Agenda — Hesperia City Council, November 19, 2024

HESPERIA CITY COUNCIL

SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY

HOUSING AUTHORITY

COMMUNITY DEVELOPMENT COMMISSION

WATER DISTRICT

HESPERIA FIRE PROTECTION DISTRICT - SPECIAL MEETING
Meeting Agenda
Tuesday, November 19, 2024
Closed Session - 6:00 PM
Regular Meeting - 6:30 PM
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
Reception to be held after meeting for outgoing City Council Members 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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November 19, 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. 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
Mayor Larry Bird
Mayor Pro Tem Rebekah Swanson

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November 19, 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. Presentation to outgoing Mayor, Larry Bird, by Mayor Pro Tem, Rebekah Swanson.

2. Presentation to outgoing Mayor Pro Tem, Rebekah Swanson, by Mayor, Larry Bird.

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.

JOINT CONSENT CALENDAR

1. Consideration of the Draft Minutes from the Regular Meeting held Tuesday, November 5, 2024.

Recommended Action:

It
is recommended that the City Council approve the Draft Minutes from the Regular Meeting held Tuesday, November 5, 2024.

Staff Person: Assistant City Clerk Erin Baum
Draft CC Min 2024-11-5Attachments:

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

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November 19, 2024City Council Meeting Agenda
SR Warrant Run 11/19/2024
Attachment 1 - Warrant Run
Attachments:

3. Treasurer’s Cash Report for the unaudited period ended August 31, 2024.

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 11/19/2024
Attachments 1-5 - August 2024 Treasurer Reports
Attachments:

4. Fiscal Year 2023-24 Final Budget Amendments
Recommended Action:

It is recommended that the following resolutions be adopted, amending the respective Fiscal Year (FY) 2023-24 Budgets for the City of Hesperia and the Hesperia Community Development Commission:
1) City of Hesperia No. 2024-55
2) Community Development Commission CDC 2024-01
Staff Person: Assistant City Manager Casey Brooksher
SR FY 23-24 Final Budget Amendments 11/19/2024
Resolution 2024-55
Resolution CDC 2024-01
Attachments:

5. American Rescue Plan Act (ARPA) Grant Equipment Procurement - Eight Chlorine Analyzers
Recommended Action:

It is recommended that the City Council and Board of Directors of the Hesperia Water District authorize the City Manager to enter into an agreement with Doane and Hartwig Water Systems for the purchase of eight (8) chlorine analyzers in the not-to-exceed amount of $63,664.

Staff Person: Director of Public Works/City Engineer Cassandra Sanchez SR ARPA Grant Equipment Procurement - 8 Chlorine Analyzers 11/19/2024Attachments:

PUBLIC HEARING

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November 19, 2024City Council Meeting Agenda
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.

6. Public Hearing to Gather Public Input on Community Needs and Priorities for the 2025-2029 Consolidated Plan and 2025-2026 Action Plan Recommended Action:

It
is recommended that the City Council conduct a public hearing to receive comments from members of the public concerning housing and community needs, proposed activities, program performance, strategies for furthering fair housing, and eligible uses of Community Development Block Grants (CDBG) funds.

Staff Person: Director of Development Services Nathan Freeman SR PH to Gather Public Input on Community Needs 11/19/2024Attachments:

7. Vacate a Portion of Hercules Avenue
Recommended Action:

It
is recommended that the City Council hold a public hearing to receive public comments pursuant to Section 8320, subdivision (a) of the California Streets and Highways Code, and adopt Resolution 2024-57 to vacate the southerly 10 feet of Hercules Avenue between Third Avenue and Hesperia Road as described in attachments Exhibit “A” and Exhibit “B.”
Staff Person: Administrative Analyst Dena Alcayaga
SR Vacate a Portion of Hercules Avenue 11/19/2024
Resolution 2024-57
Attachment 2 - Exhibit "A" - Legal Description
Attachment 3 - Exhibit "B" - Plat Map
Attachments:

8. Development Code Amendment DCA24-00002; Applicant: City of Hesperia; Area affected: City-wide
Recommended Action:

The Planning Commission recommends that the City Council introduce and place on first reading Ordinance No. 2024-13 approving Development Code Amendment DCA24-00002 modifying development standards associated with Accessory Dwelling Units (ADUs).

Staff Person: Principal Planner Ryan Leonard
SR Development Code Amendment DCA24-00002 11/19/2024
Ordinance 2024-13
Attachment 2 - Exhibit "A"
Attachments:

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November 19, 2024City Council Meeting Agenda

NEW BUSINESS

9. Fiscal Year 2024-25 First Quarter Budget Review
Recommended Action:

It
is recommended that the City Council and Board of Directors of the Hesperia Housing Authority and Hesperia Water District receive and file the Fiscal Year (FY) 2024-25 First Quarter Budget Review, and the related following resolutions, amending the FY 2024-25 Budgets for the City of Hesperia, Hesperia Housing Authority, and the Hesperia Water District, be approved:
1) City of Hesperia Resolution No. 2024-59
2) Hesperia Housing Authority HHA No. 2024-07
3) Hesperia Water District HWD No. 2024-18
4) Joint Resolution No. 2024-58, HHA 2024-06, and HWD
2024-17
Staff Person: Assistant City Manager Casey Brooksher
SR Fiscal Year 2024-25 First Quarter Budget Review 11/19/2024 Attachment 1 - FY 24-25 First Quarter Budget Review Report Resolution 2024-59
Resolution HHA 2024-07
Resolution HWD 2024-18
Joint Resolution 2024-58, HHA 2024-06, HWD 2024-17
Attachment 6 - Combined Compensation Schedule
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

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November 19, 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, November 13, 2024 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.

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City of Hesperia
City of Hesperia
Meeting Minutes – Draft
City Council
Tuesday, November 5, 2024 6:30 PM

REGULAR MEETING AGENDA

HESPERIA CITY COUNCIL

SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY

HESPERIA HOUSING AUTHORITY

HESPERIA COMMUNITY DEVELOPMENT COMMISSION

HESPERIA WATER DISTRICT
CLOSED SESSION - 5:30 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 - Existing Litigation:Government Code Section 54956.9(d)1

1. County of San Bernardino v. City of Hesperia, San Bernardino Superior Court Case No.

CIV SB 2209965
Conference with Legal Counsel - Potential Litigation:Government Code Section 54956.9(d)2

1. One (1) Case
Conference with Real Property Negotiators – Property Negotiations, Government Code Section – 54956.8

1. Negotiating Parties: City of Hesperia and Faith Lutheran Church of Hesperia Location: APN: 0413-031-05
Under Negotiations: Price & Terms
CALL TO ORDER - 6:33 PM
A. Invocation
B. Pledge of Allegiance to the Flag
C. Roll Call

Present: 5 - Mayor Bird, Mayor Pro Tem Swanson, Council Member Gregg, City Council Chambers
9700 Seventh Ave.

Hesperia CA, 92345
www.cityofhesperia.us

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City of Hesperia
Council Member Bennington, and Council Member Lee

D. Agenda Revisions and Announcements by City Clerk

Green sheet item added for Closed Session

E. Closed Session Reports by City Attorney

ANNOUNCEMENTS/PRESENTATIONS

1. Presentation of Certificates of Recognition to the Hesperia Christian Patriots Softball team for being named D8 Champions

GENERAL PUBLIC COMMENTS (For items and matters not listed on the agenda)

The following members of the public spoke during Public Comment; Devan Sweeney
Bob Nelson
Kim Jones
David Cheney
Johnathan Weldy
Tina Allen

JOINT CONSENT CALENDAR

Bob Nelson commented on item number 10.

A motion was made by Lee, seconded by Bennington, that this item be approved. The motion carried by the following vote:

Aye: 4 - Mayor Bird, Gregg, Bennington, and Lee
Nay: 0

Abstain: 1 - Swanson

1. Consideration of the Draft Minutes from the Regular Meeting held Tuesday, October 15, 2024.

Recommended Action:

It is recommended that the City Council approve the Draft Minutes from the Regular Meeting held Tuesday, October 15, 2024.

Sponsors: Assistant City Clerk Erin Baum

2. Consideration of the Draft Minutes from the Special Meeting held Tuesday, October 15, 2024.

Recommended Action:

It is recommended that the City Council approve the Draft Minutes from the Special Meeting held Tuesday, October 15, 2024.

Sponsors: Assistant City Clerk Erin Baum

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City of Hesperia

3. Consideration of the Draft Minutes from the Special Meeting held Tuesday, October 22, 2024.

Recommended Action:

It is recommended that the City Council approve the Draft Minutes from the Special Meeting held Tuesday, October 22, 2024
Sponsors: Assistant City Clerk Erin Baum

4. Warrant Run Report (City - Successor Agency - Housing Authority - Community Development Commission - Water)

Recommended Action:

Sponsors: Assistant City Manager Casey Brooksher

5. Treasurer’s Cash Report for the unaudited period ending July 31, 2024 and an updated Treasurer's Cash Report for the unaudited period ending June 30, 2024.

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.

Sponsors: Assistant City Manager Casey Brooksher

6. American Rescue Plan Act (ARPA) Grant - Tamarisk Storm Water Basin Rehabilitation

Recommended Action:

It is recommended that the City Council authorize the City Manager to award a contract with H L Hitchcock Construction to rehabilitate the Tamarisk Storm Water Basin to its original design in the amount of $ 602,650 and approve an additional 10% contingency in the amount of $60,265 for a not-to-exceed amount of $662,915.

Sponsors: Director of Public Works/City Engineer Cassandra Sanchez

7. American Rescue Plan Act (ARPA) Grant Contract Services - Leak Analysis

Recommended Action:

It is recommended that the City Council and Board of Directors of the Hesperia Water District authorize the City Manager to enter into an agreement with ASTERRA for the satellite scan of the City’s water distribution system to identify non-apparent leaks, in the not-to-exceed amount of $350,000, which includes a contingency of $30,000.

Sponsors: Director of Public Works/City Engineer Cassandra Sanchez

8. American Rescue Plan Act (ARPA) Grant Equipment Procurement - Closed Circuit Television Truck

Recommended Action:

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City of Hesperia

It is recommended that the City Council and Board of Directors of the Hesperia Water District authorize the City Manager to enter into an agreement with Plumbers Depot for the purchase of one (1) closed-circuit television (CCTV) inspection vehicle in the not-to-exceed amount of $481,008.

Sponsors: Director of Public Works/City Engineer Cassandra Sanchez

9. American Rescue Plan Act (ARPA) Grant Service Line Replacement Project

Recommended Action:

It is recommended that the City Council and Board of Directors of the Hesperia Water District authorize the City Manager to enter into an agreement with Weka Inc. for the replacement of water service lines in the
not-to-exceed amount of $7,731,407, which includes a 10% contingency.

Sponsors: Director of Public Works/City Engineer Cassandra Sanchez

10. Final Tract Map No. 20648-2

Recommended Action:

It is recommended that the City Council adopt Resolution No. 2024-56 approving Final Map No. 20648 -2 to create 4 additional residential lots in addition to the 20 residential lots and 1 homeowners association (HOA) community lot with a remainder parcel previously approved on Final Map 20648-1 on approximately 15.61 gross acres to develop a portion of Tract 18989-1 Lot 26, Planning Area 17 of the Tapestry Specific Plan (Applicant: Silverwood Development Phase I, LLC).

Sponsors: Director of Public Works/City Engineer Cassandra Sanchez

CONSENT ORDINANCES

11. Amendments to Chapter 5.50 of the Hesperia Municipal Code Related to Medical Cannabis Business Licenses

Recommended Action:

Place on second reading and adopt by title waiving the text of Ordinance No. 2024-12 amending Chapter

5.50 of the Hesperia Municipal Code relating to medical cannabis business licenses.

Sponsors: City Attorney Pam K. Lee

A motion was made by Bennington, seconded by Mayor Bird, that this item be approved. The motion carried by the following vote:

Aye: 5 - Mayor 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.

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City of Hesperia

CITY MANAGER/CITY ATTORNEY/STAFF REPORTS

The City Manager thanked staff.

ADJOURNMENT

The meeting was adjourned in honor of Emma Gregg’s 17 th birthday and the passing of Charles Rodell at 7:31 p.m.

_____________________________
Erin Baum,
Assistant City Clerk

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City of Hesperia

STAFF REPORT

DATE: November 19, 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
Verenise Fierros, Accountant

SUBJECT: Warrant Run Report (City – Successor Agency – Housing Authority – Community Development Commission – Water)

RECOMMENDED ACTION

BACKGROUND

The Warrant Run totals represented below are for th e period October 05 , 2024 through October 18, 2024.

* Includes debt service payment made via Automated Clearing House (ACH) electronic deposit of funds

CITY GOAL SUPPORTED BY THIS ITEM

Financial Health – Maintain a balanced budget and adequate reserves.

ATTACHMENT(S)

1. Warrant Runs
Agency/District Accounts Payable Payroll Wires Totals
City of Hesperia $3,796,559.32 $310,849.75 $0.00 $4,107,409.07 Successor Agency 0.00 0.00 0.00 0.00
Housing Authority 2,379.64 203.61 0.00 2,583.25
Community Development Commission 0.00 0.00 0.00 0.00
Water 1,019,410.21 142,253.22 0.00 1,161,663.43
Totals $4,818,349.17 $453,306.58 $0.00 $5,271,655.75

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YEAR-TO PRIOR FY YTD

W/E W/E WARRANT DATE DATE
FUND # FUND NAME 10/11/2024 10/18/2024 TOTALS Wires TOTALS * TOTALS Accounts Payable
100 GENERAL 266,091.93$ 111,932.11$ 378,024.04$ -$ 12,780,877.78$ 11,601,414.59$ 105 PENSION OBLIGATION TRUST -$ -$ -$ -$ -$ -$
106 OPEB TRUST -$ -$ -$ -$ -$ -$
110 SILVERWOOD -$ -$ -$ -$ 6,617.66$ -$
200 HESPERIA FIRE DISTRICT -$ -$ -$ -$ -$ -$
204 MEASURE I - RENEWAL 1,072.00$ -$ 1,072.00$ -$ 13,687.41$ 406,308.14$ 207 LOCAL TRANSPORT-SB 325 -$ -$ -$ -$ -$ 967,882.81$ 209 GAS TAX-RMRA -$ -$ -$ -$ -$ -$
210 HFPD (PERS) -$ -$ -$ -$ 1,755,819.00$ 907,316.00$ 251 CDBG -$ 2,427,568.31$ 2,427,568.31$ -$ 2,668,922.09$ 223,364.97$ 254 AB2766 - TRANSIT -$ -$ -$ -$ -$ -$
255 AB3229 SUPPLEMENTAL LAW -$ -$ -$ -$ -$ -$
256 ENVIRONMENTAL PROGRAMS GRANT -$ 135.35$ 135.35$ -$ 19,422.51$ 10,138.19$ 262 SB 1383 LOCAL ASSISTANCE GRANT -$ -$ -$ -$ -$ -$ 263 STREETS MAINTENANCE 12,803.01$ 3,996.75$ 16,799.76$ -$ 615,736.35$ 827,297.74$ 300 DEV. IMPACT FEES - STREET -$ -$ -$ -$ 22,388.61$ 3,600.00$ 301 DEV. IMPACT FEES - STORM DRAIN -$ -$ -$ -$ -$ -$ 303 DEV. IMPACT FEES - POLICE -$ -$ -$ -$ -$ -$ 304 DEV. IMPACT FEES - PUBLIC WKS. -$ -$ -$ -$ -$ -$ 306 DEV. IMPACT FEES - 2018-STREETS 11,922.40$ -$ 11,922.40$ -$ 512,127.44$ 1,159,312.50$ 312 DIF 2018-POLICE FACILITIES -$ -$ -$ -$ -$ -$ 313 DIF A-04 DRAINAGE -$ -$ -$ -$ 498.79$ 317,748.35$ 402 WATER RIGHTS ACQUISITION -$ 553,898.40$ 553,898.40$ -$ 1,664,308.80$ 1,217,911.69$ 403 2013 REFUNDING LEASE REV BONDS -$ -$ -$ -$ -$ 568,901.39$ 404 2023 REFUNDING LEASE REV BONDS -$ -$ -$ -$ -$ -$ 504 CITY WIDE STREETS - CIP 1,683.90$ -$ 1,683.90$ -$ 2,595,364.72$ 3,652,555.76$ 509 CITY FACILITIES CIP -$ -$ -$ -$ -$ -$
800 EMPLOYEE BENEFITS 269,596.76$ 91,393.91$ 360,990.67$ -$ 3,071,572.27$ 2,823,012.58$ 801 TRUST/AGENCY 522.40$ 43,942.09$ 44,464.49$ -$ 512,689.29$ 475,566.61$ 802 AD 91-1 AGENCY -$ -$ -$ -$ -$ -$
804 TRUST-INTEREST BEARING -$ -$ -$ -$ 41,105.51$ 97,818.90$ 807 CFD 2005-1 -$ -$ -$ -$ 1,018,250.47$ 986,388.74$ 808 HFPD (TRANSITION) -$ -$ -$ -$ 317,435.02$ 347,796.19$ 815 PLAN REVIEW TRUST - FRONTIER -$ -$ -$ -$ -$ -$ CITY 563,692.40$ 3,232,866.92$ 3,796,559.32$ -$ 27,616,823.72$ 26,594,335.15$ 163 REDEVELOP OBLIG RETIREMENT-2018 -$ -$ -$ -$ 7,922,197.73$ 8,079,433.89$ SUCCESSOR AGENCY -$ -$ -$ -$ 7,922,197.73$ 8,079,433.89$ 370 HOUSING AUTHORITY 1,645.00$ 734.64$ 2,379.64$ -$ 7,073.81$ 4,122.44$ HOUSING AUTHORITY 1,645.00$ 734.64$ 2,379.64$ -$ 7,073.81$ 4,122.44$ 170 COMMUNITY DEVELOPMENT COMMISSION -$ -$ -$ -$ -$ -$ COMMUNITY DEVELOPMENT COMMISSION -$ -$ -$ -$ -$ -$ 700 WATER OPERATING 447,739.10$ 545,177.85$ 992,916.95$ -$ 4,257,609.06$ 3,949,618.55$ 705 WATER PENSION OBLIGATION TRUST -$ -$ -$ -$ 750,000.00$ -$ 701 WATER CAPITAL -$ -$ -$ -$ 16,473.00$ 298,109.99$ 710 SEWER OPERATING 3,198.47$ 21,797.69$ 24,996.16$ -$ 1,995,130.02$ 2,161,361.19$ 711 SEWER CAPITAL -$ -$ -$ -$ 931,759.89$ 525,100.10$ 720 RECLAIMED WATER OPERATIONS -$ 1,497.10$ 1,497.10$ -$ 26,005.23$ 12,683.23$ WATER 450,937.57$ 568,472.64$ 1,019,410.21$ -$ 7,976,977.20$ 6,946,873.06$ ACCOUNTS PAYABLE TOTAL 1,016,274.97$ 3,802,074.20$ 4,818,349.17$ -$ 43,523,072.46$ 41,624,764.54$ REG. PAYROLL
City 310,849.75$ -$ 310,849.75$ -$ 2,497,204.47$ 2,401,160.26$ Housing Authority 203.61$ -$ 203.61$ -$ 1,823.36$ 1,581.22$ Water 142,253.22$ -$ 142,253.22$ -$ 1,217,066.29$ 1,044,506.88$ PAYROLL TOTAL 453,306.58$ -$ 453,306.58$ -$ 3,716,094.12$ 3,447,248.36$ City of Hesperia

WARRANT RUNS
10/05/2024-10/18/2024
Attachment 1

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City of Hesperia

STAFF REPORT

DATE: November 19, 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
Cristina Hall, Accountant

SUBJECT: Treasurer’s Cash Report for the unaudited period ended August 31, 2024.

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 53646 (b) setting forth the City’s investment portfolio.

ISSUES/ANALYSIS

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

CITY GOAL SUPPORTED BY THIS ITEM

Financial Health – Maintain a balanced budget and adequate reserves.

FISCAL IMPACT

These reports reflect unaudited cash balances as of August 31, 2024.

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

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Staff Report to the Mayor and City Council/Board Members Treasurer’s Cash Report
November 19, 2024

FUND VALUE
General Fund (100 & 800) 24,060,675.07
Pension Obligation Trust (105) 79,899.35
OPEB Trust (106) -
HFPD (PERS) (210) 621,665.59
CFD 2021-1 Resid Maint & Serv 858.30
CFD 2022-1 Non-Resid Maint & Serv 858.30
CFD 2023-1 Silverwood Maint 950.00
AB27666 - Transit (254) 25,392.96
AB3229 Supplemental Law (255) 272,353.14
AD No. 91-1 (802) 395,680.45
Beverage Recycling Grant (256) 285,526.06
CFD 2005-1 (807) 924,925.25
HFPD Transition (808) -
City Wide-Capital Projects (504) (12,618,447.54)
Community Dev Block Grant (251, 252, & 253) 3,225,407.04 American Rescue Plan Grant (261) 24,801,087.49
SB 1383 Local Assistance Grant (262) 347,937.19
Development Impact Fund (300-304) 5,294,951.46
Development Impact Fund 2018 (306-312) 23,529,539.38
Development Impact Fund A-04 Drainage (313) 1,647,472.18 Disaster (260) 61,505.66
Gas Tax Fund (205) 2,057,990.16
Gas Tax - RMRA (209) 7,951,804.54
Gas Tax Swap (206) 1,579,945.22
Local Transportation SB325 (207) 1,726,592.30
Measure I - Renewal (204) 12,771,901.59
Public Works Street Maint (263) 662,852.64
Public Art (230) 259,316.46
Trust Fund (801, 803-806, & 815) 329,976.25
2012 Water Rights Acquisition (402) 1,772,394.74
2013 Refunding Lease Rev Bonds (403) -
2023 Refunding Lease Rev Bonds (404) 1,842,880.18
TOTAL CITY FUNDS 103,913,891.41$

CITY OF HESPERIA

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Staff Report to the Mayor and City Council/Board Members Treasurer’s Cash Report
November 19, 2024

FUND VALUE
RORF Retention - (163) 445,398.89$

SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY

FUND VALUE

Hesperia Housing Authority Fund (370) 4,279,077.84$
VVEDA Housing Authority (371) 1,943,161.62
TOTAL HOUSING AUTHORITY FUNDS 6,222,239.46$

HESPERIA HOUSING AUTHORITY

FUND VALUE

Community Development Commission Fund (170) 3,511,087.06$

COMMUNITY DEVELOPMENT COMMISSION

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Staff Report to the Mayor and City Council/Board Members Treasurer’s Cash Report
November 19, 2024

VALUE
Water Operating (700) 15,587,072.67$
Water Capital (701) 4,070,037.72
Water Capital Rehab and Replace (703) 3,601,385.35
Water Contamination Mitigation (704) 2,656,332.14
Water Pension Obilgation Trust (705) 752,578.05
Water OPEB Trust (706) -
Sewer Operating (710) 13,879,616.83
Sewer Capital (711) 1,470,400.05
Sewer Capital Rehab and Replace (713) 819,453.97
Reclaimed Water Operations (720) 259,012.77
TOTAL WATER FUNDS 43,095,889.55$
1 WATER
FUND

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City of Hesperia

STAFF REPORT

DATE: November 19, 2024
TO: Mayor and Council Members
Chair and Commission, Community Development Commission

FROM: Rachel Molina, City Manager
BY: Casey Brooksher, Assistant City Manager
Lorraine Carmona, Budget/Finance Specialist
SUBJECT: Fiscal Year 2023-24 Final Budget Amendments

RECOMMENDED ACTION
It is recommended that the following resolutions be adopted, amending the respective Fiscal Year (FY) 2023-24 Budgets for the City of Hesperia and the Hesperia Community Development Commission:
1) City of Hesperia No. 2024-55
2) Community Development Commission CDC 2024-01

BACKGROUND
In compliance with the City Council’s policy direction, staff has reviewed expenditures through the end of FY 2023-24, and has determined that the City of Hesperia and the Hesperia Community Development Commission will require year-end budget adjustments.

ISSUES/ANALYSIS
The analysis of expenditures through the end of FY 2023-24 indicates that the following budget amendment requests should be considered:

Community Development Commission (CDC) (170)
 Land Held for Resale – $243,250
During FY 2023-24, one CDC property was sold for less than the original cost to purchase the property, which resulted in the need to reduce the carrying value of the property to the lower of cost or market value. In addition, a market value analysis on the remaining land held for resale resulted in the need to reduce the book value of several parcels. The recognized losses caused the fund to exceed the appropriation authority.

DIF 2018 – City Hall Facilities (309)
 Interest Expense – $11,524
The DIF-Public Services/City Hall Facilities Loan from the General Fund accrues interest at the Local Agency Investment Fund (LAIF) rate. The interest expense incurred in FY 2023-24 exceeded the budgeted amount by $1 1,524 due to rate increases by the Federal Reserve which, in turn, resulted in increased quarterly LAIF rates. A budget amendment of $11,524 is requested to cover the additional interest expense.

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Staff Report to the Mayor and Board of the Hesperia Community Development Commission Final Budget Amendments for Fiscal Year (FY) 2023-24
November 5, 2024

2023 Refunding Lease Revenue Bonds (403 and 404) – $8,561,958  In June 2023, the City Council approved refinancing of the 2013 Bonds (Civic Plaza Bonds), which resulted in a net present, value (NPV) savings of $674,109, or 7.01% of the outstanding principal amount of the 2013 Bonds. Due to the timing of the refinancing, the related funding was not included in the FY 2023 -24 Budget. The combined $8,561,958 amendment, which is funded from the proceeds of the bond refinancing, is requested for the bond’s FY 2023-24 debt service expenditures, along with the transfer of funds to retire the 2013 Bonds, as identified below:

Bond Administration (403-8800) $ 250
Interest Expense (404-8700) 297,049
Bond Administration (404-8800) 1,150
Debt Issuance Costs (404-8850) 298,801
Operating Transfers Out (404-9000) 7,964,708

City Engineering Services
Consistent with Joint Resolution 2018 -06, budgeted funding for the City’s engineering services contract with TKE Engineering was identified in the FY 2023-24 Operating Budget in the amount of $490,000, and FY 2023 -24 engineering expenditures for operating purposes were within the operating budget, at $191,918. While the overall FY 2023-24 Capital Improvement Program (CIP) Budget was sufficient to fund capital project expenditures, contract engineering costs were not specifically identified in the CIP Budget. As such, notification is provided that TKE Engineering services in the amount of $19,958 were incurred during FY 2023 -24 related to CIP projects and for services provided through trust funding. As sufficient budget exists within the respecti ve funding sources for the City’s CIP projects during FY 2023 -24, a budget amendment related to engineering services is not needed.

CITY GOAL SUPPORTED BY THIS ITEM

Financial Health: Maintain a balanced budget and adequate reserves

FISCAL IMPACT

The proposed Final Fiscal Year 2023-24 Budget Amendments will be funded from a combination of revenues received, bond proceeds, operating transfers, and the use of reserves.

ALTERNATIVES

Provide alternative direction to staff.

ATTACHMENTS

1. Resolution No. 2024-55

2. Resolution CDC 2024-01

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RESOLUTION NO. 2024-55

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HESPERIA, CALIFORNIA, AMENDING THE FISCAL YEAR 2023-24 CITY OF HESPERIA

BUDGET TO FUND CERTAIN RELATED EXPENDITURES

WHEREAS, the City Council of the 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 has authorized various amendments to the FY 2023-24 Budget throughout the year; and

WHEREAS, the City Council of the City of Hesperia has reviewed the proposed FY 2023-24 final budget amendments information and analysis and has found it acceptable.

NOW THEREFORE, BE IT RE SOLVED BY THE CITY OF HESPERIA CITY COUNCIL 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 approves the FY 2023-24 final budget amendments.

Section 3. That the City Council of the City of Hesperia approves the budget amendments with the following expenditure appropriations from the funds noted below:

Section 4. The 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 19th day of November 2024.

___________________________________
Larry Bird, Mayor
ATTEST:

___________________________________
Erin Baum, Assistant City Clerk

 DIF 2018-City Hall Facilities (309) – Interest Expense $ 11,524  2013 Refunding Lease Rev Bonds (403) – 2023 Refunding Lease Revenue Bonds
250
 2023 Refunding Lease Revenue Bon (404) – 2023 Refunding Lease Revenue Bonds
8,561,708
Total $8,573,482

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RESOLUTION NO. CDC 2024-01

A RESOLUTION OF THE HESPERIA COMMUNITY DEVELOPMENT

COMMISSION OF THE CITY OF HESPERIA, CALIFORNIA, AMENDING THE FISCAL YEAR 2023-24 BUDGET TO FUND CERTAIN RELATED

EXPENDITURES

WHEREAS, the Hesperia Community Development Commission adopted the Fiscal Year (FY) 2023-24 Budget on June 20, 2023; and

WHEREAS, the Hesperia Community Development Commission has authorized various amendments to the FY 2023-24 Budget throughout the year; and

WHEREAS, the Hesperia Community Development Commission has reviewed the proposed FY 2023-24 final budget amendment information and analysis and have found it acceptable.

NOW THEREFORE, BE IT RESOLVED BY THE HESPERIA COMMUNITY DEVELOPMENT COMMISSION 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 Commission approves the FY 2023-24 final budget amendments.

Section 3. That th e Commission approves the budget amendment with the following expenditure appropriations from the fund noted below:
 Community Development Commission (170) $243,250 Section 4. The Secretary of the Commission shall certify to the passage and adoption of this Resolution and enter it into the book of original resolutions.

ADOPTED AND APPROVED this 19th day of November 2024.

___________________________________
Larry Bird, Chairman
ATTEST:

_______________________________
Erin Baum, Secretary

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City of Hesperia

STAFF REPORT

DATE: November 19, 2024
TO: Mayor and City Council Members
Chair and Board Members, Hesperia Water District

FROM: Rachel Molina, City Manager
BY: Cassandra Sanchez, Director of Public Works / City Engineer Robert Worby, Fleet / Warehouse Supervisor

SUBJECT: American Rescue Plan Act (ARPA) Grant Equipment Procurement – Eight Chlorinators

RECOMMENDED ACTION

BACKGROUND

These chlorine analyzers are for each of the District’s stations that have reservoirs and three additional well sites. Per the State Water Resources Control Board (SWRCB), water systems must maintain at least 0.2 parts per million of chlorine throughout all parts of its service area. The chlorine analyzers will be integrated into the City’s supervisory control and data acquisition (SCADA) program, allowing staff to monitor chlorine dosages remotely and alert them should the dosage amount need to be reduced or increased.

The chlorine analyzers measure free chlorine continuously for real time process control and do not require reagents, eliminating the need for routine reagent replacement and waste stream management. Chlorine analyzers not only save water but also significantly reduce costs. Operators can assess free chlorine, pH, temperature, conductivity, and oxidation-reduction potential (ORP). In addition, staff can be assigned to other critical tasks with no waste stream to manage.

ISSUES/ANALYSIS

Hesperia Public Works released Request for Bid (RFB) 2024-25-015 for eight (8) chlorine analyzers on October 16, 2024, soliciting bids from three (3) vendors. The bid closed on October 29, 2024, with two vendors responding. Staff recommends awarding the bid to Doane and Hartwig Water Systems who have been deemed the lowest responsive/responsible vendor with a total bid amount of $63,664.

The City has identified available American Rescue Plan Act (ARPA) Grant funds that are an eligible funding source for the chlorinators.

CITY GOAL

Public Safety: Ensure public safety resources adequately protect our community.

Financial Health: Maintain a balanced budget and adequate reserves.

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Staff Report to the City Council Members, Chair and Board Members, Hesperia Water District ARPA Grant Equipment Procurement- Eight Chlorinators
November 19, 2024

FISCAL IMPACT

ARPA Grant funding in the amount of $63,664 has been identified for the proposed purchase of eight (8) chlorine analyzers. If approved, an amendment to the FY 2024 -25 Budget will be presented at the Mid-Year Budget Review to appropriate the necessary funds.

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENT(S)
None

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City of Hesperia

STAFF REPORT

DATE: November 19, 2024
TO: Mayor and City Council Members

FROM: Rachel Molina, City Manager
BY: Nathan R. Freeman, Development Services Director

SUBJECT: Public Hearing to Gather Public Input on Community Needs and Priorities for the 2025-2029 Consolidated Plan and 2025-2026 Action Plan

RECOMMENDED ACTION
It is recommended that the City Council conduct a public hearing to receive comments from members of the public concerning housing and community needs, proposed activities, program performance, strategies for furthering fair housing, and eligible uses of Community Development Block Grants (CDBG) funds.

BACKGROUND

As an “Entitlement Grantee,” Hesperia receives an annual allocation of federal funds from the U.S. Department of Housing and U rban Development (HUD) through the CDBG program.

These funds are essential for developing local programs that benefit low - and moderate-income residents by addressing infrastructure improvement needs, public service, and affordable housing.

To continue receiving these funds, the City must prepare and submit a Consolidated Plan, an Annual Action Plan, and a Consolidated Annual Performance Evaluation Report (CAPER).

These documents serv e as the City’s strategic framework for allocating federal resources and setting priorities for housing and community development over the next five years. Additionally, the Consolidated Plan will incorporate findings from the Analysis of Impediments to Fair Housing Choice to address barriers and support housing equity.

The purpose of this public hearing is to gather input from Hesperia residents and stakeholders on what they consider to be the highest priority community development and housing needs, to evaluate program performance, and discuss strategies for affirmative ly furthering fair housing.

This hearing will help to ensure that the City’s plans reflect the community’s needs and priorities.

In accordance with HUD regulations, the City is required to conduct at least one public hearing before publishing the draft Consolidated Plan and Annual Action Plan for public review. This public hearing is a vital component of the City’s commitment to transparency and community engagement ensuring alignment with HUD’s standards.

ISSUES/ANALYSIS

The Consolidated Plan outlin es the City’s housing and community development needs and proposes strategies for using HUD funds to address these needs over a five -year period. The Annual Action Plan details the specific activities that will be undertaken each year to achieve the

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Staff Report to the Mayor and Council Members
Public Hearing for 2025-2029 CDBG Consolidated
November 19, 2024

goals set forth in the Consolidated Plan. Together, these documents form the basis of the City’s efforts to enhance the quality of life for its residents, particularly those that are low - and moderate-income persons and families.

As part of the public particip ation process, the City has conducted two community meetings to gather feedback from residents on how federal funds may be used to address the community’s high priority needs. The two meetings were held on October 28, 2024, at 10:00 AM and 5:00 PM at the Hesperia Library (located at 9650 Seventh Avenue).

In addition, the City is distributing a survey to gather input on the community’s short - and long- term needs. The survey is available online at https://bit.ly/HesperiaResident and in paper format at the City of Hesperia ’s front information counter, the Hesperia Library, the Animal Control facility, and the Public Works facility. The survey will remain open until December 2, 2024, allowing residents ample time to share their views.

The input received during this public hearing, the two community meetings, and the surveys will be used to refine the draft plans before they are finalized and made available for public review.

CITY GOAL SUPPORTED BY THIS ITEM

Future Development: Facilitate balanced growth to ensure cohesive community development and pursue economic development.

FISCAL IMPACT

There is no fiscal impact associated with this item.

NOTICING PROCEDURES:

In compliance with HUD regulations and the City’s Citizen Participation Plan (CPP), a Notice of Public Hearing was published on November 3, 2024. Notices were also distributed via social media, the City’s website, and posted at accessible locatio ns. The two Community Meetings were also published with a Public Hearing Notice on October 13, 2024.

This Public Hearing had originally been scheduled for November 5, 2024 and was Noticed on October 13, 2024. The Public Hearing was rescheduled to November 19, 2024 and was Noticed on November 3, 2024 informing the public that the November 5, 2024 Public Hearing had been cancelled.

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENT(S)

None

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City of Hesperia

STAFF REPORT

DATE: November 19, 2024
TO: Mayor and Council Members

FROM: Rachel Molina, City Manager
BY: Cassandra Sanchez, Director of Public Works
Dena Alcayaga, Administrative Analyst

SUBJECT: Vacate a Portion of Hercules Avenue

RECOMMENDED ACTION

BACKGROUND

The current right -of-way on Hercules Avenue between Third Avenue and Hesperia Road is 40 feet half-width from center line of Hercules Avenue. Hercules Avenue is not identified as part of the Hesperia Traffic Circulation Plan therefore, minimum road width requirement is only 30 feet half-width from center line.

9980 Hesperia Rd, LLC is the current property owner of APN : 0407-061-11 and they intend to develop this parcel which is located on the south west corner of Hercules Avenue and Hesperia Road. 9980 Hesperia Rd, LLC has bee n approved under site plan review SPR23-00017 to construct a 14 -unit apartment complex. 9980 Hesperia Rd, LLC has formally submitted their application to request to vacate the southerly 10 feet of Hercules Avenue between Third Avenue and Hesperia Road to conform with the approved site plan submitted under the site plan review.

City staff does not anticipate that the southerly 10 feet of Hercules Avenue between Third Avenue and Hesperia Road will ever be needed for public access. Therefore, staff has concluded that there is no reason to retain right-of-way in this area and the 10 feet of land is to be reverted-back to the respective property owners.

ISSUES/ANALYSIS

Public right-of-way should be vacated upon finding that those areas are no longer required for public access. Staff has reviewed the application and determined that this dedication for highway and road purposes is not needed.

Streets and Highways Code Section 8320 allows local agencies to vacate any streets, highways, and public serv ice easements by resolution. Street s and Highways Code Section 8320 also requires that a public hearing be held for all persons interested in the proposed vacation not less than 20 days after the initiation of proceedings and requires local agencies to post Notices of

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Staff Report to the Mayor and Council Members
Vacate a Portion of Hercules Avenue
November 19, 2024

Vacation along the street proposed to be vacated. Notices of Vacation were posted on October 23, 2024 along the proposed vacation site. These notices include the intent of the City of Hesperia to vacate the southerly 10 foot of Hercules Avenue between Third Avenue and Hesperia Road as described in attachments Exhibits “A” and “B” as well as the date and time of the public hearing.

The proposed area, once vacated, will become private property, and thereby is not required for street or highway purposes under Section 8334, subdivision (a) of the Streets and Highways Code.

CITY GOAL SUPPORTED BY THIS ITEM

Future Development- Facilitate balanced growth to ensure cohesive community development and pursue economic development.

FISCAL IMPACT

There is no fiscal impact associated with this action.

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENT(S)

1. Resolution No. 2024-57

2. Exhibit “A” – Legal Description

3. Exhibit “B” – Plat Map

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RESOLUTION NO. 2024-57

A RESOLUTION OF THE CITY OF HESPERIA, CALIFORNIA, TO VACATE THE SOUTHERLY 10 FEET OF HERCULES AVENUE BETWEEN THIRD AVENUE

AND HESPERIA ROAD AS DESCRIBED IN THE ATTACHED LEGAL
DESCRIPTION EXHIBIT “A” AND ILLUSTRATED IN THE ATTACHED PLAT MAP EXHIBIT “B.”

WHEREAS, 9980 Hesperia Rd, LLC is the current property owner of APN: 0407-061-11, located on the southwest corner of Hercules Avenue and Hesperia Road, and intends to develop a 14- unit apartment complex on this parcel; and

WHEREAS, 9980 Hesperia Rd, LLC is requesting to vacate the southerly 10 feet of Hercules Avenue between Third Avenue and Hesperia Road as described per the attached Exhibits “A” and “B”; and

WHEREAS, a vacation of land is requested to conform with the approved sit e plan submitted under the site plan review; and

WHEREAS, the City Council is authorized to vacate any street or portion thereof within the City by Streets and Highways Code Section 8320; and

WHEREAS, the southerly 10 feet of Hercules Avenue between Third Avenue and Hesperia Road is not needed for street or highway purposes; and

WHEREAS, this vacation is made pursuant to the requirements of California Streets and Highway Code, Division 9. – Change of Grade and Vacation, Part 3. – Public Streets, Highways , and Service Easement Vacation Law, Chapter 3. – General Vacation Procedure (sections 8300 et seq.); and

WHEREAS, on October 23rd, 2024, the Notices of Public Hearing to vacate said street were posted in the area of Hercules Avenue not less than 20 days before the date of the public hearing; and

WHEREAS, the Public Hearing was held on November 19, 2024; and

WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred;

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

Section 1. The City Council hereby specifically finds that all of the facts set forth in this resolution are true and correct; and

Section 2. The City Council finds and declares that the southerly 10 feet of Hercules Avenue between Third Avenue and Hesperia Road which is proposed to be vacated, is not required for street or highway purposes under Section 8334, subdivision (a) of the Streets and Highways Code; and

Section 3. The City Council, under the authori ty vested in it by the Streets and Highways Code, sections 8334, subdivision (a) and 8335, hereby orders the vacation of the

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Resolution No. 2024-02
Vacate Bishop Avenue

Page 2 ends

southerly 10 feet of Hercules Avenue between Third Avenue and Hesperia Road as described on the attached Exhibits “A” and “B”; and

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; and

Section 5. The City Clerk is authorized to present this Resolution to the County Recorder to be filed for record.

ADOPTED AND APPROVED this 19th day of November 2024.

______________________________
Larry Bird
Mayor
ATTEST:

____________________________
Erin Baum
Assistant City Clerk

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Attachment 2

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Attachment 3

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City of Hesperia

STAFF REPORT

DATE: November 19, 2024
TO: Mayor and Council Members

FROM: Rachel Molina, City Manager
BY: Nathan R. Freeman, Director of Development Services Ryan Leonard, Principal Planner

SUBJECT: Development Code Amendment DCA24-00002; Applicant: City of Hesperia; Area affected: City-wide

RECOMMENDED ACTION
The Planning Commission recommends that the City Council introduce and place on first reading Ordinance No. 2024 -13 approving Development Code Amendment DCA24-00002, modifying development standards associated with Accessory Dwelling Units (ADUs).

BACKGROUND

On October 10, 2024, t he Planning Commission reviewed and considered the subject Development Code Amendment and voted 5-0 to forward this item to the City Council with a recommendation for approval. During the meeting no one from the public spoke in favor or opposition to the subject Development Code Amendment.

In recent years, the State of California has enacted several laws that have imposed new limits on local authorities, such as Hesperia, to regulate ADUs with the objective of increasing ADU production to address the State’s housing needs. In such cases, the City has amended Section

16.12.360 of the Development Code pertaining to ADUs (ADU Ordinance) to remain consistent with ever-changing State law.

On May 19, 2020, the City Council adopted Ordinance No. 2020 -04 adopting development standards associated with ADUs. On August 16, 2022, the City Council adopted Ordinance No. 2022-13 modifying various sections of the ADU Ordinance fo r the purpose of providing added clarity and to be consistent with State requirements.

Most recently, o n May 23, 2024, the California Department of Housing and Community Development (HCD) provided written comments to staff regarding the City’s existing ADU Ordinance. The adopted ADU Ordinance addresses many of the State’s statutory requirements; however certain aspects of the ADU Ordinances must be revised to comply with State ADU Law.

ISSUES/ANALYSIS

An ADU is an additional dwelling unit that provides complete independent living facilities for one or more persons and is located on the same lot as an existing or proposed primary dwelling unit.

An ADU can be attached to the primary dwelling unit or detached from the unit. A Junior Accessory Dwelling Unit (JADU) is a unit that is no more than 500 square feet in size and is contained entirely

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Staff Report to the Mayor and Council Members
Development Code Amendment DCA24-00002
November 19, 2024

within an existing or proposed single-family residence. The City’s existing ADU Ordinance currently allows ADUs in all single-family, multi-family, and mixed-use zoning designations.

As a result of new State laws and HCD’s comments from its May 23,2024 letter, City staff initiated Development Code Amendment DCA24 -00002 to make the City’s ADU regulations consistent with State requirements. Among other things, the draft Ordinance:

 Clarifies that JADUs shall be contained entirely within an existing or proposed single-family structure; and that enclosed uses within the residence, such as attached garages, are considered a part of the existing or proposed JADU.
 Requires that the City approve or deny an application to create an ADU within 60 days from the date the application was submitted.
 Eliminates owner occupancy requirements for properties with ADUs.  Allows for separate conveyance of an ADU to a qualified buy er, if the property was built or developed by a qualified nonprofit corporation and it meets certain conditions.  Clarifies that an ADU may either be attached to, located within, or detached from the existing primary dwelling unit.
 Updates references to State law and other Municipal Code sections to ensure that they are consistent with current regulations.
 Amends the requirements that apply to attached ADUs when the entrance is located on the same wall plane as the primary dwelling.
 Removes a requirement that detached ADUs must be located behind the primary dwelling unit.
 Modifies the height allowances for ADUs to be consistent with State requirements.  Eliminates the requirement to provide one uncovered parking space for an ADU.  Amends the architectural requirements to require that an ADU match the same colors and materials as the primary dwelling.

For reference, attached is a redline showing the changes that the draft Ordinance would make to the City’s existing ADU regulations.

Environmental: Approval of the Development Code Amendment is exempt from the requirements of the California Environmental Quality Act per Section 15061(b)(3), where it can be seen with certainty that there is no significant effect on the environment. The proposed Development Code Amendment is also exempt from the requirements of the California Environmental Quality Act by Section 16.12.415(B)(10) of the City’s CEQA Guidelines, as a Development Code Amendment is exempt if it does not propose to increase the density or intensity allowed in the General Plan.

According to Government Code 65852.2, ADUs do not count towards the allowable density, and are a residential use consistent with the existing General Plan and zoning designation.

CITY GOAL SUPPORTED BY THIS ITEM
Future Development: Facilitate balanced growth to ensure cohesive community development and pursue economic development.

Conclusion: The Ordinance is consistent the goals, policies and objectives of the General Plan and will bring the City’s ADU regulations into compliance with State law.

FISCAL IMPACT

There is no fiscal impact associated with this report.

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Staff Report to the Mayor and Council Members
Development Code Amendment DCA24-00002
November 19, 2024

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENT(S)

1. Ordinance No. 2024-13

2. Exhibit “A”

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ORDINANCE NO. 2024-13

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HESPERIA,

CALIFORNIA, ADOPTING A DEVELOPMENT CODE AMENDMENT

MODIFYING DEVELOPMENT STANDARDS ASSOCIATED WITH
ACCESSORY DWELLING UNITS (ADUS) (DCA24-00002)

WHEREAS, on January 5, 1998, the City Council of the City of Hesperia adopted Ordinance No. 250, thereby adopting the Hesperia Municipal Code; and

WHEREAS, on May 19, 2020, the City Council adopted Ordinance No. 2020 -04 adopting development standards associated with Accessory Dwelling Units (ADUs), codifying it in Section

16.12.360 of the Hesperia Development Code (ADU Ordinance); and

WHEREAS, on June 1, 2021, the City Council adopted Ordinance No. 2021-01 modifying various sections of the ADU Ordinance for the purpose of providing added clarity and to be consistent with State requirements; and

WHEREAS, on August 16, 2022, the City Council adopted Ordinance No. 2022 -13 modifying various sections of the ADU Ordinance to be consistent with State requirements; and

WHEREAS, on May 23, 2024, the City received a letter from the California Department of Housing and Community Development (HCD) stating that the existing ADU Ordinance does not comply with certain State ADU laws; and

WHEREAS, the City proposes to amend the ADU Ordinance to be consistent with State ADU laws via Development Code Amendment DCA24-00002 (Development Code Amendment); and

WHEREAS, the City Council finds that the proposed Development Code Amendment relating to the ADU Ordinance provides necessary updates to bring the City’s Development Code into compliance with State law; and

WHEREAS, the proposed Development Code Amendment is exempt from the California Environmental Quality Act (CEQA) per Section 15061(b)(3), where it can be seen with certainty that there is no significant effect on the environment. The proposed Development Code Amendment is also exempt from the requirements of the California Environmental Quality Act by Section 16.12.415(B)(10) of the City’s CEQA Guidelines, as the Development Code Amendment is exempt if it does not propose to increase the density or intensity allowed in the General Plan; and

WHEREAS, on October 10, 2024, the Planning Commission of the City of Hesperia conducted a duly noticed public hearing pertaining to the proposed Development Code Amendment and voted 5-0 to forward this item to the City Council with a recommendation for approval; and

WHEREAS, on November 19, 2024, the City Council of the City of Hesperia conducted a duly noticed public hearing pertaining to the proposed Development Code Amendment and concluded said hearing on that date; and

WHEREAS, all legal prerequisites to the adoption of this Ordinance have occurred.

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Ordinance No. 2024-13

Page 2 ends

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

Section 1. The City Council hereby specifically finds that all the facts set forth in this Ordinance are true and correct and incorporated as findings herein.

Section 2. Based upon substantial evidence presented to the City Council, including written and oral staff reports, the City Council specifically finds that the proposed Development Code Amendment is consistent with the goals and objectives of the adopted General Plan.

Section 3. Based on the findings and conclusions set forth in this Ordinance, this City Council hereby adopts Development Code Amendment DCA24-00002, amending the ADU Ordinance as shown on Exhibit “A.”

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 this 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 on this 19th day of November 2024.

_______________________________
Larry Bird, Mayor
ATTEST:

_____________________________
Erin Baum, Assistant City Clerk

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EXHIBIT “A”
The following are modifications to Article X of Chapter 16.12 (additions are in underlined red text and deletions are shown with red and strikethrough):

16.12.360 - Accessory dwelling units.

A. Purpose. The purpose of these provisions is to establish procedures for permitting an accessory dwelling unit (ADU); to implement state law requiring consideration for such uses. this section is to expand the variety of housing opportunities in the City of Hesperia by implementing State Government Code 66310 -66342 as they pertain to accessory dwelling units and junior accessory dwelling units. Implementation of these regulations wi ll ensure that accessory dwelling units and junior accessory dwelling units are located in areas where services are adequate to support them and that accessory dwelling units are designed and maintained as a compatible and integral part of the City’s resid ential zoning districts.

B. Definitions.
a. "Accessory dwelling unit" or "ADU" means an additional detached or attached dwelling unit which provides complete independent living facilities for one or more persons and is located on a lot with an existing or proposed primary residence.

The unit shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the primary unit is situated. An accessory dwelling unit also includes the following:
i. An efficiency unit, as defined in Section 17958.1 of the Health and Safety Code.
ii. A manufactured home, as defined in Section 18007 of the Health and Safety Code.
b. "Accessory structure" means a structure that is accessory and incidental to a dwelling located on the same lot.
c. "Junior accessory dwelling unit" or “JADU" means a unit that is no more than 500 square feet in size and contained entirely within an existing or proposed single- family structure. A junior accessory dwelling unit may include separate sanita tion facilities or may share sanitation facilities with the existing structure. For the purposes of this section, e nclosed uses within the residence, such as attached garages, are considered a part of the proposed or existing single-family residence.

C. Application Procedure—Accessory Dwelling Units. Application for a permit to construct an accessory dwelling unit shall be made by pursuant to the provisions and limitations of this article.
a. The review procedure shall be administrative review without notice (ministerial), pursuant to the provisions of Section 16.12.005(A)(3).
b. The City shall act on the application to create an ADU or a Junior ADU within 120 60 days from the date that the City receives a completed application, unless either:
(i) The Applicant requests for a delay, in which case the 120 60 day time period is tolled for the period of the requested delay, or
Attachment 2

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(ii) An application of an Accessory Dwelling Unit or a Junior Accesso ry Dwelling Unit is submitted with a permit application to create a new primary residence on the lot, the City may delay acting on the permit application for the Accessory Dwelling Unit or the Junior Accessory Dwelling until Unit the City acts on the permit application to create the primary residence. The application of an Accessory Dwelling Unit or a Junior Accessory Dwelling Unit is still considered ministerially without discretionary review or a public hearing. c. Approval of a permit to construct an ac cessory dwelling unit shall be for a period not to exceed thirty-six (36) months.

D. Requirements for Approval.General Standards.

1. An accessory dwelling unit may only be permitted on lots that are zoned for agricultural, single family, multi -family, or mixed uses and that contain an existing or proposed single-family or multi-family dwelling.

2. A Junior Accessory Dwelling unit may o nly be permitted on lots that are zoned for agricultural or single family and that contain an existing or proposed single -family dwelling.

32. Accessory dwelling units are exempt from the density limitations of the General Plan and subject to the following:
a. Lots with an existing or proposed single -family residence may be permitted one (1) accessory dwelling, and one (1) junior accessory dwelling unit (see Section 16.12.360 F for additional regulations pertaining to junior accessory dwelling units).
b. Lots with existing multi-family units may convert non-habitable space within an existing multi -family structure into accessory dwelling units. The number of these types of units shall be limited to -one (1) accessory dwelling or up to 25 percent of the e xisting multi -family dwelling units, whichever is greater. In addition, no more than two (2) detached accessory dwelling units may be permitted. A detached accessory dwelling may be converted from non - habitable space, or newly constructed.

43. An accessory dwelling unit shall be located on the same lot as the proposed or existing primary dwelling.

54. The correction of a nonconforming zoning condition that would result in a physical improvement on the property shall not be a condition of approval for an accessory dwelling unit.

5. On lots with an existing or proposed single family residence, the primar y dwelling unit or accessory dwelling unit on the property shall be owner -occupied. (This provision is suspended for all permits until January 1, 2025, unless otherwise amended by California Government Code 65852.2).

66. The accessory dwelling unit shall provide complete and independent living facilities.

77. The accessory dwelling unit shall not be used for a rental term of less than 30 consecutive days. sold separately and may be rented for periods of not less than 30 days.

8. The accessory dwelling unit may not be sold or conveyed separately from the primary dwelling unit unless all of the following apply:

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(i) The accessory dwelling unit was built or developed by a qualified nonprofit corporation. For the purposes of this section, a qualified nonprofit corporation means a nonprofit corporation organized pursuant to Section 501(c)(3) of the Internal Revenue Code that has received a welfare exemption under Section 214.15 of the California Revenue and Taxation Code for properties i ntended to be sold to low -income families who participate in a special no - interest loan program.
(ii) There is an enforceable restriction on the use of the land on which the ADU is located pursuant to a recorded contract between the qualified buyer and t he qualified nonprofit corporation. For the purposes of this section, a qualified buyer means very- low and low- income households as defined in Section 16.20.195. (iii) The property is held pursuant to a recorded tenancy in comm on agreement that includes an allocation to each qualified buyer of an undivided, unequal interest in the property based on the size of the dwelling that each qualified buyer occupies; a repurchase option that requires the qualified buyer to first offer the qualified nonprofit corporation to buy the accessory dwelling unit or primary dwelling if the buyer desires to sell or convey the property; a requirement that the qualified buyer occupy the property as the qualified buyer’s principal residence; and affordability restrictions on the sale and conveyance of the property that ensure s the property will be preserved for very - low income or low- income housing for 45 years for owner -occupied housing and will be sold or resold to a qualified buyer.
(iv) A grant deed naming the grantor, grantee, and describing the property interests being transferred shall be recorded with the County. A Preliminary Change of Ownership Report shall be filed concurrently with the grant deed pursuant to Section 480.3 of the Revenue and Taxation Code.
(v) If requested by a utility providing service to the primary residenc e, the accessory dwelling unit has separate water, sewer, or electrical connection to that utility.

89. The accessory dwelling unit shall have adequate water supply pursuant to specifications of the Uniform Plumbing Code.
109. In compliance with the State of California Lahontan Regional Water Quality Control Board, lots that are not connected to sewer facil ities shall be a minimum of one gross acre in size or install an approved Supplemental Treatment Septic System. 1011. The design and construction of each ADU shall conform to all applicable provisions of the Building Code. The ADU shall comply with all pr ovisions of the Code pertaining to the adequacy of water, sewer, electrical, drainage, and fire and emergency services to the property on which the ADU will be located as well as all applicable codes pertaining to building, fire, health, and/or safety.

E. Design and Development Standards—Accessory Dwelling Units.

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1. The accessory dwelling unit may be either attached to , or located within, the proposed or existing primary dwelling, including attached garages, storage areas or similar uses, or an access ory structure, or detached from the proposed or existing primary dwelling and located on the same lot as the proposed or existing primary dwelling, including detached garages or detached from an existing or proposed primary residence, or converted from an exis ting accessory building, garage, storage area, or other similar non -habitable area. An accessory dwelling may be converted from non -habitable space within, or detached from, an existing or proposed multi-family structure.

2. A detached accessory unit shal l not exceed one thousand two hundred (1,200) square feet of livable floor area (excludes garage and any accessory structure) on any parcel. Accessory dwelling units attached to the principal unit may be up to fifty (50) percent of the area of the principal unit, up to a maximum of one thousand (1,000) square feet, except that if the principal unit has a floor area of one thousand six hundred (1,600) square feet or less, an attached accessory dwelling unit shall conform to the provisions of Section 16. 2012.360(E)(6), below. The area of an accessory dwelling unit is in addition to and shall not be considered as part of the allowable accessory building area authorized under Article X of Chapter

16.20. No accessory dwelling unit shall be less than one hundred and fifty (150) square feet in area. Further, a recreational vehicle, does not qualify for use as an accessory dwelling unit.

3. Independent access to an attached accessory dwelling unit is required and shal l not be located on the same wall plane elevatio n as the access to the primary dwelling. The entrance to an attached accessory dwelling unit shall be separate from the entrance to the primary unit and structure; the separate entrance shall be located on the side or rear of the structure and whenever pos sible, located facing toward the interior yard areas.

4. For new attached or detached accessory dwelling units, a minimum four -foot side yard and four-foot rear yard setback is allowed. The front yard and street side yard standards for the primary unit sh all apply to the accessory dwelling unit. In addition, detached accessory dwelling units shall be located to the rear of the primary dwelling unit.

5. No setback shall be required for the conversion of existing living area, conversion of an existing accessory structure, or for a new structure that is constructed in the same location and to the same dimensions as an existing structure.

6. The accessory dwelling unit shall be constructed in accordance with minimum standards for single -family residential use s on individual lots as specified in Section 16.20.160, unless otherwise specified herein.

7. No provisions within this Section, including lot coverage or legal nonconformity, shall preclude either an attached or detached 800 square - foot accessory dwelling unit that is at least sixteen (16) feet in height with four-foot side yard and rear yard setbacks, and that is constructed in compliance with all other development standards

8. A detached accessory dwelling unit created on a lot with an existing or proposed single-family or multi-family dwelling may not exceed 16 feet in height. However, a detached accessory dwelling unit may be up to 18 feet in height if it is l ocated within one-half mile walking distance of a major transit stop or a high-quality transit

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corridor, as those terms are defined in Section 21155 of the Public Resources Code. Furthermore, a detached accessory dwelling unit may be up to two additional feet in height to accommodate a roof pitch on t he accessory dwelling unit that is aligned with the roof pitch of the primary dwelling unit. A detached accessory dwelling unit created on a lot with an existing or proposed multi-family dwelling that has more than one story above grade may not exceed 18 feet in height. An accessory dwelling unit that is attached to the primary dwelling may not exceed 25 feet in height or exceed two stories.

89. At least one covered or uncovered parking space for the accessory dwelling unit shall be provided by a minimum interior size of nine feet in width and nineteen (19) feet in depth. Parking can be tandem on an existing driveway. The City shall not impose parking standards for an accessory dwelling unit if the accessory dwelling unit is located within one -half mile of public transit, when the accessory dwelling unit is part of the proposed or existing primary residence or an existing accessory structure, when on -street parking permits are required but not offered to the occupant of the accessory dwelling unit, or when there is a car e share vehicle located within one block of the accessory dwelling unit. No setback shall be required for an existing garage that is converted to an accessory dwelling unit, and a setback of no more than four feet from the side and re ar lot lines shall be required for an accessory dwelling unit that is constructed above a garage. 910. When a garage, carport, or covered parking structure is demolished in conjunction with the construction of an accessory dwelling unit or converted to an accessory dwelling unit, those off-street parking spaces do not need to be replaced. 1011. The accessory dwelling unit shall be architecturally compatible with the design of the primary unit and the surrounding neighborhood in terms of landscaping, scale , height, length, width, bulk, lot coverage, and exterior treatment and shall match with the same colors and materials of the primary unit. 1112. The construction of an accessory dwelling unit shall not be considered when calculating minimum distance requirements for animal uses on the subject lot or on adjacent lots.

F. Junior Accessory Dwelling Units.

1. Purpose-This section provides standards for the establishment of junior accessory dwelling units, an alternative to the standard accessory dwelling un it. Junior accessory dwelling units will typically be smaller than an accessory dwelling unit, will be constructed within the walls of an existing single family residence, and requires owner occupancy of the single family residence where the unit is located.

2. Development Standards - Junior accessory dwelling units shall comply with the following standards:
a) Lots with an existing or proposed single family residence may be permitted one (1) accessory dwelling unit and one (1) junior accessory dwelling unit. b) In compliance with the State of California Lahontan Regional Water Quality Control Board, lots that are not connected to sewer facilities shall be a minimum of one gross acre in size or install an approved Supplemental Treatment Septic System.

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c) A junior accessory dwelling unit shall not exceed 500 square feet in size and shall be contained entirely within a single family residence. However, an additional 150 square foot expansion beyond the physical dimensions of the existing structure is permitt ed strictly to accommodate ingress and egress to the junior accessory dwelling unit.
d) The junior accessory dwelling unit shall include a separate entrance from the main entrance to the proposed or existing single- family residence. e) The junior accessory dwelling unit must include an efficiency kitchen that includes a cooking facility with appliances, a food preparation counter, and storage cabinets that are of reasonable size in relation to the size of the junior accessory dwelling unit.
f) The junior accessory dwelling unit may have a bathroom or share with the proposed or existing singl e family residence. If a permitted junior accessory dwelling unit does not include a separate bathroom, then an interior entry to the main living area shall be provided.
g) Additional parking shall not be required.
h) A deed restriction, in a form to be approved and provided by the City, must be recorded and filed with the City, and must include the following stipulations: i) prohibition on the sale of the junior accessory dwelling unit separate from the sale of the single family residence; ii) restricti on on the size and attributes of the junior accessory dwelling unit; iii) if the unit is rented, the unit shall not be rented for a period of less than 30 consecutive calendar days; and iv) owner occupancy of one of the units on -site is required, unless th e owner is a governmental agency, land trust, or housing organization. These restrictions shall run with the land.
(Ord. 2003-05 § 4 (part), 2003; Ord. 299 § 4 (Exh. A § 3 (part)), 2000; Ord. 250 (part), 1997; Ord. 192 Exh. A (§ 83.10.020), 1994)
(Ord. No. 2009-08, § 3(Exh. A), 10-20-09; Ord. No. 2012-14, § 3(Exh. A), 8-7-12; Ord. No. 2017-12, § 3(Exh. A), 6-20-17; Ord. No. 2020-04, § 3(Exh. A), 5-19-20; Ord. No. 2021-01, 3(Exh. A), 6-1-21; Ord. No. 2022-13, § 3(Exh. A), 9-6-2022)

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City of
Hesperia

STAFF REPORT

DATE: November 19, 2024
TO: Mayor and City Council Members
Chair and Board Members, Hesperia Housing Authority
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 2024-25 First Quarter Budget Review

RECOMMENDED ACTION

1) City of Hesperia Resolution No. 2024-59
2) Hesperia Housing Authority HHA No. 2024-07
3) Hesperia Water District HWD No. 2024-18
4) Joint Resolution No. 2024-58, HHA 2024-06, and HWD 2024-17

BACKGROUND

In compliance with the City Council’s policy direction, staff has prepared the FY 2024-25 First Quarter Budget Review for the City Council, Hesperia Housing Authority, Hesperia Fire Protection District, and the Hesperia Water District Board’s consideration and action.

Additionally, for all personnel changes, the California Public Employees' Retirement System (CalPERS) requires that the City Council, Commissions, and Board of Directors (City Council) approve and adopt a Combined Compensation Schedule whenever there are changes to salaries. This requirement is needed for CalPERS to recognize the position and ensure that the employee receive s service credit. The most recently approved and adopted Combined Compensation Schedule occurred on July 16, 2024 with the adoption of Joint Resol ution No. 2024-26, HHA 2024 -05 and HWD 2024 -09, which highlighted position changes included in the FY 2024-25 Budget.

ISSUES/ANALYSIS

The attached document entitled “Fiscal Year 2024-25 First Quarter Budget Review” includes a report on the status of the City’s FY 2024-25 Budget and a financial review of the first three months experience of the current fiscal year. The report format is used to facilitate the review of complex financial information for an efficient and effective financial review process.

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Staff Report to the Council/Board
Fiscal Year 2024-25 First Quarter Budget Review
November 19, 2024

CITY GOAL SUPPORTED BY THIS ITEM

Financial Health: Maintain a balanced budget and adequate reserves.

FISCAL IMPACT

See attached Fiscal Year 2024-25 First Quarter Budget Review Report document.

ALTERNATIVE

1. Provide alternative direction to staff.

ATTACHMENTS

1. Fiscal Year 2024-25 First Quarter Budget Review Report

2. Resolution No. 2024-59

3. Resolution HHA No. 2024-07

4. Resolution HWD No. 2024-18

5. Joint Resolution No. 2024-58, HHA 2024-06, and HWD 2024-17

6. Combined Compensation Schedule Revised and Effective November 20, 2024

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FISCAL YEAR 2024-25

FIRST QUARTER BUDGET REVIEW

November 19, 2024

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2024-25 FIRST QUARTER BUDGET REVIEW REPORT
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T A B L E O F C O N T E N T S

Page
Executive Summary……………………………………………………………………………………………. 4 Status of FY 2024-25 Budget, Budget Amendments and Reserves:

General Fund…………………………………………………………………………………………. 5
Water District…………………………………………………………………………………………. 6
Streets Maintenance…………………………………………………………………………………. 7
FY 2024-25 September 30, 2024 Year-To-Date Revenue Review:

Major Funds Revenue Summary…………………………………………………………………… 8 General Fund Revenues…………………………………………………………………………….. 9
Community Development Block Grant Revenue…………………………………………………. 10 Hesperia Housing Authority Revenue……………………………………………………………… 10 Street Related Funds Revenue…………………………………………………………………….. 11 Other City Funds Revenue………………………………………………………………………….. 12 Water District Revenue……………………………………………………………………………… 14 Department FY 2024-25 Budget Expenditure Status Summary……………………………………..…….. 16 FY 2024-25 Total Expenditures By Department and Program……………………………………….……. 16 2024-25 First Quarter Budget Salaries and Positions……………………………………………………..... 24 California Public Employees Retirement System (CalPERS) Update……………………………….……. 25

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2024-25 FIRST QUARTER BUDGET REVIEW REPORT
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EXECUTIVE SUMMARY

The following chart compares the FY 2024-25 Budget and September 2024 year-to-date (YTD) revenue and expenditure totals. The percentage comparisons for revenues and expenditures are based on comparing the September 202 4 YTD to the FY 202 4-25 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 three months of the fiscal year.

Status of Overall City Fiscal Year 2024-25 Budget
• Revenue: Based on the analysis of first quarter performance to date, revenue totals collected is $17.1 million, and is 14% collected, which is similar to the revenue collected through first quarter FY 2023-24. The collection of 14% of the budget is due to the timing of payments related to larger revenue sources such as Measure I, Franchise Tax, and Vehicle License Fees. Additional details are provided further within the report. • Expenditures: At 19% utilized, the FY 2024-25 Budget is proceeding as planned. Overall, the September 2024 YTD expenditures of $23,703,900 are $976,858 or 4% less than the September 2023 YTD of $24,680,758. • Reserves: The cash reserve policy for the General Fund and Water District (operating and capital) exceed the City Council’s minimum policy of two (2) months of the annual expenditures be held in cash. The following estimated reserve calculations are based on the June 30, 20 23 ending cash balances included in the June 30, 20 23 audited Annual Comprehensive Financial Report (ACFR). Using the ACFR audited data assures that the estimated reserves are based on actual information. The ending cash balance will be revised in the Mid- Year report with the June 30, 2024 ACFR figures.

Revenues and Expenditures through September 30, 2024 for the City’s main funds are summarized as follows:

2024-25 2024-25 September Revised %
Budget Revised 2024 YTD Received/Expended
Revenue 122,450,412$ 122,450,412$ 17,120,931$ 14% Use of Reserves 10,782,164 11,610,882
Total Resources 133,232,576 134,061,294
Expenditures 122,991,324 123,820,042 23,703,900 19%,, Difference 10,241,252$ 10,241,252$
10% Cash Reserves (Council/Board Policy) 5,207,804$ 10% 3,526,395$ 10% Cash Reserves Above 10% Reserve 17,851,425 34% 29,675,381 82% Total Estimated Cash Reserves 23,059,229 $ 44% 33,201,776$ 91% Months of Cash 5.3 11.3
Water DistrictGeneral Fund
General Fund
Amended
Budget September
% of Amend.

Received
Amended
Budget September
%
Expended
City Council 1,056,754$ 56,856$ 5%
City Manager 1,796,947 586,025 33% Management Services 10,916,848 4,708,849 43% Economic Development 476,492 145,704 31% D.S.-Community Development 3,162,562 717,792 23% D.S.-Code Compliance 5,567,894 1,497,616 27% D.S.-Public Works (G.F.) 3,144,502 594,387 19% Police 22,682,805 5,600,563 25%
Total General Fund 51,019,157$ 4,796,752$ 9% 48,804,804$ 13,907,794$ 28% Community Development Block Grant 1,878,240 1,710 0% 150,896 5,810 4% Hesperia Housing Authority 222,269 4,075 2% 78,976 6,807 9% D.S.-Public Works 21,345 2,137 10% 4,171,648 885,764 21% Streets CIP Funds 29,905,232 4,806,616 16% 30,553,873 246,771 1% Other City Related Funds 2,896,555 410,821 14% 2,981,361 25,527 1% D.S.-Water Operating and Capital 29,491,462 5,689,069 19% 25,472,144 5,326,030 21% D.S.-Sewer Operating and Capital 6,947,713 1,334,974 19% 9,791,805 1,543,578 16% Fire District 68,439 74,776 9% 1,814,535 1,755,819 97% Total 122,450,412$ 17,120,931$ 14% 123,820,042$ 23,703,900$ 19% 2024-25 Revenue 2024-25 Expenditures

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2024-25 FIRST QUARTER BUDGET REVIEW REPORT
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STATUS OF CITY GENERAL FUND 2024-25 BUDGET, BUDGET AMENDMENTS, AND RESERVES

2024-25 2024-25
Budget Revised Dollars Percent

RESOURCES
General Fund Operating Revenue 51,019,157$ 51,019,157$ 0$ 0% Transfers In

1. Fund 255 - AB 3229 COPS Grant 200,000 200,000 Total Transfers In 200,000 200,000
Budgeted Reserves 900,000 900,000
First Quarter Budget Amendment Reserves 0 0 Total Budgeted Reserves 900,000$ 900,000$
Total General Fund Resources 52,119,157$ 52,119,157$ 0$ 0%

EXPENDITURES
Total General Fund Operating Expenses 48,804,804$ 48,804,804$ Transfers Out

1. Fund 210 - HFPD CalPERS 1,814,535 1,814,535

2. Fund 241 - CFD 2021-1 Residential Maint. & Service 5,150 5,150

3. Fund 242 - CFD 2022-1 Non-Residential Maint. & Service 5,150 5,150

4. Fund 243 - CFD 2023-1 Silverwood Maintenance 5,700 5,700 1,442,703 1,442,703
Total Transfers Out 3,273,238 3,273,238
Total General Fund Expenditures & Transfers Out 52,078,042$ 52,078,042$ 0$ 0% DIFFERENCE TOTAL RESOURCES/TOTAL EXPENDITURES 41,115$ 41,115$ 0$ 0% Fund Balance
July 1 Beginning Balance 36,850,298$ 36,850,298$
Total Budgeted Reserves (900,000) (900,000) Difference Total Resources/Total Expenditures 41,115 41,115 Estimated June 30 Ending Fund Balance 35,991,413$ 35,991,413$ 0$ 0% Months of Cash to Pay Expenditures and Transfers Out
Beginning Cash July 01, 23,918,114$ 23,918,114$
Estimated Resources Less Budgeted Reserves 51,219,157 51,219,157 Estimated Expenditures (52,078,042) (52,078,042)
23,059,229$ 23,059,229$
Months of Cash to Pay Expenditures and Transfers Out 5.3 5.3 Estimated Cash Reserves Percentage 44% 44%
Estimated Ending Cash June 30,
Change

5. Fund 402 - 2012 Water Rights Acquisition Debt Service

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2024-25 FIRST QUARTER BUDGET REVIEW REPORT
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STATUS OF WATER DISTRICT 2024-25 BUDGET, BUDGET AMENDMENTS, AND RESERVES

2024-25 2024-25
Resources Budget Re vised Dollars Percent
Revenue
Water Operating and Capital 29,151,462$ 2 9,151,462$ Sewer Operating and Capital 6,947,713 6 ,947,713 Reclaimed Water Operations 340,000 3 40,000
Total Revenue 36,439,175 3 6,439,175 0 0% Budgeted Reserves 2,855,092 2 ,855,092
Total Water District Resources 39,294,267$ 3 9,294,267$ 0$ 0% Expenditures by Program
Water Operating and Capital and Transfer Out 25,169,718$ 2 5,169,718$ 0$ 0% Sewer Operating and Capital 9,791,805 9 ,791,805 Reclaimed Water Operations 302,426 3 02,426
Total Water District Expenditures & Transfers Out 35,263,949$ 3 5,263,949$ 0$ 0% Establishment of Reserve Balances
Permanent Water Rights $ 1,146,888 1, 146,888$
1998A Retirement 0 0
Total Reserve Balances 1,146,888 1, 146,888
Total Water Expenditures & Reserve Balance Funding $ 36,410,837 $ 36,410,837 Difference Total Resources/Total Expenditures 2,883,430$ 2 ,883,430$ July 1 Beginning Balance 123,286,172$ 1 23,286,172$
Budgeted Reserves (2,855,092) ( 2,855,092)
Difference Resources/Expenditures 2,883,430 2 ,883,430 Reserve Balances 1,146,888 1 ,146,888
Estimated June 30 Ending Fund Balance 124,461,398$ 1 24,461,398$ Months of Cash to Pay Expenditures
Beginning Cash July 01, 35,426,550$ 3 5,426,550$
Estimated Resources Less Budgeted Reserves 36,439,175 3 6,439,175 Estimated Expenditures (35,263,949) ( 35,263,949)
VVWRA Cash Retention - Zone V (3,400,000) ( 3,400,000) 33,201,776$ 33, 201,776$
Months of Cash to Pay Expenditures and Transfers Out 11.3 11.3 Total Estimated Cash Reserves Percentage 94% 94%
Estimated Ending Cash June 30,
Change

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2024-25 FIRST QUARTER BUDGET REVIEW REPORT
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STATUS OF STREET MAINTENANCE FUND 2024-25 BUDGET, FUND BALANCE, AND RESERVES

2024-25 2024-25
RESOURCES Budget Revi sed Dollars Percent
Street Maintenance Operating Revenue 21,345$ 21, 345$ 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 669,000 669, 000
Fund 207 - Local Transportation Fund 226,883 226, 883 Total Transfers In 4,045,883 4, 045,883
Total Revenues 4,067,228 4, 067,228
Budgeted Reserves 104,420 104, 420
Total Street Maintenance Resources 4,171,648$ 4,171, 648 $ EXPENDITURES 4,171,648$ 4,171, 648 $ 0$ 0% DIFFERENCE RESOURCES/EXPENDITURES 0$ 0$ 0$ n/a Fund Balance
July 1 Beginning Balance 204,357$ 204, 357$
Total Budgeted Reserves (104,420) (104, 420)
Difference Resources/Expenditures 0 0 Estimated June 30 Ending Balance 99,937$ 99, 937$ Change

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2024-25 FIRST QUARTER BUDGET REVIEW REPORT
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FISCAL YEAR 2024-25 SEPTEMBER 30, 2024 YEAR-TO-DATE REVENUE REVIEW

Overall – First quarter analysis reveals that $17.1 million or 14% percent of the total budgeted revenue has been collected.

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; however, in this section, discussions will pertain to the revenue activity during the first quarter of Fiscal Year (FY) 2024-25.

General Fund revenues received through the first quarter of FY 2024 -25 totaled $4,796,752 or 9% of the total annual projected revenues of $51,019,157. The revenue received is similar from the first quarter of FY 2023-24 of 10%. This is due to the timing of receiving revenue from sources such as Vehicle License Fees, Property Taxes and Development related revenue.

The Water District revenues received through the first quarter totaled $7.0 million or 19% of the total annual projected revenues of $36.4 million. Even though the Water District is trending as expected, this revenue source is being monitored as delinquent accounts are being applied to the tax roll to recapture the missing revenue.

Staff will continue to monitor the FY 2024-25 revenue and make any necessary recommendations for revisions during the Mid-Year Budget Review in February 2025. The following pages will detail the current revenue collections for each fund.

September Change From
2024-25 2024-25 Percent 2024-25 Budge t To
Budget Actual Received Revised Revised
General Fund 51,019,157$ 4,796,752$ 9% 51,019,157$ 0$ Community Development Block Grant 1,878,240 1,710 0% 1,878,240 0 Hesperia Housing Authority 222,269 4,075 2% 222,269 0 Street Related Funds 29,926,577 4,808,754 16% 29,926,577 0 Other City Related Funds 2,964,994 485,598 16% 2,964,994 0 Water Operating 27,807,565 5,260,432 19% 27,807,565 0 Water Capital 1,139,897 367,665 32% 1,139,897 0 Water Reserves 544,000 60,972 11% 544,000 0 Total Water Operating, Capital, & Reserves 29,491,462 5,689,069 19% 29,491, 462 0 Sewer Operating 6,341,713 1,235,992 20% 6,341,713 0 Sewer Capital 596,000 98,982 17% 596,000 0 Sewer Reserves 10,000 0 0% 10,000 0 Total Sewer Operating, Capital, & Reserves 6,947,713 1,334,974 19% 6,947, 713 0 Water District 36,439,175 7,024,043 19% 36,439,175 0 Total All Funds 122,450,412$ 17,120,931$ 14% 122,450,412$ 0$

MAJOR FUNDS REVENUE SUMMARY

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2024-25 FIRST QUARTER BUDGET REVIEW REPORT
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FISCAL YEAR 2024-25 SEPTEMBER 30, 2024 YEAR-TO-DATE REVENUE REVIEW (Continued)

General Fund Revenue Comments:

In total, General Fund is trending as expected for First Quarter. As demonstrated in the discussions to follow, there tends to be a lag of revenue collection at the beginning of the fiscal year. This is normal and much of the revenue, especially tax based, typically is received during October and November.

Sales and Use Tax – For the first quarter of FY 2024-25, the City received $948,280 for (1) month (July 2024) of activity.

There is typically a two-month delay from the month close to when the State reports to the City. The second installment of $956,899 for the month of August 2024 was received in October 2024 and is trending as expected.

Vehicle License Fee (VLF) – This revenue is based 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 September 2024, as the first installment of the VLF is expected to be received during January 2025.

Franchise Fees – The City receives franchise fees for Cable TV, Advance Disposal, Southwest Gas, Southern California Edison, and Water service providers within the City as “rent” for the use of streets and public right -of-way within our municipality. Revenue through September 2024 YTD total is $86,359, which is 10% more than September 2023 YTD of $78,818. Please note that the majority of franchise fees are received in the second half of the fiscal year.

Transient Occupancy Tax (TOT) – TOT is a tax of 10% applied to the cost of hotel and other lodging stays of less than 30 days. Through September 2024, the City collected $145,554, which is a decrease of $40,554 or 22% less than the September 2023 YTD of $186,108. This decrease is primarily due to the timing of monthly receipts from the hotel operators and a delinquency of TOT from two hotels, which the City is currently pursuing collections.

Secured Property Tax – The first remittance from the County will be received in November 2024; therefore, there is no revenue to report through September 2024.

Business License – The City taxes businesses for conducting business within the City. The FY 2024- 25 Budget of $843,000 projects a slight increase in the total number of business licenses. The FY 2024 -25 First Quarter revenue collections is performing as anticipated with total revenue collection of 23% of the FY 2024-25 Budget.

September Change From
2024-25 2024-25 Percent 2024-25 Budget To
Budget Actual Received Revised Revised
Sales and Use Tax 14,349,979$ 948,280$ 7% 14,349,979$ 0$ Vehicle License Fees 12,718,621 0 0% 12,718,621 0 Franchise Fees 4,577,756 86,359 2% 4,577,756 0 Total Top Three Revenues 31,646,356 1,034,639 3% 31,646,356 0 General & Administrative Recovery 4,596,356 1,149,089 25% 4,596,356 0 Transient Occupancy Tax 1,700,000 145,554 9% 1,700,000 0 Secured Property Tax 1,195,253 0 0% 1,195,253 0 Business License 843,000 197,513 23% 843,000 0 Commercial Cannabis Tax 20,340 6,896 34% 20,340 0 Leased Water Rights 1,931,594 0 0% 1,931,594 0 Development Related Revenues
Planning 477,513 87,215 18% 477,513 0 Building & Safety 2,009,482 418,505 21% 2,009,482 0 Engineering 1,538,390 312,165 20% 1,538,390 0 Sub-Total Development Related Revenues 4,025,385 817,885 20% 4,025,385 0 Sub-Total Top 12 Revenue Sources 45,958,284 3,351,576 7% 45,958,284 0 All Other General Fund Revenues 5,060,873 1,445,176 29% 5,060,873 0 Total General Fund Revenues 51,019,157$ 4,796,752$ 9% 51,019,157$ 0$

GENERAL FUND REVENUES

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FISCAL YEAR 2024-25 SEPTEMBER 30, 2024 YEAR-TO-DATE REVENUE REVIEW (Continued)

General Fund Revenue Comments (Continued):

Commercial Cannabis Tax – All commercial cannabis businesses operating within the City pay a variable tax, currently 4%, on gross receipts from business operations. The September 2024 YTD receipts of $6,896 is being received as budgeted. The City currently has three (3) businesses operating licenses within the City.

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 will occur later during the fiscal year.

Development Related Revenue – This revenue source accounts primarily for development related fees such as Planning, Building and Safety, and Engineering. As of September 30, 2024, total revenue collected is $817,885 or 20% of the total budgeted revenue of $4,025,385. This revenue source is performing as anticipated.

All Other General Fund Revenue – Other General Fund Revenue accounts are $1,445,176 or 29% collected through September 30, 2024. Compared to the First Quarter September 2023 YTD of $1,266,221 collected, this revenue is showing a $178 ,955 or 14% increase, which is trending as expected. This source of revenue is primarily made up of Administrative Fines and Interest 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 2024-25 Budget revenue estimates represent anticipated reimbursements to be claimed during the fiscal year. It is anticipated that the majority of the reimbursements will be received after December 2024.

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. First Quarter revenue of $1,710 has been received, which is for loan repayments related to Housing Rehabilitation Loan Program.

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 revenue received as of September 2024 YTD of $4,075 is primarily from interest income from investments.

September Change From
2024-25 2024-25 Percent 2024-25 Budget To
Budget Actual Received Revised Revised
CDBG Administration Reimbursement 1,779,362$ 0$ 0% 1,779,362$ 0$ All Other CDBG Revenues 98,878 1,710 2% 98,878 0 Total CDBG Revenues 1,878,240$ 1,710$ 0% 1,878,240$ 0$

COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) REVENUE
September Change From
2024-25 2024- 25 Percent 2024-25 Budget To
Budget Actual Received Revised Revised
Interest Income 98,000$ 4,075$ 4% 98,000$ 0$ Loan Repayments 92,769 0 0% 92,769 0 Miscellaneous Income 1,500 0 0% 1,500 0 Sub-Total HHA Revenue 192,269 4,075 2% 192,269 0 VVEDA Housing Authority Revenue 30,000 0 0% 30,000 0 Total HHA Revenue 222,269$ 4,075$ 2% 222,269$ 0$

HESPERIA HOUSING AUTHORITY (HHA) REVENUE

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FISCAL YEAR 2024-25 SEPTEMBER 30, 2024 YEAR-TO-DATE REVENUE REVIEW (Continued)

Street 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 in San Bernardino County. For Hesperia, there are no distinctions for Arterial, Local, or Transit, and the revenue is remitted by San Bernardino County Transportation Authority (SBCTA) to the City.

Due to a lag in receiving the revenue, there are no remittances to report as of September 2024.

Gas Tax – As of September 30, 2024 YTD, Gas Tax revenue primarily consists of one installment totaling $147,467 .

There is typically a two -month delay from the month close to when the revenue is received. The second installment of $176,650 for the month of August 2024 was received in October 2024 and is trending as expected.

Gas Tax Swap – As of September 30, 2024 YTD, Gas Tax Swap revenue largely consists of one installment totaling $111,943, which is $4,465 lower than the first installment in FY 2023-24 of $116,408. This decrease was anticipated and is reflected in the FY 2024-25 Budget.

Local Transportation – This revenue source is mainly funded by the county ¼ cent sales tax and the primary use of this revenue is transportation related, including supporting the operations of Victor Valley Transit Authority (VVTA). This revenue source is no longer expected to be received due to the allocation being fully utilized by VVTA for transit purposes from a decision made by VVTA in April 2022. The FY 2024-25 revenue estimated to be received of $72,951 consists of interest income.

Gas Tax RMRA – This revenue source is State-funded and took effect November 2017 during FY 2017-18. This revenue 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, which is adjusted for inflation each July starting in July 2020.

The vehicle registration fee also increased depending on the value of the vehicle. As of September 30, 2024 YTD, Gas Tax RMRA revenue largely consists of one installment totaling $226,038.

Public Works-Street Maintenance – The estimated revenues are primarily interest earnings. In addition, this fund will occasionally receive miscellaneous reimbursements on an inconsistent basis, making comparisons to prior years irrelevant. The revenue received through September 2024 of $2,137 primarily consists of miscellaneous revenue.

September Change From
2024-25 2024-25 Percent 2024-25 Budget To
Budget Actual Received Revised Revised
204 Measure I - Renewal 4,102,238$ 0$ 0% 4,102,238$ 0$ 205 Gas Tax Fund 1,895,858 147,467 8% 1,895,858 0 206 Gas Tax Swap Fund 916,673 111,943 12% 916,673 0 207 Local Transportation Fund 72,951 0 0% 72,951 0 209 Gas Tax - RMRA 2,656,958 226,038 9% 2,656,958 0 254 AQMD Fund 590 0 0% 590 0 263 Public Works Street Maintenance Fund 21,345 2,137 10% 21,345 0 300 Development Impact Fee-Streets 102,141 0 0% 102,141 0 301 Development Impact Fee-Storm Drain 76,590 0 0% 76,590 0 306 Development Impact Fee 2018 - Streets 8,831,835 1,568,635 18% 8,831,835 0 307 Development Impact Fee 2018 - Drainage 614,165 84,314 14% 614,165 0 313 Development Impact Fee 2018 - A-04 Drainage 112,333 137,501 122% 112,333 0 Sub-Total DIF Streets & Storm Drain 9,737,064 1,790,449 18% 9,737,064 0 504 City Streets CIP 10,522,900 2,530,719 24% 10,522,900 0 Total Street Related Funds 29,926,577$ 4,808,754$ 16% 29,926,577$ 0$

STREET RELATED FUNDS REVENUE

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FISCAL YEAR 2024-25 SEPTEMBER 30, 2024 YEAR-TO-DATE REVENUE REVIEW (Continued)

Street Related Funds Revenue Comments (Continued):

Development Impact Fees for Streets and Storm Drain/Drainage – Through September 2024 YTD, the combined revenue received is $1,790,449, which is $2,395,672 or 57% less than September 2023 YTD revenue of $4,186,121. The primary reason for the decrease between the two periods is due to the timing of fees paid related to Single Family Residential and Multi -Family Residential properties. This revenue source varies each fiscal year depending on the completion of individual projects and is trending as expected.

City Streets CIP – This fund tracks grant/reimbursement funded projects such as the Ranchero Road Improvements (7 th
Avenue to Mariposa Road), the Traffic Signal on Main Street at Sultana Street/Timberlane Avenue and the Ranchero Aqueduct crossing. The bulk of the budgeted revenue is for the reimbursement of Ranchero Road with the expectation of a reimbursement to be received later in the fiscal year.

Other City Funds Revenue Comments: Revenue for Other City funds are comprised of various grants, assessments, charges for services, intergovernmental, and other sources. Many of these funds only receive interest income during the fiscal year.

Pension Obligation Trust and OPEB Trust: This fund was established to manage and mitigate the unfunded pension liability and the post -employment benefits liabilities. The revenue in these funds consist of investment interest income and gain/losses from the market.

Public Art – This fund is funded through donations to be utilized towards public art displays throughout the City. The FY 2024-25 Budget of $9,056 consists of interest income received during the year.

AB3229 Supplemental Law Fund – The passage of Senate Bill (SB) 89 allowed for the continued funding of the Supplemental Law Enforcement Funding (SLESF). The City expects to receive $294,203 of SLESF funding, which is typically received later in the fiscal year. The first installment received in October is $159,465 and is trending as expected.

September Change From
2024-25 2024- 25 Percent 2024-25 Budget To
Budget Actual Received Revised Revised
105 Pension Obligation Trust 50,000$ 230,636$ 461% 50,000$ 0$ 106 OPEB Trust 0 42,326 n/a 0 0 110 Silverwood 495,400 24,371 5% 495,400 0 210 HFPD (PERS) Interest Income 68,439 74,776 109% 68,439 0 230 Public Art 9,056 0 0% 9,056 0 255 AB3229 Supplemental Law Fund 294,203 0 0% 294,203 0 256 Environmental Programs Grant 61,021 0 0% 61,021 0 260 Disaster Preparedness Grant 1,090 0 0% 1,090 0 261 American Rescue Plan Act Grant 576,457 0 0% 576,457 0 262 SB 1383 Local Assistance Grant 36,675 0 0% 36,675 0 # /0 302 Development Impact Fee-Fire 36,136 0 0% 36,136 0 303 Development Impact Fee-Police 160 0 0% 160 0 308 Development Impact Fee 2018 - Fire 622,131 45,215 7% 622,131 0 309 Development Impact Fee 2018 - City Hall 534,681 39,319 7% 534,681 0 310 Development Impact Fee 2018 - Animal Control 60,263 12,922 21% 60,263 0 311 Development Impact Fee 2018 - Records Storage 27,313 1,873 7% 27,313 0 312 Development Impact Fee 2018 - Police Facilities 10,037 738 7% 10,037 0 Sub-Total 302, 303, 308, 309, 310, 311, and 312 1,290,721 100,067 8% 1,290,721 0 402 2012 Water Rights Acquisition 33,932 13,418 40% 33,932 0 404 2023 Refunding Lease Revenue Bonds 48,000 4 0% 48,000 0 Sub-Total 402 and 404 81,932 13,422 16% 81,932 0 Total Other City Funds 2,964,994$ 485,598$ 16% 2,964,994$ 0$

OTHER CITY FUNDS REVENUE

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FISCAL YEAR 2024-25 SEPTEMBER 30, 2024 YEAR-TO-DATE REVENUE REVIEW (Continued)

Other City Funds Revenue Comments (Continued):

Environmental Programs Grant – This fund tracks various grant reimbursements for various environmental events.

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 in September 2022. This ARPA funding must be obligated on eligible costs incurred during the period that began on March 3, 2021 and ending on December 31, 2024. Once obligated, the funds must be spent by December 31, 2026. The revenue anticipated to be received in FY 2024-25 of $576,457 primarily consists of interest income.

SB 1383 Local Assistance Grant – This revenue source is state funded to assist local jurisdictions with the implementation of SB 1383, which is to reduce organic waste disposal and increase food waste diversion. The City expects to receive $36,675 for FY 2024-25.

Development Impact Fees -Fire, Police, Public Services, City Hall, Animal Control, and Records Storage – The combined total of $100,067 for September 2024 YTD is $1,880,904 less than September 2023 YTD of $1,980,971. The primary reason for the decrease between the two periods is due to the fees paid related to Single Family Residential and Multi-Family Residential properties. This revenue source varies each fiscal year depending on the completion of individual projects.

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FISCAL YEAR 2024-25 SEPTEMBER 30, 2024 YEAR-TO-DATE REVENUE REVIEW (Continued)

Water District Revenue Comments:

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. The Water District is utilizing such liens in lieu of water disconnections and traditional collection services as the primary mechanism for collections.

Water Sales – For the first quarter of FY 2024- 25, the Hesperia Water District collected $4,813,076 of sales revenue or 19% of the budgeted amount, which is comparable to the percentage collected through the first quarter in the prior year (FY 2023-24). Overall, water sales revenue through September 2024 of $4,813,076 is more than the FY 2023-24 revenue for the same period ($4,539,912) by $273,164, or 6%. This is largely due to an increase in Water Sales Residential as consumption increased from the same period in FY 2023- 24. Through September 2024, Water Sales Residential of $2,023,888 is $227,390 more than the $1,796,498 collected through September 2023.

Property Taxes – Property tax revenue is normally received from November 2024 through July 2025.

Other Water Operating Revenue – Through September 2024, $447,025 has been received, which is $168,443 or 60% more than September 2023 YTD of $278,582. This increase is mainly due to the increase of Water Inspection fees received this quarter related to the Silverwood Development.

September Change From
2024-25 2024-25 Percent 2024-25 Budget To
Budget Actual Received Revised Revised
Water Operating Revenue
Water Sales 24,756,381$ 4,813,046$ 19% 24,756,381$ 0$ Interest Income 576,000 0 0% 576,000 0 Property Taxes 612,152 0 0% 612,152 0 Sub-Total 25,944,533 4,813,046 19% 25,944,533 0 All Other Water Operating Revenues 1,863,032 447,385 24% 1,863,032 0 Total Water Operating Revenues 27,807,565 5,260,432 19% 27,807,565 0 Capital Facilities Charges 1,139,897 367,665 32% 1,139,897 0 Grant Reimbursement 0 0 n/a 0 0 Total Water Capital Revenue 1,139,897 367,665 32% 1,139,897 0 Reclaimed Water 340,000 63,046 19% 340,000 0 All Other Water Related Revenues 204,000 (2,074) -1% 204,000 0 Total Water Operating, Capital, & Related Revenues 29,491,462$ 5,689,069$ 19% 29,491,462$ 0$ Sewer Operating Revenue
Sewer Billing 5,737,158$ 1,027,224$ 18% 5,737,158$ 0$ All Other Sewer Operating Revenues 604,555 208,767 35% 604,555 0 Total Sewer Operating Revenue 6,341,713 1,235,992 19% 6,341,713 0 Sewer Connections 520,000 98,982 19% 520,000 0 All Other Sewer Capital Revenues 76,000 0 0% 76,000 0 Total Sewer Capital Revenue 596,000 98,982 17% 596,000 0 All Other Sewer Related Revenues 10,000 0 0% 10,000 0 Total Sewer Operating, Capital, & Related Revenues 6,947,713$ 1,334,974$ 19% 6,947,713$ 0$ Total Hesperia Water District Revenue 36,439,175$ 7,024,043$ 19% 36,439,175$ 0$

WATER DISTRICT REVENUE

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FISCAL YEAR 2024-25 SEPTEMBER 30, 2024 YEAR-TO-DATE REVENUE REVIEW (Continued)

Water District Revenue Comments (Continued):

Capital Facilities Surcharge – This revenue source consists of fees for new water meter installations based on new developments. Revenue through September 2024 YTD is $367,665, which is $75,598 or 26% more than September 2023 YTD of $292,067. This increase can largely be attributed to the meter fees paid for the development Pathways to College Charter School and an industrial development. This revenue source is currently at 32% collected compared to the FY 2023-24 Budget, which is due to the timing of projects in process. Based on the timing of projects, the revenue is trending as expected.

Reclaimed Water – Current Reclaimed Water customers are the Golf Course, Hesperia Township (NW corner of 5 th & Smoke Tree), and Hesperia Community Park. As of September 30, 2024, the Water District has collected $63,046, which is 19% of the budgeted amount.

Sewer Billing – Revenue through September 2024 is $1,027,224, which is $11,923 or 1% more than the revenue received in First Quarter of FY 2023-24. This increase is primarily attributed to the addition of new sewer residential and commercial customers over the last year. Revenue received through September 2024 is at 18% of the budgeted amount.

Sewer Connections - R evenue through September 2024 YTD is $98,982, which is $10,779 or 12% more than the $88,203 received through September 2023 YTD. The increase between the two periods is a result of more customers connecting to sewer during FY 2024-25 than FY 2023-24. This revenue, which is driven by the completion of development projects in areas served by Sewer, is trending as expected when compared to the FY 2023 -24 Budget due to the timing of projects in process. This revenue source will continue to be monitored by staff and will report any updates in the FY 2024-25 Mid-Year report.

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DEPARTMENT FY 2024-25 BUDGET EXPENDITURE STATUS SUMMARY

Total City Expenditures – With the exception of the proposed staffing changes referenced on page 25, the overall assessment of the City’s expenditures through the first quarter of the fiscal year is that expenditures are expected to stay within the FY 2024-25 Amended Budget.

FY 2024-25 TOTAL EXPENDITURES BY DEPARTMENT AND PROGRAMS

The overall City Council Departmental expenditures are at 5% expended through September 2024. Contributing to the lower than anticipated City Council Division’s expended percentage, budgeted items that are typically expended later during the fiscal year, such as $50,000 for the Community Assistance Program and community outreach programs and events. The City Attorney Division is 1% expended due to one invoice was received and paid through the end of the first quarter.

The City Manager Department is 33% expended due to the annual City Manager Department portion of CalPERS unfunded liability payment, which for the City was paid in July 2024.

September Amended
2024-25 2024-25 2024 YT D Percent
Department Expenditure Summary Budget Amended Expenditures Expended City Council 1,056,754$ 1,056,754$ 56,856$ 5% City Manager 1,796,947 1, 796,947 586,025 33% Management Services 10,916,848 10, 916,848 4,708,849 43% Economic Development 706,364 706, 364 158,321 22% Development Services - Community Development 3,162,562 3, 162,562 717,792 23% Development Services - Code Compliance 5,567,894 5, 567,894 1,497,616 27% Development Services - Public Works 7,316,150 7, 316,150 1,480,151 20% Streets Capital Improvement Project (CIP) Funds 29,725,155 30, 553,873 246,771 1% Other City Related Funds 2,981,361 2, 981,361 25,527 1% Development Services - Water 25,472,144 25, 472,144 5,326,030 21% Development Services - Sewer 9,791,805 9,791, 805 1,543,578 16% Police 22,682,805 22, 682,805 5,600,563 25% Fire District 1,814,535 1, 814,535 1,755,819 97% TOTAL CITY EXPENDITURES 122,991,324$ 123,820, 042$ 23,703,900$ 19% September Amended
2024-25 2024-25 2024 YT D Percent
City Council Budget Amended Expenditures Expended
100 100 City Council 406,754$ 406,754$ 49,621$ 12% 100 102 City Attorney 650,000 650, 000 7,235 1% Total City Council 1,056,754$ 1, 056,754$ 56,856$ 5% September Amended
2024-25 2024-25 2024 YTD Percent
Budget Amended Expenditures Expended
City Manager 1,796,947$ 1,796,947$ 586,025$ 33%

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FY 2024-25 TOTAL EXPENDITURES BY DEPARTMENT AND PROGRAMS (Continued)

The Management Services Department is currently at 43 % expended through the First Quarter, with Finance 29% expended and Information Technology 34% expended, while Human Resources is at 64%. Similar to years in the past, the higher percentage expended is due to the lump sum payment to CalPERS for the unfunded accrued liability and annual insurance premiums that are due at the beginning of the fiscal year. Non-Departmental expenditures are 17% expended and will increase as the year progresses.

The Economic Development Department is 22% expended through the First 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 31% expended which, as with other areas, is due to the Division’s lump sum portion of the annual unfunded accrued liability assessed by CalPERS.

Community Development Block Grant Administration is 4% expended of the adopted budget. This fund administers the City’s CDBG program, and related activities and expenditures will increase as progress is made on program projects.

The Hesperia Housing Authority (HHA) funds oversee the affordable housing within the City. Through the end of September, the HHA funds are 9% expended, with the majority of the budgeted expenditures for affordable housing monitoring and annual financial audit reporting occurring later in the fiscal year.

The Community Development Division is currently 23% expended through the First Quarter, with Planning 18% expended and Building & Safety 28% expended.

September Amended
2024-25 2024-25 2024 YT D Percent
Management Services Budget Amended Expenditures Expended 100 220 Finance 2,736,923$ 2,736,923$ 795,707$ 29% 100 225 Human Resources/ Risk Mgmt. 4,589,339 4, 589,339 2,914,723 64% 100 228 Information Technology 2,301,545 2, 301,545 780,481 34% 100 229 Non-Departmental 1,289,041 1, 289,041 217,938 17% Total Management Services 10,916,848$ 10, 916,848$ 4,708,849$ 43% September Amended
2024-25 2024-25 2024 YT D Percent
Economic Development Budget Amended Expenditures Expended 100 Economic Development 476,492$ 476,492$ 145,704$ 31% 251 CDBG Administration 150,896 150, 896 5,810 4% 370 Hesperia Housing Authority 78,976 78, 976 6,807 9% Total Economic Development 706,364$ 706,364$ 158,321$ 22% September Amended
2024-25 2024-25 2024 YT D Percent
D. S. - Community Development Budget Amended Expenditures Expended 100 3000 Planning 1,667,612$ 1,667,612$ 300,741$ 18% 100 3020 Building & Safety 1,494,950 1, 494,950 417,051 28% Total D. S. - Community Development 3,162,562$ 3, 162,562$ 717,792$ 23%

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FY 2024-25 TOTAL EXPENDITURES BY DEPARTMENT AND PROGRAMS (Continued)

The Code Compliance Division, which is comprised of Code Enforcement and Animal Control , is 27% expended. As shown by the table, Code Enforcement is 31% expended, while Animal Control is 24%. As with other areas, Code Enforcement is 31% expended due to the annual payment of the CalPERS unfunded liability.

Through the end of September, the Public Works Division is 20% expended , which is as expec ted. While Engineering, Building Maintenance, and Street Maintenance are trending as expected , General Fund Capital Improvement Program (CIP), Street Repair, and Traffic are contributing factors for the Public Works Division’s low expenditures. Traffic at 17% expended, is lower than e xpected due to pending items such as the purchase of maintenance materials and traffic delineators, as well as contractual items for traffic engineer, street sweeping, street striping, and signal maintenance , which occur as the year progresses . General Fund CIP will increase as the Golf Course Trails and Hesperia Animal Shelter Play Yard projects proceed.

Streets Capital Improvement expenditures will increase as progress continues on projects such as the Ranchero Aqueduct Crossing, Maple Avenue Street Improvement, FY 2021 -22 CDBG Street Improvement Project, and other streets related projects. As these projects move forward, the percentage of actual expenses to budget will increase accordingly. Please note that at the August 6, 2024 City Council meeting, the budget was amended to appropriate $828,718 in Measure I Renewal Funds to the Traffic Signal – Main Street & Sultana Street/Timberlane Avenue Project C.O. 7159.

The classification of Other City Related Funds is largely comprised of the principal and interest payments for the 2012 Water Rights Acquisition and 2023 Refunding Lease Revenue Bonds, which payments are made in the second quarter.

September Amended
2024-25 2024-25 2024 YT D Percent
D. S. - Code Compliance Budget Amended Expenditures Expended 100 3010 Code Enforcement 2,352,917$ 2,352,917$ 727,744$ 31% 100 5000 Animal Control 3,214,977 3,214, 977 769,871 24% Total D. S. - Code Compliance 5,567,894$ 5, 567,894$ 1,497,616$ 27% September Amended
2024-25 2024-25 2024 YTD Percent
D. S. - Public Works Budget Amended Expenditures Expended 100 3100 Engineering 1,024,101$ 1,024,101$ 231,467$ 23% 100 3110 Building Maintenance 1,670,401 1,670,401 362,920 22% 100 Capital Improvement Program 450,000 450,000 0 0% 263 3150 Street Maintenance 2,157,301 2,146,301 531,158 25% 263 3160 Street Repair 160,428 161,428 28,834 18% 263 3170 Traffic 1,853,919 1,863,919 325,772 17% Total D. S. - Public Works 7,316,150$ 7,316,150$ 1,480,151$ 20% September Amended
2024-25 2024-25 2024 YTD Percent
Budget Amended Expenditures Expended
Streets Capital Improvement Project (CIP) Funds 29,725,155$ 30,553,873$ 246,771$ 1% September Amended
2024-25 2024-25 2024 YTD Percent
Budget Amended Expenditures Expended
Other City Related Funds 2,981,361$ 2,981,361$ 25,527$ 1%

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FY 2024-25 TOTAL EXPENDITURES BY DEPARTMENT AND PROGRAMS (Continued)

Overall, the Water Operating and Capital funds are 21% expended through September 30, 2024. The following narrative details the progression of each program.
• Source of Supply’s primary responsibility is to secure make-up water lease rights to remedy overproduction. During First Quarter, the District has not purchased permanent water rights. • At the end of the First Quarter, Production has expended 20% of the budget. The primary reason expenditures are lower than expected is due to the timing of electricity invoices . During the First Quarter, only two months of summertime activity has been expended, as the average summer month bill is approximately $0.3 million. A s progress continues with the upgrade of the supervisory control and data acquisition (SCADA) program’s hardware, software, and radio system the percentage of actual expenses to budget will increase. • Distribution has utilized 29% of its budget, which is primarily due to an increase in repairs for service line leaks. • Pipeline Maintenance is 24% expended and will increase as material (pipe) is purchased for service line replacement, as identified in the Fiscal Year (FY) 2024-25 Budget.
• E
ngineering is currently 17% expended , which is due to pending expenditures for the National Pollutant Discharge Elimination System (NPDES) program and contractual services. • C ustomer Service is 16% expended and as progress is made with Advanced Metering Infrastructure (AMI) program, expenditures will increase.
• Utility Billing is 78% expended, which is due to the $0.7 million write-offs of water service and the document recording costs related to placing delinquent accounts onto the County Property Tax Roll for collection. When the $0.7 million in write-offs is not included to determine the operating costs, Utility Billing is 26% expended. It should be noted that the subsequent collection of the tax liens will be reflected as revenue. • Administration is at 26% of the budget, which is primarily due to the Water District’s monthly general and administrative payment to the City for the annual indirect cost allocation. • Property Management is 22% e xpended for the First Quarter and is anticipated to increase as facility maintenance projects are completed throughout the fiscal year.
• Street Repair at 18% expended, is lower than expected due to pending purchases for street and pavement repair material and the purchase of a new chassis and hook-lift system. • Reclaimed Water Operations expenditures will increase later in the second half of the fiscal year when the Debt Service payment is due.

September Amended
2024-25 2024-25 2024 YT D Percent
D.S. Water Operating & Capital Budget Amended Expenditures Expended 4010 Source of Supply 3,802,457$ 3,802,457$ 0$ 0% 4020 Production 5,621,196 5,617, 196 1,105,768 20% 4030 Distribution 1,826,985 1,826, 985 523,844 29% 4035 Pipeline Maintenance 1,117,190 1, 119,190 273,495 24% 4040 Engineering 967,632 967, 632 165,694 17% 4050 Customer Service 2,278,930 2, 278,930 356,882 16% 4060 Utility Billing 1,400,116 1,400, 116 1,096,472 78% 4070 Administration 5,660,456 5,660, 456 1,443,774 26% 4080 Property Management 524,250 521, 750 114,670 22% 4160 Street Repair 1,245,506 1,250, 006 230,635 18% 720 Reclaimed Water Operations 302,426 302, 426 14,797 5% Total Water Operatiions 24,747,144 24, 747,144 5,326,030 22% 701 Water Capital 10,000 10, 000 0 0% 703 Water Capital Rehab and Replace 715,000 715, 000 0 0% Total D.S. Water Operating & Capital 25,472,144$ 25, 472,144$ 5,326,030$ 21%

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FY 2024-25 TOTAL EXPENDITURES BY DEPARTMENT AND PROGRAMS (Continued)

Water Operating and Capital (Continued)
• Expenditures for Water Capital are 0% expended and will increase as projects such as the Plant 23 Recoat Exterior Water Tank, I-15 Corridor Water, and Plant 5 & 18 Roof Replacement and Repair projects progress.

Sewer Operating and Capital Funds overall are 16% expended. More detailed information within each program is detailed below.

• Sewer Operations expenditures are 22% expended and proceeding as planned. Through the end of the First Quarter, only two months of treatment fees has been expended for Victor Valley Wastewater Reclamation Authority (VVWRA).

It should be noted that both monthly invoices contained billing errors, resulting in the District receiving the correcting billing credit on the third invoice paid in October 2024. • Sewer Engineering is currently 14% expended and will increase as contract engineering invoices are received related to sewer projects.
• Sewer Utility Billing is 25% expended, which is expected for the first three months of the fiscal year. • Sewer Administration is proceeding as planned, with 26% expended, and mainly due to the monthly general and administrative payment for the annual indirect cost allocation. • Sewer Capital has $2.9 million allocated to two projects, including the Maple Avenue sewer line replacement, and I- 15 Corridor sewer. Capital expenditures will increase as progress is made on the projects.

The Police Department budget is 25% expended, which is expected for the first three months of the fiscal year for the monthly law enforcement services. First Quarter year-to-date does not include the quarterly invoice, which is for overtime, grant expenses, etc. as the County of San Bernardino invoice has not been provided to the City.

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 $58,716 in savings will be used to retain the funds in a trust for the payment of former Fire District personnel obligation.

September Amended
2024-25 2024-25 2024 YT D Percent
D. S. - Sewer Operating & Capital Budget Amended Expenditures Expended 4200 Operations 5,221,733$ 5,221,733$ 1,146,333$ 22% 4240 Engineering 285,424 285, 424 40,979 14% 4260 Utility Billing 284,677 284,677 72,291 25% 4270 Administration 1,095,251 1,095,251 283,975 26% Total Sewer Operations 6,887,085 6,887,085 1,543,578 22% 711 Sewer Capital 2,904,720 2,904,720 0 0% Total D. S. - Sewer Operating & Capital 9,791,805$ 9,791,805$ 1,543,578$ 16% September Amended
2024-25 2024-25 2024 YTD Percent
Budget Amended Expenditures Expended
Police 22,682,805$ 22,682,805$ 5,600,563$ 25% September Amended
2024-25 2024-25 2024 YTD Percent
Budget Amended Expenditures Expended
Fire District 1,814,535$ 1,814,535$ 1,755,819$ 97%

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2024-25 FIRST QUARTER BUDGET REVIEW REPORT
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FY 2024-25 TOTAL EXPENDITURES BY DEPARTMENT AND PROGRAMS

September
DEPARTMENT AND PROGRAM 2024-25 2024-25 2024 YTD Percent EXPENDITURES SUMMARY Budget Amended Expenditures Expended City Council
100 100 City Council 406,754$ 406,754$ 49,621$ 12% 100 102 City Attorney 650,000 650,000 7,235 1% Total City Council 1,056,754$ 1,056,754$ 56,856$ 5% City Manager 1,796,947$ 1,796,947$ 586,025$ 33% Management Services
100 220 Finance 2,736,923$ 2,736,923$ 795,707$ 29% 100 225 Human Resources/Risk Mgmt. 4,589,339 4,589,339 2,914,723 64% 100 228 Information Technology 2,301,545 2,301,545 780,481 34% 100 229 Non-Departmental 1,289,041 1,289,041 217,938 17% Total Management Services 10,916,848$ 10,916,848$ 4,708,849$ 43% Economic Development
100 Economic Development 476,492$ 476,492$ 145,704$ 31% 251 CDBG Administration 150,896 150,896 5,810 4% 370 Hesperia Housing Authority 78,976 78,976 6,807 9% Total Economic Development 706,364$ 706,364$ 158,321$ 22% Development Services - Community Development
100 3000 Planning 1,667,612$ 1,667,612$ 300,741$ 18% 100 3020 Building & Safety 1,494,950 1,494,950 417,051 28% Total D. S. Community Development 3,162,562$ 3,162,562$ 717,792$ 23% Development Services - Code Compliance
100 3010 Code Enforcement 2,352,917$ 2,352,917$ 727,744$ 31% 100 5000 Animal Control 3,214,977 3,214,977 769,871 24% Total D. S. Code Compliance 5,567,894$ 5,567,894$ 1,497,616$ 27% Development Services - Public Works
100 3100 Engineering 1,024,101$ 1,024,101$ 231,467$ 23% 100 3110 Building Maintenance 1,670,401 1,670,401 362,920 22% 100 Capital Improvement Program 450,000 450,000 0 0% 263 3150 Street Maintenance 2,157,301 2,146,301 531,158 25% 263 3160 Street Repair 160,428 161,428 28,834 18% 263 3170 Traffic 1,853,919 1,863,919 325,772 17% Total D.S. - Public Works 7,316,150$ 7,316,150$ 1,480,151$ 20%

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FY 2024-25 TOTAL EXPENDITURES BY DEPARTMENT AND PROGRAMS (Continued)

September
DEPARTMENT AND PROGRAM 2024-25 2024-25 2024 YTD Percent EXPENDITURES SUMMARY Budget Amended Expenditures Expended Streets Capital Improvement Project (CIP)
204 Measure I -2010 Renewal 3,377, 163$ 4,205,881$ 0$ 0% 207 Local Transportation Fund 64,804 64,804 0 0% 209 Gas Tax - RMRA 3,998,505 3,998,505 0 0% 251 CDBG Streets 4,091,736 4,091,736 241,723 6% 300 Streets Development Impact Fee 153,432 153,432 0 0% 301 Storm Drain Development Impact Fee 1,202,049 1,202,049 0 0% 306 DIF 2018-Streets 5,745,777 5,745,777 3,010 0% 307 DIF-2018 Drainage Facilities 100,000 100,000 0 0% 313 A-04 Drainage Development Impact Fee 50,000 50,000 0 0% 504 City Streets CIP 10,941,689 10,941,689 2,039 0% Total Streets CIP Funds 29,725,155$ 30,553,873$ 246,771$ 1% Other City Related Funds
110 Silverwood 495,400$ 495,400$ 6,618$ 1% 241 CFD 2021-1 Residential Maint. & Service 5,150 5,150 0 0% 242 CFD 2022-1 Non-Residential Maint. & Service 5,150 5,150 0 0% 243 CFD 2023-1 Silverwood Maint. 5,700 5,700 0 0% 256 Beverage Recycling Grant 91,018 91,018 18,909 21% 262 SB 1383 Local Assistance Grant 34,090 34, 090 0 0% 309 City Hall Facilities 2018 Development Impact Fee 167,000 167, 000 0 0% 402 Water Rights Acquisition 1,442,703 1,442,703 0 0% 404 2023 Refunding Lease Revenue Bonds 735,150 735,150 0 0% Total Other City Related Funds 2,981,361$ 2,981,361$ 25,527$ 1% Development Services - Water
Water Operating
4010 Source of Supply 3,802,457$ 3,802,457$ 0$ 0% 4020 Production 5,621,196 5,617,196 1,105,768 20% 4030 Distribution 1,826,985 1,826,985 523,844 29% 4035 Pipeline Maintenance 1,117,190 1,119,190 273,495 24% 4040 Engineering 967,632 967,632 165,694 17% 4050 Customer Service 2,278,930 2,278,930 356,882 16% 4060 Utility Billing 1,400,116 1,400,116 1,096,472 78% 4070 Administration 5,660,456 5,660,456 1,443,774 26% 4080 Property Management 524,250 521, 750 114,670 22% 4160 Street Repair 1,245,506 1, 250,006 230,635 18% Total Water Operating 24,444,718 24, 444,718 5,311,233 22% 701 Water Capital Project 10,000 10,000 0 0% 703 Water Capital Rehab and Replace 715,000 715,000 0 0% 720 Reclaimed Water Operations 302,426 302,426 14,797 5% Total D.S. Water Operating & Capital 25,472,144$ 25,472,144$ 5,326,030$ 21%

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2024-25 FIRST QUARTER BUDGET REVIEW REPORT
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FY 2024- 25 TOTAL EXPENDITURES BY DEPARTMENT AND PROGRAMS (Continued)

September
DEPARTMENT AND PROGRAM 2024-25 2024-25 2024 YTD Percent EXPENDITURES SUMMARY Budget Amended Expenditures Expended Development Services - Sewer
Sewer Operating
4200 Operations 5,221,733$ 5,221,733$ 1,146,333$ 22% 4240 Engineering 285,424 285,424 40,979 14% 4260 Utility Billing 284,677 284,677 72,291 25% 4270 Administration 1,095,251 1,095,251 283,975 26% Total Sewer Operating 6,887,085 6,887,085 1,543,578 22% 711 Sewer Capital 2,904,720 2,904,720 0 0% Total D.S. Sewer Operating & Capital 9,791,805$ 9,791,805$ 1,543,578$ 16% Police 22,682,805$ 22,682,805$ 5,600,563$ 25% Fire District 1,814,535$ 1,814,535$ 1,755,819$ 97%

Total City Expenditures 122,991,324$ 123,820,042$ 23,703,900$ 19%

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2024-25 FIRST QUARTER BUDGET REVIEW REPORT
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2024-25 First Quarter Budget Salaries and Positions

Summary of Position Changes:

The adopted FY 2024-25 Budget included 203.49 full-time equivalents (FTE). It should be noted that all full-time and part- time positions are expressed as FTE to reflect the hours budgeted. A full-time position (1.00 FTE) reflects 2,080 hours of paid time for one year, while a part -time position is either budgeted for 960 hours , equating to 0.46 FTE (not CalPERS eligible) or 1,500 hours, equating to 0.73 FTE (retirement eligible).

Position Recommendations for the First Quarter:

The City continually reviews the organizational structure to improve workflow and customer service. When reviewing staffing, the goal of this review is to ensure that each area is appropriately staffed for the policies and goals set forth by the City Council. Careful consideration is given when proposing to add or change staffing. For this First Quarter review, approximately 1.92 FTE is recommended to be added for an annualized cost of $258,250. This annualized cost is broken down by $56,750 from the General Fund, $12,000 from the Economic Development related funds, and $189,500 from the Water Operating Fund. The following details the changes in each functional area.

Management Services Department – 1.92 FTE for a total cost of $370,250 During the FY 2023 -24, the City reorganized Public Works and Development Services. This reorganization was to accommodate the City’s development growth. Adding staff allowed the City to continue providing a high level of service to the community. With the addition of operation staff, a review of Management Services was conducted for the FY 202 4-25 First Quarter. Management Services provides all the support functions to the City’s operating departments. These functions include accounting, payroll, information technology, and human resources.

While the cost is anticipated to be $370,250 for FY 2024-25, it should be noted that the position of Senior Accountant – Part-Time Retired Annuitant will be temporary and will not be included in the FY 2025-26 Budget. CalPERS allows the City to rehire former employees temporarily. Should the City Council approve this position, with a cost of $52,000, this position will be used to train the new employees in the Finance Division. Further, the Management Services reorganization cost will be offset with savings in other departments.

The following is a discussion of all proposed Management Services positions:
• Add one Administrative Intern position (0.46 FTE). This position will be paid up to $4 above the State of California’s minimum wage.
• Add one Senior Accountant —Part-time R etired Annuitant (0.46 FTE) at a R ange of 38. As discussed, this position will not be included in the FY 2025-26 Budget. • Convert one vacant Accountant at a Range of 33 to a Financial Analyst at a Range of 35. • Convert one vacant Accountant at Range 33, which the General Fund fully funds, to a Senior Accountant at Range 38, who will be funded by the Water District. This position will oversee the accounting for the water and sewer operations.
• Retitle the Human Resources Supervisor to a Risk Management Supervisor. There will be no change in compensation.
• Add one Senior Information Systems Specialist at Range 41. This position will oversee information technology projects, such as high-level software implementations.
• Convert one Information Systems Manager at Range 44 to a Deputy Information Systems Director at Range 45, which will be an at -will classification. This position will provide enhanced expertise and oversight to the City’s growing computing network and infrastructure.

Economic Development Department – 0.00 FTE for a total reduction of $117,500 It is recommended that the Economic Development Manager at Range 44 be converted to an Economic Development Supervisor at Range 39.

Development Services Department – 0.00 FTE for a total cost of $7,000 Convert one Assistant Project Manager at a Range 38 to a Community Development Manager at a Range 40. This position will provide oversight to the Community Development program and serve as the liaison to the Silverwood Development project.

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2024-25 FIRST QUARTER BUDGET REVIEW REPORT
- 25 -

2024-25 First Quarter Budget Salaries and Positions

Summary of Position Changes (Continued):

Water Operating – 0.00 FTE for a total cost of $1,500
Convert two vacant Meter Reader positions at a Range of 10+2% to two Maintenance Worker/Water positions at a Range of 10.5. As the Water District continues to convert the residential water meters to digital reading, there is less of a need for positions to manually read meters; however, digital meters do require maintenance, which can be best handled by the maintenance worker position.

California Public Employees Retirement System (CalPERS):

During July 2024, the City received information on the year ending June 30, 2023 , from the actuarial valuation report (report). This report details the unfunded liability costs for the FY 2024 -25 Budget. Based on the report, CalPERS experienced a June 30, 2023 rate of return of 5.8%, a change of negative 1.0% from the actuarial assumed rate of return of 6.8% (5.8% preliminary rate of return minus 6.8% assumed rate of return). The following table details the increased unfunded liability payment in the FY 2025-26 Budget.

The FY 2024-25 General Fund Budget will increase approximately $179,000, including the City and Fire District Plans.

Furthermore, based on the preliminary reporting from CalPERS, on June 30, 2024, the rate of return was 9.3%, which is

2.50% more than the actuarial rate of return of 6.8%. This means the unfunded liability payment due in FY 2026-27 should decrease due to positive earnings on June 30, 2024.

FY 2024-25 FY 2025-26 Difference %
City of Hesperia Plans $1,962,986 $1,996,000 $33,014 2% Water District Plans 663,446 831,000 167,554 25% Fire District Plans (General Fund) 1,814,535 1,960,000 145,465 8% Total $4,440,967 $4,787,000 $346,033 8%

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RESOLUTION NO. 2024-59

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HESPERIA, CALIFORNIA, APPROVING THE FISCAL YEAR 2024-25 FIRST QUARTER BUDGET REVIEW AND AMENDING THE 2024-25 CITY OF HESPERIA

BUDGET TO FUND CERTAIN RELATED EXPENDITURES

WHEREAS, the City Council of the City of Hesperia was presented the Fiscal Year (FY) 2024-25 First Quarter Budget Review report by staff; and

WHEREAS, the City Council of the City of Hesperia has reviewed the FY 2024-25 First Quarter Budget Review report 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 FY 2024-25 First Quarter Budget Review report.

NOW THEREFORE, BE IT RESOLVED BY THE CITY OF HESPERIA CITY COUNCIL 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 approves the FY 2024-25 First Quarter Budget Review report and budget amendments.

Section 3. That the City Council approves the following position classification changes included in the 2024-25 First Quarter Budget Review as follows:

Section 3a. That the City Council approves the new position classification title of Deputy Information Systems Director, which is a non-represented position At-Will in the senior management classification, with a contract, no auto allowance and a salary range of 45.

Section 3b. That the City Council approves the new position classification title of Senior Information Systems Specialist, which is a non -represented position, in the management classification, with a salary range of 41.

Section 3c. That the City Council approves the new position classification title of Senior Accountant Part-Time Retired Annuitant, which is a non -represented position, with a salary range of 38.

Section 3d. That the City Council approves the new position classification t itle of Risk Management Supervisor, which is a non -represented position, in the professional/supervisory classification, with a salary range of 37.

Section 3e. That the City Council approves the new position classification title of Economic Development Su pervisor, which is a non -represented position, in the professional/supervisory classification, with a salary range of 39.

Section 3f. That the City Council approves the new position classification title of Community Development Manager, which is a non-represented position in the management classification, with a salary range of 40.

Section 3g. That the City Council approves the change in classification for the Administrative Internship position which is a non-represented part-time position and approves the salary range change from minimum wage to no more than four dollars ($4.00) over minimum wage.

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Resolution No. 2024-59

Page 2 ends

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.

ADOPTED AND APPROVED this 19th day of November 2024.

_________________________________________
Larry Bird, Mayor
ATTEST:

_________________________________
Erin Baum, Assistant City Clerk

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RESOLUTION NO. HHA 2024-07

A RESOLUTION OF THE HESPERIA HOUSING AUTHORITY OF THE CITY OF HESPERIA, CALIFORNIA, APPROVING THE FISCAL YEAR 2024-25 FIRST QUARTER BUDGET REVIEW AND AMENDING THE 2024-25 HESPERIA

HOUSING AUTHORITY BUDGET TO FUND CERTAIN RELATED

EXPENDITURES

WHEREAS, the Board of Directors of the Hesperia Housing Authority was presented the Fiscal Year (FY) 2024-25 First Quarter Budget Review by staff; and

WHEREAS, the Board of Directors of the Hesperia Housing Authority has reviewed the FY 2024-25 First Quarter Budget Review report information and analysis and has found it acceptable; and

WHEREAS, the Board of Directors of the Hesperia Housing Authority has reviewed and approves the budget amendments included in the FY 2024-25 First Quarter Budget Review report.

NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE HESPERIA HOUSING AUTHORITY 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 Housing Authority approves the FY 2024-25 First Quarter Budget Review report and budget amendments.

Section 3. That the Board of Directors of the Hesperia Housing Authority approves the following position classification change included in the 2024-25 First Quarter Budget Review as follows:

Section 3a. That the Board of Directors approves the new position classification title of approves the new position classification title of Economic Development Supervisor, which is a non -represented position, in the professional/supervisory classification, with a salary range of 39.

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 19th day of November 2024.

_________________________________________
Larry Bird, Chair
ATTEST:

_______________________________
Erin Baum, Secretary to the Board

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RESOLUTION NO. HWD 2024-18

A RESOLUTION OF THE HESPERIA WATER DISTRICT OF THE CITY OF HESPERIA, CALIFORNIA, APPROVING THE FISCAL YEAR 2024-25 FIRST QUARTER BUDGET REVIEW AND AMENDING THE 2024-25 HESPERIA

WATER DISTRICT BUDGET TO FUND CERTAIN RELATED EXPENDITURES

WHEREAS, the Board of Directors of the Hesperia Water District was presented the Fiscal Year (FY) 2024-25 First Quarter Budget Review by staff; and

WHEREAS, the Board of Directors of the Hesperia Water District has reviewed the FY 2024-25 First Quarter Budget Review report information and analysis and has found it acceptable; and

WHEREAS, the Board of Directors of the Hesperia Water District has reviewed and approves the budget amendments included in the FY 2024-25 First Quarter Budget Review report.

NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF 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 approves the FY 2024-25 First Quarter Budget Review report and budget amendments.

Section 3. That the Board of Directors of the Hesperia Water District approves the following position classification change s included in the 2024-25 First Quarter Budget Review as follows:

Section 3a. That the Board of Directors approves the new position classification title of Deputy Information Systems Director, which is a non -represented position At-Will in the senior management classification, with a contract, no auto allowance and a salary range of 45.

Section 3b. That the Board of Directors approves the new position classification title of Community Development Manager, which is a non -represented position in the management classification, with a salary range of 40.

Section 3c. That the Board of Directors approves the new change in classification for the Administrative Internship position which is a non-represented part-time position and approves the salary range change from minimum wage to no more than four dollars ($4.00) over minimum wage.

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 19th day of November 2024.

_________________________________________
Larry Bird, Chair

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Resolution HWD No. 2024-18

Page 2 ends

ATTEST:

_______________________________
Erin Baum, Secretary to the Board

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JOINT RESOLUTION NO. 2024-58
RESOLUTION HHA 2024-06
RESOLUTION HWD 2024-17

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

CALIFORNIA, THE BOARD OF DIRECTORS OF THE HESPERIA WATER

DISTRICT, AND THE BOARD OF DIRECTORS OF THE HESPERIA HOUSING AUTHORITY APPROVING THE CITY’S COMBINED COMPENSATION

SCHEDULE

WHEREAS, in compliance with California Public Employees’ Retirement System (CalPERS) and Title 2 of California Code of Regulations Section 570.5, the City Council of the City of Hesperia and the Board of Directors of the Hesperia Water District must approve and adopt a Compensation Schedule that lists all employee positions; and

WHEREAS the City Council of the City of Hesperia and the Board of Directors of the Hesperia Water District adopted a Combined Compensation Schedule on July 16, 2024; and

WHEREAS, Joint Resolution No. 202 4-26, HWD 2024-09, and HHA 2024-05 approves the Combined Compensation Schedule; and

WHEREAS, Joint Resolution No. 2024-25, HWD 2024 -08, and HHA 2024 -04, Exhibit A prescribes the salaries, benefits, and other related policies for employees of the City not represented by an employee labor relations organization and commonly called Non-Represented Employees; and

WHEREAS, Resolution 2024-24 and HWD 2024-07 Exhibit A prescribes a Memorandum of Understanding and the salaries, benefits, and other terms and conditions for employees of the City of Hesperia represented by the Teamsters Local 1932; and

WHEREAS, on October 4, 2022, the City Council approved an Employment Agreement which prescribes the salaries and benefits of the City Manager; and

WHEREAS, Resolution No. 2024-22, Resolution HWD 2024-05, and Resolution HHA 2024-02 approves the annual Fiscal Year 2024-25 Operating Budget; and

WHEREAS, Resolution No. 202 4-59, Resolution HWD 2024 -18, and Resolution HHA 2024-07 approves the First Quarter Budget Year 2024-25 Operating Budget; and

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

CALIFORNIA, THE BOARD OF DIRECTORS OF THE HESPERIA WATER DISTRICT AND THE BOARD OF DIRECTORS OF THE HESPERIA HOUSING AUTHORITY AS FOLLOWS:

Section 1. That the recitals above are true and correct.

Section 2. That the City Council and Board of Directors of the Hesperia Water District and Hesperia Housing Authority approves the attached revised Combined Compensation Schedules effective November 20, 2024. The schedule lists all employee positions, clearly indicates the time base for salaries, base pay rates only and includes the effective and revised date s of the schedule . The schedules will be posted on the City’s internet page once approved.

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Joint Resolution No. 2024-58, HWD 2024-17 and HHA 2024-06

Page 2 ends

Section 3. That the City Clerk/Board Secretary shall certify to the passage and adoption of this Joint Resolution and enter it into the book of original resolutions.

ADOPTED AND APPROVED this 19th day of November 2024.

______________________________
Larry Bird, Mayor/Chair

ATTEST:

_______________________________________
Erin Baum, Assistant City Clerk/Board Secretary

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Non-Represented Full-Time Monthly Rates Benefit Group Range # 1 23456 7 8 9 1 0 1 1 Accountant GEN 33 5,897 6,015 6,135 6,258 6,383 6,511 6,641 6,774 6,910 7,048 7,189 Accounting Technician GEN 31 5,349 5,456 5,565 5,676 5,790 5,906 6,024 6,145 6,268 6,393 6,521 Administrative Aide GEN 27 4,400 4,488 4,578 4,670 4,763 4,858 4,955 5,054 5,155 5,258 5,363 Administrative Analyst PRO/SUP 34 6,192 6,316 6,442 6,571 6,702 6,836 6,973 7,113 7,255 7,400 7,548 Administrative Secretary GEN 30 5,094 5,196 5,300 5,406 5,514 5,624 5,737 5,852 5,969 6,088 6,210 Animal Services Specialist PRO/SUP 34 6,192 6,316 6,442 6,571 6,702 6,836 6,973 7,113 7,255 7,400 7,548 Animal Services Supervisor PRO/SUP 37 7,169 7,312 7,458 7,607 7,759 7,914 8,072 8,233 8,398 8,566 8,737 Assistant City Clerk PRO/SUP 37 7,169 7,312 7,458 7,607 7,759 7,914 8,072 8,233 8,398 8,566 8,737 Assistant City Manager AW SR. MGT 53 15,652 15,965 16,284 16,610 16,942 17,281 17,627 17,980 18,340 18,707 19,081 Assistant Engineer PRO/SUP 38 7,528 7,679 7,833 7,990 8,150 8,313 8,479 8,649 8,822 8,998 9,178 Assistant Planner PRO/SUP 35 6,502 6,632 6,765 6,900 7,038 7,179 7,323 7,470 7,619 7,771 7,926 Assistant Project Manager PRO/SUP 38 7,528 7,679 7,833 7,990 8,150 8,313 8,479 8,649 8,822 8,998 9,178 Assistant to the City Manager MGT 43 9,608 9,800 9,996 10,196 10,400 10,608 10,820 11,036 11,257 11,482 11,712 Associate Engineer PRO/SUP 40 8,299 8,465 8,634 8,807 8,983 9,163 9,346 9,533 9,724 9,919 10,117 Associate Planner PRO/SUP 38 7,528 7,679 7,833 7,990 8,150 8,313 8,479 8,649 8,822 8,998 9,178 Budget/Finance Specialist GEN 33 5,897 6,015 6,135 6,258 6,383 6,511 6,641 6,774 6,910 7,048 7,189 Building Official MGT 43 9,608 9,800 9,996 10,196 10,400 10,608 10,820 11,036 11,257 11,482 11,712 Code Compliance Manager MGT 44 10,088 10,290 10,496 10,706 10,920 11,138 11,361 11,588 11,820 12,056 12,297 Code Enforcement Supervisor PRO/SUP 39 7,904 8,062 8,223 8,388 8,556 8,727 8,902 9,080 9,262 9,447 9,636 Community Development Manager MGT 40 8,299 8,465 8,634 8,807 8,983 9,163 9,346 9,533 9,724 9,919 10,117 Community Development Supervisor PRO/SUP 37 7,169 7,312 7,458 7,607 7,759 7,914 8,072 8,233 8,398 8,566 8,737 Customer Service Supervisor PRO/SUP 37 7,169 7,312 7,458 7,607 7,759 7,914 8,072 8,233 8,398 8,566 8,737 Deputy City Clerk GEN 28 4,621 4,713 4,807 4,903 5,001 5,101 5,203 5,307 5,413 5,521 5,631 Deputy City Engineer AW SR. MGT 48 12,263 12,508 12,758 13,013 13,273 13,539 13,810 14,086 14,368 14,655 14,948 Deputy City Manager/ City Clerk AW SR. MGT 52 14,906 15,204 15,508 15,818 16,134 16,457 16,786 17,122 17,464 17,813 18,169 Deputy Community Development Director SR. MGT 45 10,592 10,804 11,020 11,240 11,465 11,694 11,928 12,167 12,410 12,658 12,911 Deputy Development Services Director SR. MGT 45 10,592 10,804 11,020 11,240 11,465 11,694 11,928 12,167 12,410 12,658 12,911 Deputy Finance Director SR. MGT 46 11,122 11,344 11,571 11,802 12,038 12,279 12,525 12,776 13,032 13,293 13,559 Deputy Human Resources/Risk Management Director SR. MGT 45 10,592 10,804 11,020 11,240 11,465 11,694 11,928 12,167 12,410 12,658 12,911 Deputy Information Systems Director AW SR. MGT 45 10,592 10,804 11,020 11,240 11,465 11,694 11,928 12,167 12,410 12,658 12,911 Director of Development Services AW SR. MGT 52 14,906 15,204 15,508 15,818 16,134 16,457 16,786 17,122 17,464 17,813 18,169 Director of Public Works AW SR. MGT 52 14,906 15,204 15,508 15,818 16,134 16,457 16,786 17,122 17,464 17,813 18,169 Economic Develo
pment Manager MGT 44 10,088 10,290 10,496 10,706 10,920 11,138 11,361 11,588 11,820 12,056 12,297 Economic Development Supervisor PRO/SUP 39 7,904 8,062 8,223 8,388 8,556 8,727 8,902 9,080 9,262 9,447 9,636 Engineering Specialist GEN 32 5,616 5,728 5,843 5,960 6,079 6,201 6,325 6,452 6,581 6,713 6,847 Facilities Supervisor PRO/SUP 38 7,528 7,679 7,833 7,990 8,150 8,313 8,479 8,649 8,822 8,998 9,178 Field Services Supervisor GEN 36 6,828 6,965 7,104 7,246 7,391 7,539 7,690 7,844 8,001 8,161 8,324 Finance Manager MGT 40 8,299 8,465 8,634 8,807 8,983 9,163 9,346 9,533 9,724 9,919 10,117 Financial Analyst PRO/SUP 35 6,502 6,632 6,765 6,900 7,038 7,179 7,323 7,470 7,619 7,771 7,926 Fleet/Warehouse Supervisor PRO/SUP 37 7,169 7,312 7,458 7,607 7,759 7,914 8,072 8,233 8,398 8,566 8,737 Geographical Information Systems Manager MGT 41 8,714 8,888 9,066 9,247 9,432 9,621 9,813 10,009 10,209 10,413 10,621 Geographical Information Systems Technician GEN 32 5,616 5,728 5,843 5,960 6,079 6,201 6,325 6,452 6,581 6,713 6,847 Human Resources Specialist PRO/SUP 35 6,502 6,632 6,765 6,900 7,038 7,179 7,323 7,470 7,619 7,771 7,926 Human Resources Supervisor PRO/SUP 37 7,169 7,312 7,458 7,607 7,759 7,914 8,072 8,233 8,398 8,566 8,737 Information Systems Manager MGT 44 10,088 10,290 10,496 10,706 10,920 11,138 11,361 11,588 11,820 12,056 12,297 Information Systems Specialist MGT 37 7,169 7,312 7,458 7,607 7,759 7,914 8,072 8,233 8,398 8,566 8,737 Information Systems Technician GEN 32 5,616 5,728 5,843 5,960 6,079 6,201 6,325 6,452 6,581 6,713 6,847 Licensed Veterinarian AW SR. MGT 46 11,122 11,344 11,571 11,802 12,038 12,279 12,525 12,776 13,032 13,293 13,559 Maintenance Crew Supervisor PRO/SUP 38 7,528 7,679 7,833 7,990 8,150 8,313 8,479 8,649 8,822 8,998 9,178 Mana
gement Analyst PRO/SUP 37 7,169 7,312 7,458 7,607 7,759 7,914 8,072 8,233 8,398 8,566 8,737 Office Assistant GEN 26 4,190 4,274 4,360 4,447 4,536 4,627 4,720 4,814 4,910 5,008 5,108 Personnel Technician GEN 32 5,616 5,728 5,843 5,960 6,079 6,201 6,325 6,452 6,581 6,713 6,847 Planning Specialist GEN 32 5,616 5,728 5,843 5,960 6,079 6,201 6,325 6,452 6,581 6,713 6,847 Plans Examiner PRO/SUP 37 7,169 7,312 7,458 7,607 7,759 7,914 8,072 8,233 8,398 8,566 8,737 Principal Planner MGT 44 10,088 10,290 10,496 10,706 10,920 11,138 11,361 11,588 11,820 12,056 12,297 Project Manager MGT 40 8,299 8,465 8,634 8,807 8,983 9,163 9,346 9,533 9,724 9,919 10,117 Public Relations Analyst PRO/SUP 39 7,904 8,062 8,223 8,388 8,556 8,727 8,902 9,080 9,262 9,447 9,636 Public Works Inspection Supervisor PRO/SUP 39 7,904 8,062 8,223 8,388 8,556 8,727 8,902 9,080 9,262 9,447 9,636 Public Works Inspector GEN 35 6,502 6,632 6,765 6,900 7,038 7,179 7,323 7,470 7,619 7,771 7,926 Public Works Supervisor PRO/SUP 40 8 ,299 8 ,465 8 ,634 8 ,807 8 ,983 9 ,163 9 ,346 9 ,533 9 ,724 9 ,919 10 ,117 Risk Management Supervisor PRO/SUP 37 7 ,169 7 ,312 7 ,458 7 ,607 7 ,759 7 ,914 8 ,072 8 ,233 8 ,398 8 ,566 8 ,737 Secretary to the City Manager and City Council PRO/SUP 35 6 ,502 6 ,632 6 ,765 6 ,900 7 ,038 7 ,179 7 ,323 7 ,470 7 ,619 7 ,771 7 ,926 Senior Accountant MGT 38 7 ,528 7 ,679 7 ,833 7 ,990 8 ,150 8 ,313 8 ,479 8 ,649 8 ,822 8 ,998 9 ,178 Senior Code Enforcement Officer GEN 35 6 ,502 6 ,632 6 ,765 6 ,900 7 ,038 7 ,179 7 ,323 7 ,470 7 ,619 7 ,771 7 ,926 Senior Community Development Technician GEN 32 5 ,616 5 ,728 5 ,843 5 ,960 6 ,079 6 ,201 6 ,325 6 ,452 6 ,581 6 ,713 6 ,847 Senior Information Systems Specialist MGT 41 8 ,714 8 ,888 9 ,066 9 ,247 9 ,432 9 ,621 9 ,813 10 ,009 10 ,209 10 ,413 10 ,621 Senior Office Assistant GEN 28 4 ,621 4 ,713 4 ,807 4 ,903 5 ,001 5 ,101 5 ,203 5 ,307 5 ,413 5 ,521 5 ,631 Senior Office Specialist GEN 28 4 ,621 4 ,713 4 ,807 4 ,903 5 ,001 5 ,101 5 ,203 5 ,307 5 ,413 5 ,521 5 ,631 Senior Planner MGT 41 8 ,714 8 ,888 9 ,066 9 ,247 9 ,432 9 ,621 9 ,813 10 ,009 10 ,209 10 ,413 10 ,621 Senior Project Manager MGT 43 9 ,608 9 ,800 9 ,996 10 ,196 10 ,400 10 ,608 10 ,820 11 ,036 11 ,257 11 ,482 11 ,712 Streets Operations Manager MGT 44 10 ,088 10 ,290 10 ,496 10 ,706 10 ,920 11 ,138 11 ,361 11 ,588 11 ,820 12 ,056 12 ,297 Water Operations Manager MGT 44 10 ,088 10 ,290 10 ,496 10 ,706 10 ,920 11 ,138 11 ,361 11 ,588 11 ,820 12 ,056 12 ,297 City Manager Contract*
REVISED: November 19, 2024 Effective: November 20, 2024 Annually: $264,576; Monthly: $22,048
*Employment Agreement approved by City Council July 16, 2024 to be effective July 1, 2024

CITY OF HESPERIA

HESPERIA WATER DISTRICT

COMBINED COMPENSATION SCHEDULE

INCLUDES CITY OF HESPERIA, HESPERIA WATER DISTRICT AND HESPERIA HOUSING AUTHORITY APPROVED AND ADOPTED: July 16, 2024, November 19, 2024

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Attachment 6

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Teamsters, Local 1932, Full -Time Monthly Rates Benefit Group Range # A B C D Animal Care Technician TEAMSTERS 10 4,468 4,691 4,926 5,172 Animal Control Officer TEAMSTERS 13 5,172 5,431 5,703 5,988 Animal Services Assistant TEAMSTERS 8 4,052 4,255 4,468 4,691 Animal Services Representative TEAMSTERS 10 4,468 4,691 4,926 5,172 Building Inspector TEAMSTERS 18 6,601 6,931 7,278 7,642 Code Enforcement Officer TEAMSTERS 17 6,287 6,601 6,931 7,278 Community Development Technician TEAMSTERS 12 4,926 5,172 5,431 5,703 Custodian TEAMSTERS 8 4,052 4,255 4,468 4,691
Customer Service Assistant TEAMSTERS 8 4,052 4,255 4,468 4,691 Customer Service Representative TEAMSTERS 10 4,468 4,691 4,926 5,172 Equipment Operator TEAMSTERS 12.5 5,050 5,303 5,568 5,846 Equipment Operator/Water TEAMSTERS 13 5,172 5,431 5,703 5,988 Facilities Maintenance Specialist TEAMSTERS 14 5,431 5,703 5,988 6,287 Facilities Maintenance Technician TEAMSTERS 12 4,926 5,172 5,431 5,703 Maintenance Worker TEAMSTERS 10 4,468 4,691 4,926 5,172 Maintenance Worker/Water TEAMSTERS 10.5 4,580 4,809 5,050 5,303 Meter Reader TEAMSTERS 10 4,468 4,691 4,926 5,172
Pump Maintenance Worker TEAMSTERS 12 4,926 5,172 5,431 5,703 Pump Operator TEAMSTERS 12.5 5,050 5,303 5,568 5,846
Receptionist TEAMSTERS 6 3,675 3,859 4,052 4,255
Registered Veterinary Technician TEAMSTERS 14 5,431 5,703 5,988 6,287 Senior Account Clerk TEAMSTERS 12 4,926 5,172 5,431 5,703 Senior Animal Care Technician TEAMSTERS 12 4,926 5,172 5,431 5,703 Senior Animal Services Representative TEAMSTERS 12 4,926 5,172 5,431 5,703 Senior Custodian TEAMSTERS 10 4,468 4,691 4,926 5,172
Senior Customer Service Representative TEAMSTERS 12 4,926 5,172 5,431 5,703 Senior Maintenance Worker TEAMSTERS 13 5,172 5,431 5,703 5,988 Senior Maintenance Worker/Water TEAMSTERS 13.5 5,303 5,568 5,846 6,138 Senior Pump Maintenance Worker TEAMSTERS 14.5 5,568 5,846 6,138 6,445 Senior Pump Operator TEAMSTERS 14.5 5,568 5,846 6,138 6,445 Senior Warehouse Technician TEAMSTERS 12 4,926 5,172 5,431 5,703 Traffic Signal Technician TEAMSTERS 14 5,431 5,703 5,988 6,287 Utility Line Locator TEAMSTERS 10 4,468 4,691 4,926 5,172 Volunteer/Outreach Coordinator TEAMSTERS 12 4,926 5,172 5,431 5,703 Warehouse Technician TEAMSTERS 10 4,468 4,691 4,926 5,172 Water Quality Specialist TEAMSTERS 14.5 5,568 5,846 6,138 6,445 Water Quality Technician TEAMSTERS 12.5 5,050 5,303 5,568 5,846 Non-Represented Part-Time Hourly Rates Benefit Group Range # 1 23456 7 8 9 1 0 1 1 Administrative Intern - Part-Time PART-TIME 16.00 16.50 17.00 17.50 18.00 18.50 19.00 19.50 20.00 20.50 Animal Care Technician - Part-Time PART-TIME 10 25.01 26.26 27.58 28.96 30.40 Animal Services Representative - Part-Time PART-TIME 10 25.01 26.26 27.58 28.96 30.40 Custodian- Part-Time PART-TIME 8 22.69 23.83 25.02 26.27 27.59 Customer Service Assistant - Part-Time PART-TIME 8 22.69 23.83 25.02 26.27 27.59 Customer Service Representative - Part-Time PART-TIME 10 25.01 26.26 27.58 28.96 30.40 Information Systems Technician - Part-Time PART-TIME 32 32.40 33.05 33.71 34.39 35.07 35.78 36.49 37.22 37.97 38.73 39.50 Maintenance Worker - Part-Time PART-TIME 10 25.01 26.26 27.58 28.96 30.40 Office Assistant - Part-Time PART-TIME 26 24.17 24.66 25.15 25.66 26.17 26.69 27.23 27.77 28.33 28.89 29.47 Receptionist - Part-Time PART-TIME 6 20.58 21.61 22.69 23.82 25.02 Senior Accountant - Part-Time Retired Annuitant RETIRED 38 43.43 44.30 45.19 46.10 47.02 47.96 48.92 49.90 50.90 51.91 52.95 AW SR. MGT = At-Will Senior Management
PRO/SUP = Professional/Supervisory
MGT = Management
TEAMSTERS = Teamsters Local 1932
RETIRED = Retired Annuitant
SR. MGT = Senior Management
GEN = General
5,431
6,767
6,138
6,767
5,988
6,601
5,431
5,988
5,431
5,988
6,287
6,445
6,767
4,468
6,601
5,988
5,988
5,988
5,431
5,568
5,431
5,988
6,138
5,431
6,138
6,287
6,601
5,988
8,024
7,642
5,988
4,926
4,926
E
5,431
6,287
4,926
5,431
APPROVED AND ADOPTED: July 16, 2024, November 19, 2024
REVISED: November 19, 2024 Effective: November 20, 2024

CITY OF HESPERIA

HESPERIA WATER DISTRICT

COMBINED COMPENSATION SCHEDULE

INCLUDES CITY OF HESPERIA, HESPERIA WATER DISTRICT AND HESPERIA HOUSING AUTHORITY

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Hesperia City CouncilNovember 19, 2024

Hesperia City Council
November 19, 2024