal improvement of air quality, recognizing that air pollution does not follow jurisdictional boundaries.

2. Support legislation to assure that federal, state, and county agencies have adequate authority and resources to enforce air quality regulations.

3. Support legislation and regulations that provide authority for local governments to im plement vehicle emissions reductions programs.

4. Support legislation requiring local government participation on the governing bodies of air quality management districts without diluting any existing authority already held by the City.

5. Support efforts that maintain and enhance loc al decision-making authority in the development and implementation of air quality attainment strategies.

6. Support water quality legi slation that results in reasonable water quality control regulations that are cost effective and can show identifiable benefits.

7. Support regional approaches to provide needed wa ter and encourage local conservation and efficient use of the water supply.

8. Support legislation and regulations that promote the appropriate and beneficial use of reclaimed water.

9. Support continued federal and state funding for water and wastewater treatment infrastructure to reduce local costs and expedite construction of necessary treatment, distri bution, and collection facilities to comply with federal and state mandates.

10. Support efforts that help local governments maintain water efficiency programs that meet state objectives, are cost effective, and make sense for the local conditions.

11. Support sta te and federal efforts to increase water efficiency ratings for common consumer products that use water.

12. Support streamlined environmental processing for f ederal and state regulatory permits administered by Caltrans and various other stat e a nd federal agencies for the purpose of expediting public infrastructure developments.

13. Support major revisions to the Endangered Species Act (ESA) and its state counterpart, i ncluding delisting of endangered species that have thrived and recovered through e ffective resource management.

14. Support legislation to include consideration of the economic impact s of proposed species listings, as well as support the delisting of species no longer threatened or endangered.

15. Support efforts to streamline and improve the California Environmental Quality Act (CEQA ) process to reduce time and cost of compliance while ensuring that the environment is adequately protected.

16. Support “green” projects and regulations that do not place an undue burden on local government and other financial incentives for reductions in Greenhouse Gases.

17. Support programs and policies that promote advanced low emiss ion v ehicle technology and encourage or promote alternative fuels such as biodiesel, hydrogen, and compressed natural gas.

18. Support legislation that increases availability and promo tes the ad option of energy efficient technologies and use of alternative/renewable energy sources.

19. Support legislation that encourages and funds energy eff iciency and conservation while allowing local design and implementation of the program.

20. Support loca l govern ment’s adopt ion and implementation of recycled content and green procurement policies.

21. Support legislation to provide changes to AB 939 regarding mandated waste diversion goals that will streamline its provisions and assist in compliance, placing more emphasis on implementation of waste diversion programs and less on strict mathematical accounting.

22. Support legislation that delays or reduces pe nalties fo r noncompliance with SB 1383 to allow jurisdictions to implement the many components of the regulations.

23. Support funding for implementation of SB 1383 including funding t o i ncrease the capaci ty of facilities that accept, and process organic waste and funding increase the capacity of food recovery services and organizations.

24. Support legislation that cl arifies and broadens the regulatory authority of local government to ensure the efficient management of recyclable material and solid waste.

25. Support legislatio n that provides incentives and funding for programs that promote waste reduction, reuse, and recycling and development of related infrastructure.

26. Support expansion of the market for recyclable materials.

27. Support legislation that allows the City to continue controlling risks from hazardous materials use, storage and transportation through the Uniform B uilding and Fire Codes an d r elated local amendments.

28. Oppose legislation that would require the City to divert more than 50 percent of the solid waste stream and places undue burden on local government.

29. Oppose legislation that requires the City to reduce the amou nt of organic was te by 5 0 to 75 percent and requires disposed edible food to be used for human consumption accompanied by infrastructure, procurement, and implementation requirements which places a financial burden on local government.

30. Oppose mand ated mat erial disposal bans or r estrictions in circumstances where there is an insufficient capacity within the private recycling market to handle these materials in a more beneficial way besides landfilling.

31. Oppose legislation that restricts the City’s ab ility to a dopt local regulations for hazardous materials, including review and ap proval of the location of facilities that use or store hazardous materials or hazardous waste.

32. Oppose air quality legislation that restricts a local agency’s land use authority.

33. Oppose all state and/or federal legislation that would allow for lower w ater quality testing limits based on any other parameters than scientific evidence.

34. Oppose legislation that would impose a tax on residential water service customers, including requirements characterized as voluntary contributions.

35. Oppose the expansion of the State listing of endangered or threatened species without economic impact analyses and valid scientific data.

36. Oppose any additional listings to the California Endangered Specie s Act wh en su ch l istings threaten development and the local economy and impo se an undue financial burden on local agencies.

37. Oppose all unfunded mandates on local governments to address climate change (which is outside the City’s control).

38. Oppose expanding the cur rent unfunded mandate to meet Environmental Protection Agency regulations aimed at the National Pollutant Discharge Elimination System (NPDES).

Grants and Funding
General Area of Review: Competitive, Discretionary, Formulaic Sources of Funding f or Capital Projects and Operations.

1. Support and pursue funding for projects that improve the quality of life in Hesperia.

2. Support and pursue funding to increase public safety service levels in the City and unincorporated areas.

3. Support measures that al low the C ity to compete for its fair share of regional, state and federal funding.

4. Support initiatives that promote dedicated funding streams to cities for critical service areas.

5. Support legislation that provides incentives or grant opportunities for comm unity improvements such as cultural services for the education, entertainment, and enrichment of the community.

6. Support tax credits, grants, loans , and other incentives to assist the public, businesses, and local agencies that invest in energy efficient eq uipment a nd te chnology, and fuel efficient, low emission vehicles.

7. Support and pursue funding that specifically benefits the City ’s transportation and publ ic works projects, including for new railroad grade crossings.

8. Support legislation or policy, whethe r state o r fe deral, that creates and makes available grant funds for economic development and tax increment financing (TIF) programs.

9. Support legislation th at maintains or enhances funding for parks, trails, and recreation services and facilities.

10. Support legislation that provides funding for water, wastewater, and stormwater infrast ructure; flood prevention, water resources planning and development; water q uality improvement; and water resources related regulatory reform.

11. Support legislation that provides sustainable funding support for disaster preparedness, Homeland Security, Court Security and other local emergency management and law enforcement activities.

12. Support legi slation that addresses full reimbursement of law enforcement costs of state and federal mandates.

13. Support legislation that ensures communities of all sizes remain e ligible for funding, not just large urban areas or communities identified through overly prescriptive eligibility criteria.

14. Support legislation that directs proceeds from cap -and-trade auction revenues to projects in the City that result in improved air quality, active modes of transportation, and the reduction of harmful pollutants.

15. Support legislation that provides funding and resources for local governments to implement Healthy Cities programs and policies aimed at reducing obesity, childhood obesity, high rates of diabetes, heart disease, and other health conditions.

16. Support legislation that provides funding t o implement unfunded mandates such as the organi c waste reduction mandates included in SB 1383.

Housing, Community Development and Planning
General Area of Review: Housing, Land Use, Development, Annexation, Incorporati on, B uilding Standards, Mobile Home, and Sign Regulations.

1. Support joint efforts to develop mutual development standards for unincorporated areas that are binding upon the County and the City.

2. Support changes to Sphere of Influence legislation to limit county development and allow cities to annex logical growth.

3. Support local City input on all regional land use and planning issues.

4. Support legislative strategies and programs tha t promote efficient and sustainable land use and building practices.

5. Support legislation that protects the Cities ’ land use authority and their right to make land use decisions with respect to water supply.

6. Support a streamlined right-of-way acquisition process.

7. Support land use patterns that maintain safe residential neighborhoods, b olster economic prosperity, preserve open space, and enhance overall quality of life in Hesperia.

8. Support legislation and regulations that protect a local agency’s control o ver the cultivation and possession of cannabis, including the licensing of dispensaries and abatement of illegal activities.

9. Support legislation that encourages home ownership, including p rograms that are intended to alleviate the national housing crisis.

10. Support legislation that preserves municipal authority over the public right -of-way including fair and reasonable compensation for use of the right-of-way.

11. Support legislation that facilitates the creation and maintenance of payment in lieu of taxes (PILOT) agreements that support the development of affordable housing projects.

12. Support legislation t o r elax eligibility regulations related to affordable housing production requirements.

13. Support state a nd federal legislation that enhance the viability of public housing authorities (PHAs), including funding mechanisms, and protects the authorities and powers of PHAs.

14. Support legislation t hat preserves local control and decision making over housing and land use based on local factors and conditions.

15. Oppose legislation that would limit or restrict local land use decision-making authority.

16. Oppose affordable h ousing production mandates without necessary funding to support said housing mandates.

17. Oppose measures that remove local authority over housing decisions tha t best fit the City and its population.

18. Oppose legislation that limits local abilit y to regulate, manage or generate alternative sources of funding for affordable housing, including public-private partnerships.

19. Oppose l egislation that increases administrativ e burdens and costs associated with affordable housing without increasing provision of services at the local level.

20. Oppose efforts by any regulatory commission from promulgating rules and re gulations that infringe on local land use decisions and management of the public right-of-way.

21. Oppose legislation that would inappropriately limit local governm ent authority to impose growth impact fees.

22. Oppose legislation similar to SB 375 w hich unfairly ties road funding to l ocal decisions on density and affordable housing.

23. Oppose legislation similar to SB 9 which required cities to ministerially approve, without condition or discretion, the number of units allowed on a parcel without considering local conditions and community input.

24. Oppose legislation that limit s or removes local authority to manage the right -of-way concerning broadband deployment.

Local Control
General Area of Review: Preservation of Local Authority and Decision-Making Powers.

1. Support en hanced local control over public nuisance s, ( e.g., adult entertainment facilities, problem alcohol establishments, drug paraphernalia establishments, etc.).

2. Support legislation that strengthens local control over gaming issues.

3. Support the creation o f mo re affordable, innovative, and quality childcare options while maintaining strict adherence to childcare regulations and guidelines.

4. Support efforts to increase opportunities for community-wide citizen volunteer programs.

5. Support legislation to fund s ummer y outh employment and training programs and expand funding f or year- round youth employment and leadership in order to better prepare youth for future self-sufficiency and prevent youth violence and crime.

6. Support efforts to promote and finance program s to combat pet overpopulation, increase pet adoptions and s pay/neuter programs and educate citizens on the dangers and nuisance of roaming, uncontrolled animals and other animal control issues that risk public health and safety and quality of life.

7. Support pr ograms and efforts aimed at assisting with the clean -up of ab andoned and/or inoperative vehicles.

8. Support for expansion of aviation services at Southern California Logistics Airport (SCLA), provided no quality of life or economic competitiveness issues are impacted in Hesperia.

9. Support legislation and regulatory efforts that provide people with the social, economic, and physical environments needed to make healthy choices and lead healthy lifestyles.

10. Oppose any legislation that preempts local authority or transfers jurisdiction over local programs.

11. Oppose legislation and the promulgation of rules and regulations that allow any regulatory agency to en croach on or supersede local authority including, but not limited t o, the City’s right to franchise for the right to operate in the public right-of-way.

12. Oppose legi slation that supports federal, or state iss ued mandates which inf ringe upon an individual’s freedom of choice regarding medical decisions, such as vaccine mandates.

Public Safety
General Area of Review: Law Enforcement, Fire Safety, Emergen cy Communica tions, Emergency Services, Disaster Preparedness, and Nuisance Abatement.

1. Support ad equate financing of jails and c riminal justice facilities. Address the ne ed to devote equal time and energy to develop effective alternatives to incarceration , including ea rly intervention of at-risk youth and counseling and rehabilitation programs.

2. Pursue addit ional opportunity for partic ipation in regional Restoration of Competency (ROC) programs.

3. Support legislation that limits the placement of sex offender and parolee ho mes within the City limits.

4. Support measures that protect the public against disease and disability and promote health.

5. Support increased authority and resources devoted to cities for abatement of graffiti and other acts of public vandalism.

6. Support legislation that provides local law enforcement agencies authority to recover any costs associated w ith com plying with any federal, state or court -ordered licensing, registration , and testing requirement.

7. Support legislation that has the potential to reduce in cidents of violence in the community, especially through the development of treatment and intervention programs for youth.

8. Support legislation that provides greater protection to victims of crime.

9. Support efforts of the Reducing Crime and Keeping California Safe Act.

10. Support efforts to resolve the medicinal cannabis collective issue throu gh judi cial or legi slative action.

11. Monitor impacts of regulation of medical cannabis and recreational cannabis.

12. Support legislation that c ontinues efforts to maximize opportunity for reimbursement for inmate medical and mental health care, as well as assisting with c ontinuity of care p ost-release and pursuing funding for increased needs resulting from realignment. Mitigate liabilities in areas such as health, mental health, Americans with Disabilities Act (ADA) and other areas of legal concern.

13. Support legislation establishing protocols and funding for shared, statewide emergenc y response communications.

14. Support legislation that protects senior citizens from criminal exploitation.

15. Support legislation that protects society against identity theft.

16. Support legislation that protects juveniles from sexual predators on the internet.

17. Support legislation aimed at reducing gang violence and support enhanced sentences fo r criminal offenses committed by gang members.

18. Support legislation that provides education for public safety training.

19. Support legislation which would amend Proposition 47 a nd restore felony status to crimes which were reduced to misdemeanors and/or requir e the completio n of drug rehabilitation to the reduction of said related crimes to a misdemeanor.

20. Address changes made by Propos ition 47 regarding implementation and state and local criminal justice system impacts.

21. Support legislation that addresses the impacts of long-term jail sentences.

22. Support legislation and funding to provide law enforcement/p ublic safety agencies greater access to wireless communication necessary to support a national wireless broadband network capable of use by any public safety entity to serve and protect communities throughout the nation.

23. Support legislation that promotes p rograms that enhance the benefits of mutual aid agreements between local governments.

24. Support additional funding for local agencies to recoup the costs associated with fire safety in the community.

25. Support legislation that strengthens the City’s ability to prohib it the use and sale of fireworks and that allows the San Bernardino County Fire District to prohibit and otherwise control fireworks.

26. Support legislation that supports th e physical and financial ability of the San Bernardino County Fire District to actively ban the sale and/or transportation of fireworks.

27. Support legislati on that promotes fire safety, education, and prevention with the goal of reducing injury, loss of life, and property damage.

28. Support statewide efforts to coordinate solutions to the systemic overcrowding of local Hospital Emergency Rooms and reduce Ambulance overdependence or Ambulance Patient Offload Delays (APOD).

29. Support legislation that provides the San Bernardino County Fire District the authority to recover any costs associated with complying w ith any federal, state , or co urt-ordered licensing, registration, and testing requirement.

30. Support measures that encourage disaster preparedness and emergency planning.

31. Support statewide efforts to coordinate disaster preparedness programs in local jurisdictions, and support guidelines to identify the strengths and weaknesses of local preparedness efforts.

32. Oppose programs that have the potential to compromise officer safety.

33. Oppose unfunded mandate s on local government in relation to tracking of paroled se xual predators.

34. Oppose any State or local fire related tax or fee increase that does not go back to local agencies.

Revenue and Taxatio n
General Area of Review : Finance Administration, Taxation R eform, General and Special Revenue, and Revenue Sources at the federal, state, and local levels.

1. Support efforts to protect local government revenue sources and the provisions of Propositions 1A and 22.

2. Support legisl ation/initiatives that guarantee all local histo rical funding sources shall be a dedicated revenue source for local governments.

3. Support legislation designed to protect, without unnecessarily restricting, the investments of local government agencies.

4. Support local control of the awarding of contracts and the accountability of local officials for those actions.

5. Support legislati on that f acilitates an d enables the timel y co llection of delinquent assessments and strengthens or maintains the lien position of those assessments.

6. Support legislation that would require the State to comply with its obligation and original intent of the State Mandated Costs c laim process to reim burse cities for costs incurred because of State- mandated programs and processes.

7. Support measures that promote fiscal stability, pred ictability, and financial independence at th e local level.

8. Support efforts that p reserve and promote t he City’s ability to maintain and grow its revenue base.

9. Support regional cooperation on common interests and goals by providing access to share incremental growth in ERAF (Educational Revenue Augmentation Fund) property tax.

10. Support legislation that provides a more balanced mix of property tax revenues related to public service costs among cities, counties, and special districts.

11. Support full cost reimbursement to the City for all federal, state, and county-mandated programs.

12. Support legislation that provides for adequate transparency of the City’s investment activity.

13. Oppose measures that diminish the City’s rev enue sources that are required to maintain critical services.

14. Oppose imposition of state, federal, and regional mandates upo n local governments, as well as federal mandates on the state, especially those for which no funding exists.

15. Oppose taxes or fees on local refuse programs to fund statewide programs.

16. Oppose legislation that would preempt or threaten local taxation authority.

17. Oppose any change i n reve nue allocations that wo uld negatively affect local government, including sales, use and property tax, t ax increment, gas tax (HUTA), tra nsient occupan cy tax (TOT) and vehicle in-lieu fees (VLF).

18. Oppose restrictions on the City’s ability to adopt its own investment policies.

19. Oppose any legislation that would require municipalities to participate in investm ents that do not meet the objectives set forth in the City’s policies.

Transportation, Communication and Public Works
General Area of Review: Transportation, Construction, Telecommunications, and General Public Works Related Areas.

1. Support increased transportation funds allocated to local jurisdictions for discretionary projects.

2. Support legislation to enhance transportation funding equity within the State.

3. Support efforts to encourage flexibility in federal funding and regulations to better meet the needs of small to medium size communities.

4. Support legislation that facilitates cooperative progra ms among government agencies in or der to help the City meet its basic needs, including transit, street, highway, road and bridge construction and maintenance, and safe corridors for bicyclists and pedestrians.

5. Support new processes to expedite the permitti ng and environmental review a nd ap proval of transportation projects.

6. Support legislation that requires the California Public Utilities Commission (PUC), Federal PUC and railroad operators to ado pt and fund pr ograms to construct grade separations ne cessary for public safety and welfare.

7. Support legislation that would lift the minimum requirement of payment of prevailing wages on municipal Public Works projects to amounts greater than $500,000.

8. Oppose the reduction/elimination of previously dedicated funds for any transportation project s, especially those that are currently nearing construction and have been delayed by agency actions beyond the City’s control.

9. Oppose transportation proposals that w ould a dversely affect the quality of life in Hesperia by increasing traffic congestion, air pollution, or other problems.

10. Oppose legislation that ties transportation funds to compliance with land use, housing, or climate change goals.

2024 Federal Legislative Policy Statements
The following categories of policy statements are broad and are not intended to be all-inclusive but will be used as a reference tool and guideline for the City’s federal advocacy efforts in 2024.

1. Support funding that specifi cally benefits the City of Hesperia’s transportation and publi c works projects. Support ef forts to ensure funding to semi-urban/rural areas, and provide a permanent, direct percentage of unrestricted federal transportation funds to local government transportation departments for priority work in such areas.

2. Support streamlined environmental pro cessing for federal re gulatory permits issued by the US Army Corps of Engineers, US Fish & Wildlife Service, Federal Highway Administration , and various other state and federal agencies for the purpose of expediting public infrastructure projects.

3. Support efforts to establish regional recognition of the limits of authority by the US Army Corps of Engineers under the Clean Water Act.

4. Support direct federal funding from the Economic D evelopment Administration for economic development and public works projects.

5. Support federal leg islation t hat recognizes the importance of sales and use tax to local municipalities and equitably distributes sales tax collections on e-commerce transactions.

6. Support direct federal funding to ci ties, wi thout matching requirements, to use in drug prevention, intervention, and enforcement efforts.

7. Support efforts to ensure the protection of sufficient radio spectrum to meet public safety’s current a nd future needs . Public safety needs should have prio rity ove r private, or for- profit, communication systems.

8. Support legis lation that enhances and continues the Healthy Forests Initiative which protects public safety and welfare by caring for forest areas and ensuring that losses from wildfires are minimized.

9. Support efforts to secure a Federal Foreign Trade Zone (FTZ) designation for the City.

10. Support local/regional control and administration of federal programs and strategic placement of federal personnel to ensure expedited decision-making.

11. Support responsible and equitable legislation to help stabilize the housing market.

12. Oppose cuts to the Community Development Block Grant (CDBG) and HOME programs. Advocate for a more streamlined application process and for greater flexibility of local appropriatio n and use of monies.

13. Oppose any legislation that mandates a Social Security tax for public employers and employees.

14. Support legislation to modify inappropriate sections of the Federal Fair Labor Standards Act (FLSA) as it relates to regulating public sector employment.

15. Oppose any changes to the Mortgage Interest Deduction.

16. Oppose any efforts by government sponsored entities (FNMA & Freddie Mac) that will destabilize the housing market including bulk sales of real estate owned properties (REOs).

Monthly Overview
2024 State Legislative Calendar

Below is an overvi ew that summarizes major legislative ev ents and key dat es that occur month- to-month. The 2024 Legislative Calendar is created by the Office of the Secretary of the Senate.

January
The laws from the prior year take effect on January 1st. The legislative body reconvenes on January 3rd to deliberate on forthcoming year's legislation, with all bill requests due to the Office of Legis lative Counsel by January 19th.

Additionally, the Governor is required to submit the budget by January 10th.

February
The final day for bill introduction is February 16.

President’s Day is observed February 19.

March
Spring recess commences upon adjournment on March 21 and resumes on April 1.

Cesar Chavez day is observed March 29.

April
Legislature reconvenes on April 1 after the Spring recess. April 26 is the deadline for policy committees to review and report on fiscal bills.

May
Policy committees must review and report non -fiscal bills by May 3. Their last meeting day is May 10 before reconvening on May 28. May 17 is the final day for fiscal committees to review and report bills to the floor introduced in their house.

Floor session only May 20-24. No committees, other than conference or Rules committees, may meet for any purpose.

May 24 is the deadline for each house to pass b ills introduced within their house. Committee meetings may resume on May 28
June
Budget Bill must be passed by midnight on June 15.

June 27 is the d eadline for legislative measures to qualify for the No vember 5 General Election ballot.

July
Policy com mittees review and report fiscal b ills by July 3, followed by Independence Day on July 4. Summer recess commences upon adjournment on July 3, provided Budget Bill has been passed.

August
August 5 Legislature reconvenes from Summe r Recess. August 16 is the Deadline for fiscal committees to meet and report bills.

August 19-31 Floor Se ssion Only. No committees, other than conference and Rules committees, may meet for any purpose.

August 23 is the final day for floor amendments. Deadline for each house to pass bills is August 31.

September
September begins Final Study Recess.

September 30 is the d eadline for Governor to sign or veto bills passed by the Legislature, either before or after September 1.

October
November November 5 is the General Election
December December 2, 12 Noon: Start of the 2025-26 Regular Session.

Elected Officials Representing Hesperia

CALIFORNIA STATE GOVERNOR
Name Capitol Address Capitol Numbers
Governor Gavin Newsom 1021 O Street, Suite 9000
Sacramento, CA 95814
Phone: 916-445-2841
Fax: 916-558-3160

CALIFORNIA STATE ASSEMBLY
Name Capitol Address Capitol Numbers Local Address Local Numbers Juan Carrillo
39th Assembly District
P.O. Box 942849
Sacramento, CA 94249
Phone: 916-319-2039
Fax: 916-319-2139
11600 Air Expressway
Adelanto, CA 92301
Phone: 760-530-0139
Fax: 760-530-0140
Chris R. Holden
41st Assembly District
P.O. Box 942849
Sacramento, CA 94249
Phone: 916-319-2041
Fax: 916-319-2141
415 W. Foothill Blvd. #124
Claremont, CA 91711
Phone: 909-624-7876
Fax: 909-626-2548
Tom Lackey
34th Assembly District
P.O. Box 942849
Sacramento, CA 94249
Phone: 916-319-2034

14955 Dale Evans Parkway
Apple Valley, CA 92307
Phone: 760-539-1341

CALIFORNIA STATE SENATOR
Name Capitol Address Capitol Numbers Local Address Local Numbers Senator Scott Wilk
21st Senate District
1021 O Street, Rm 7140
Sacramento, CA 95814
Phone: 916-651-4021
Fax: 916-651-4921
14343 Civic Dr., 1st Floor
Victorville, CA 92392
Phone: 760-843-8414
Fax: 760-843-8343
Senator Rosilicie Ochoa Bogh
23rd Senate District
1021 O Street, Rm 7220
Sacramento, CA 95814
Phone: 916-651-4023
Fax: 916-651-4923
1758 Orange Tree Lane, #B
Redlands, CA 92374
Phone: 909-335-0271
Fax: 909-335-0282

SAN BERNARDINO COUNTY BOARD OF SUPERVISOR
Name District Address District Numbers
Supervisor Paul Cook
First District
14955 Dale Evans Parkway
Apple Valley, CA 92307
Phone: 909-387-4830
Fax: 909-387-3029

UNITED STATES CONGRESS
Name Washington Address Washington
Numbers
Local Address Local Numbers
Congressman Jay Obernolte
California’s 23rd District
1029 Longworth House
Office Building
Washington, DC 20515
Phone: 202-225-5861 9700 Seventh Ave., #201
Hesperia, CA 92345
Phone: 760-247-1815

UNITED STATES SENATOR
Name Washington Address Washington
Numbers
Local Address Local Numbers
Senator Laphonza Butler

112 Hart Senate Bldg.

Washington, D.C.
20510
Phone: 202-224-3841
Fax: 202-228-3954
11111 Santa Monica
Blvd., #915
Los Angeles, CA 90025
Phone: 310-914-7300
Fax: 310-914-7318
Senator Alex Padilla 331 Hart Senate Bldg.

Washington, DC 20510
Phone: 202-224-3553
Fax: 202-224-2200
255 E Temple Street
Suite 1860
Los Angeles, CA 90012
Phone: 310-231-4494
Fax: 202-224-0357

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City of Hesperia

STAFF REPORT
DATE:

TO:

FROM:

BY:

SUBJECT:

February 20, 2024
Mayor and City Council Members
Rachel Molina, City Manager
Tammy Pelayes, Assistant to the City Manager Resolution in support of San

RECOMMENDED ACTION
It is recommended that the City Council and Board consider Resolution No. 2024-05 to oppose Proposed Measure W, a ballot measure listed on the Presidential Primary Election Ballot on March 5, 2024, for residents living in San Bernardino County Fire services areas where Service Zone FP-5 supports fire service.

BACKGROUND
At the J anuary 16, 2024, City Council meeting, Fire Chief/Fire Warden Daniel Munsey made a presentation to the City Council to provide information on the upcoming ballot Measure W (FP5).

In 2008 residents voted on an annual assessment for San Bernardino County Fire Protection District (SBCFD) to provide Fire, Rescue and EMS services. In 2018, the Service Zone FP-5 was expanded to include the geographic areas served by the SBCFPD but not yet in the FP -5 zone.

The expansion resulted in the FP-5 special tax applying to properties in the existing and expanded geographical areas.

This special tax revenue provides fire, rescue and emergency medical services with professional firefighters, in addition to specialized services such as a fire prevention officer, bulldozers and hand crews. Service Zone FP -5 provides SBCFPD with revenue to maintain its current level of service. San Bernardino County Fire covers 19,278 square miles. In 2023, County Fire received approximately 196,000 calls for service, including me dical emergencies, hazardous materials, rescues, aircraft, marine and many other “all-hazard emergencies.

Although FP -5 currently accounts for nearly 18% of County Fire’s annual operating budget, property owners in the City of Hesperia do not pay FP -5. I n 2023, County Fire responded to 23,923 calls for service in the City of Hesperia. Medic Engine 304 responded to 4,325 calls in Hesperia.

At the January 16, 2024, City Council meeting, Mayor Bird and Council Member Gregg requested staff prepare a resolution supporting a NO vote on Measure W.

ISSUES/ANALYSIS
FP-5 revenue must be spent in the zone in which it is collected and it supports operating County Fire stations outside of the City of Hesperia. Currently there is no replacement revenue available.

If FP-5 is repealed, this may result in station closures. Although there is a responsibility to provide

Resolution in support of San Bernardino County Fire in opposition to Measure W (FP5).

Staff Report to the Mayor and City Council Members
Resolution No. 2024-005
February 20, 2024

service, there may be expected increases in response times, an expected increase in insurance premiums due to fewer available resources and existing resources could be used to cover areas whose stations are closed.

Measure W gives voters the opportunity to retain or repeal Service Zone FP-5. The measure will read “Shall the measure to repeal the special tax for San Bernardino County Fire Protections District Services Zone FP-5 be adopted? A YES vote repeals the special tax for San Bernardino County Fire Protection District Zone FP -5. A NO vote does not repeal the special tax for San Bernardino County Fire Protection District Service Zone FP-5.

FISCAL IMPACT

There is no fiscal impact to the City related to this action. Hesperia property owners are not subject to payment of FP-5.

ALTERNATIVE(S)

Provide alternative direction to staff.

ATTACHMENT(S)

1. Resolution No. 2024-05

RESOLUTION NO. 2024-05

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HESPERIA, CALIFORNIA ,

EXPRESSING OPPOSITION TO THE PROPOSED BALLOT MEASURE W TO REPEAL THE

SPECIAL TAX FOR SAN BERNARDINO COUNTY FIRE PROTECTION DISTRICT SERVICE ZONE FP-5.

WHEREAS, Proposed Measure W will be on the 2024 Presidential Primary Election Ballot on March 5, 2024, for residents living in County Fire service areas where Service Zone FP-5 supports fire service; and

WHEREAS, this proposed ballot measure, gives voters in San Bernardino County the opportunity to retain or repeal Service Zone FP-5; and

WHEREAS, FP-5 currently accounts for nearly 18% of County Fire’s annual operating budget and is not paid by property owners within the City of Hesperia; and

WHEREAS, there is currently no replacement revenue available and if approved by the voters of San Bernardino County, the repeal of Measure W will eliminate funding for emergency medical and fire protection services causing the closure of numerous fire stations, exp ected increase in insurance premiums due to fewer available resources and increased paramedic response times; and

WHEREAS, the City Council of the City of Hesperia hereby o pposes the repeal of Measure W Service Zone FP-5 special tax revenue.

NOW THEREFORE, BE IT RESOLVED BY THE CITY OF HESERIA CITY COUNCIL AS FOLLOWS:

Section 1. That the City Council of the City of Hesperia does hereby not support to repeal the proposed ballot measure, Measure W, a special tax for San Bernardino County Fire Protection District Service Zone FP-5.

Section 2. That City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

ADOPTED AND APPROVED this 20th day of February 2024.

______________________________
Larry Bird, Mayor

ATTEST:

____________________________
Erin Baum, Assistant City Clerk