Hesperia City Council
June 2, 2026

District also coordinates with the Mojave Water Agency and San Bernardino County within which it provides water supply services for the possible proclamation of a “local emergency” under California Government Code, California Emergency Services Act (Article 2, Section 8558).

1.8. Financial Consequences of WSCP
The Act requires an analysis of the impacts of implementation of this WSCP and likely financial consequences to the District. This section addresses aspects of revenue reduction, expense increases, and additional costs that may arise, and identifies financial response actions.

1.8.1 Revenue and Expenditure Impacts
Hesperia has established water rates that support its on-going operation and maintenance activities, as well as the capital projects required to provide a safe and reliable water supply to its customers. Water rates are tied to Hesperia’s customers’ normal water consumption activities, which will be reduced through voluntary or mandatory water conservation by customers. Thus, in times of shortage, there will be revenue reductions to Hesperia. In addition to the revenue reductions, Hesperia will also experience an increase in expenses resulting from augmented communication actions, increased enforcement activities, and the administration of water shortage management actions identified in the WSCP.

When a drought or water shortage occurs, the District’s costs increase due to the additional activities and duties of instituting a stage of action. Not only will there be costs for materials, and time from permanent staff, but additional staff may need to be hired to assist in implementing the Water Shortage Contingency Plan. Staff will regularly report the identified and anticipated revenue and expenditure impacts and recommend appropriate responses to the District Board. The District maintains a reserve fund to supplement revenue shortfalls.

1.8.2 Drought Rate Structures and Surcharges
Hesperia does not currently have drought rate structures or surcharges. As water rate structures are subject to the regular rate review, the District may choose to consider adopting drought rate structures or surcharges to address the financial consequences of longer-term water shortages. Should the District decide to proceed, such rate changes would be adopted in compliance with then current legal requirements..

1.9. Monitoring and Reporting
The District will conduct regular monitoring and reporting to ensure WSCP implementation is effective and responsive to conditions as they unfold. The District will then use this information to restore and maintain the water supply and demand balance. Similar to the supply and demand projections used to establish a shortage condition, the District will monitor the same data to determine effectiveness and efficacy.

Monitoring activity is expected to include, but not be limited to:
 Gathering monthly or bi-weekly customer water use data.  Preparing technical assessments of customer water use and identifying deficiencies.  Analyzing trends in water supply availability, including meteorological events, regional water supply coordination actions, and statewide regulatory trends.  Assessing water conservation activities and the effectiveness of enforcement actions as applicable to achieving conservation objectives.

District staff will report to decision makers at least quarterly on status and results. Data reporting will include preparation of written reports and presentations, as necessary, for Hesperia management meetings and other public meetings summarizing key information and data, including but not limited to:
 Actual water demands compared to projected demands by customer class and in total.  Actual supply availability and utilized compared to projected availability for each supply source.  Projected supply availability for next 12 months for each supply source.  Monthly reporting of water production and conservation, as required by the State Water Resources Control Board.

These and other data will be regularly evaluated by staff to assess the effectiveness of response measures and to identify the need for any changes or modifications to the declared water shortage stage or actions based on the results. With regard to monitoring and reporting, District staff may determine the need for additional monitoring and reporting measures, or the need to develop or amend ordinances, or update the WSCP as a whole. Any WSCP update or modification will be conducted through the District Board meeting process, unless specific conditions require otherwise.

1.10. Re-evaluation and Improvement Procedures
Hesperia will continually review and assess its procedures for implementing the WSCP. Specifically, Hesperia will use the monitoring and reporting protocols identified above as a quality assurance and quality control measure to understand the effectiveness of water conservation activities. These re- evaluation and improvement procedures will include developing reports, memoranda, and presentations that assess the effectiveness of water conservation actions and the WSCP. These materials will be provided to Hesperia’s customers and decision-makers for consideration. Public comments on the published materials and management considerations should be incorporated into the development and implementation of future actions. These protocols will be continually assessed and updated by Hesperia management staff.

1.11. Special Water Feature Distinction
For purposes of water shortage contingency planning and implementation, the District defines as “special water features” those that are artificially supplied with water, including ponds, lakes, waterfalls, and fountains. Such special water features are considered distinct from swimming pools and spas (as defined in subdivision (a) of Section 115921 of the Health and Safety Code).

Water shortage response actions will focus on health and safety issues and balancing continuation of these uses with the severity of the water shortage condition. The relative total water use from these sources is a consideration for how special water features and swimming pool uses could be curtailed during specific water shortage conditions. For instance, when swimming pool filling and refilling would exceed a customer’s use allocation under the various drought stages in the Municipal Code, then these actions are prohibited and can be subject to drought penalties and other District enforcement actions.

Hesperia determined that special water features are a relatively small discretionary use but may be restricted under all identified water shortage condition.

1.12. Plan Adoption, Submittal, and Availability
The WSCP has been adopted, submitted, and is available as required by the Urban Water Management Planning Act. As a stand-alone document, the WSCP is also subject to the following separate adoption, submittal, and availability processes, and whenever it is separately amended or revised in the future.

Hesperia may refine or amend this WSCP as necessary and in compliance with the normal public notice and adoption. Hesperia has followed all applicable law in adopting the WSCPs. The current adopted WSCP shall be available to District customers and to MWA, the City of Victorville, the Town of Apple Valley, San Bernardino County within 30 days of its adoption. A copy of the current WSCP is available for public inspection during business hours at the District office at 9700 Seventh Ave., Hesperia (subject to current COVID 19 restrictions). The current WSCP is posted and available for download here [___[URL]____].

APPENDIX 7B- HESPERIA WATER

DISTRICT DWR CHECKLIST

Retail
(x = re
quired)
Wh olesale
(x = re
quired) Or der 2025 Gu idebook Location Wa ter Code Section Summary as Applies to UWMP Subject Relevant Submittal Table 2025 UWMP Location Retail Chapter Location
x x 1 Ch
apter 1 10615 A plan shall describe and evaluate sources of supply, reasonable and practical efficient uses, reclamation and demand management activities.

Introduction and
overview n/a Chapter 11 11.4, 11.6
x x 1 Ch
apter 1 10630.5
Each plan shall include a simple description of the Supplier’s plan including water availability, future requirements, a strategy for meeting needs, and other pertinent information. Additionally, a Supplier may also choose to include a simple description at the beginning of each chapter.

Plan preparation n/a Chapter 11 Beginning of each sub-
chapter
x x 2.1 Se
ction 2.
1 10620(b
) Every person that becomes a Supplier shall adopt UWMP within one year after it has become a Supplier. Plan preparation n/a Chapter 11 11.1 x n/a 2.5 Se
ction 2.
5 10644 Supplier shall report the Public Water Systems number, volume of delivered water, and number of connections that are included in this UWMP.

Plan preparation 2-1 Chapter 11 11.2, 11.5
x x 2.5 Se
ction 2.
5 10644 Supplier shall report if this UWMP is an individual UWMP and whether the Supplier belongs to a regional UWMP or regional alliance.

Plan preparation 2-2 Chapter 11 11.1
x x 2.5 Se
ction 2.
5 10644 Supplier shall report whether the data is in fiscal or calendar years and the units of measure used for reporting water volumes.

Plan preparation 2-3 Chapter 11 11.1
x x 2.4 Se
ction 2.
4 10642
Provide supporting documentation that the Supplier has encouraged active involvement of diverse social, cultural, and economic elements of the population within the service area prior to and during the preparation of the plan and contingency plan.

Plan preparation n/a Chapter 11 11.1
x x 2.4 Se
ction 2.4.
2 10620(d
)(3) Coordinate the preparation of its plan with other appropriate agencies in the area, including other Suppliers that share a common source, water management agencies, and relevant public agencies, to the extent practicable.

Plan preparation n/a Chapter 11 11.1
x n/a 2.4 Se
ction 2.4.
1 10631(h
) Retail Suppliers will include documentation that they have provided their Wholesale Supplier(s)—if any—with water use projections from that source.

Plan preparation 2-4 R Chapter 11 11.1
n/a x 2.4 Se
ction 2.4.
1 10631(h
) Wholesale Suppliers will provide their Suppliers with identification and quantification of the existing and planned sources of water available from the Wholesale Supplier to the Supplier during various water year types.

Plan preparation 2-4 W Chapter 3 n/a
x x 3 Ch
apter 3.
0 10631(a
) Describe the Supplier service area. System
description n/a Chapter 11 11.2
x x 3.3 Se
ction 3.
3 10631(a
) Describe the climate of the Supplier’s service area. System description n/a Chapter 11 11.2
x x 3.4
Se
ction 3.4.
1 10631(a
) Provide the current and projected service area populations for 2030, 2035, 2040, 2045 and optionally 2050. System description 3-1 Chapter 11 11.3
x x 3.4
Se
ction 3.4.
2 10631(a
) Describe other social, economic, and demographic factors affecting the Supplier’s water management planning. System description n/a Chapter 11 11.3
x x 3.5
Se
ction 3.
5 10631(a
)
Describe the land uses within the service area… include the current and projected land uses within the existing or anticipated service area affecting the Supplier’s water management planning. Describe the land uses within the service area.

System
description and
baselines
n/a Chapter 11 11.3
x Optional 4.2 Se
ctions 4.2.
3 and 4.2.4 10631(d
)(1) Quantify past, current, and projected water use, identifying the uses among water use sectors. System water use 4-1 and 4-2 Chapter 11 11.5 x Optional 4.3 Se
ction 4.3.
1 10631(d
)(3)(A) Report the distribution system water loss for each of the five years preceding the plan update. System water use 4-5 Chapter 11 11.5 x n/a 4.3 Se
ction 4.3.
2 10631(d
)(3)(C) Retail Suppliers shall provide data to show the distribution loss standards were met. System water use 4-6 Chapter 11 11.5 x n/a 4.2 Se
ction 4.2.

5.4 10631.1(
a) Include projected water use needed for lower income housing projected in the service area of the Supplier. System water use 4-3 Chapter 11 11.5 x n/a 4.2 Se
ction 4.2.

5.3 10631(d
)(4)(A) In projected water use, include estimates of water savings from adopted codes, plans, and other policies or laws. System water use 4-3 Chapter 11 11.5 x n/a 4.2 Se
ction 4.2.

5.3 10
631(d)(4)(B) Provide citations of codes, standards, ordinances, or plans used to make water use projections. System water use 4-3 Chapter 11 11.5 x n/a 4.2 Se
ction 4.2.

5.3 10
631(d)(4)(B)(ii)
To the extent that a Supplier reports the information described in subparagraph (A), an urban water Supplier shall… Indicate the extent that the water use projections consider savings from codes, standards, ordinances, or transportation and land use plans. Water use projections that do not account for these water savings shall be noted of that fact.

System water use 4-3 Chapter 11 11.5
x x 4.2 Se
ction 4.2.

5.6 10635(b
) Demands under climate change considerations must be included as part of the drought risk assessment. System water use n/a Chapter 11 11.5 n/a x 5.1 Se
ction 5.
1 10608.36 Wholesale Suppliers shall include an assessment of present and proposed future measures, programs, and policies to help their Retail Suppliers achieve targeted water use reductions.

Baselines and
targets n/a Chapter 11 11.5
x n/a 5.2 Se
ction 5.
2 10608.4
Retail Suppliers shall report on their compliance in meeting their water use targets. Reporting requirements will vary depending on whether the Supplier:
-
W
as considered an urban retail water supplier in 2020,
- M
et its 2020 target in 2020, or
- W
as part of a merger or consolidation since 2020.

Chapter 5 S
ubsections 5.2.1, 5.2.2, and 5.2.3 address each of these situations.

Baselines and
targets 5-1 Chapter 11 11.5
x x 6.1 Se
ction 6.
1 10631(b
)(2) When multiple sources of water supply are identified, describe the management of each supply in relationship to other identified supplies. System supplies n/a Chapter 11 11.4 x x 6.1 Sections 6.1 and 6.2 10631(b)(1) Provide a discussion of anticipated supply availability under a normal, single dry year, and a drought lasting five years, as well as more frequent and severe periods of drought, including changes in supply due to climate change.

System supplies n/a Chapter 11 11.4
x x 6.2 Se
ction 6.2.
2 10631(b
)(4)(C)
Indicate whether groundwater is an existing or planned source of water available to the Supplier. If groundwater is identified as an existing or planned source of water… (include) a detailed description and analysis of the location, amount and sufficiency of groundwater pumped by the Supplier for the past five years.

Water supplies
and recycled
water
6-1 Chapter 11 11.4
x x 6.2
Se
ction 6.2.
2 10631(b
)(4)(A)
Indicate whether a groundwater sustainability plan or groundwater management plan has been adopted by the Supplier or if there is any other specific authorization for groundwater management. Include a copy of the plan or authorization.

System supplies n/a Chapter 3 n/a
x x 6.2 Se
ction 6.2.
2 10
631(b)(4)(B) Describe the groundwater basin. System supplies n/a Chapter 2 n/a x x 6.2 Se
ction 6.2.
2 10
631(b)(4)(B) Indicate if the basin has been adjudicated and include a copy of the court order or decree and a description of the amount of water the Supplier has the legal right to pump.

System supplies n/a Chapter 2 n/a
x x 6.2 Se
ction 6.2.
2 10
631(b)(4)(B) For unadjudicated basins… (include) information as to whether DWR has identified the basin as a high- or medium- priority basin in the most current official departmental bulletin… Water supplies
and recycled
water
n/a n/a n/a
x x 6.2 Se
ction 6.2.
2 10
631(b)(4)(B) For unadjudicated basins… describe efforts by the Supplier to coordinate with sustainability or groundwater agencies to achieve sustainable groundwater conditions.

Water supplies
and recycled
water
n/a n/a n/a
x x 6.2 Se
ction 6.2.

2. 10631(b
)(4)(C) If groundwater is identified as an existing or planned source of water… (include) a detailed description and analysis of the location, amount and sufficiency of groundwater pumped by the Supplier for the past five years.

System supplies n/a Chapter 2 n/a
x x 6.2 Se
ction 6.2.
2 10631(b
)(4)(D) Provide a detailed description and analysis of the amount and location of groundwater that is projected to be pumped.

System supplies 6-9 Chapter 11 11.4
x x 6.1 Se
ction 6.
1 10631(b
) Identify and quantify the existing and planned sources of water available for 2025, 2030, 2035, 2040, 2045 and optionally 2050.

System supplies 6-8 and 6-9 Chapter 11 11.4
x x 6.2 Se
ction 6.2.
7 10631(c
) Describe the opportunities for exchanges or transfers of water on a short-term or long-term basis. System supplies n/a Chapter 11 11.4 x n/a 6.2 Se
ction 6.2.
5 10633(a
) Describe the wastewater collection and treatment systems in the Supplier’s service area with quantified amount of collection and treatment and the disposal methods.

System supplies
(recycled water) 6-2 Chapter 11 11.4
x x 6.2 Se
ction 6.2.
5 10633(b
) Describe the quantity of treated wastewater that meets recycled water standards, is being discharged, and is otherwise available for use in a recycled water project.

System supplies
(recycled water) 6-3 Chapter 11 11.4
x x 6.2 Se
ction 6.2.
5 10633(c
) Describe the recycled water currently being used in the Supplier's service area. System supplies (recycled water) 6-4 Chapter 11 11.4
x x 6.2
Se
ction 6.2.
5 10633(d
) Describe and quantify the potential uses of recycled water and provide a determination of the technical and economic feasibility of those uses.

System supplies
(recycled water) 6-4 Chapter 11 11.4
x x 6.2 Se
ction 6.2.
5 10633(e
) Describe the projected use of recycled water within the Supplier's service area at the end of 5, 10, 15, and 20 years, and describe the actual use of recycled water in comparison to uses previously projected.

System supplies
(recycled water) 6-4 and 6-5 Chapter 11 11.4
x x 6.2 Se
ction 6.2.
5 10633(f
) Describe the actions that may be taken to encourage the use of recycled water and the projected results of these actions in terms of acre-feet of recycled water used per year.

System supplies
(recycled water) 6-6 Chapter 11 11.4
x x 6.2 Se
ction 6.2.
5 10633(g
) Provide a plan for optimizing the use of recycled water in the Supplier's service area. System supplies (recycled water) n/a Chapter 11 11.4
x x 6.2
Se
ction 6.2.
6 10631(g
) Describe desalinated water project opportunities for long-term supply. System supplies 6-7 Chapter 11 11.4 x x 6.2 Se
ction 6.2.
10 10631(f
)
Describe the expected future water supply projects and programs that may be undertaken by the water Supplier to address water supply reliability in average, single-dry, and for a period of drought lasting five consecutive water years.

System supplies 6-7 Chapter 11 11.4
x x 6.3 Se
ction 6.
3 and Appendix O 10631.2(
a) The UWMP must include energy information, as stated in the code, that a Supplier can readily obtain. System suppliers, energy intensity O-1A, O-1B, O-1C, and O-2 Chapter 11 11.8 x 7.1 Se
ction 7.
1 10634 Provide information on the quality of existing sources of water available to the Supplier and the manner in which water quality affects water management strategies and supply reliability.

Water supply
reliability
assessment
n/a Chapter 11 11.4
x x 7.2 Se
ction 7.
2 10635(a
)
Service Reliability Assessment: Assess the water supply reliability during normal, dry, and a drought lasting five consecutive water years by comparing the total water supply sources available to the Supplier with the total projected water use over the next 20 years.

Water supply
reliability
assessment
7-2, 7-3, and 7-4 Chapter 11 11.4
x x 7.2 Se
ction 7.2.
3 10620(f
) Describe water management tools and options to maximize resources and minimize the need to import water from other regions.

Water supply
reliability
assessment
n/a Chapter 11 11.4

x x 7.3 Se ction 7. 3 10635(b ) Provide a drought risk assessment as part of information considered in developing the demand management measures and water supply projects.

Water supply
reliability
assessment
n/a Chapter 11 11.5
x x 7.3 Se
ction 7.
3 10635(b
)(1) Include a description of the data, methodology, and basis for one or more supply shortage conditions that are necessary to conduct a drought risk assessment for a drought period that lasts five consecutive years.

Water supply
reliability
assessment
n/a Chapter 11 11.5
x x 7.3 Se
ction 7.
3 10635(b
)(2) Include a determination of the reliability of each source of supply under a variety of water shortage conditions.

Water supply
reliability
assessment
n/a Chapter 11 11.7
x x 7.3 Se
ction 7.
3 10635(b
)(3) Include a comparison of the total water supply sources available to the Supplier with the total projected water use for the drought period.

Water supply
reliability
assessment
7-5 Chapter 11 11.7
x x 7.3 Se
ction 7.
3 10635(b
)(4) Include considerations of the historical drought hydrology, plausible changes on projected supplies and demands under climate change conditions, anticipated regulatory changes, and other locally applicable criteria.

Water supply
reliability
assessment
n/a Chapter 11 11.7
x x 8 Ch
apter 8 10632(a
) Provide a water shortage contingency plan (WSCP) with specified elements below.

Water shortage
contingency
planning
n/a Chapter 11 11.6
x x 8 Ch
apter 8 10632(a
)(1) Provide an analysis of water supply reliability (from Guidebook Chapter 7) in the WSCP.

Water shortage
contingency
planning
n/a Chapter 11 11.6
x x 8.2 Se
ction 8.
2 10632(a
)(2)(A) Provide the written decision-making process and other methods that the Supplier will use each year to determine its water reliability.

Water shortage
contingency
planning
n/a Chapter 11 11.7
x x 8.2 Se
ction 8.
2 10
632(a)(2)(B) Provide data and methodology to evaluate the Supplier’s water reliability for the current year and one dry year pursuant to factors in the code.

Water shortage
contingency
planning
n/a Chapter 11 11.7
x x 8.3 Se
ction 8.
3 10632(a
)(3)(A)
Define six standard water shortage levels of 10%, 20%, 30%, 40%, 50% shortage, and greater than 50% shortage. These levels shall be based on supply conditions, including percent reductions in supply, changes in groundwater levels, changes in surface elevation, or other conditions. The shortage levels shall also apply to a catastrophic interruption of supply.

Water shortage
contingency
planning
n/a Chapter 11 11.6
x x 8.3
Se
ction 8.
3 10
632(a)(3)(B) Suppliers with an existing WSCP that uses different water shortage levels must cross reference their categories with the six standard categories.

Water shortage
contingency
planning
8-1 n/a n/a
x x 8.4 Se
ction 8.
4 10632(a
)(4)(A) Suppliers with WSCPs that align with the defined shortage levels must specify locally appropriate supply augmentation actions.

Water shortage
contingency
planning
8-2 Chapter 11 11.6
x x 8.4 Se
ction 8.
4 10
632(a)(4)(B) Specify locally appropriate demand reduction actions to adequately respond to shortages.

Water shortage
contingency
planning
8-3 Chapter 11 11.6
x x 8.4 Se
ction 8.
4 10632(a
)(4)(C) Specify locally appropriate operational changes.

Water shortage
contingency
planning
8-2 Chapter 11 11.6
x x 8.4 Se
ction 8.
4 10632(a
)(4)(D) Specify additional mandatory prohibitions against specific water use practices that are in addition to State- mandated prohibitions are appropriate to local conditions.

Water shortage
contingency
planning
Table 8-3 Ch apter 11 11.6
x x 8.4 Se
ction 8.
4 10632(a
)(4)(E) Estimate the extent to which the gap between supplies and demand will be reduced by implementation of the action.

Water shortage
contingency
planning
8-2 and 8-3 Chapter 11 11.6
x x 8.4 Se
ction 8.4.
6 10632.5 The UWMP shall include a seismic risk assessment and mitigation plan. Water shortage contingency plan n/a Chapter 11 11.6
x x 8.5
Se
ction 8.
5 10632(a
)(5)(A) Suppliers must describe that they will inform customers, the public and others regarding any current or predicted water shortages.

Water shortage
contingency
planning
n/a Chapter 11 11.6
x x 8.5 Se
ction 8.
5 10
632(a)(5)(B),
10632(a)(5)(C)
Suppliers must describe that they will inform customers, the public and others regarding any shortage response actions triggered or anticipated to be triggered and other relevant communications.

Water shortage
contingency
planning
n/a Chapter 11 11.6
x n/a 8.6 Se
ction 8.
6 10632(a
)(6) Retail Supplier must describe how it will ensure compliance with and enforce provisions of the WSCP.

Water shortage
contingency
planning
n/a Chapter 11 11.6
x x 8.7 Se
ction 8.
7 10632(a
)(7)(A) Describe the legal authority that empowers the Supplier to enforce shortage response actions.

Water shortage
contingency
planning
n/a Chapter 11 11.6
x x 8.7 Se
ction 8.
7 10
632(a)(7)(B) Provide a statement that the Supplier will declare a water shortage emergency per Water Code Chapter 3. Water Sh
ortage Emergencies .

Water shortage
contingency
planning
n/a Chapter 11 11.6
x x 8.7 Se
ction 8.
7 10632(a
)(7)(C) Provide a statement that the Supplier will coordinate with any city or county within which it provides water for the possible proclamation of a local emergency.

Water shortage
contingency
planning
n/a Chapter 11 11.6
x x 8.8 Se
ction 8.
8 10632(a
)(8)(A) Describe the potential revenue reductions and expense increases associated with activated shortage response actions.

Water shortage
contingency
planning
n/a Chapter 11 11.6
x x 8.8 Se
ction 8.
8 10
632(a)(8)(B) Provide a description of mitigation actions needed to address revenue reductions and expense increases associated with activated shortage response actions.

Water shortage
contingency
planning
n/a Chapter 11 11.6
x n/a 8.8 Se
ction 8.
8 10632(a
)(8)(C) Retail Suppliers must describe the cost of compliance with Water Code Chapter 3 .3, Excessive Residential Water Use During Drought .

Water shortage
contingency
planning
n/a Chapter 11 11.6
x n/a 8.9 Se
ction 8.
9 10632(a
)(9) Retail Suppliers must describe the monitoring and reporting requirements and procedures that ensure appropriate data are collected, tracked, and analyzed for purposes of monitoring customer compliance.

Water shortage
contingency
planning
n/a Chapter 11 11.6
x x 8.10 Se
ction 8.10 10632(a
)(10) Describe reevaluation and improvement procedures for monitoring and evaluation the WSCP to ensure risk tolerance is adequate and appropriate water shortage mitigation strategies are implemented.

Water shortage
contingency
planning
n/a Chapter 11 11.6
x n/a 8.11 Se
ction 8.11 10632(b
) Analyze and define water features that are artificially supplied with water, including ponds, lakes, waterfalls, and fountains, separately from swimming pools and spas.

Water shortage
contingency
planning
n/a Chapter 11 11.6
x x 8.12 Se
ction 8.12 10632(c
) Make available the WSCP to customers and any city or county where it provides water within 30 days after adoption of the plan.

Water shortage
contingency
planning
n/a Chapter 11 11.6
x n/a 9.1 Sections 9.1 10631(e)(1) Retail Suppliers shall provide a description of the nature and extent of each demand management measure implemented over the past five years. The description will address specific measures listed in code.

Demand
management
measures
n/a Chapter 11 11.6
n/a x 9.2 Sections 9.2 10631(e)(2) Wholesale Suppliers shall describe specific demand management measures listed in code, their distribution system asset management program, and Supplier assistance program.

Demand
management
measures
n/a Chapter 11 11.6
x n/a 10 Ch
apter 10 10608.26(
a) Retail Suppliers shall conduct a public hearing to discuss adoption, implementation, and economic impact of water use targets (recommended to discuss compliance).

Plan adoption,
submittal, and
implementation
n/a Chapter 11 11.1
x x 10.2 Se
ction 10.2.
1 10621(b
) Notify, at least 60 days prior to the public hearing, any city or county within which the Supplier provides water that the Supplier will be reviewing the UWMP and considering amendments or changes to the plan.

Plan adoption,
submittal, and
implementation
10-1 Chapter 11 11.1
x x 10.4 Se
ction 10.4 10621(f
) Each urban water Supplier shall update and submit its 2025 plan t o DWR by July 1, 202 6.

Plan adoption,
submittal, and
implementation
n/a Chapter 11 11.1
x x 10.2 Sections 10.2.2, 10.3, and 10.5 10642 Provide supporting documentation that the Supplier made the UWMP and WSCP available for public inspection, published notice of the public hearing, and held a public hearing about the UWMP and WSCP.

Plan adoption,
submittal, and
implementation
n/a Chapter 11 11.1
x x 10.2 Se
ction 10.2.
2 10642 The Supplier is to provide the time and place of the hearing to any city or county within which the Supplier provides water.

Plan adoption,
submittal, and
implementation
10-1 Chapter 11 11.1
x x 10.3 Se
ction 10.3.
2 10642 Provide supporting documentation that the UWMP and WSCP has been adopted as prepared or modified.

Plan adoption,
submittal, and
implementation
n/a Appendices n/a
x x 10.4 Se
ction 10.4 10644(a
) Provide supporting documentation that the Supplier has submitted their UWMP to the California State Library.

Plan adoption,
submittal, and
implementation
n/a Chapter 11 11.1
x x 10.4 Se
ction 10.4 10644(a
)(1) Provide supporting documentation that the Supplier has submitted their UWMP to any city or county within which the Supplier provides water no later than 30 days after adoption.

Plan adoption,
submittal, and
implementation
n/a Appendices n/a
x x 10.4 Se
ctions 10.4.
1 and 10.4.2 10644(a
)(2) The UWMP, or amendments to the UWMP, submitted to DWR shall be submitted electronically.

Plan adoption,
submittal, and
implementation
n/a Chapter 11 11.1
x x 10.7 Se
ction 10.7.
2 10644(b
) If revised, submit a copy of the WSCP to DWR within 30 days of adoption.

Plan adoption,
submittal, and
implementation
n/a Appendices n/a
x x 10.5 Se
ction 10.5 10645(a
) Provide supporting documentation that, not later than 30 days after filing a copy of its UWMP with DWR, the Supplier has or will make the plan available for public review during normal business hours.

Plan adoption,
submittal, and
implementation
n/a Appendices n/a
x x 10.5 Se
ction 10.5 10645(b
) Provide supporting documentation that, not later than 30 days after filing a copy of its WSCP with DWR, the Supplier has or will make the plan available for public review during normal business hours.

Plan adoption,
submittal, and
implementation
n/a Appendices n/a
x x 10.6 Se
ction 10.6 10621(c
) If Supplier is regulated by the Public Utilities Commission, include its plan and contingency plan as part of its general rate case filings.

Plan adoption,
submittal, and
implementation
n/a Appendices n/a

City of Hesperia

STAFF REPORT

DATE: June 2, 2026
TO: Mayor and Council Members

FROM: Rachel Molina, City Manager
BY: Cassandra Sanchez, Director of Public Works/City Engineer Tina Souza, Senior Project Manager

SUBJECT: Amend the Fiscal Year 2025-26 Capital Improvement Program Budget for the Ranchero Road Corridor Widening Project Phase III

RECOMMENDED ACTION

It is recommended that the City Council adopt Resolution No. 2026-21 amending the Fiscal Year (FY) 2025-26 Capital Improvement Program (CIP) Budget by appropriating $6,663,865 in Fund 306 DIF 2018-Streets, $680,780 in Fund 504 SB1 LPP Grant, and $1,079,594 in Fund 504 SB1 Formula Funds for the Ranchero Road Corridor Widening Project Phase III.

BACKGROUND

Ranchero Road Improvements – Seventh Avenue to Mariposa Road, C.O. No. 7094, Ranchero Road Aqueduct Crossing, C.O. No. 7139 , Traffic Signal at Ranchero Road/Maple, Cottonwood, and Seventh, C.O. Nos. 7131, 7146, and 7154 , respectively, are collectively referred to as the Ranchero Road Corridor Widening Project Phase III (Project).

Construction of the traffic signals, waterline relocation, and roadway plan phases are complete except for areas adjacent to the aqueduct bridge ; the bridge is currently under construction and will continue through December 2026.

ISSUES/ANALYSIS

At the time of the current F Y 2025-26 CIP budget preparations, there was no clear path moving forward for the outcome of the bridge portion of the Project. Further, calculations were based on historical Project progress. Currently, the contractor is making significant progress, far exceeding anticipated milestones.

There are major milestones for construction that will be reached prior to the new fiscal year.

Consequently, the current budget for the Project is not enough to sustain Project progress through the end of the FY 2025 -26. A budget amendment is needed for contin ued services and construction through June 30, 2026. Additionally, a budget amendment is needed to reconcile grant expenditures and meet grant timeliness.

CITY GOAL SUPPORTED BY THIS ITEM

Capital Improvement – Continually evaluate capital improvement priorities.

Staff Report to the Mayor and Council Members
Amend the Fiscal Year 2025-26 Capital Improvement Program Budget for the Ranchero Road Corridor Widening Project Phase III
June 2, 2026

FISCAL IMPACT

Funding for the Project will require amending the Fiscal Year 2025 -26 C IP Budget by appropriating $256,563 to Fund 504 SB1 LPP Grant and $187,040 to Fund 504 SB1 LPP Formula for the Ranchero Road Improvements – Seventh Avenue to Mariposa Road, Construction Order (C.O.) No. 7094 project; and $6,663,865 to Fund 306 DIF 2018 -Streets, $424,217 to Fund 504 SB 1 LPP Grant, and $892,554 to Fund 504 SB1 Formula Grant the Ranchero Road Aqueduct Crossing, C.O. No. 7139 project as follows:

Description Account No. Amount
SB1 LPP Grant 504-29-700-7094-8029 $ 256,563
SB1 LPP Formula 504-29-700-7094-8030 $ 187,040
Budget Amendment for C.O. 7094 $ 443,603

DIF 2018-Streets 306-29-700-7139-7500 $ 6,663,865
SB1 LPP Grant 504-29-700-7139-8029 $ 424,217
SB1 LPP Formula 504-29-700-7139-8030 $ 892,554
Budget Amendment for C.O. 7139 $ 7,980,636

Total Fund 306 DIF 2018-Streets $6,663,865
Total Fund 504 SB1 LPP Grant $ 680,780
Total Fund 504 SB1 Formula $1,079,594
Total FY 2025-26 Budget Amendment $8,424,239

Funding for the next fiscal year will be presented in the FY 2026-27 CIP Budget.

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENT(S)

1. Resolution 2026-21

RESOLUTION NO. 2026-21

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HESPERIA, CALIFORNIA, AMENDING THE FISCAL YEAR 2025 -26 CAPITAL
IMPROVEMENT PROGRAM BUDGET BY APPROPRIATING $6,663,865 IN FUND 306 DIF 2018-STREETS, $680,780 IN FUND 504 SB1 LPP GRANT, AND $1,079,594 IN FUND 504 SB1 FORMULA FUNDS FOR THE RANCHERO ROAD CORRIDOR WIDENING PROJECT PHASE III.

WHEREAS, Ranchero Road Improvements – Seventh Avenue to Mariposa Road, C.O. No. 7094, Ranchero Road Aqueduct Crossing, C.O. No. 7139 , Traffic Signal at Ranchero Road/Maple, Cottonwood, and Seventh, C.O. Nos. 7131, 7146, and 7154 respectively, are collectively referred to as the Ranchero Road Corridor Widening Project Phase III (Project); and

WHEREAS, except for the aqueduct crossing (bridge) and related work, and work in the bridge adjacent areas, all other work under the project is complete ; and

WHEREAS, funding for the Project was established in the Fiscal Year 2025 -26 Capital Improvement Program Budget; and

WHEREAS, construction progress is exceeding anticipated milestones; and

WHEREAS, a budget amendment is required to continue services and construction related to the Project in addition to reconciling grant expenditures ; and

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

Section 1. The foregoing recitals are true and correct.

Section 2. The City Council hereby amends the Fiscal Year 2025 -26 Capital Improvement Program Budget by appropriating $6,663,865 in Fund 306 DIF 2018 -Streets, $680,780 in Fund 504 SB1 LPP Grant, and $1,079,594 in Fund 504 SB1 Formula Funds for the Ranchero Road Corridor Widening Project Phase III:

Ranchero Road Improvements – Seventh Avenue to Mariposa Road, C.O. No. 7094

SB1 LPP Grant 504-29-700-7094-8029 $ 256,563
SB1 LPP Formula 504-29-700-7094-8030 $ 187,040
Appropriation for C.O. 7094 $ 443,603

Ranchero Road Aqueduct Crossing, C.O. No. 7139

DIF 2018-Streets 306-29-700-7139-7500 $ 6,663,865
SB1 LPP Grant 504-29-700-7139-8029 $ 424,217
SB1 LPP Formula 504-29-700-7139-8030 $ 892,554
Appropriation for C.O. 7139 $ 7,980,636

Total Appropriation $ 8,424,239

Section 3. 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 2nd day of June, 2026.

_____________________________
Brigit Bennington, Mayor

ATTEST:

___________________________________
Jessica Giber, Assistant City Clerk

City of Hesperia

STAFF REPORT

DATE: June 2, 2026
TO: Mayor and Council Members

FROM: Rachel Molina, City Manager
BY: Cassandra Sanchez, Director of Public Works/City Engineer Tina Souza, Senior Project Manager

SUBJECT: Amend Construction Management Services Agreement for the Ranchero Road Corridor Widening Project Phase III, C.O. Nos. 7094 and 7139

RECOMMENDED ACTION

It is recommended that the City Council:

1. Approve an amendment to the existing Professional Services Agreement (PSA) No. 2020- 21-065 with AnGenious Engineering Services, Inc. (AES) for the extension of construction management services for the Ranchero Road Corridor Widening Project Phase III, C.O.

Nos. 7094 and 7139 in amount of $2,640,201, including a 10% contingency of $264,020, for a not-to-exceed total of $13,373,954;

2. Approve a one-year PSA extension of PSA No. 2020-21-065 with AES; and

3. Authorize the City Manager or designee to execute the amendment to the PSA and any other necessary documents related thereto.

BACKGROUND

In May 2021, the City approved a PSA with AES to provide construction management services to assist in managing the day -to-day activities and coordination of the various components for construction for a project of this magnitude.

July 16, 2024, the City Council approved an amendment to AES’ PSA for a total not to exceed amount of $10,469,733 and contract extension to continue providing construction management services for the Ranchero Road Improvements – Seventh Avenue to Mariposa Road., C.O. No. 7094, Ranchero Road Aqueduct Crossing, C.O. No. 7139 , and Traffic Signals at Ranchero Road/Maple Avenue, Cottonwood Avenue and Seventh Avenue, C.O. Nos. 7131, 7146, and 7154, respectively; collectively the Ranchero Road Corridor Widening Project Phase III (Project).

The construction management team consists of AES team members and several sub-consultants who have a high degree of technical expertise and provide related services such as, but not limited to, inspection, geotechnical and materials testing, surveying and staking, labor compliance, utility coordination, environmental and permit compliance, grant compliance, augmenting City Staff, and assisting with public outreach, claims, litigation, and administration of the Project through project close-out.

Staff Report to the Mayor and Council Members
Construction Management Services Professional Services Agreement Amendment for the Ranchero Road Corridor Widening Project Phase III, C.O. Nos. 7094 and 7139 June 2, 2026

ISSUES/ANALYSIS

The original PSA included construction management services based on the project scope at the time of bid. During construction, unforeseen circumstances required the project to be re -bid, extending the overall project schedule and necessitating a continuation of construction management services. Further, the aqueduct is vital State infrastructure, and the Department of Water Resources ( DWR) requires extensive surveying and monitoring of the aqueduct pre, during, and post construction, requiring specific professional expertis e and coordination with DWR.

While construction of the traffic signals, waterline relocation , and roadway plan phases are complete except for areas adjacent to the aqueduct bridge , the bridge is currently under construction and will continue through December 2026. Once completed, the project will enter the close-out phase. The overall duration of services has gone from 24 months to 72 months (including pre-bid activities and Project close-out).

Due to the complexity of the aqueduct crossing and required construction coordination, continued construction management services are necessary to ensure the project is completed in accordance with the plans, specifications, regulatory, and grant requirements.

CITY GOAL SUPPORTED BY THIS ITEM

Capital Improvement – Continually evaluate capital improvement priorities.

FISCAL IMPACT

Funding for the Project is budgeted in the Fiscal Year (FY) 2025-2026 Capital Improvement Program (CIP) budget. A budget amendment for the FY 2025 -26 CIP Budget is also bein g presented at this meeting to provide additional project funding as necessary.

The City will bear costs at a ratio of 58.9%, and the San Bernardino County Transportation Authority (SBCTA) will reimburse the public share of eligible costs at a ratio of 41.5%. the table below as included for estimation purposes.

CM Cost City Portion SBCTA Portion
PSA Amendment $ 2,640,201 $ 1,555,078 $ 1,085,123
Contingency $ 264,020 $ 155,508 $ 108,512
Total Authorization $ 2,904,221 $ 1,710,586 $ 1,193,635

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENT(S)

None

City of Hesperia

STAFF REPORT

DATE: June 2, 2026
TO: Mayor and 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
Keith Cheong, Deputy Finance Director

SUBJECT: Fiscal Year (FY) 2026-27 Operating Budget Adoption

RECOMMENDED ACTION

It is recommended that the City Council/Board’s adopt the following Resolutions approving the FY 2026-27 Operating Budget for the City of Hesperia, Hesperia Housing Authority, Hesperia Fire Protection District, and Hesperia Water District:

1. City of Hesperia Resolution No. 202 6-09 adopting the Fiscal Year 2026-27 Budget

2. City of Hesperia Resolution No. 2026-10 adopting the GANN Appropriations Limit

3. Hesperia Housing Authority Resolution HHA 2026-01 adopting the Fiscal Year 2026-27 Budget

4. Hesperia Fire Protection District Resolution HFPD 202 6-02 adopting the Fiscal Year 2026-27 Budget

5. Hesperia Fire Protection District Resolution HFPD 202 6-03 adopting the GANN Appropriations Limit

6. Hesperia Water District Resolution HWD 2026-04 adopting the Fiscal Year 2026-27 Budget

7. Joint Resolution No. 202 6-11, HHA 20 26-02, HFPD 202 6-04, and HWD 2026-05 re-adopting the Financial Policies

BACKGROUND

In compliance with the City Council’s policy direction, staff h as prepared the FY 202 6-27 Operating Budget for the City of Hesperia, the Hesperia Housing Authority, Hesperia Fire Protection District, and the Hesperia Water District Board’s consideration and action. The information contained in this staff report follows two workshops regarding the City’s FY 2026-27 Operating Budget, which began in May 2026.

Staff Report to the Mayor and City Council/Board Members Fiscal Year 2026-27 Operating Budget Adoption
June 2, 2026

ISSUES/ANALYSIS

The City Council/Board’s expenditure plan and related resources to fund the Fiscal Year (FY) 2026-27 Operating Budget have been presented and staff is available to answer questions that the legislative bodies may have. Included with this staff report and attached resolutions is the FY 2026-27 combined operating budget of $10 2,072,527, made up of: operating expenditures of $98,069,340, expenditures from non -operating funds of $ 606,235, capital outlay in operating funds of $ 786,252, and debt service of $2,6 10,700. The Capital Improvement Program (CIP) budget of $31,917,247 will be presented for City Council consideration on June 1 6, 2026. With both items combined, the FY 2025-26 Budget is proposed to be $133,989,774.

Staff requests authority to make technical corrections, minor edits, etc. to the FY 202 6-27 Proposed Budget document to be incorporated into the final FY 2026-27 Budget as approved by the City Council.

Financial Policies
Resolutions are included to re-adopt the annual Financial Policies for the City. These policies, which follow current practices, will serve as guidelines for the financial management of the City; particularly in the area of budgeting, accounting for capital improvement s, revenue, reserves, transfers of available budget within a fund, fiscal management, capital assets , long-term debt management, and Section 115 Trusts to address unfunded liabilities.

Gann Limit
Proposition 4, approved b y the California voters in 1979, requires cities and special districts to calculate and establish an appropriation limit each year. The limit is based on the actual appropriation in the fiscal year 1978 -79 or year of incorporation, and increases with popul ation growth and inflation. The FY 202 6-27 Gann Limit for the City is $13 8,813,472 while the Fire District is $32,368,900.

CITY GOAL SUPPORTED BY THIS ITEM

Public Safety - Ensure public safety resources adequately protect our community;

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

Organizational Health - Foster a high performing organization that provides opportunities for professional growth;

Financial Health - Maintain a balanced budget and adequate reserves; and

Capital Improvement - Continually evaluate capital improvement priorities.

FISCAL IMPACT

See Fiscal Year 2026-27 Proposed Budget.

ALTERNATIVE(S)

1. Provide alternative direction to staff.

Staff Report to the Mayor and City Council/Board Members Fiscal Year 2026-27 Operating Budget Adoption
June 2, 2026

ATTACHMENT(S)

1. Resolution No. 2026-09

2. Resolution No. 2026-10

3. Resolution HHA 2026-01

4. Resolution HFPD 2026-02

5. Resolution HFPD 2026-03

6. Resolution HWD 2026-04

7. Joint Resolution No. 202 6-11, HHA 2026-02, HFPD 2026-04, and HWD 202 6-05 (Financial Policies)

8. Exhibit A Financial Policies clean and track changes

Green Sheet Item #16 information updated after posting the agenda.

RESOLUTION NO. 2026-09

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HESPERIA, CALIFORNIA, ADOPTING THE ANNUAL FISCAL YEAR 2026-27 OPERATING BUDGET

WHEREAS, the City Manager has prepared the proposed operating and capital budget for Fiscal Year 2026-27 for the City of Hesperia; and

WHEREAS, the City Council has received the Fiscal Year 2026-27 proposed operating budget and held a public workshop concerning its adoption; and

WHEREAS, the final budget document will be the City’s official Program of Serv ices for the City of Hesperia for Fiscal Year 2026-27.

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

Section 1. In all respects, the facts as set forth in this Resolution are true and correct.

Section 2. To accept, approve, and adopt the Fiscal Year 2026-27 Operating Budget (including transfers) as proposed and presented by staff and as adjusted by Council direction, as the official budget document and Program of Services for the City of Hesperia for Fiscal Year 2026-27, which includes:

Section 2a. City General Fund operating expenditures of $54,600,673.

Section 2b. Other City funds expenditures of $ 9,393,061 are from the following funds, exclusive of transfers:

Fund No. Fund Name Expenditure
110 Silverwood $ 495,400
207 Local Transport-Sb 325 575,000
241 CFD 2021-1 10,000
242 CFD 2022-1 10,000
243 CFD 2023-1 15,000
251 CDBG Administration 131,491
256 Beverage Recycling Grant 109,498
262 SB 1383 94,200
263 Street Maintenance Fund 5,661,188
309 DIF 2018-City Hall Facilities 166,933
402 Water Rights Acquisition 1,443,231
404 2023 Refunding Lease Revenue Bonds 765,900

Total $9,393,061

Section 2c. Transfers Out of City and Other funds in the amount of $8,129,224 are from the following funds:

Fund No. Fund Name Amount
100 General Fund $3,341,976
204 Measure I Renewal 1,750,000
205 Gas Tax 1,400,000
206 Gas Tax Swap 669,000
255 AB 3229 Supplemental Law 300,000
309 DIF 2018-City Hall Facilities 668,248

Total $8,129,224

Section 3. That the City Manager and department head staff shall have the authority to transfer funds as incorporated in the Fiscal Year 2026-27 Budget and consistent with the policy adopted by the City Council.

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

ADOPTED AND APPROVED this 2nd day of June 2026.

ATTEST: Brigit Bennington, Mayor

Jessica Giber, Assistant City Clerk

RESOLUTION NO. 2026-10

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HESPERIA, CALIFORNIA, APPROVING THE FISCAL YEAR 2026-27 ARTICLE XIIIB LIMIT (GANN APPROPRIATIONS LIMITATION)

WHEREAS, Article XIIIB of the California Constitution (Proposition 4) was passed by v oters in 1979; and

WHEREAS, Article XIIIB sets a limit on the annual spending or appropriations levels of the state, local governments, and schools according to changes in inflation and population, the base year levels being set in Fiscal Year 1978-79; and

WHEREAS, said limit is known as the Gann Appropriations Limitation and must be adopted annually by the governing body of each jurisdiction; and

WHEREAS, said annual limitation is established by multiplying either the increase of the jurisdictional change in per capita income or assessed valuation, whichever is greater, by the change in population; and multiplying the resulting figure by the previous fiscal year’s limitation; and

WHEREAS, upon incor poration, the Local Agency Formation Commission (LAFCO) set the base Gann Appropriations Limitation for the City of Hesperia at $12,000,000; and

WHEREAS, said limitation has been properly adjusted for the City of Hesperia each fiscal year, including Fiscal Ye ar 2026-27, by the Finance Division according to t he State’s formula as shown below; and

WHEREAS, it is required that each jurisdiction’s governing body adopt their adjusted Gann Appropriations Limitation on an annual fiscal year basis.

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

Section 1. In all respects, the facts as set forth in this resolution are true and correct.

Section 2. Approves the annual Fiscal Year 2026-27 Article XIIIB Limit (Gann Appropriations Limitation) of $138,813,472 for the City of Hesperia.

Appropriations limit for fiscal year ended June 30, 2026 $131,320,831

Adjustment factors for the fiscal year ended June 30, 2026 Inflation
Factor
Population
Factor
Combined
Factor

1.0495 1.0072 1.05705 x 0.057056
Adjustment for inflation and population 7,492,641 Appropriations limit for fiscal year ended June 30, 2027 $138,813,472

Section 3. 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 2nd day of June 2026.

Brigit Bennington, Mayor
ATTEST:

Jessica Giber, Assistant City Clerk

RESOLUTION HHA 2026-01

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE HESPERIA

HOUSING AUTHORITY, CITY OF HESPERIA, CALIFORNIA, ADOPTING THE ANNUAL FISCAL YEAR 2026-27 OPERATING BUDGET

WHEREAS, the Executive Director of the Hesperia Housing Authority has prepared the proposed operating budget for Fiscal Year 2026-27; and

WHEREAS, the Hesperia Housing Authority Board has received the Fiscal Year 2026-27 proposed operating budget and held a public workshop concerning its adoption; and

WHEREAS, the final budget document will be the Board’s official Program of Services for the Housing Authority for Fiscal Year 2026-27.

NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE HESPERIA HOUSING AUTHORITY OF THE CITY OF HESPERIA AS FOLLOWS:

Section 1. In all respects, the facts as set forth in this resolution are true and correct.

Section 2. To accept, approve, and adopt the Fiscal Year 2026-27 Budget as proposed and presented by staff and as adjusted by Board direction, as the official budget document and Program of Services for the Housing Authority for Fiscal Year 2026-27, which includes budgeted expenditures totaling $74,878.

Section 3. That the Board and department head staff shall have the authority to transfer funds as incorporated in the Fiscal Year 2026-27 Budget and consistent with the policy adopted by the Authority’s Board.

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

ADOPTED AND APPROVED this 2nd day of June 2026.

Brigit Bennington, Mayor

ATTEST:

__
Jessica Giber, Assistant City Clerk

RESOLUTION HFPD 2026-02

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE HESPERIA FIRE

PROTECTION DISTRICT, CITY OF HESPERIA, CALIFORNIA, ADOPTING THE ANNUAL FISCAL YEAR 2026-27 OPERATING BUDGET

WHEREAS, the Executive Director has prepared the proposed operating budget for Fiscal Year 2026-27 for the Hesperia Fire Protection District; and

WHEREAS, the Board of Directors has received the Fiscal Year 2026-27 proposed operating budget and held a public workshop concerning its adoption; and

WHEREAS, the final budget document will be the District’s official Program of Services for the Hesperia Fire Protection District for Fiscal Year 2026-27.

NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE HESPERIA FIRE PROTECTION DISTRICT AS FOLLOWS:

Section 1. In all respects, the facts as set forth in this resolution are true and correct.

Section 2. To accept, approve and adopt the Fiscal Year 2026-27 Budget as p roposed and presented by staff and as a djusted by Board direction, as the official budget document and Program of Services for the Hesperia Fire Protection District for Fiscal Year 2026-27 which includes budgeted expenditures totaling $1,891,431.

Section 3. That the Executive Director and depa rtment head staff shall have the authority to transfer funds as incorporated in the Fiscal Year 2026-27 Budget and consistent with the policy adopted by the District’s Board of Directors.

Section 4. That the Secreta ry of the Board of Directors shall cert ify to th e passage and adoption of this Resolution and enter it into the book of original resolutions.

ADOPTED AND APPROVED this 2nd day of June 2026.

Brigit Bennington, Mayor

ATTEST:

Jessica Giber, Assistant City Clerk

RESOLUTION HFPD 2026-03

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE HESPERIA FIRE

PROTECTION DISTRICT, HESPERIA, CALIFORNIA, APPROVING THE FISCAL YEAR 2026-27 ARTICLE XIIIB LIMIT (GANN APPROPRIATIONS

LIMITATION)

WHEREAS, Article XIIIB of the California Constitution (Proposition 4) was passed by voters in 1979; and

WHEREAS, Article XIIIB sets a limit on the annual spending or appropriations levels of the state, local governments, and schools according to changes in inflation and population, the base year levels being set in Fiscal Year 1978-79; and

WHEREAS, said limit is known as the Gann Appropriations Limitation and must be adopted annually by the governing body of each jurisdiction; and

WHEREAS, said annual limitation is established by multiplying ei ther the increase of the jurisdictional change in per capita income or assessed valuation, whichever is greater, by the change in population; and multiplying the resulting figure by the previous fiscal year’s limitation; and

WHEREAS, said limitation has b een properly adjusted for the Hesperia Fire Protection District fiscal year, including Fiscal Year 2026-27, by the Finance Division according to the State’s formula as shown below; and

WHEREAS, it is required that each jurisdiction’s governing body adopt their adjusted Gann Appropriations Limitation on an annual fiscal year basis.

NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF HESPERIA FIRE PROTECTION DISTRICT AS FOLLOWS:

Section 1. In all respects, the facts as set forth in this resolution are true and correct.

Section 2. Approves the annual Fiscal Year 2026-27 Article XIIIB Limit (Gann Appropriations Limitation) of $32,368,900 for the Hesperia Fire Protection District.

Appropriations limit for fiscal year ended June 30, 2026 $30,621,746

Adjustment factors for the fiscal year ended June 30, 2026 Inflation
Factor
Population
Factor
Combined
Factor

1.0495 1.0072 1.05705 x 0.057056
Adjustment for inflation and population 1,747,154
Appropriations limit for fiscal year ended June 30, 2027 $32,368,900

Section 3. 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 2nd day of June 2026.

Brigit Bennington, Mayor
ATTEST:

Jessica Giber, Assistant City Clerk

RESOLUTION HWD. 2026-04

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE HESPERIA

WATER DISTRICT, CITY OF HESPERIA, CALIFORNIA, ADOPTING THE ANNUAL FISCAL YEAR 2026-27 OPERATING BUDGET

WHEREAS, the General Manager has prepared the proposed operating and capital budget for Fiscal Year 2026-27 for the Hesperia Water District; and

WHEREAS, the Board of Directors has received the Fiscal Year 2026-27 proposed operating budget and held a public workshop concerning its adoption; and

WHEREAS, the final budget document will be the District’s official Program of Services for the Hesperia Water District for Fiscal Year 2026-27.

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

Section 1. In all respects, the facts as set forth in this resolution are true and correct.

Section 2. To accept, approve , and adopt the Fiscal Year 2026-27 Operating Budget as proposed and presented by staff and as adj usted by Board direction, as the official budget document and Program of Servi ces for the Hesperia Water District for Fiscal Year 2026-27 which includes water operating expenditures of $ 26,984,281, sewer operating expenditures of $8,753,135, and Reclaimed Water Operations of $290,288, for a Water District operating total of $36,027,704.

Section 3. That the Board of Directors and department head staff shall have the authority to transfer funds as incorporated in the Fiscal Year 2026-27 Budget and consistent with the policy adopted by the District’s Board of Directors.

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

ADOPTED AND APPROVED this 2nd day of June 2026.

Brigit Bennington, Mayor
ATTEST:

Jessica Giber, Assistant City Clerk

JOINT RESOLUTION NO. 2026-11
RESOLUTION HHA NO. 2026-02
RESOLUTION HFPD NO. 2026-04
RESOLUTION HWD NO. 2026-05

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

CALIFORNIA, THE BOARD OF DIRECTORS OF THE HESPERIA HOUSING

AUTHORITY, THE BOARD OF DIRECTORS OF THE HESPERIA FIRE

PROTECTION DISTRICT, AND THE BOARD OF DIRECTORS OF THE

HESPERIA WATER DISTRICT ADOPTING FINANCIAL POLICIES

WHEREAS, the City of Hesperia wishes to establish a comprehensive set of financial policies that will serve as a guideline for operational and strategic decision-making related to financial matters; and

WHEREAS, financial policies are intended to establish guidelines for the City’s o verall planning and management; and

WHEREAS, such policies will allow the City to maintain and enhance a sound fiscal condition ; and

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

CALIFORNIA, THE BOARD OF DIRECTORS OF THE HESPERIA HOUSING AUTHORITY, THE

BOARD OF DIRECTORS OF THE HESPERIA FIRE PROTECTION DISTRICT, AND THE BOARD OF DIRECTORS OF THE HESPERIA WATER DISTRICTS AS FOLLOWS:

Section 1. The recitals are true and correct and adopted as findings.

Section 2. That the City Council and Board of Directors approves the Financial Policies (Exhibit A).

Section 3. If any section, sub-section, sentence, clause, or word in the Resolution is held to be invalid by decision of any court of competent jurisdiction or action of State legislation, such decision or legislation shall not affect the validity of the remain ing portions of this Resolution.

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 2nd day of June 2026.

_________________________________________
Brigit Bennington, Mayor

ATTEST:

____________________________________
Jessica Giber, Assistant City Clerk

F I N A N C I A L

P O L I

C I E S
 Financial Policies
 Financial Policies Resolutions – The following four resolutions are scheduled for the City Council to adopt the Financial Policies for the City and its subsidiary districts:
 Joint Resolution No. 2026-11
 Resolution HHA 2026-02
 Resolution HFPD 2026-04
 Resolution HWD 2026-05
Attachment 8
Exhibit A

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I. BUDGETING POLICY
 The City will adopt an annual budget for the fiscal year beginning July 1 st no later than June 30 th of the same calendar year.
 The adopted budget will be balanced with current year operating expenditures fully funded by current year revenues.  Fund balance reserves for the General Fund and Water Distric t will be used only for non -recurring expenditures such as capital projects, studies, etc, and not for on-going operations. In the event that fund balance reserves are used for recurring (operational) expenditures, the City Council will be notified prior to adoption of the annual budget.  The City Manager is authorized to implement programs as approved in the adopted budget.  A First Quarter and Mid- Year budget review will be conducted for the City Council to determine the status of projected revenues, expenditures, and other financial situations, along with consideration of needed budget amendments. A Fourth Quarter appropriation review is conducted and budget amendments are presented to the City Council as needed.
 To ensure adequate funding for law enforcement services, the annual Police Department budget shall equal or not exceed 53% of a three -year average of the General Fund audited operating expenditure s. The General Fund operating budget is comprised of all expenditures less transfers out, debt service, and capital outlay. Furthermore, the actual expenditures will be comprised of an average of the three most recently audited fiscal years. Should the Police Department budget exceed 53% of the General Fund operating budget and the City is unable to balance the budget without the use of reserves, the City Manager is authorized by the City Council to negotiate with the County of San Bernardino Sheriff’s Department to identify cost savings to maintain the City Council approved percentage.

In addition, should the annual Police Department budget be less than 53% of the General Fund operating budget, the City Manager will be authorized to add additional level of services, be that personnel, programs, or equipment.

II. CAPITAL IMPROVEMENT POLICY
 The City will identify the estimated costs and potential funding sources for each capital project prior to its submittal to the City Council for approval.
 Capital projects involve the purchase or construction of major capital assets such as land; equipment; infrastructure; building or permanent improvements including additions, replacements, and major alterations; having a long life expectancy; and costing $5,000 or more.
 Capital projects are funded by a variety of funding sources, which are often restricted for a specific purpose. Prior to a capital project being included in the annual budget, a determination must be made that the project is an appropriate use of the funds and that there is sufficient funding available.

III. REVENUE POLICY
Recurring expenditures will be funded by recurring revenue. Recurring expenditure increases that exceed recurring revenue growth should not be approved. Any new or expanded programs should be required to identify new funding sources and/or offsetting reductions in expenditures. In addition:
 The City shall use a conservative approach in projecting revenues.  One-time revenues may be used for one-time expenditures or enhancement of reserves.  The City shall update its user fees and charges periodically to recover costs of providing that service for which a fee is charged.
 All potential grants shall be carefully reviewed for matching requirements, maintenance of effort requirements, and on-going future expenditures requirements.
 Intergovernmental grants will be evaluated to determine the long term operating and maintenance costs associated with the grant.
 The City will maintain water and sewer rate structures which are adequate to ensure that these enterprise funds remain firmly and separately self -supporting, including the costs of operation, capital replacement, cost allocation plan, and debt service.

IV. RESERVE POLICY
The cash reserve policies for the General Fund requires that a minimum of two (2) months of the annual expenditures be held in cash. It is the goal for the Hesperia Water District (Enterprise Fund), which is in the process of building reserves, to have two (2) months of the annual expenditures held in cash. Cash reserves is a calculation of the ratio of cash and cash equivalents to the total individual annual expenditures. The specific purpose of the reserves is to provide funding to meet operational appropriation requirements in the event that either , the City or Water District experience shortfalls in the level of anticipated revenues or unanticipated expenses.

Adequate reserve levels are a necessary component of the City’s overall financial management strategy. It is the responsibility of the City Council to maintain a sufficient level of reserve funds to provide for the orderly provision of services to the citizens of the City of Hesperia. The City Council has the authority to decide the circumstances under which the reserves can be used. The City Manager may, from time to time, make recommendations as to the level of reserve funds necessary for prudent fiscal management. Reserve levels shall be reviewed at least annually during the budget process to ensure that they are consistent with the conditions faced by the City. All uses of reserves require a resolution of the City Council or will be incorporated in the annual adopted budget.

If the rare situation arises where a portion of the City’s Reserves are to be utilized to fund operations, the equivalent amount will be returned as Reserves in the next available Budget. Use of Reserves in this instance may impact the City’s ability to meet the Reserve Policy of holding (2) months of the annual expenditures in cash and requires City Council approval, as incorporated into the adopted budget.

V. TRANSFER AUTHORITY
The following criteria establish the transfer authority for appropriations as set forth in the fiscal year budget.  Division Managers can make transfers between line items in the same program.  Department Directors can make transfers between divisions within the same fund.  Transfers between departments, within the same fund, will require the City Manager approval.  Transfers between the capital expenditure classification and the operating expenditure classifications will require the City Manager approval.
 Transfers between different funds can only be made with an approved City Council resolution.  The Finance Division will review all budget transfers and make recommendations to the City Manager.

VI. FISCAL MANAGEMENT
 An independent firm of certified public accountants will perform an annual financial and compliance audit according to General Accepted Auditing Standards (GAAS) that will be incorporated into the Annual Comprehensive Financial Report.
 Annually, the City will seek the Governmental Finance Officers Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting and the Certificate of Achievement for Distinguished Budget Presentation Awards.

VII. INVESTMENTS
 The City will continue to have a written investment policy approved by City Council resolution annually. The policy for investments in priority order is safety, liquidity, and yield.  The City Council will receive reports on the cash position and performance of City investments on a monthly basis.

VIII. CAPITAL ASSETS
 Assets exceeding the value of $5,000 are considered capital assets.  All assets will be maintained at a level that protects capital investment and minimizes future maintenance costs.

IX. DEBT MANAGEMENT
 The City will not issue long-term debt to finance current operations. Debt financing should only be used for long - term capital improvement projects or purchases of capital assets, such as water rights, that have a useful life exceeding the term of the financing. In addition, identified revenue sources shall be identified to allow for the principal, interest, and other related payments (debt service) of the long-term debt.  The City will seek to maintain a high credit rating through sound financial practices as a basis for minimizing borrowing costs.
 The City will monitor all forms of debt. Annually, the status of all long-term debt will be reported to the City Council in the annual budget.
 The City will diligently monitor its compliance with bond covenants and continuing disclosures.

X. UNFUNDED LIABILITY
The City maintains three Section 115 Trusts to address the unfunded liability for the CalPERS – Miscellaneous Plan or the City of Hesperia, CalPERS – Safety Plan for the Hesperia Fire Protection District (HFPD), and the other postemployment benefits (OPEB) of the City. The Section 115 Trust plans allow the City to safely and securely set aside funds, separate and apart from the state retirement system, in a tax -exempt irrevocable trust to reduce pension and other postemployment liabilities and stabilize these costs. In addition to potential investment earnings, annual funding of the plans allows the City to maximize the benefits of the trust plans. The following policies indicate the annual funding provisions:
 The City will annually contribute a minimum of five percent (5%) of the annual CalPERS required employer unfunded liability payment into the 115 Trust for the City miscellaneous and safety plan. The City will review the annual CalPERS actuarial valuation report and include into the budget the 5% calculation as transfer to the 115 pension plans.
 The City will annually review the OPEB billing from CalPERS and contribute a minimum 15% to the 115 Trust of OPEB. The City will use the current year OPEB billing to be included in the next year budget. For example, the FY 2024-25 billing will be used for the FY 2025-26 Budget.

FP

F I N A N C I A L

P O L I C I E S

 Financial Policies

 Financial Policies Resolutions – The foll owing four resolutions are scheduled for the City Council to adopt the Financial Policies for the City and its subsidiary districts:
 Joint Resolution No. 20256-115

 Resolution HHA 20256-02

 Resolution HFPD 20256-041

 Resolution HWD 20256-053

FP - 2

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FINANCIAL POLICIES
FP - 3

I. BUDGETING POLICY
 The City will adopt an annual budget for the fiscal year beginning July 1 st no later than June 30 th of the same calendar year.
 The adopted budget will be balanced with current year operating expenditures fully funded by current year revenues.  Fund balance reserves for the General Fund and Water District will be used only for non-recurring expenditures such as capital projects, studies, etc,. and not for on-going operations. In the event that fund balance reserves are used for recurring (operational) expenditures, the City Council will be notified prior to adoption of the annual budget.  The City Manager is authorized to implement programs as approved in the adopted budget.  A First Quarter and Mid-Year budget review will be conducted for the City Council to determine the status of projected revenues, expenditures, and other financial situations, along with consideration of needed budget amendments. A Fourth Quarter appropriation review is conducted and budget amendments are presented to the City Council as needed.
 To ensure adequate funding for law enforcement services, the annual Police Department budget shall equal or not exceed 53% of a three-year average of the General Fund audited operating expenditures. The General Fund operating budget is comprised of all expenditures less transfers out, debt service, and capital outlay. Furthermore, the actual expenditures will be comprised of an average of the three most recently audited fiscal years. Should the Police Department budget exceed 53% of the General Fund operating budget and the City is unable to balance the budget without the use of reserves, the City Manager is authorized by the City Council to negotiate with the County of San Bernardino Sheriff’s Department to identify cost savings to maintain the City Council approved percentage.

In addition, should the annual Police Department budget be less than 53% of the General Fund operating budget, the City Manager will be authorized to add additional level of services, be that personnel, programs, or equipment.

II. CAPITAL IMPROVEMENT POLICY
 The City will identify the estimated costs and potential funding sources for each capital project prior to its submittal to the City Council for approval.
 Capital projects involve the purchase or construction of major capital assets such as land; equipment; infrastructure; building or permanent improvements including additions, replacements, and major alterations; having a long life expectancy; and costing $5,000 or more.
 Capital projects are funded by a variety of funding sources, which are often restricted for a specific purpose. Prior to a capital project being included in the annual budget, a determination must be made that the project is an appropriate use of the funds and that there is sufficient funding available.

III. REVENUE POLICY
Recurring expenditures will be funded by recurring revenue. Recurring expenditure increases that exceed recurring revenue growth should not be approved. Any new or expanded programs should be required to identify new funding sources and/or offsetting reductions in expenditures. In addition:
 The City shall use a conservative approach in projecting revenues.  One-time revenues may be used for one-time expenditures or enhancement of reserves.  The City shall update its user fees and charges periodically to recover costs of providing that service for which a fee is charged.
 All potential grants shall be carefully reviewed for matching requirements, maintenance of effort requirements, and on-going future expenditures requirements.
 Intergovernmental grants will be evaluated to determine the long term operating and maintenance costs associated with the grant.
 The City will maintain water and sewer rate structures which are adequate to ensure that these enterprise funds remain firmly and separately self-supporting, including the costs of operation, capital replacement, cost allocation plan, and debt service.

FINANCIAL POLICIES
FP - 4

IV. RESERVE POLICY
The cash reserve policies for the General Fund requires that a minimum of two (2) months of the annual expenditures be held in cash. It is the goal for the Hesperia Water Di strict (Enterprise Fund), which is in the process of building reserves, to have two (2) months of the annual expenditures held in cash. Cash reserves is a calculation of the ratio of cash and cash equivalents to the total individual annual expenditures. The specific purpose of the reserves is to provide funding to meet operational appropriation requiremen ts in the event that either, the City or Water District experience shortfalls in the level of anticipated revenues or unanticipated expenses.

Adequate reserve levels are a necessary component of the City’s overall financial management strategy. It is the responsibility of the City Council to maintain a sufficient level of reserve funds to provide for the orderly provision of services to the citizens of the City of Hesperia. The Ci ty Council has the authority to decide the circumstances under which the reserves can be used. The City Manager may, from time to time, make recommendations as to the level of reserve funds necessary for prudent fiscal management. Reserve levels shall be reviewed at least annually during the budget process to ensure that they are consistent with the conditions faced by the City. All uses of reserves require a resolution of the City Council or will be incorporated in the annual adopted budget.

If the rare situation arises where a port ion of the City’s Reserves are to be utilized to fund operations, the equivalent amount will be returned as Reserves in the next available Budge t. Use of Reserves in this instance may impact the City’s ability to meet the Reserve Policy of holding (2) months of the annual expenditures in cash and requires City Council approval, as incorporated into the adopted budget.

V. TRANSFER AUTHORITY
The following criteria establish the transfer authority for appropriations as set forth in the fiscal year budget.  Division Managers can make transfers between line items in the same program.  Department Directors can make transfers between divisions within the same fund.  Transfers between departments, within the same fund, will require the City Manager approval.  Transfers between the capital expenditure classification and the operating expenditure classifications will require the City Manager approval.
 Transfers between different funds can only be made with an approved City Council resolution.  The Finance Division will review all budget transfers and make recommendations to the City Manager.

VI. FISCAL MANAGEMENT
 An independent firm of certified public accountants will perform an annual financial and compliance audit according to General Accepted Auditing Standards (GAAS) that will be incorporated into the Annual Comprehensive Financial Report.
 Annually, the City will seek the Governmental Finance Offi cers Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting and the Certificate of Achievement for Distinguished Budget Presentation Awards.

VII. INVESTMENTS
 The City will continue to have a written investment policy approved by City Council resolution annually. The policy for investments in priority order is safety, liquidity, and yield.  The City Council will receive reports on the cash position and performance of City investments on a monthly basis.

VIII. CAPITAL ASSETS
 Assets exceeding the value of $5,000 are considered capital assets.  All assets will be maintained at a level that protects capital investment and minimizes future maintenance costs.

FINANCIAL POLICIES
FP - 5

IX. DEBT MANAGEMENT
 The City will not issue long-term debt to finance current operations. Debt financing should only be used for long- term capital improvement projects or purchases of capita l assets, such as water rights, that have a useful life exceeding the term of the financing. In addition, identified revenue sources shall be identified to allow for the principal, interest, and other related payments (debt service) of the long-term debt.  The City will seek to maintain a high credit rating through sound financial practices as a basis for minimizing borrowing costs.
 The City will monitor all forms of debt. Annually, the status of all long-term debt will be reported to the City Council in the annual budget.
 The City will diligently monitor its compliance with bond covenants and continuing disclosures.

X. UNFUNDED LIABILITY
The City maintains three Section 115 Trusts to address the unfunded liability for the CalPERS – Miscellaneous Plan or the City of Hesperia, CalPERS – Safety Plan for the Hesperia Fire Protection District (HFPD), and the other postemployment benefits (OPEB) of the City. The Section 115 Trust plans allow the City to safely and securely set aside funds, separate and apart from the state retirement system, in a tax-exempt irrevocable trust to reduce pension and other postemployment liab ilities and stabilize these costs. In additi on to potential investment earnings, annual funding of the plans allows the City to maximize the benefits of the trust plans. The following policies indicate the annual funding provisions:
 The City will annually contribute a minimum of five percent (5%) of the annual CalPERS required employer unfunded liability payment into the 115 Trust for the City miscellaneous and safety plan. The City will review the annual CalPERS actuarial valuation report and include into the budget the 5% calculation as transfer to the 115 pension plans.
 The City will annually review the OPEB billing from CalPERS and contribute a minimum 15% to the 115 Trust of OPEB. The City will use the current year OPEB billing to be included in the next year budget. For example, the FY 2024-25 billing will be used for the FY 2025-26 Budget.