Victorville City Council
March 1, 2022

City Council Chambers
14343 Civic Drive
Victorville, CA
www.victorvilleca.gov

VICTORVILLE CITY COUNCIL

VICTORVILLE LIBRARY BOARD OF TRUSTEES

SOUTHERN CALIFORNIA LOGISTICS RAIL AUTHORITY

SOUTHERN CALIFORNIA LOGISTICS AIRPORT AUTHORITY

SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY

THE CITY AS HOUSING ASSETS SUCCESSOR

JOINT POWERS FINANCING AUTHORITY

VICTORVILLE WATER DISTRICT
Regular Meeting Agenda
Tuesday, March 1, 2022
5:00 p.m. Closed Session
6:00 p.m. Regular Session
The City Council holds its business meetings in public in accordance with the requirements of the Ralph M.

Brown Act, its established policies and procedures, and its adopted parliamentary authority. The Council strives to carry out its meetings in an atmosphere of professionalism with full participation by members of the body and the public. As such, the Presiding Officer is empowered to govern City Council Meetings to foster the efficient and fair administration of City business and reserves the right to enforce (or cause to be enforced) the Meeting Rules of Conduct and Decorum as set forth in Chapter 5 of the City Council Policy and Procedures Manual.

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Public Comments: Members of the public may submit comments electronically to [email protected] by 4 p.m. the day of the meeting to be distributed to City Council. Participants are invited to address the Council on agendized and non-agendized topics at the beginning of the meeting. Public comments will be no longer than three (3) minutes per community member. Should a speaker conclude their comments prior to the expiration of three (3) minutes, the speaker waives the right to speak for any remaining amount of time. For further information about how to address the Council, please refer to the City’s website at victorvilleca.gov/government/agendas .

In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s office at (760) 955-5188 no later than 72 hours prior to the meeting. 5:00 p.m. Closed Session
Call to Order
Roll Call
Introduction to Public Comments
Public Comments for Closed Session Items
Declaration of Closed Session Item(s) by City Attorney

CITY COUNCIL
A. Conference with Legal Counsel – Existing Litigation Pursuant to Government Code 54956.9(D)(1):

Case Name: David Stapleton, as assignee PART LLC. v. Southern California Logistics Airport Authority, et al
Case Number: San Bernardino Superior Court Case No. CIVDS1816606 Recess to Closed Session
6:00 p.m. Regular Session
Call to Order
Roll Call
Closed Session Announcements by the City Attorney
Invocation: Pastor Paul Gostanian of High Desert Church Pledge of Allegiance: Police Captain John Wickum
City Clerk Presents Agenda/Revisions to Agenda
Conflict of Interest Declarations
Any items on this agenda that might be a conflict of interest to any Council Members/Board Members should be identified at this time.

Introduction to Public Comments
Public Comments

PUBLIC HEARING(S)

1. Sewer Main Lining at Various Locations 2022 Project – Award of Construction Contract
Recommendation:

That the Honorable City Council:
(1) Approve the Notice of Exemption; and
(2) Award a construction contract to Southwest Pipeline and Trenchless Corp. in the amount of $1,682,656.50 for the Sewer Main Lining Various Locations 2022 Project.

2. Mid-Year Budget Review and Amendment Request to the 2021-22 Fiscal Budget Recommendation:

That the City Council and Board of Directors approve the changes reflected in this agenda item along with the included attachments by adopting:
(1) Resolution No. 22-018 of the City Council amending Resolution 21-064, as amended, the budget resolution for the City of Victorville for the Fiscal Year 2021-2022 (2) Resolution No. VWD-22-001 of the Victorville Water District amending Resolution 21-012, as amended, the budget resolution for the Victorville Water District for the Fiscal Year 2021-2022
(3) Resolution No. SCLAA-22-004 of the Southern California Logistics Airport Authority amending Resolution 21-005, as amended, the budget resolution for the Southern California Logistics Airport Authority for the Fiscal Year 2021-2022

CONSENT CALENDAR

3. Reject all bids and resolicit for Annual Supply Agreement for Water Treatment Chemicals
Recommendation:

That the Honorable Victorville Water District Board of Directors:
(1) Reject all bids received and opened for the Annual Supply Agreement for Water Treatment Chemicals, Project #CC22-074 ("Project"); and (2) Direct staff to resolicit the Project.

4. Quarterly Investment Report as of December 31, 2021
Recommendation:

That the City Council/Board of Directors receive and file the attached Quarterly Investment Report as of December 31, 2021.

5. Commercial Demand Schedule No. 16
Recommendation:

That the City Council and Board of Directors ratify Commercial Demand Schedule No. 16 in the amount of $8,272,620.52, covering Electronic Fund Transfers No. 328850 through 328977 and Warrant No. 784506 through 784673 for 02/09/2022 through 02/16/2022 and Wire Transfers dated 02/11/2022 through 02/22/2022, per the adopted budget for Fiscal Year 2021-2022 for the period covering July 1, 2021 through June 30, 2022.

6. Payroll Warrant List
Recommendation:

That the City Council and Board of Directors ratify Payroll Demand Schedule No.7B for Payroll Period January 07, 2022 through January 21, 2022, in the amount of $1,548,994.16 covering Check No. 32634 through 32654, including Vendor checks.

Please note employee Check No. 32640 and 32641 have a live Check and an EFT Advice. Also included are Advice Nos. 284638 through 285068, per adopted budget for Fiscal Year 2020-2021 period covering July 1, 2021 through June 30, 2022.

WRITTEN COMMUNICATIONS

7. Annual Financial Reports for the Fiscal Year Ended June 30, 2021 Recommendation:

That the City Council and Board of Directors approve a motion to receive and file the following:
(1) City of Victorville Annual Comprehensive Financial Report for the Fiscal Year ended June 30, 2021,
(2) Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Governmental Auditing Standards for the Fiscal Year ended June 30, 2021,
(3) Victorville Water District Basic Financial Statements for the Fiscal Year ended June 30, 2021, and
(4) Southern California Logistics Airport Authority Basic Financial Statements for the Fiscal Year ended June 30, 2021.

8. Benefits Resolution No. 22-020 and Table Of Organization Recommendation:

That the City Council adopt Benefits Resolution 22-020, revising the Table of Organization and Compensation Schedule, effective January 1, 2022.

9. Declaration of Surplus Land – Civic Properties
Recommendation:

That the Board of Directors for the Successor Agency adopt Resolution No. R- SA-22-003 declaring the Civic Properties as “Surplus Land” pursuant to the Surplus Land Act

10. Declaration of Exempt Surplus Land – Duncan Property Recommendation:

That the Board of Directors for the Victorville Water District:
(1) Adopt Resolution No. VWD 22-002 declaring the Duncan Property as “Exempt Surplus Land” pursuant to the Surplus Land Act, and authorize the transmittal of a certified copy of the Resolution to the Housing and Community Development (“HCD”) Department, as specified in Section 400(e) of the Surplus Land Act Guidelines; and (2) Authorize staff to initiate negotiations for the disposition and sale of the Duncan Property with the San Bernardino County Real Estate Services Division

11. Approval of an Amended and Restated Loan Agreement for the Victor Valley Economic Development Authority Bear Valley Loan
Recommendation:
(1) That the Honorable Victorville Successor Agency Board of Directors adopt Resolution No. R-SA-22-002 approving an amended restated loan agreement for the Victor Valley Economic Development Authority Bear Valley loan; and (2) That the Honorable SCLAA Board of Directors adopt Resolution No.

SCLAA-22-006 approving an amended and restated loan agreement for the Victor Valley Economic Development Authority Bear Valley loan

12. Amendment Number Four to a Consultant/Professional Services Provider Agreement with Hinderlinter, de Llamas and Associates for Sales and Use Tax Audit Services Recommendation:

Staff recommends that City Council approve Amendment Number Four to the Consultant/Professional Services Agreement with Hinderlinter, de Llamas and Associates for the current year not to exceed amount of $150,000.00.

13. Airport Joint Use Agreement Between the United States of America (Air Force) and the Southern California Logistics Airport Authority
Recommendation:

That the Honorable Southern California Logistics Airport Authority Board of Directors:
(1) Approve entering into an Airport Joint Use Agreement between the United States of America (acting by and through the Secretary of the Air Force) and the Southern California Logistics Airport Authority;
(2) Authorize the Airport Director to sign said AJUA; and (3) Adopt Resolution No. SCLAA 22-007, amending the 2021/2022 budget, increasing revenue in Fund 450 by $14,554.

14. Award of contract to All American Fence for the construction of a wrought iron fence, concrete repair/replacement, plus the installation of two (2) automatic gates Recommendation:

That Your Honorable City Council
(1) Approve the award of contract to All American Fence Company for the construction of a wrought iron fence at Fire Station 311, concrete repairs (Additive #1) and the installation of two automatic gates in the amount not to exceed $198,000.00 for project CC22-073.

15. City Manager Reports

16. Discussion and Possible Action Regarding Upcoming Agenda Items

17. Reports from Council Members
Adjournment
Item Number: 1
City Council / Board of Directors
Public Hearing(s)
Meeting of: March 1, 2022
Submitted By:

Brian Gengler, City Engineer

Subject:

Sewer Main Lining at Various Locations 2022 Project – Award of Construction Contract Recommendation:

That the Honorable City Council:

1. Approve the Notice of Exemption; and

2. Award a construction contract to Southwest Pipeline and Trenchless Corp. in the amount of $1,682,656.50 for the Sewer Main Lining Various Locations 2022 Project.

Fiscal Impact:

This action will result in fiscal impact of $1,682,656.50. This project is funded by Sewer Fund, No. 425. An additional appropriation is not required. There are sufficient funds available in the project budget to cover the planned expenses. Please refer to the budget account number and available budget shown below.

Budget Account Number: 4254500-55315-77440 – Sewer Main Lining Budget Amount: $1,700,000
Background:

In 2018, the City performed a video inspection and condition assessment of nearly the entire sewer collection system. The City contracted with Pro-pipe Inc., a professional pipeline inspection services contractor, to perform closed circuit television video (CCTV) sewer inspections in accordance with the National Association of Sewer Service Companies (NASSCO) standards.

In addition, Pro-pipe subcontracted with Project Engineering Consultants to analyze the CCTV data provided by Pro-pipe, complete a risk assessment of each sewer pipe segment, and develop prioritized rehabilitation recommendations in accordance with the Pipeline Assessment Certification Program (PACP). A condition assessment report was 2 4
1 8
prepared with recommendations for rehabilitating certain segments of sewer mains in poor condition.

Sewer pipes need rehabilitation if they are in a deteriorated (structurally deficient) condition, with cracked or broken pipes. In the past, the most common construction approach to rehabilitating a sewer was replacement via open cut excavation. However, over the past 30 years, sewer rehabilitation via trenchless technology, such as cured-in- place pipe (CIPP) lining, has become more practical and less expensive than the traditional open cut excavation method. CIPP lining is a technology that utilizes the existing pipe by inserting a resin-impregnated tube into the pipe. This results in a seamless, jointless surface which provides complete structural support and strength to the pipe and significantly extends its useful life.

Discussion:

This project involves rehabilitating 23,026 lineal feet of structurally deficient sanitary sewer mains in an area east of I-15, west of Hesperia Rd. and north of Zenda St. Please refer to Attachment A, a location map. This project will be the first of several planned sewer lining projects throughout the City in the upcoming years as identified in the condition assessment report referenced above. This project is consistent with a category of projects which will correct structural deficiencies in sewer mains that were included in the Sewer Rate Plan, which was approved by City Council in 2018.

It is a routine requirement to comply with the California Environmental Quality Act (CEQA) before construction starts on a capital improvement project. A Notice of Exemption describes the project activities and states that the project is categorically exempt under CEQA Section 15301(b) which pertains to existing facilities, including publicly-owned sewer facilities. Please refer to Attachment B, the Notice of Exemption form.

This project was bid using formal bidding procedures in accordance with Victorville Municipal Code §2.28.210 and the California Public Contract Code. Formal bidding procedures are used for public works contracts with an estimated cost in excess of five hundred thousand dollars. On November 30, 2021, a Notice Inviting Bids was e-mailed to potential bidders, posted on the City of Victorville’s website and Ebidboard, and published in newspapers of general circulation within the City. On January 20, 2022, five formal bids were received, publicly opened and read aloud.

The Engineer’s estimate for this project was $1,600,000 to $1,800,000. A list of all bidders is as follows:

Company Bid Amount
Insituform Technologies $1,631,569.00 (Non-Responsive)
Southwest Pipeline and Trenchless Corp. $1,682,656.50
Sancon Technologies $1,758,655.40
Nuline Technologies $1,800,100.00
Nor-Cal Pipeline $2,036,451.00
2 4
1 8
The bid documents require that contractor shall perform with its own organization contract work amounting to not less than 50 percent of the total original contract price. However, for the apparent lowest bidder, Insituform Technologies, the total of the subcontracting was 51 percent, as stated on the “List of Subcontractors” which was a required form submitted with the bid. Therefore, a determination has been made that this bid is non- responsive.

After a review of the bid proposals, it was determined that the lowest responsive, responsible bidder is Southwest Pipeline and Trenchless Corp., with a bid amount of $1,682,656.50. Therefore, staff recommends awarding a construction contract to Southwest Pipeline and Trenchless Corp. Please refer to Attachment C, the Construction Contract, which includes the contract bid items and total contract amount.

Staff recommends that the City Council approve the Notice of Exemption and award a Construction Contract to Southwest Pipeline and Trenchless Corp., in the amount of $1,682,656.50, for the Sewer Main Lining Various Locations 2022 Project.

Staff is available for any questions that City Council may have.

Attachments: A. Location Map
B. Notice of Exemption
C. Construction Contract

ATTACHMENT A

ATTACHMENT B

ATTACHMENT C
1 Construction Agreement/Southwest Pipeline and Trenchless Corporation/Project CC22-033

CONSTRUCTION AGREEMENT

BY AND BETWEEN

THE CITY OF VICTORVILLE
AND

SOUTHWEST PIPELINE AND TRENCHLESS CORPORATION
FOR
SEWER MAIN LINING VARIOUS LOCATIONS 2022,
PROJECT CC22-033
TH
IS CONSTRUCTION AGREEMENT (the “Agreement”) is made and entered into by and between the City of Victorville, a municipal corporation located in the County of San Bernardino, State of California, hereinafter referred to as the “City”, and Southwest Pipeline and Trenchless Corporation, a California corporation hereinafter referred to as the “Contractor”. The City and the Contractor are sometimes hereinafter referred to as a “Party” and collectively referred to as the “Parties.”
RE
CITALS:

W
HEREAS, the City requires Sewer Main Lining Various Locations 2022, Project CC22-033 (the Project); and
W
HEREAS, in light of the facts set forth above, the City desires to retain Contractor in connection with Sewer Main Lining Various Locations 2022; and NO

W, THEREFORE, IN CONSIDERATION OF THE COVENANTS, CONDITIONS, AND

PROMISES CONTAINED HEREIN AND FOR SUCH OTHER GOOD AND VALUABLE CONSIDERATION, THE PARTIES HERETO AGREE AS FOLLOWS:

Section 1. RECITALS
T
he Recitals set forth above are true and correct and are hereby incorporated into this Agreement by this reference, as though set forth herein.

Section 2. TERM OF AGREEMENT
Thi
s Agreement shall commence within Fifteen (15) Calendar Days after issuance of Notice to Proceed (the “Commencement Date”) and shall terminate upon completion of the Project, One Hundred Twenty (120) Working Days after Commencement Date (the “Termination Date”), unless sooner terminated in accordance with the provisions of this Agreement (the “Term”).

From and after the Termination Date, and upon subsequent agreement by the Parties, this Agreement may continue on a month- to-month basis until terminated pursuant to Section 3 below.

Section 3. TERMINATION OR SUSPENSION
a. Thi
s Agreement may be terminated or suspended without cause by either Party at any
time, provided that the Party initiating the termination provides the other Party at least thirty (30) d
ays advance written notice of s uch termination or suspension. In the event of suc h t
ermination, the City shall only be liable for payment under the payment provisions of this 2 Construction Agreement/Southwest Pipeline and Trenchless Corporation/Project CC22-033

Agreement for satisfactory work rendered or supplies actually furnished prior to the effective date of termination.

b. This Agreement may be terminated or suspended with cause by either Party at any time, provided that the Party initiating termination provides the other Party at least ten (10) days advance written notice of such termination or suspension. In the event of such termination, the City shall only be liable for payment under the payment provisions of this Agreement for satisfactory work rendered or supplies actually furnished prior to the effective date of termination.

Section 4. CONTRACT DOCUMENTS; PRIORITY

In the event of any conflict between or among the Contract Documents, or any dispute as to the meaning of any term or provision, the Contract Documents shall be given priority according to the order listed under, Section A, Special Provisions, Part 1, Gene ral Provisions, Section 3, Control of the Work, Paragraph 3-7.2, “Precedence of the Contract Documents” of the Request for Bid, Project CC22-033. In the event of any conflict or dispute that cannot be resolved by reference to the Contract Documents, the following documents may be used to clarify or interpret any term therein:

1. This Agreement.

2. Exhibits A & B.

3. Notice Inviting Bids for the Project.

4. Specifications for the Project.

5. Special Provisions.

6. Faithful Performance and Payment Bond.

7. Non-Collusion Declaration.

8. Guaranty.

Section 5. CONTRACTOR’S OBLIGATIONS

Contractor shall complete the Project as specifically set forth in the Contract Documents.

Contractor shall furnish, at its own cost and expense, all labor, services, material, tools, equipment, supplies, transportation, and any other items and facilities necessary therefore, as provided in the Contract Documents.

Section 6. COMPENSATION

The Contractor agrees to receive and accept the following amount, not to exceed One Million Six Hundred Eighty- two Thousand Six Hundred Fifty -six and 50/100 Dollars ($1,682,656.50), as full compensation for furnishing; all materials, doing all the work contemplated and embraced in this contract, all loss or damage arising out of the nature of the work aforesaid, the action of the elements, any unfores een difficulties or obstructions which may arise or be encountered in the execution of the work until its acceptance by the City, and for all risks of every description connected with the work, all expenses incurred by or in consequence of the suspension or discontinuance of work well and faithfully completing the whole work, thereof, according to the requirements of the agreement documents and to the satisfaction of Brian Gengler, City Engineer, or his designee, to wit: See Exhibit “A”, Scope of Work.

3 Construction Agreement/Southwest Pipeline and Trenchless Corporation/Project CC22-033

Section 7. BID PROPOSAL FORMS

The City shall pay Contractor as provided in the Bid Proposal Forms, attached hereto as Exhibit “B”, and incorporated herein by this reference as though set forth in full, subject to approval of the City, when applicable.

Section 8. PREVAILING WAGES

a. State Wages - In accordance with the provisions of California Labor Code Sections (1720,1770-1776, 1810, 1813 and 1815, as amended and applicable) , the State Director of Industrial Relations has determined the general prevailing rates of per diem wages in the locality where the Project is to be done. Copies of the updated Wage Determination rates are available from the CITY and the State of California via the internet at www.dir.ca.gov. Additionally, copies of the prevailing rate of per diem wages and federal wage decision rates are on file at the City of Victorville Finance Department and shall be made available for review to any interested party on request. Notwithstanding anything in the Contract Documents to the contrary, Contractor and all subcontractors shall pay not less than said specified State of California rates to all workers employed by them in the execution of the work contemplated by this Contract. Contractor shall be responsible for using the correct and current prevailing wage rates.

b. AB219 (as applicable) adds Section 1720.9 to the Labor Code, the hauling and delivery of ready-mixed concrete to carry out a public works contract, with respect to contracts involving state agency or any political subdiv ision of the state. Section 1720.9 defines the term “ready-mixed” concrete and specifies that the rate of pay shall be the current prevailing wage “for the geographical area in which the factory or batching plant is located” as determined by the DIR. The statute also requires a written agreement between the party hauling or delivering the ready-mixed concrete and the party that engaged its services. Nothing in Section 1720.9 shall cause any company to be treated as a contractor or subcontractor for any purpose other than the application of this chapter of the Labor Code.

c. The delivery company shall provide certified payroll records under Labor Code section 1776(a) to the party that engaged its services and to the general contractor within five working days after the employee has been paid, accompanied by a written time record within five working days after the employee has been paid, accompanied by a written time record. The time record must be certified by each driver for the performance of job duties.

d. Contractor shall be solely responsible for using the correct wage decision or determination and performing accordingly. An error on the part of any awarding body does not relieve the Contractor from the responsibility for payment of the correct State prevailing wage and compliance with the maintenance and inspection of payroll records, posting of prevailing wage rates at work site, employment of apprentices, and other requirements of California Labor Code Section 1720, et seq.; California Code of Regulations , Title 8, Section 16000 et seq .; and all other applicable State labor laws. Contractor further acknowledges and agrees that it will be independently responsible for reviewing the applicable laws and regulations and effectuating compliance with those laws. Contractor will require the same of all its subcontractors.

NOTE: Confirmation of certified payroll submittal to the Department of Industrial Relations (DIR) is required with each invoice to the City. Payment of the invoice may be delayed when proof of certified payroll submittal is not included with the Contractor’s invoice.

4 Construction Agreement/Southwest Pipeline and Trenchless Corporation/Project CC22-033

Section 9. WORKERS’ COMPENSATION INSURANCE

Contractor shall procure and maintain, at its own expense, during the Term of this Agreement, workers’ compensation insurance, providing coverage as required by the California State Workers’ Compensation Law. If any class of employees employed by Contractor is not protected by the California State Workers’ Compensation Law, Contractor shall provide adequate insurance for the protection of such employees to the satisfaction of the City.

In conformance with current statutory requirements of Section 1860 et seq., of the Labor Code of the State of California, the undersigned confirms the following as their certification:

I am aware of the provisions of Section 3700 of the Labor Code which requires every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions before commencing the performance of the work of this contract.

Section 10. NOTICE TO PROCEED

No work, service, material, or equipment shall be performed or furnished under this Contract unless and until a Notice to Proceed has been given to the Contractor by the City.

Contractor shall commence work pursuant to the Contract Documents as directed by the City in the Notice to Proceed, and to diligently execute the same to completion within the time limits set forth in the Contract Documents.

Section 11. COMPLIANCE WITH LAWS

Contractor shall comply with all local, state, and federal laws and regulations applicable to the performance of the work required by the Contract Documents, including any rule, regulation, or bylaw governing the conduct or performance of Contractor, its employees, officers, board members, agents, independent contractors, and subcontractors. Unless otherwise specified in the Contract Documents, all required permits and licenses shall be held or obtained by the Contractor at its sole expense.

Section 12. COMMERCIAL GENERAL AND AUTOMOBILE LIABILITY

INSURANCE

Contractor shall procure and maintain at its own expense, during the term of this Agreement, com mercial general liability insurance, of not less than One Million Dollars ($1,000,000) per occurrence, and Two Million Dollars ($2,000,000) in the aggregate, for bodily injury, personal injury, death, loss, or damage resulting from the wrongful or negligent acts by the Contractor or its officers, employees, servants, volunteers, and agents and independent contractors.

Contractor shall further procure and maintain, at its own expense, during the Term of this Agreement, commercial vehicle liability insurance cov ering personal injury and property damage, of not less than One Million Dollars ($1,000,000) Combined Single Limit , covering any vehicle(s) utilized by Contractor or its officers, employees, servants, volunteers, or agents and independent contractors in performing the services required by this Agreement.

5 Construction Agreement/Southwest Pipeline and Trenchless Corporation/Project CC22-033

Section 13. COURSE OF CONSTRUCTION/INLAND MARINE INSURANCE

Contractor, and or any of its subcontractors, suppliers, vendors, employees, or person whom it performing any work under this agreement shall purchase, and maintain insurance to the full contract and insurable value thereof commonly referred to as a Course of Construction, Builders’ Risk, or an Inland Marine policy that offers “Installation” coverage for all materials, supplies, equipment, and property obtained by, or for Contractor, which is to become part of the work while such equipment and property is stored at the jobsite, at temporary locations, or while in transit to the project from such temporary locations. Contractor, and or any of its subcontractors, suppliers, vendors, employees, or person whom is performing any work under this agreement shall also be responsible for insuring their owned, leased/rented or borrowed equipment. Insurance should also include a Loss Payee, and a Waiver of Subrogation Endorsement(s) in favor of the City of Victorville.

Section 14. ADDITIONAL INSURED

Notwithstanding any inconsistent statement in any required insurance policies or any subsequent endorsements attached thereto, the protection offered by all policies, except for Workers' Compensation coverage, shall bear an endorsement whereby it is provided that, the City and its officers, employees, servants, volunteers, and agents and independent contractors, including, without limitation, the City Attorney, are named as Additional Insureds.

Section 15. WAIVER OF SUBROGATION RIGHTS

Contractor shall r equire the carriers of all required insurance policies to waive all rights of subrogation against the City and its officers, volunteers, employees, contractors, and subcontractors. Each policy of insurance shall be endorsed to reflect such waiver.

Section 16. PROOF OF INSURANCE COVERAGE; REQUIRED PRIOR TO

COMMENCEMENT OF SERVICES

a. Contractor shall secure from a good and responsible company or companies authorized to do insurance business in the State of California the policies of insurance required by this Agreement and furnish to the City Clerk certificates of said insurance at least one (1) day prior to the commencement of any services to be performed under this Agreement.

b. The certificates of insurance shall bear an endorsement whereby it is provided that, in the event of cancellation or amendment of any required insurance policy for any reason whatsoever, the City shall be notified by mail, postage prepaid, not less than thirty (30) days before the cancellation or amendment is effective. In the case of non -payment, ten (10) days’ advance written notice shall be given.

c. The certificates of insurance shall bear an endorsement whereby it is provided that the respective insurance policy shall not be terminated or expire without first providing thirty (30) days written notice to the City of such termination or expiration.

d. The certificates of insurance shall indicate that the respective insurance policy will be maintained throughout the Term of this Agreement.

6 Construction Agreement/Southwest Pipeline and Trenchless Corporation/Project CC22-033

e. The Commercial General Liability and vehicle liability policies shall be endorsed to contain the follow ing provision: “For any claims related to this Contract , Contractor’s service coverage shall be pri mary with respect to the City. Any insurance maintained by the City shall be in excess of Contractor’s insurance and shall not contribute to it.

Section 17. TIME OF THE ESSENCE

Time is of the essence in the performance of this Agreement.

Section 18. INDEMNIFICATION

Notwithstanding the limits of any insurance, Contractor shall indemnify the City, its officials, officers, agents, volunteers and employees against, and will hold and save them and each of them harmless from, any and all actions, suits, claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities, (herein "claims or liabilities") that may be asserted or claimed by any person, firm or entity arising or alleged to arise out of or in connection with the negligent performance of the work, operations or activities of Contractor, its agents, employees, subcontractors, or invitees, provided for herein, or arising or alleged to arise from the negligent acts or omissions of Contractor hereunder, or arising or alleged to arise from Contractor's negligent performance of or failure to perform any term, provision, covenant or condition of this Agreement, but excluding such claims or liabilities or portion of such claims or liabilities arising or alleged to arise from the negligence or willful misconduct of the City its officials, officers, agents, volunteers or employees, and in connection therewith:

a. Contractor will defend any action or actions filed in connection with any of said claims or liabilities and will pay all costs and expenses, including legal costs and attorneys' fees incurred in connection therewith;

b. Contractor will promptly pay any judgment rendered against the City, its officials, officers, agents or employees for any such claims or liabilities arising or alleged to arise out of or in connection with Contractor's (or its agents', employees', subcontractors' or invitees') negligent performance of or failure to perform such work, operations or activities hereunder; and Contractor agrees to save and hold the City, its officials, volunteers, officers, agents, and employees harmless there from;

c. In the event the City, its officials, officers, agents, volunteers or employees is made a Party to any action or proceeding filed or prosecuted against Contractor for such damages or other claims arising or alleged to arise out of or in connection with the negligent performance of or failure to perform the work, operation or activities of Contractor hereunder, Contractor shall pay to the City, its officials, volunteers officers, agents or employees, any and all costs and expenses incurred by the City, its officers, agents or employees in such action or proceeding, including but not limited to, legal costs and attorneys' fees for counsel acceptable to City;
d. Contractor's duty to defend and indemnify as set out in this Section shall include any claims, liabilities, obligations, losses, demands, actions, penalties, suits, costs, expenses or damages or injury to persons or property arising or alleged to arise from, in connection with, as a consequence of or pursuant to any state or federal law or regulation regarding hazardous substances, including but not limited to the Federal Insecticide, Fungicide and Rodenticide Act ("FIFRA"), Comprehensive Environmental Response, Compensation and Liability Act of 1980 ("CERCLA"), Resource Conservation and Recovery Act of 1976 ("RCRA"), the Hazardous and Solid Waste Amendments of 1984, the Hazardous Material Transportation Act, the Toxic 7 Construction Agreement/Southwest Pipeline and Trenchless Corporation/Project CC22-033

Substances control Act, the Clean Air Act, the Clean Water Act, the California Hazardous Substance Account Act, the California Hazardous W aste Control Law or the Porter -Cologne Water Quality Control Act, as any of those statutes may be amended from time to time;

The Contractor's indemnification obligations pursuant to this Section shall survive the termination of this Agreement. Contractor shall require the same indemnification from all subcontractors.

Section 19. REPORTS

Upon request by Brian Gengler, City Engineer , or his d esignee, Contractor shall prepare and submit reports concerning Contractor's performance of the work required by this Agreement.

Section 20. RECORDS

a. Contractor shall keep such books and records as shall be necessary to perform the services required by this Agreement and enable Brian Gengler, City Engineer , or his designee, to evaluate the cost and the performance of such services.

b. Books and records pertaining to costs shall be kept and prepared in accordance with generally accepted accounting principles. Brian Gengler, City Engineer, or his designee, shall have full and free access to such books and records at all reasonable times, including the right to inspect, copy, audit, and make records and transcripts from such records.

d. Records and supporting documents pertaining to the use of funds paid to Contractor hereunder shall be retained by Cont ractor and made available to Brian Gengler, City Engineer, or his designee, for purposes of performing an audit for a period of five (5) years from the date of termination of this Agreement.

Section 21. MODIFICATIONS AND AMENDMENTS

This Agreement may be modified or amended only by a written instrument signed by both Parties.

Section 22. ENTIRE AGREEMENT

a. This Agreement supersedes any and all prior or contemporaneous agreements, either oral or writ ten, between the City and Contractor with respect to the subject matter of this Agreement.

b. The Contract Documents contain all of the covenants and agreements between the Parties with respect to the subject matter herein, and each Party acknowledges that no representations, inducements, promises, or agreements have been made by or on behalf of any Party, except those covenants and agreements in this Agreement and the Contract Documents.

c. No agreement, statement, or promise with respect to the subject matter of the Contract Documents, which is not contained in the Contract Documents, or in a valid modification or amendment to the Contract Documents, shall be valid or binding on either Party.

8 Construction Agreement/Southwest Pipeline and Trenchless Corporation/Project CC22-033

Section 23. AMBIGUITIES

This Agreement is in all respects intended by each Party hereto to be deemed and construed to have been jointly prepared by the Parties and the Parties hereby expressly agree that any uncertainty or ambiguity existing herein shall not be interpreted against either of them.

Except as expressly limited by this paragraph, all of the applicable rules of interpretation of contract shall govern the interpretation of any uncertainty or ambiguity of this Agreement.

Notwithstanding the foregoing, the Parties agree that Exhibit “B” is attached hereto for reference purposes and to the extent there are any ambiguities, inconsistencies or conflicts between the terms of this Construction Agreement and Exhibit “ B” the terms of this Construction Agreement shall control and nothing set forth in Exhibit “B” shall be deemed to supersede any of the provisions of this Construction Agreement.

Section 24. NOTICES

a. Any notice to be provided pursuant to this Agreement shall be in writing, and all such notices shall be delivered by personal service or by deposit in the United States mail, certified or registered, return receipt requested, with postage prepaid, and addr essed to the Parties as follows:

To the City: Brian Gengler, City Engineer,
Engineering Department
City of Victorville
14343 Civic Drive
Victorville, CA 92392

To Contractor: Justin Duchaineau, President
Southwest Pipeline and Trenchless Corporation
22118 Vermont Ave.

Torrance, CA 90502

b. Notices, payments, and other documents shall be deemed delivered upon receipt by personal service or as of the second (2nd) day after deposit in the United States mail.

Section 25. NON-LIABILITY OF CITY OFFICERS AND EMPLOYEES

No officer or employee of the City shall be personally liable to Contractor, or any successor in interest, in the event of any default or breach by the City or for any amount, which may become due to Contract or or to its successor(s), or for any breach of any obligation of the terms of this Agreement.

Section 26. REVIEW BY ATTORNEYS

Each Party hereto has had its attorneys review this Agreement an d all related documents. Each Party hereto has consulted with its attorneys and has negotiated the terms of this Agreement based on such consultation.

9 Construction Agreement/Southwest Pipeline and Trenchless Corporation/Project CC22-033

Section 27. CARE OF WORK

Contractor must adopt reasonable methods during the life of the Agreement to furnish continuous protection to the work, and the equipment, materials, papers, documents, plans, studies and other components to prevent losses or damages, and will be responsible for all damages, to persons or property, until acceptance of the work by the City, except those losses or damages as may be caused by the City’s own negligence. The performance of the work by Contractor or the payment of money by the City shall not relieve Contractor from any obligation to correct any incomplete, inaccurate, or defective work at no further cost to the City, when such inaccuracies are due to the negligence of Contractor.

Section 28. CAPTIONS AND HEADINGS

The captions and headings contained in this Agreement are provided for identification purposes only and shall not be interpreted to limit or define the content of the provisions described under the respective caption or heading.

Section 29. SUCCESSORS, HEIRS, AND ASSIGNS

Except as otherwise expressly provided herein, this Agreement shall be binding upon the successors, endorsees, assigns, heirs, and personal representatives of each of the Parties to this Agreement and, likewise, shall inure to the benefit of the successors, endorsees, assigns, heirs, and personal representatives of each of the Parties.

Section 30. GENDER; PLURAL

In this Agreement, unless the context clearly requires otherwise, the masculine, feminine and neuter genders and the singular and the plural shall include one another.

Section 31. SEVERABILITY

If any one or more of the sentences, clauses, paragraphs, or sections contained herein is declared invalid, void, or unenforceable by a court of competent jurisdiction, the same shall be deemed severable from the remainder of this Agreement and shall not affect, impair, or invalidate any of the remaining sentences, clauses, paragraphs, or sections contained herein.

Section 32. GOVERNING LAW

The validity of this Agreement and any of its terms or provisions, as well as the rights and duties of the Parties under this Agreement, shall be construed pursuant to and in accordance with California law.

Section 33. CUMULATIVE REMEDIES

Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercis e by it, at the same or different times, of any other rights or remedies for the same default of any other default by the other Party.

10 Construction Agreement/Southwest Pipeline and Trenchless Corporation/Project CC22-033

Section 34. VENUE

All proceedings involving disputes over the terms, provisions, covenants, or conditions contained in this Agreement and all proceedings involving any enforcement action related to this Agreement shall be initiated and conducted in the applicable court or forum in San Bernardino County, California.

Section 35. ATTORNEY'S FEES

Should any litigation, specifically including but not limited to, arbitration and other non - judicial resolution of disputes be commenced between the Parties to this agreement concerning this agreement or the rights and duties of either i n relation thereto, the Parties prevailing in such litigation or other proceeding shall be entitled, in addition to such other relief as may be granted, to a reasonable sum as and for attorney fees in such litigation where the proceeding which, if not agreed upon by the Parties, shall be determined by the court or other entity in which such litigation or other proceeding is brought.

Section 36. EFFECTIVENESS OF AGREEMENT

This Agreement shall not be binding upon the City, until signed by the authorized representative(s) of Contractor , approved by the City’s Risk Manager, and executed by the authorized City personnel or Mayor.

Section 37. REPRESENTATIONS OF PARTIES AND PERSONS

EXECUTING AGREEMENT

a. Each of the Parties to this Agreement hereby represents that all necessary and appropriate actions of their governing bodies have been taken to make this Agreement a binding obligation of each of the Parties hereto.

b. The persons executing this Agreement warrant that they are duly authorized to execute this Agreement on behalf of and bind the Parties each purports to represent.

Section 38. COUNTERPARTS

This Agreement may be executed by the Parties in counterparts, and when executed by each of the Parties, each counterpart shall be deemed to be a part of this Agreement.

(END OF THIS PAGE)

11 Construction Agreement/Southwest Pipeline and Trenchless Corporation/Project CC22-033

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed as of the dates written below.

THE CITY OF VICTORVILLE SOUTHWEST PIPELINE AND

TRENCHLESS CORPORATION

By:_______________________________ By:_________________________________ Debra Jones, Justin Duchaineau,
Mayor President

Dated:______________________________ Dated:______________________________

ATTEST

By:________________________________
Jennifer Thompson,
City Clerk

Dated:_____________________________

THE CITY OF VICTORVILLE APPROVED AS TO STANDARD FORM

By:________________________________ By:________________________________ Lee Brown, Andre de Bortnowsky,
Risk Manager City Attorney

Dated:______________________________ Dated:_____________________________

12 Construction Agreement/Southwest Pipeline and Trenchless Corporation/Project CC22-033

EXHIBIT A

SCOPE OF WORK

City agrees to engage C ontractor and Contractor agrees to furnish all necessary labor, tools, materials, and equipment for and do the Work for the Project. The Work shall be performed in accordance with : (i) the Plans and Specifications and applicable Addenda (as generally described in the Request for Bid, Project Number CC22-033 for the Project, and the entirety of which is currently on file in office of the City Clerk); (ii) the prices set forth in C ontractor’s Bid Proposal (attached as Exhibit "B"); and (iii) with the instructions of the City Engineer.

13 Construction Agreement/Southwest Pipeline and Trenchless Corporation/Project CC22-033

EXHIBIT B

BID PROPOSAL FORMS

See Attachment

EXHIBIT B
14/Construction Agreement/Southwest Pipeline & Trenchless Corporation/Project CC22-033

EXHIBIT B
15/Construction Agreement/Southwest Pipeline & Trenchless Corporation/Project CC22-033 Item Number: 2
City Council / Board of Directors
Public Hearing(s)
Meeting of: March 1, 2022
Submitted By:

John Mendiola, Finance Director / City Treasurer

Subject:

Mid-Year Budget Review and Amendment Request to the 2021-22 Fiscal Budget Recommendation:

That the City Council and Board of Directors approve the changes reflected in this agenda item along with the included attachments by adopting:
Resolution No. 22-018 of the City Council amending Resolution 21-064, as amended, the budget resolution for the City of Victorville for the Fiscal Year 2021- 2022
Resolution No. VWD-22-001 of the Victorville Water District amending Resolution 21-012, as amended, the budget resolution for the Victorville Water District for the Fiscal Year 2021-2022
Resolution No. SCLAA-22-004 of the Southern California Logistics Airport Authority amending Resolution 21-005, as amended, the budget resolution for the Southern California Logistics Airport Authority for the Fiscal Year 2021-2022 Fiscal Impact:

A summary of the mid-year budget changes are as follows: (details of the changes are found in Attachment A)
City of Victorville – An appropriation of funds, increasing the expenditures by $4,098,512.23 and increasing the revenue by $20,471,733. Victorville Water District – An appropriation of funds, increasing the expenditures by $11,447,300 and increasing the revenue by $4,733,500. Southern California Logistics Airport Authority – An appropriation of funds, increasing expenditures by $330,200. and increasing the revenue by $645,229. 
Approval of this agenda item would increase total expenditure citywide budget for the Fiscal Year 2021-22 by $15,876,012.23 and increase the total combined revenue budget for the Fiscal Year 2021-22 by $25,850,462.
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Background:

The Fiscal Year 2021-22 Budget, effective July 1, 2021, was adopted by the City Council/Board of Directors on June 15, 2021. Since that time, staff has completed a quarterly review to evaluate the overall performance of the City’s finances and allow for some insight as to possible future needs. The mid-year budget review is an opportunity for staff to use actual operating results through the first half of the fiscal year and provide an update to the findings of the first quarter review. Additionally, this provides staff an opportunity to recommend adjustments to the budget needed to accommodate changes in revenue and expenditure estimates, programs, and staffing needs.

The following report compares and summarizes projected revenues and expenditures by the General Fund, Measure P, Special Revenue Funds and then Enterprise Funds.

Discussion:

The chart below provides a City-wide summary of revenues and expenditures from the adopted budget, revised budget, and mid-year projections for the 2021-22 fiscal year.

The column labeled FY 21/22 Revised Budget is the Council-approved budget in addition to any Council-approved resolutions for additional appropriations. The 2021-22 budget, as adopted by the City Council, initially assumed a one-time use of the General Fund reserve balance in the amount of $2.08 million. Of this amount, $1 million in loan repayments back to the General Fund was anticipated and received from the Victorville Municipal Utilities Services. The net of these two figures created a budgeted and anticipated draw on General Fund reserves of $1.08 million. Based on current revenue projections, staff anticipates a contribution to the General Fund at the end of the fiscal year rather than a draw down. Four of the major contributors to the increased revenue projections include:
Increased General Accounts revenues of $15.4 Million
Increased Permitting revenues in the Building and Engineering departments of $1.47 Million and Code Compliance Cite and Cost Recovery of $1.03 Million Increased Water revenue of $4.7 Million
Increased Airport revenue of $645 Thousand
FY 2021-22 City of Victorville Budget Summary as of December 31, 2021 Citywide
FY21/22
Adopted
Budget
FY21/22
Revised
Budget
Mid-Year
Proposed
Budget
Difference
Increase
(Reduce)
Revenue 306,529,379 320,536,203 346,386,665 25,850,462
Expenditures 278,238,605 320,225,894 336,101,907 15,876,012 General Fund Revenue Review:

Sales Tax and Property Tax
The City has contracted with HdL Companies, which has served public agencies with revenue solutions since 1983. HdL brings a comprehensive and tailored approach to 2 4
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maximizing and understanding public agency revenues. The charts below detail key sectors and were used to assist staff in making assumptions on how to project future sales taxes based upon recent historical data provided by HdL. The charts are intended to demonstrate major changes in a few key sectors only and are not a comprehensive sector-by-sector look at all factors that comprise sales and use taxes.

The first chart shows sales and use tax allocation by sector for the City’s 3rd Tax Quarter (July – Sept) of 2021 compared with the City’s 3rd Quarter of 2020. Tax quarters are based upon a calendar year beginning January 1, where the City budget is based on a fiscal year beginning July 1.

Sales and Use Tax by Sector
(Victorville) 3Q 2021 3Q 2020
%
Change
Autos and Transportation 1,942,356 1,639,884 18%
Fuel and Service Stations 909,108 600,175 51%
General Consumer Goods 1,783,735 1,533,653 16%
Restaurants and Hotels 807,047 649,828 24%
County & State Pool
(Includes Online Sales)
1,106,818 1,192,749 -7%
The above chart does not include every sector comprising sales tax total The second chart shows the forecast amounts compared to the actual for sales tax distributions from the State. The chart demonstrates that the 1st Quarter sales tax distributions (July – Sept 2021) exceeded the initial projection, and revenues into the 2nd Quarter continue to exceed projections. It is currently expected that overall Sales and Use Tax revenues will continue to outpace original forecasts as the data to model this on continues to come in. It should be noted that the final payment received in a quarter for Sales Tax Revenue received from the State is what is known in the industry as a “true up” payment. While the original forecast of revenues received by mid-year was estimated at $8.1 million, to date the City has received $10.8 million. Given that actuals received have outpaced original projections, HdL, along with City staff, have updated future forecasts.

Sales Tax Allocation Cash Actuals and
Projections by Finance Staff Actual Forecast
%
Change
July 2021 Sales Tax Revenue 2,484,088 1,736,100 43%
August 2021 Sales Tax Revenue 3,302,629 1,736,100 90%
September 2021 Sales Tax Revenue 1,812,983 2,902,257 -38% October 2021 Sales Tax Revenue 2,428,921 1,834,200 32%
November 2021 Sales Tax Revenue 2,274,180 1,834,200 23% Subtotal 12,302,801 10,042,857 22%
December 2021 Sales Tax Revenue TBD 3,066,308
Forecast provided by HdL and Finance Staff
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Property taxes are trending slightly higher than FY 2019-20 actual and are expected to at least match prior year ending amount of $19.5 Million based on current housing information.

Overview of Major Changes and Recommended Adjustments by Fund Type:

General Fund (Fund 100):
As discussed above, projections for sales and property tax revenues are higher than budgeted in the General Fund. The first five months of Sales and Use Tax revenue collected have demonstrated an actual excess of almost $2.3 Million in funds received. This total increase combined with increases to the Building and Code Compliance revenues of $2.5 Million contribute to project a total increase in revenues of $10.1 Million.
Although there are new positions being requested for a Homelessness Services Manager, Technology Technician, and an IT Secretary, the reductions made in code compliance, library, and recreation departments are decreasing the overall general fund expenditures by $239 Thousand, even with the requested addition of these positions.

The combination of the additional $9 Million in General Fund reserves from FY 2020-21 brings the beginning available fund balance to $25.2 Million (Fund 100 only, excludes Measure P, Technology Fund, Fueling Stations, and Engineering Deposits) and with the changes at mid-year, the General Fund is anticipated to have an ending fund balance of $32.6 million. The current General Fund reserve policy goal is 17%. The updated projected ending fund balance will reach 41%.

Measure P (Fund 105):

On November 3, 2020, during the general election, the majority of voters of the City approved Measure P, which is a 1% Transactions and Use tax. The passing of this Measure will bring additional resources to the City which will be used toward the betterment of the daily lives for those who live and visit. At the Council meeting of May 19, 2020, there was a presentation from the City Manager of the Public Safety Plan in order to share the needs of each sector for the enhancement of the safety and services provided to those within the City. Each department has several levels of needs, and the appropriate levels will be met depending on the more accurate projection of revenues to be generated by the Measure.

Projections for the first quarter of transactions and use tax was the final quarter of FY2020-21 and projections were for $4 Million in revenue. Actuals came in at $7.1 Million.

Projections provided by HdL at the start of FY2021-22 were $18.9 Million and with the first five months of revenue received, the projections have increased to $26.35 Million based on receipts of almost $9.5 Million. This revenue continues to support our Public Safety Plan needs with additional staffing and equipment to provide the additional service level to the community.
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Measure P is currently on track to have a fund balance of $10 Million at the end of FY22.

Using the same 17% reserve as General Fund (100) as a target, the Measure P fund is estimated to have an ending fund balance reserve of 21%.

Special Revenue Funds:
Transportation Development Act (TDA) Article 3 (233) increased expenditures by $139,027 to cover wages and contract service for bus stop improvements. LMADs and DFADs (370) increased expenditure budget by $228,000 to cover increased utility costs and block wall repairs.

Enterprise Funds:

Sanitary Sewer (Fund 425)
Increase of $940 Thousand to expenditures for treatment fee paid to VVWRA for bypass flows from IWWTP to VVWRA
Solid Waste (Fund 426)
Revenue increase of $1.86 Million based on current growth Expenditures increase of $1.08 Million primarily for increased growth/hauling charges
Water (Funds 410-413)
Increase to Revenue of $4.7 Million resulting from higher than expected consumption
Increase to Expenses of $11.4 Million primarily for the purchase of permanent water rights
Southern California Logistics Airport Authority (Fund 450) Revenue increase of $645 Thousand from new lease agreements Expenditures increase $330 Thousand primarily for maintenance work for new tenants
Conclusion:

Budgeting for unknown factors during a global pandemic has proven to be challenging.

While still navigating the pandemic and providing as many services as possible to the citizens, the City has continued to make changes needed to continue serving our community. Due to COVID-19 related-revenues that were previously unanticipated, and other factors such as increased online Sales and Use Tax revenue, the end of year General Fund balance is currently expected to experience a net positive impact of approximately $7.7 Million over the beginning of year fund balance. The unanticipated revenues, most of which were one-time funds that came from the CARES Act and ARPA, allowed the City to recapture COVID-19 public safety related payroll expenses which would have otherwise been borne by the General Fund. The City continues to diligently search for additional revenue resources to help not only the community, but also maintain 2 4
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fiscal stability so that future resources are available Any budgets that are currently projected to be over-budget at the end of the year have been addressed with the appropriations requests, but will be continuously monitored.

Staff remains available for any questions.

Attachments: A. Mid-Year Budget Summary
B. Resolution No. 22-018
C. Resolution No. VWD-22-001
D. Resolution No. SCLAA-22-004

ATTACHMENT A

CITY‐WIDE MID‐YEAR BUDGET DETAIL
DEPARTMENT/DIVISION FY21/22 BUDGET
FY21/22 REVISED
BUDGET

PROJECTED
(INCREASE) /

DECREASE

MID YEAR

PROPOSED
BUDGET
GENERAL ACCOUNTS (87,546,342.64)$ (87,546,342.64) $ (15,390,877.00) $ (102,937,219.64)$ FINANCE (52,000.00) $ (52,000.00) $ - $ (52,000.00)$ INFORMATION TECHNOLOGY (280,000.00)$ (280,000.00) $ - $ (280,000.00)$ FACILITIES (32,427.24) $ (129,767.87)$ - $ (129,767.87)$ LIBRARY (69,000.00) $ (69,000.00) $ 23,250.00 $ (45,750.00) $ PARKS (313,423.95) $ (313,423.95) $ - $ (313,423.95)$ RECREATION (781,005.00) $ (781,005.00) $ - $ (781,005.00)$ SOLID WASTE (20,760,550.00) $ (20,760,550.00) $ (1,855,500.00) $ (22,616,050.00)$ ANIMAL CONTROL (96,100.00) $ (96,100.00) $ (56,000.00) $ (152,100.00)$ CODE COMPLIANCE (607,000.00) $ (607,000.00) $ (1,030,000.00)$ (1,637,000.00) $ BUILDING (3,012,000.00) $ (3,012,000.00) $ (960,000.00) $ (3,972,000.00)$ BUSINESS LICENSE (712,000.00) $ (712,000.00) $ - $ (712,000.00)$ PLANNING (252,500.00) $ (252,500.00) $ - $ (252,500.00)$ ENGINEERING (16,055,036.00) $ (16,304,636.00) $ (194,100.00) $ (16,498,736.00)$ FIRE (1,100,667.00) $ (1,100,667.00) $ - $ (1,100,667.00)$ POLICE DEPARTMENT (257,519.46)$ (257,519.46) $ - $ (257,519.46)$ PUBLIC WORKS (66,488,213.00) $ (66,519,842.00) $ (1,008,506.00) $ (67,528,348.00)$ ECONOMIC DEVELOPMENT (2,247,464.47)$ (2,019,337.13) $ - $ (2,019,337.13)$ MUNICIPAL UTILITIES (19,708,499.00)$ (19,708,499.00) $ - $ (19,708,499.00)$ SUBTOTAL - CITY OPERATIONS (220,371,747.76)$ (220,522,190.05) $ (20,471,733.00) $ (240,993,923.05)$ AIRPORT OPERATIONS (32,491,896.38)$ (46,348,278.38) $ (645,229.00) $ (46,993,507.38)$ WATER (53,590,735.00) $ (53,590,735.00) $ (4,733,500.00) $ (58,324,235.00)$ SUCCESSOR AGENCY RDA (75,000.00)$ (75,000.00) $ - $ (75,000.00)$ TOTAL REVENUES (306,529,379.14)$ (320,536,203.43) $ (25,850,462.00) $ (346,386,665.43)$ DEPARTMENT/DIVISION FY21/22 BUDGET
FY21/22 REVISED
BUDGET

PROJECTED

INCREASE /
(DECREASE)

MID YEAR

PROPOSED
BUDGET
GENERAL ACCOUNTS - $ - $ - $ - $ CITY MANAGER 1,189,730.67 $ 1,189,730.67 $ 7,500.00 $ 1,197,230.67$ CITY ATTORNEY 400,000.00 $ 400,000.00 $ - $ 400,000.00$ CITY CLERK 627,617.70 $ 827,617.70 $ - $ 827,617.70$ CITY COUNCIL 272,412.78 $ 272,412.78 $ - $ 272,412.78$ RISK MANAGEMENT 2,174,550.53 $ 2,174,550.53 $ - $ 2,174,550.53$ FINANCE 2,890,399.45 $ 2,892,899.45 $ - $ 2,892,899.45$ CUSTOMER SERVICE 3,129,420.53 $ 3,129,420.53 $ - $ 3,129,420.53$ INFORMATION TECHNOLOGY 4,881,817.95$ 5,133,990.87 $ 298,963.36 $ 5,432,954.23 $ HUMAN RESOURCES 1,074,855.47 $ 1,074,855.47 $ - $ 1,074,855.47$ FACILITIES 2,948,651.51 $ 3,132,669.70 $ 13,900.00 $ 3,146,569.70$ LIBRARY 1,156,149.90 $ 1,156,149.90 $ (227,730.53) $ 928,419.37 $ PARKS 5,404,643.62 $ 5,404,643.62 $ - $ 5,404,643.62$ RECREATION 1,915,038.95 $ 1,915,038.95 $ 419,738.00 $ 2,334,776.95 $ SOLID WASTE 19,782,750.73 $ 19,832,750.73 $ 1,078,000.00 $ 20,910,750.73 $ WATER CONSERVATION 516,613.35$ 516,613.35 $ - $ 516,613.35$ ANIMAL CONTROL 1,309,345.00 $ 1,309,345.00 $ - $ 1,309,345.00$ CODE COMPLIANCE 1,149,628.00 $ 1,149,628.00 $ (226,234.00) $ 923,394.00 $ BUILDING 1,617,421.00 $ 1,632,421.00 $ 8,195.00 $ 1,640,616.00$ BUSINESS LICENSE 254,279.00 $ 254,279.00 $ - $ 254,279.00$ PLANNING 1,391,178.00 $ 1,391,178.00 $ 32,126.40 $ 1,423,304.40$ SEWER DEVELOPMENT 113,242.00$ 113,242.00 $ - $ 113,242.00$ ENGINEERING 16,397,532.15 $ 32,598,873.70 $ - $ 32,598,873.70$ WATER ENGINEERING 10,791,841.31$ 14,368,300.47 $ - $ 14,368,300.47$ SEWER ENGINEERING 2,590,001.94$ 6,096,893.11 $ - $ 6,096,893.11$ FIRE 18,895,783.76 $ 19,083,740.67 $ - $ 19,083,740.67$ FY 2021-22 CITY OF VICTORVILLE BUDGET REVENUES MID-YEAR FY 2021-22 CITY OF VICTORVILLE BUDGET EXPENDITURES MID-YEAR CITY‐WIDE MID‐YEAR BUDGET DETAIL
EMERGENCY SERVICES 407,698.72$ 407,698.72 $ - $ 407,698.72$ POLICE DEPARTMENT 33,229,862.86$ 33,232,170.21 $ - $ 33,232,170.21$ PUBLIC WORKS 47,913,831.99 $ 49,014,054.40 $ 2,644,054.00 $ 51,658,108.40 $ ECONOMIC DEVELOPMENT 2,752,349.88$ 3,285,554.22 $ 50,000.00 $ 3,335,554.22$ MUNICIPAL UTILITIES 18,818,224.23$ 22,956,662.74 $ - $ 22,956,662.74$ SUBTOTAL - CITY OPERATIONS 205,996,872.98$ 235,947,385.49 $ 4,098,512.23 $ 240,045,897.72$ AIRPORT OPERATIONS 31,239,946.88$ 32,014,251.53 $ 330,200.00 $ 32,344,451.53$ WATER 37,241,281.36 $ 48,503,753.05 $ 11,447,300.00 $ 59,951,053.05 $ SUCCESSOR AGENCY RDA 3,760,504.25$ 3,760,504.25 $ - $ 3,760,504.25$ TOTAL EXPENDITURES 278,238,605.47$ 320,225,894.32 $ 15,876,012.23 $ 336,101,906.55 $ FY21/22 BUDGET
FY21/22 REVISED
BUDGET

MID-YEAR

PROPOSED
CHANGE

PROPOSED

ENDING BUDGET
TOTAL REVENUES (306,529,379.14)$ (320,536,203.43) $ (25,850,462.00) $ (346,386,665.43)$ TOTAL EXPENDITURES 278,238,605.47$ 320,225,894.32 $ 15,876,012.23 $ 336,101,906.55 $

ATTACHMENT B
RESOLUTION NO. 22-018

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VICTORVILLE AMENDING RESOLUTION 21-064, AS AMENDED, THE BUDGET
RESOLUTION FOR THE CITY OF VICTORVILLE FOR FISCAL YEAR 2021- 2022; RELATING TO AN APPROPRIATIONS OF FUNDS.

WHEREAS, the City Manager of the City of Victorville did heretofore submit to the City Council at mid-year additional estimates of expenditures and revenues of the City departments and offices for the fiscal year 2021-2022; and
WHEREAS, copies of said mid-year budget adjustments at the City of Victorville were prepared and distributed to the City Council, and have been available for the inspection by the public in the office of the City Clerk of the City of Victorville; and WHEREAS, the City Council did fix Marc h 1, 2022, at the hour of 6:00 p.m., in the Council Chambers of City Hall, 14343 Civ ic Drive, Victorv ille, California, as the time and place for holding a Public Hearing upon s aid budget amendment; and WHEREAS, the City Council did hold such Public Hearing at said place upon said budget and all persons desiring to be heard by the City Council at said Public Hearing on the budget amendment were heard and the City Council, after due consideration, has determined that said budget amendment should be approved.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF VICTORVILLE DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. That the increased estimates for expenditures for the City at mid- year for the fiscal year 2021-2022 now in the hands of the City Clerk is hereby adopted in the amount $4,098,512.23; and the additional estimates for revenues for the City is $20,471,733.00.

SECTION 2. That copies of such annual budget amendments, c ertified by the City Clerk, shall be filed with the auditors of the City of Victorville and in the office of the City Clerk for public inspection and certified copies thereof shall be made available for use by City departments and offices of the City and its subsidiary districts.

ATTACHMENT C
RESOLUTION NO. VWD-22-001

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE VICTORVILLE WATER DISTRICT AMENDING RESOLUTION VWD-21-012, AS AMENDED,

THE BUDGET RESOLUTION FOR TH E VICTORVILLE WATER DISTRICT FOR FISCAL YEAR 2021-2022; RELATING TO AN APPROPRIATIONS OF FUNDS.

WHEREAS, the Executive Director of the Victorville Water District did heretofore submit to the Board of Directors of the Victor ville Water District at mid-year additional estimates of expenditures and revenues of the Victorville Water District for the fiscal year 2021-2022; and
WHEREAS, the Board of Directors of the Victorville Water District did fix March 1, 2022, at the hour of 6:00 p.m., in the Council Chambers of City Hall, 14343 Civic Drive, Victorville, California, as the time and place for holding a Public Hearing upon s aid budget amendment; and
WHEREAS, the Board of Directors of the Victorville Water District did hold such Public Hearing at said place upon said budget and all persons desiring to be heard by the Board of Directors of the Victorville Water Distric t at said Public Hearing on the budget amendment were heard and the Board of Directors of the Victorville Water District, after due consideration, has determined that said budget amendment should be approved.

NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE VICTORVILLE WATER DISTRICT DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. That the inc reased estimates for expenditures for the Victorville Water District at mid-year for the fiscal year 2021-2022 now in the hands of the City Clerk is hereby adopted in the amount $11,447,300; and the additional estimates for revenues for the Victorville Water District is $4,733,500.

SECTION 2. That copies of such annual budget amendments, certified by the City Clerk, shall be filed with the auditors of the City of Victorville and in the office of the City Clerk for public inspec tion and certified copies ther eof shall be made available for use by the Victorville Water District, City departments, and the offices of the City.

ATTACHMENT D
RESOLUTION NO. SCLAA-22-004

A RESOLUTION OF THE SOUTHERN CALIFORNIA LOGISTICS AIRPORT AUTHORITY AMENDING RESOLUTION SCLAA-21-005, AS AMENDED,

THE BUDGET RESOLUTION FOR THE SOUTHERN CALIFORNIA
LOGISTICS AIRPORT AUTHORITY FOR FISCAL YEAR 2021-2022;
RELATING TO AN APPROPRIATIONS OF FUNDS.

WHEREAS, the Executive Director of the Southern California Logistics Airport Authority did heretofore submit to the Board of Directors of the Southern California Logistics Airport Authority at mid-year additional estimates of expenditures and revenues of the Southern California Logistics Airport Authority for the fiscal year 2021-2022; and WHEREAS, the Board of Directors of the Southern California Logistics Airport Authority did fix March 1, 2022, at the hour of 6:00 p.m., in the Council Chambers of City Hall,14343 Civic Drive, Victorville, California, as the time and place for holding a Public Hearing upon said budget amendment; and
WHEREAS, the Board of Directors of the Southern California Logistics Airport Authority did hold such Public Hearing at said place upon said budget and all persons desiring to be heard by the Board of Directors of the Southern California Logistics Airport Authority at said Public Hearing on the budget amendment were heard and the Board of Directors of the Southern California Logistics Airport Authority, after due consideration, has determined that said budget amendment should be approved.

NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE SOUTHERN
CALIFORNIA AIRPORT AUTHORITY DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. That the additional estimates for expenditures for the Southern California Logistics Airport Authority at mid-year for the fiscal year 2021-2022 now in the hands of the City Clerk is hereby adopted in the amount $330,200; and the additional estimates for revenues for the Southern California Logistics Airport Authority is $645,229.

SECTION 2. That c opies of such annual budget amendments, certified by the City Clerk, shall be filed with the auditors of the City of Victorville and in the office of the City Clerk for public inspec tion and certified copies ther eof shall be made available for use by the Southern California Logistics Airport Authority, City departments, and the offices of the City.

Item Number: 3
City Council / Board of Directors
Consent Calendar
Meeting of: March 1, 2022
Submitted By:

Doug Mathews, Director of Public Works and Water

Subject:

Reject all bids and resolicit for Annual Supply Agreement for Water Treatment Chemicals.

Recommendation:

That the Honorable Victorville Water District Board of Directors:
1) Reject all bids received and opened for the Annual Supply Agreement for Water Treatment Chemicals, Project #CC22-074 ("Project"); and 2) Direct staff to resolicit the Project.

Fiscal Impact:

There is no fiscal impact associated with this action.

Background:

In accordance with Municipal Code §2.28.100, staff conducted a competitive bid solicitation process for the purpose of procuring a vendor to furnish and deliver water treatment chemicals to the Victorville Water District’s (District) well sites. On February 3, 2022, three bids were received in response to the solicitation.

Discussion:

On January 27 th, one of the bidders submitted additional questions via email. However, due to an internal technical issue, staff did not receive the email in time to respond. On the morning of February 3rd, the date the bid closed, the bidder reached out to both District and Purchasing staff requesting the bid be extended; at which point, Purchasing staff recommended rejecting all bids and resoliciting in order to ensure a fair bidding process.

Therefore, staff is proposing the rejection of all bids in accordance with Municipal Code §2.28.100, allowing for the Project to be resolicited once the scope and specifications have been revised to include the additional questions asked.

Staff remains available for any questions or comments the Board may have. 2 4
3 7
Attachments: A. Municipal Code §2.28.100
Attachment A
Municipal Code §2.28.100

Created: 2022-02-07 11:08:35 [EST]
(Supp. No. 49, Update 1)

2.28.100 Purchases of general services or supplies and equipment with an estimated cost in excess of fifty thousand dollars.
(a) Bidding requirement. The city manager shall solicit bids for supplies and equipment and general services with an estimated cost in excess of fifty thousand dollars per single transaction or term agreement by following the formal bid procedure prescribed in this section.
(1) Notice inviting bids. The notice inviting bids shall include a general description of the supplies and equipment or general services to be purchased, and shall state where bid forms and specifications may be secured, and the final time and place for submitting bids. (A) Published notice. The notice inviting bids shall be published at least one time, ten calendar days before the date of opening of the bids in a newspaper(s) of general circulation, printed and published locally. The city manager may also give such additional notice as he/she deems appropriate.
(B) Bidder's list. The city manager shall also solicit sealed bids from responsible prospective suppliers whose names are on the city's bidder's list.
(2) Bid opening procedure. Bidders shall submit sealed bids to the city manager or such department head as may be identified in the notice inviting bids, and shall identify them as bids on the envelope in accordance with the notice inviting bids. Invitations for bids shall require a bid opening at a desi gnated place, date and time when the city clerk, or his or her designee, shall publicly open. (3) Rejection of bids. In its discretion, the city council may reject any and all bids presented, and may re - advertise for bids in the event all bids are rejected.
(4) Reserved.
(5) No bid/no responsive bid. If no bid, or no responsive bid is received after inviting bids under this section, the city manager may proceed to procure the general services or purchase the supplies and equipment in the open market.
(6) Award of contract. The city council shall have the authority to award a contract for purchase of supplies and equipment or general services with a cost in excess of fifty thousand dollars. If responsive and responsible bids are received, the city council shall make award of the contract to the best value bidder, even if such bidder did not submit the lowest monetary bid. The factors from section 2.28.040 upon which the award was based shall be set forth in writing. (b) Exceptions. The bidding procedures under this section may be dispensed with:
(1) In the event the city council determines the existence of an emergency as defined in subsection

2.28.050(6) and provided such procurement is made in accordance with the applicable provisions of subsection 2.28.060(f);
(2) Where it is determined by the city council that such procurement constitutes a sole source purchase.

The basis upon which this determination is made shall be prepared by the city manager in writing and presented to the city council for approval using the city's sole-source justification form; (3) Where the general services, supplies or equipment are purchased through a cooperative purchasing arrangement pursuant to section 2.28.120; and
(4) Where supplies and equipment or general services are purchased through competitive or noncompetitive negotiations pursuant to section 2.28.110. (Ord. No. 2381 , § 2, 9-18-18)
Item Number: 4
City Council / Board of Directors
Consent Calendar
Meeting of: March 1, 2022
Submitted By:

John Mendiola, Finance Director / City Treasurer

Subject:

Quarterly Investment Report as of December 31, 2021
Recommendation:

That the City Council/Board of Directors receive and file the attached Quarterly Investment Report as of December 31, 2021.

Fiscal Impact:

There is no fiscal impact associated with this item. This is a report of cash and investments held by the City to be provided quarterly to the City Council/Board of Directors to receive and file.

Background:

The City Treasurer is to provide the City Council/Board of Directors a quarterly report of investments, as stated in California Government Code Section 53646.

Discussion:

In accordance with the City’s Investment Policy and California Government Code Section 53646, the City Treasurer shall prepare a Quarterly Investment Report, with interim reports as may be requested by the City Council/Board of Directors or deemed as appropriate by the City Treasurer. This report shall include a management summary that provides a status of the current investment portfolios.

Below is a summary of the City’s investment performance for the last five fiscal years and the average yield of the five fiscal years. The majority of the City’s funds are held in Local Agency Investment Fund (LAIF) accounts and are classified as cash since the City can access these funds at any time. The majority of the funds held in the Trustee Accounts are reserve funds for the City’s bond issuances and are required to be held with the trustee until the bond’s final maturity date. The detail of these investments can be found 2 4
3 5
in the Quarterly Investment Reports. Staff is available to answer any questions the City Council/Board of Directors may have.

Average Annual Yield Past 5 Fiscal Years & 5-Year Average

Fiscal Year:

Investment Type
2016/17 2017/18 2018/19 2019/20 2020/21
5-Year
Avg

LAIF/Bank Accounts
(Cash) 0.69% 1.24% 2.10% 1.71% 0.54% 1.26%

Trustee Accounts
(Bond Reserve Funds) 0.13% 1.37% 2.14% 0.85% 0.13% 0.92%

Attachments: A. Quarterly Investment Report - December 31, 2021

Item Number: 5
City Council / Board of Directors
Consent Calendar
Meeting of: March 1, 2022
Submitted By:

John Mendiola, Finance Director / City Treasurer

Subject:

Commercial Demand Schedule No. 16
Recommendation:

That the City Council and Board of Directors ratify Commercial Demand Schedule No. 16 in the amount of $8,272,620.52, covering Electronic Fund Transfers No. 328850 through 328977 and Warrant No. 784506 through 784673 for 02/09/2022 through 02/16/2022 and Wire Transfers dated 02/11/2022 through 02/22/2022, per the adopted budget for Fiscal Year 2021-2022 for the period covering July 1, 2021 through June 30, 2022.

Fiscal Impact:

The total fiscal impact for FY21-22 in the amount of $8,272,620.52 is authorized with this action. The attached report details the total funds paid to vendors.

Background:

Pursuant to the City’s Municipal Code (2.24.080) the attached demands were presented by the departments, audited by the Finance Department and subsequent warrants/wire transfers were issued. All were found to be in conformity to City policies and procedures and funds were budgeted or available to pay said demands. List of commercial warrants and wire transfers are now being presented to Council for approval.

Attachments: A. Commercial Demand Schedule No. 16 Check Register Summary ATTACHMENT A:

Commercial Demand Schedule No. 16 Check Register Summary

CITY OF VICTORVILLE
Report generated: 02/17/2022 08:22 Page 1User:

Program ID:
hguzman
apchkrcn
CHECK # CHECK DATE TYPE VENDOR NAME UNCLEARED CLEARED BATCH CLEAR DATE

AP CHECK RECONCILIATION REGISTER
FOR CASH ACCOUNT: 000 11100 FOR: Uncleared
328850 02/09/2022 EFT 019621 AGA ENGINEERS, INC. 7,200.00 328851 02/09/2022 EFT 018562 BEST POWER EQUIPMENT, LLC 125.00 328852 02/09/2022 EFT 019580 ASTRUM UTILITY SERVICES 15,500.00 328853 02/09/2022 EFT 007650 BAKER & TAYLOR, INC. 265.24 328854 02/09/2022 EFT 000297 BECK OIL, INC. 58,397.23
328855 02/09/2022 EFT 022696 CALIFORNIA DIESEL COMPLIA 177.00 328856 02/09/2022 EFT 014820 CAL-STATE AUTO PARTS 310.33 328857 02/09/2022 EFT 015486 CONSOLIDATED ELECTRICAL D 10,504.09 328858 02/09/2022 EFT 014883 LMG NATIONAL PUBLISHING, 301.33 328859 02/09/2022 EFT 010282 DELTA DENTAL INSURANCE CO 3,814.16 328860 02/09/2022 EFT 009492 DELTA DENTAL OF CALIFORNI 28,604.60 328861 02/09/2022 EFT 012505 DESERT ENVIRONMENTAL SERV 1,663.50 328862 02/09/2022 EFT 022345 DIAMOND ENVIRONMENTAL SER 388.41 328863 02/09/2022 EFT 019731 EL DORADO BROADCASTERS LL 1,200.00 328864 02/09/2022 EFT 017560 FERGUSON WATERWORKS 21,815.03 328865 02/09/2022 EFT 001829 FINDAWAY WORLD, LLC 1,015.29 328866 02/09/2022 EFT 015874 FRIENDS OF THE VICTORVILL 433.40 328867 02/09/2022 EFT 016134 FRONTIER COMMUNICATIONS C 7,491.70 328868 02/09/2022 EFT 001015 GALLS PARENT HOLDINGS, LL 250.91 328869 02/09/2022 EFT 001740 G.A. OSBORNE PIPE-SUPPLY 854.79 328870 02/09/2022 EFT 016026 GEYSER EQUIPMENT, LLC 1,247.23 328871 02/09/2022 EFT 001076 GRAINGER 201.39
328872 02/09/2022 EFT 001104 HAAKER EQUIPMENT CO. 1,306.92 328873 02/09/2022 EFT 028225 HESPERIA OUTDOOR POWER EQ 1,300.18 328875 02/09/2022 EFT 007512 IMPERIAL SPRINKLER SUPPLY 209.96 328876 02/09/2022 EFT 001282 INLAND KENWORTH, INC. 605.53 328877 02/09/2022 EFT 014884 LAYNE CHRISTENSEN COMPANY 30,070.00 328878 02/09/2022 EFT 010101 LECTORUM PUBLICATIONS, IN 82.56 328879 02/09/2022 EFT 015804 MISSION AMBULANCE, INC. 102,816.66 328880 02/09/2022 EFT 017743 PULICE, SAMUEL A. 100.64
328881 02/09/2022 EFT 005602 MONTGOMERY HARDWARE CO. 3,408.23 328882 02/09/2022 EFT 017470 MRC SMART TECHNOLOGY SOLU 1,011.29 328883 02/09/2022 EFT 001627 MUNICIPAL MAINTENANCE EQU 481.86 328884 02/09/2022 EFT 009644 NORTHERN SAFETY COMPANY I 70.21 328885 02/09/2022 EFT 003523 ODYSSEY POWER CORPORATION 3,567.60 328886 02/09/2022 EFT 011299 PFT/ALEXANDER SERVICE, IN 486.15 328887 02/09/2022 EFT 001886 PRUDENTIAL OVERALL SUPPLY 278.24 328888 02/09/2022 EFT 024930 REFRIGERATION SUPPLIES DI 157.69 328889 02/09/2022 EFT 008756 RICHARD HEATH & ASSOCIATE 1,210.00 328890 02/09/2022 EFT 017604 SAFELITE FULFILLMENT, INC 302.15 328891 02/09/2022 EFT 014499 SOUTHERN CALIFORNIA FLEET 738.77 328892 02/09/2022 EFT 002936 SONSRAY MACHINERY LLC 228.76 328893 02/09/2022 EFT 016220 SOUTH COAST EMERGENCY VEH 261.11 328894 02/09/2022 EFT 013743 SOUTHWEST LIFT & EQUIPMEN 354.28 328895 02/09/2022 EFT 010553 SPOK, INC. 12.07
328896 02/09/2022 EFT 012798 PRO SALES GROUP 167.81
328897 02/09/2022 EFT 018368 TARGETSOLUTIONS LEARNING, 1,008.66 328898 02/09/2022 EFT 017269 TOWN & COUNTRY TIRE INC 385.09 328899 02/09/2022 EFT 025412 TRANS-WEST TRUCK CENTER, 421.05 328900 02/09/2022 EFT 002790 TREADWELL, KENNETH R. 4,750.00 328901 02/09/2022 EFT 022839 TRIMARK ASSOCIATES, INC. 5,807.16 328902 02/09/2022 EFT 028349 TYLER TECHNOLOGIES, INC. 6,290.00

CITY OF VICTORVILLE
Report generated: 02/17/2022 08:22 Page 2User:

Program ID:
hguzman
apchkrcn
CHECK # CHECK DATE TYPE VENDOR NAME UNCLEARED CLEARED BATCH CLEAR DATE

AP CHECK RECONCILIATION REGISTER
FOR CASH ACCOUNT: 000 11100 FOR: Uncleared
328903 02/09/2022 EFT 002419 UNDERGROUND SERVICE ALERT 133.85 328904 02/09/2022 EFT 029118 UNITED ROTARY BRUSH CORPO 1,282.72 328905 02/09/2022 EFT 014536 UNITED SITE SERVICES OF C 191.26 328906 02/09/2022 EFT 015004 U.S. DEPARTMENT OF ENERGY 6,734.71 328907 02/09/2022 EFT 008430 CALMAT COMPANY 2,268.36
328908 02/09/2022 EFT 002505 VICTORVILLE DISPOSAL, INC 943,103.51 328909 02/09/2022 EFT 002862 V.V. TOW, INC. 399.50
328910 02/09/2022 EFT 011361 WALTERS WHOLESALE ELECTRI 14.17 328911 02/09/2022 EFT 002554 WAXIE SANITARY SUPPLY 968.81 328912 02/09/2022 EFT 021844 WILLDAN FINANCIAL SERVICE 2,400.00 328913 02/16/2022 EFT 000004 LITTLEFIELD, DAVID S. 300.00 328914 02/16/2022 EFT 014856 AGRI-CON HYDRAULICS 1,143.70 328915 02/16/2022 EFT 002921 AMERICAN LANDSCAPE AND MA 83,135.76 328916 02/16/2022 EFT 018562 BEST POWER EQUIPMENT, LLC 1,381.79 328917 02/16/2022 EFT 000297 BECK OIL, INC. 128.47
328918 02/16/2022 EFT 000312 BEST, BEST & KRIEGER 2,429.50 328919 02/16/2022 EFT 015877 BOOT BARN, INC. 1,710.93
328920 02/16/2022 EFT 014954 BRIDGEPAY NETWORK SOLUTIO 1,654.30 328921 02/16/2022 EFT 002720 CALIFORNIA TOOL & WELDING 1,013.49 328922 02/16/2022 EFT 014820 CAL-STATE AUTO PARTS 747.85 328923 02/16/2022 EFT 018132 CLINICAL LABORATORY OF SA 6,188.00 328924 02/16/2022 EFT 015486 CONSOLIDATED ELECTRICAL D 53.23 328925 02/16/2022 EFT 000657 CORONA CLAY COMPANY 1,478.22 328926 02/16/2022 EFT 000662 THE COUNSELING TEAM INTER 950.00 328927 02/16/2022 EFT 000677 CRAFCO, INC. 7,808.00
328928 02/16/2022 EFT 014883 LMG NATIONAL PUBLISHING, 210.18 328929 02/16/2022 EFT 015760 FASTENAL COMPANY 598.94
328930 02/16/2022 EFT 017560 FERGUSON ENTERPRISES, LLC 192.39 328931 02/16/2022 EFT 016263 AFECO, INC 2,251.13
328932 02/16/2022 EFT 016134 FRONTIER COMMUNICATIONS C 83.33 328933 02/16/2022 EFT 003960 CENGAGE LEARNING, INC. 264.14 328934 02/16/2022 EFT 001740 G.A. OSBORNE PIPE-SUPPLY 401.03 328935 02/16/2022 EFT 001076 GRAINGER 38.64
328936 02/16/2022 EFT 006269 GREEN, DE BORTNOWSKY, LLP 6,500.00 328937 02/16/2022 EFT 007081 SGM, INC. 38,110.83
328938 02/16/2022 EFT 018938 HARRIS & ASSOCIATES, INC. 14,440.00 328939 02/16/2022 EFT 014977 HEREDIA, SANDRA 3,000.00
328940 02/16/2022 EFT 028225 HESPERIA OUTDOOR POWER EQ 129.69 328941 02/16/2022 EFT 018574 HITACHI ENERGY USA, INC. 121,256.25 328942 02/16/2022 EFT 007512 IMPERIAL SPRINKLER SUPPLY 2,743.13 328943 02/16/2022 EFT 008871 JEFF OVIEDO ASSOCIATES 1,290.00 328944 02/16/2022 EFT 017743 PULICE, SAMUEL A. 25.16
328945 02/16/2022 EFT 001603 MOJAVE WATER AGENCY 28,200.00 328946 02/16/2022 EFT 022816 MUNICIPAL CODE CORPORATIO 375.00 328947 02/16/2022 EFT 008568 NBS GOVERNMENT FINANCE GR 2,500.00 328948 02/16/2022 EFT 018621 NTTAMERICA SOUTIONS, INC 32,682.12 328949 02/16/2022 EFT 003523 ODYSSEY POWER CORPORATION 1,420.00 328950 02/16/2022 EFT 015166 OSTROM, KAREM 3,000.00
328951 02/16/2022 EFT 022232 PERMA-BOUND BOOKS 140.84
328952 02/16/2022 EFT 017106 POUVARANUKOAH, KRIS 1,030.53 328953 02/16/2022 EFT 001886 PRUDENTIAL OVERALL SUPPLY 1,075.60 328954 02/16/2022 EFT 000319 R&R INDUSTRIES, INC. 366.74

CITY OF VICTORVILLE
Report generated: 02/17/2022 08:22 Page 3User:

Program ID:
hguzman
apchkrcn
CHECK # CHECK DATE TYPE VENDOR NAME UNCLEARED CLEARED BATCH CLEAR DATE

AP CHECK RECONCILIATION REGISTER
FOR CASH ACCOUNT: 000 11100 FOR: Uncleared
328955 02/16/2022 EFT 024930 REFRIGERATION SUPPLIES DI 21.35 328956 02/16/2022 EFT 005281 SAFE-ENTRY TECHNICAL, INC 499.94 328957 02/16/2022 EFT 017604 SAFELITE FULFILLMENT, INC 127.26 328958 02/16/2022 EFT 002017 SAFEWAY SIGN CO. 4,191.12
328960 02/16/2022 EFT 020842 ALL PURPOSE FIRE EXT. COR 519.97 328961 02/16/2022 EFT 002123 SHERWIN WILLIAMS COMPANY 1,434.52 328962 02/16/2022 EFT 020203 SKANSKA USA CIVIL WEST CA 2,796,828.03 328963 02/16/2022 EFT 016220 SOUTH COAST EMERGENCY VEH 1,940.31 328964 02/16/2022 EFT 017269 TOWN & COUNTRY TIRE INC 383.49 328966 02/16/2022 EFT 014536 UNITED SITE SERVICES OF C 3,402.50 328967 02/16/2022 EFT 000095 UNIVAR SOLUTIONS USA INC. 4,005.08 328968 02/16/2022 EFT 013356 VALLEYWIDE NEWSPAPERS LLC 49.00 328969 02/16/2022 EFT 015079 VERIZON WIRELESS SERVICES 17,294.95 328970 02/16/2022 EFT 008430 CALMAT COMPANY 2,528.78
328971 02/16/2022 EFT 013434 VICTORVILLE GLASS CO., IN 332.77 328972 02/16/2022 EFT 027877 VICTORVILLE SPEEDWASH, IN 70.00 328973 02/16/2022 EFT 002862 V.V. TOW, INC. 59.00
328974 02/16/2022 EFT 017120 WASHINGTON, DYJUAN 3,000.00 328975 02/16/2022 EFT 002554 WAXIE SANITARY SUPPLY 3,824.41 328976 02/16/2022 EFT 017122 ZAMORA, ZACHARY 400.00
328977 02/16/2022 EFT 018845 Z GLOBAL INC. 1,476.27
784506 02/09/2022 PRINTED 002336 3M 6,895.15
784507 02/09/2022 PRINTED 014848 DOMINGUEZ, MIGUEL 202.19 784508 02/09/2022 PRINTED 015507 UNIVERSAL PROTECTION SERV 25,020.41 784509 02/09/2022 PRINTED 003042 APPLE VALLEY COMMUNICATIO 2,595.00 784510 02/09/2022 PRINTED 017968 AVCOM SERVICES, INC. 90.00 784511 02/09/2022 PRINTED 999974 BRISCOE, LAKEYIA 63.00 784512 02/09/2022 PRINTED 010670 BLUE SHIELD OF CALIFORNIA 8,758.08 784513 02/09/2022 PRINTED 014495 BNSF RAILWAY CO. 1,266.00 784514 02/09/2022 PRINTED 014201 BURLINGTON SAFETY LABORAT 963.40 784515 02/09/2022 PRINTED 000380 BURRTEC WASTE INDUSTRIES 754.49 784516 02/09/2022 PRINTED 016222 CACEO 285.00
784517 02/09/2022 PRINTED 000787 STATE OF CALIFORNIA - DEP 42,745.00 784518 02/09/2022 PRINTED 015839 CAL POLY POMONA FOUNDATIO 950.00 784519 02/09/2022 PRINTED 014097 CANON SOLUTIONS AMERICA, 462.00 784520 02/09/2022 PRINTED 020755 MIKE CAPOSIO BUICK GMC, L 453.72 784521 02/09/2022 PRINTED 019955 CLIFTONLARSONALLEN LLP 2,450.00 784522 02/09/2022 PRINTED 006348 DAILY JOURNAL CORPORATION 149.60 784523 02/09/2022 PRINTED 014737 DITCH WITCH WEST 57.27 784524 02/09/2022 PRINTED 011613 ECORP CONSULTING, INC. 2,530.25 784525 02/09/2022 PRINTED 018833 ESTRADA JR., FRANCISCO 175.00 784526 02/09/2022 PRINTED 999979 TYARS-GREEN, KAREN 290.00 784527 02/09/2022 PRINTED 011371 GARDA CL NORTHWEST, INC. 5,118.32 784528 02/09/2022 PRINTED 025408 THE HARTFORD - PRIORITY A 83,063.35 784529 02/09/2022 PRINTED 017053 HIGH DESERT LOCK & SAFE, 6.00 784530 02/09/2022 PRINTED 001155 HESPERIA HOSE SUPPLY 102.54 784531 02/09/2022 PRINTED 001273 INLAND BOBCAT 36.16
784532 02/09/2022 PRINTED 020667 CONDON, JOSEPH 3,357.50 784533 02/09/2022 PRINTED 006126 KAREN'S KAR KLEARING SERV 55.00 784534 02/09/2022 PRINTED 010135 KAT EQUIPMENT LEASING INC 1,683.98 784535 02/09/2022 PRINTED 018875 KONICA MINOLTA BUSINESS S 456.06 784536 02/09/2022 PRINTED 018875 KONICA MINOLTA BUSINESS S 1,069.79

CITY OF VICTORVILLE
Report generated: 02/17/2022 08:22 Page 4User:

Program ID:
hguzman
apchkrcn
CHECK # CHECK DATE TYPE VENDOR NAME UNCLEARED CLEARED BATCH CLEAR DATE

AP CHECK RECONCILIATION REGISTER
FOR CASH ACCOUNT: 000 11100 FOR: Uncleared
784537 02/09/2022 PRINTED 007233 KOVATCH MOBILE EQUIPMENT 6,191.14 784538 02/09/2022 PRINTED 010660 LOVELAND'S AUTOMOTIVE SER 95.00 784539 02/09/2022 PRINTED 004292 LU'S LIGHTHOUSE 301.07 784540 02/09/2022 PRINTED 999985 MONROY, JUAN 10.87
784541 02/09/2022 PRINTED 000361 MARK BROWN & ASSOCIATES, 220.00 784542 02/09/2022 PRINTED 001648 NAPA AUTO PARTS 729.54 784543 02/09/2022 PRINTED 020815 NEXTERA ENERGY CAPITAL HO 504,691.20 784544 02/09/2022 PRINTED 017651 NOVAK & NORMAL, INC. 16,324.47 784545 02/09/2022 PRINTED 003150 ROBERTSON'S 450.51
784546 02/09/2022 PRINTED 002037 SAN BERNARDINO COUNTY 800.00 784547 02/09/2022 PRINTED 002037 SAN BERNARDINO COUNTY 29.00 784548 02/09/2022 PRINTED 002037 SAN BERNARDINO COUNTY 380.00 784549 02/09/2022 PRINTED 002188 SOUTHERN CALIFORNIA EDISO 402,888.76 784550 02/09/2022 PRINTED 020517 SOUTH COAST FIRE EQUIPMEN 1,749,621.12 784551 02/09/2022 PRINTED 005015 ST. JOHN OF GOD HEALTH SE 8,007.42 784552 02/09/2022 PRINTED 002269 SUNLAND FORD 88.87
784553 02/09/2022 PRINTED 002204 SOUTHWEST GAS CORPORATION 52,300.04 784554 02/09/2022 PRINTED 002426 UNITED PARCEL SERVICE 67.09 784555 02/09/2022 PRINTED 029510 WEST END MATERIAL SUPPLY 85.70 784556 02/09/2022 PRINTED 018574 HITACHI ENERGY USA, INC. 242,077.50 784557 02/09/2022 PRINTED 020868 BRAVO, JOSE 20.26
784558 02/09/2022 PRINTED 020857 CHAU, ALEX LU 11.69
784559 02/09/2022 PRINTED 020869 CHICAGO TITLE CO 64.96 784560 02/09/2022 PRINTED 020870 CLEARMARK TITLE CO 37.31 784561 02/09/2022 PRINTED 020856 CROSSWELL INC 73.71
784562 02/09/2022 PRINTED 020878 DAVIES, DORIS REV LIV TR 560.76 784563 02/09/2022 PRINTED 020853 DING, FRED Z. 96.54
784564 02/09/2022 PRINTED 020084 ELEVEN WESTERN BUILDERS I 608.00 784565 02/09/2022 PRINTED 020877 FERGERSON, ANTHONY 160.00 784566 02/09/2022 PRINTED 020863 GIBSON, JAMES M TRUST 6/1 104.76 784567 02/09/2022 PRINTED 020862 KATT, JESSICA A. 23.85 784568 02/09/2022 PRINTED 020850 LAWS, HERMAN L (DAYCARE) 87.18 784569 02/09/2022 PRINTED 020875 LAWYERS TITLE CO 19.95 784570 02/09/2022 PRINTED 020851 LEE, STEVE S 101.68
784571 02/09/2022 PRINTED 020852 LOPEZ, ELEAZAR A 90.86 784572 02/09/2022 PRINTED 020861 MARSEILLE, MARY 21.02
784573 02/09/2022 PRINTED 020860 MEIER, BREANNA L. 15.38 784574 02/09/2022 PRINTED 004761 MESA PROPERTY MANAGEMENT 85.24 784575 02/09/2022 PRINTED 020854 MIKHAIEL, JOHN 21.73
784576 02/09/2022 PRINTED 020866 MOLINA, PETER 78.59
784577 02/09/2022 PRINTED 020791 MORALES MONROY, CORINA LE 30.86 784578 02/09/2022 PRINTED 020871 ORANGE COAST TITLE CO 121.41 784579 02/09/2022 PRINTED 020873 PROVIDENT TITLE COMPANY 164.84 784580 02/09/2022 PRINTED 013083 REYES, ASHLEY D 84.32
784581 02/09/2022 PRINTED 020858 RODRIGUEZ, PHILLIP 380.42 784582 02/09/2022 PRINTED 020867 SANTOS, ARCADIO 55.62
784583 02/09/2022 PRINTED 019104 SIGNPOST HOMES INC 86.63 784584 02/09/2022 PRINTED 020855 SIGNPOST HOMES INC 64.08 784585 02/09/2022 PRINTED 017033 SORIANO, JORGE 30.92
784586 02/09/2022 PRINTED 020693 SPRUCE TITLE CO 66.04
784587 02/09/2022 PRINTED 002081 TAKAMI, HAZUKI 81.15
784588 02/09/2022 PRINTED 020859 THE COMMUNITY BUILDING GR 53.96

CITY OF VICTORVILLE
Report generated: 02/17/2022 08:22 Page 5User:

Program ID:
hguzman
apchkrcn
CHECK # CHECK DATE TYPE VENDOR NAME UNCLEARED CLEARED BATCH CLEAR DATE

AP CHECK RECONCILIATION REGISTER
FOR CASH ACCOUNT: 000 11100 FOR: Uncleared
784589 02/09/2022 PRINTED 020872 TICOR TITLE CO 47.87
784590 02/09/2022 PRINTED 020874 TICOR TITLE CO 69.58
784591 02/09/2022 PRINTED 020865 UBD INC 563.76
784592 02/09/2022 PRINTED 018077 YI, MICHELLE 15.87
784593 02/09/2022 PRINTED 020864 ZAB, LLC 478.32
784594 02/10/2022 PRINTED 001595 MOJAVE BASIN AREA WATERMA 28,926.77 784595 02/16/2022 PRINTED 016204 4LEAF, INC. 53,903.13
784596 02/16/2022 PRINTED 014848 DOMINGUEZ, MIGUEL 204.37 784597 02/16/2022 PRINTED 014638 ACCURATE OVERHEAD DOOR SY 3,650.63 784598 02/16/2022 PRINTED 005253 ALCALA, ARMANDO 125.00 784599 02/16/2022 PRINTED 015507 UNIVERSAL PROTECTION SERV 24,354.55 784600 02/16/2022 PRINTED 016339 ALL STAR ELITE SPORTS 4,503.76 784601 02/16/2022 PRINTED 024821 ALPHA OMEGA SEPTIC SERVIC 15,410.58 784602 02/16/2022 PRINTED 017968 AVCOM SERVICES, INC. 125.50 784603 02/16/2022 PRINTED 020713 BAKER & HOSTETLER LLP 3,737.00 784604 02/16/2022 PRINTED 015662 BALLARD, JAMES ANDREW AND 4,103.06 784605 02/16/2022 PRINTED 000290 BATTERY MART OF APPLE VAL 367.07 784606 02/16/2022 PRINTED 004380 BELFOR USA GROUP, INC. 182.00 784607 02/16/2022 PRINTED 017353 BOUND TREE MEDICAL, LLC 1,040.68 784608 02/16/2022 PRINTED 000380 BURRTEC WASTE INDUSTRIES 22,181.37 784609 02/16/2022 PRINTED 999975 CSA 42 ORO GRANDE 486.86 784610 02/16/2022 PRINTED 020846 CALIFORNIA HEALTH & SAFET 225.00 784611 02/16/2022 PRINTED 000787 STATE OF CALIFORNIA 809.25 784612 02/16/2022 PRINTED 000787 STATE OF CALIFORNIA 919.50 784613 02/16/2022 PRINTED 020755 MIKE CAPOSIO BUICK GMC, L 148.32 784614 02/16/2022 PRINTED 017063 CHRISTENSEN, TODD 129.35 784615 02/16/2022 PRINTED 009636 CLIMATEC, LLC 4,187.14 784616 02/16/2022 PRINTED 020761 CONCORD UTILITY SERVICES 40,384.02 784617 02/16/2022 PRINTED 018020 DIXON PEST CONTROL, INC. 425.00 784618 02/16/2022 PRINTED 002607 FAUST MEDIA SERVICES, LLC 37.19 784619 02/16/2022 PRINTED 000917 FEDERAL EXPRESS CORP. 72.48 784620 02/16/2022 PRINTED 004581 FLEETPRIDE 472.80
784621 02/16/2022 PRINTED 000975 FRANKLIN TRUCK PARTS, INC 512.71 784622 02/16/2022 PRINTED 019227 GOFORTH, BRENDA 1,039.82 784623 02/16/2022 PRINTED 001063 GOODYEAR COMMERCIAL TIRE 3,274.33 784624 02/16/2022 PRINTED 020843 INTERNATIONAL AEROSPACE C 29,353.00 784625 02/16/2022 PRINTED 010893 JAGGLI, DUSTIN 175.00
784626 02/16/2022 PRINTED 020667 CONDON, JOSEPH 1,750.00 784627 02/16/2022 PRINTED 020637 KDAUNJONEE, SCOTT 165.51 784628 02/16/2022 PRINTED 017076 LANPHAR, JAMES 320.00
784629 02/16/2022 PRINTED 001439 LEAGUE OF CALIFORNIA CITI 32,122.00 784630 02/16/2022 PRINTED 015093 LOGSDON, LEE 195.00
784631 02/16/2022 PRINTED 012515 MASCARO, ANTHONY SR. 8,590.00 784632 02/16/2022 PRINTED 011031 MCCULLOUGH, ANTONIO 115.00 784633 02/16/2022 PRINTED 020609 MIKLOS, LINDA 152.00
784634 02/16/2022 PRINTED 017098 MILLER, MATTHEW 400.00 784635 02/16/2022 PRINTED 017099 MIRANDA-VALDEZ, CHRISTIAN 250.00 784636 02/16/2022 PRINTED 001592 MOBILE OCCUPATIONAL SERVI 135.00 784637 02/16/2022 PRINTED 001648 NAPA AUTO PARTS 836.47 784638 02/16/2022 PRINTED 019844 NEXTREQUEST COMPANY 19,687.00 784639 02/16/2022 PRINTED 020820 NIELSEN MERKSAMER PARINEL 834.00 784640 02/16/2022 PRINTED 001711 OFFICEMAX NORTH AMERICA 123.33

CITY OF VICTORVILLE
Report generated: 02/17/2022 08:22 Page 6User:

Program ID:
hguzman
apchkrcn
CHECK # CHECK DATE TYPE VENDOR NAME UNCLEARED CLEARED BATCH CLEAR DATE

AP CHECK RECONCILIATION REGISTER
FOR CASH ACCOUNT: 000 11100 FOR: Uncleared
784641 02/16/2022 PRINTED 020879 PRO-LINE INDUSTRIAL PRODU 476.66 784642 02/16/2022 PRINTED 011466 RANGE VEHICLE CENTER INC. 331.12 784643 02/16/2022 PRINTED 003857 ROADLINE PRODUCTS INC. 208.10 784644 02/16/2022 PRINTED 003150 ROBERTSON'S 1,245.71
784645 02/16/2022 PRINTED 002746 ROTO-ROOTER PLUMBERS 7,286.00 784646 02/16/2022 PRINTED 999991 SHAW, MARIE 53.00
784647 02/16/2022 PRINTED 002037 SAN BERNARDINO COUNTY 4,513.54 784648 02/16/2022 PRINTED 017490 SBCTOA TREASURER-GABE FER 50.00 784649 02/16/2022 PRINTED 002188 SOUTHERN CALIFORNIA EDISO 35,501.62 784650 02/16/2022 PRINTED 011303 SPORTSENGINE, INC. 328.00 784651 02/16/2022 PRINTED 017936 STAPLES INC 11.51
784652 02/16/2022 PRINTED 004812 STERICYCLE INC. 1,117.44 784653 02/16/2022 PRINTED 017854 STERN BROTHERS & CO. 15,035.94 784654 02/16/2022 PRINTED 002269 SUNLAND FORD 123.16
784655 02/16/2022 PRINTED 002204 SOUTHWEST GAS CORPORATION 1,612.51 784656 02/16/2022 PRINTED 015430 TRI-PACIFIC SUPPLY, INC. 220.85 784657 02/16/2022 PRINTED 010321 VICTOR VALLEY NEWS INC. 4,590.00 784658 02/16/2022 PRINTED 016522 VICTOR VALLEY COLLEGE 1.00 784659 02/16/2022 PRINTED 006861 WATER SYSTEMS CONSULTING, 33,081.50 784660 02/16/2022 PRINTED 014948 WESCO DISTRIBUTION, INC. 9,370.27 784661 02/16/2022 PRINTED 020884 SALAS, JEREMY 875.00
784662 02/16/2022 PRINTED 020822 UBD INC. 22,562.00
784663 02/16/2022 PRINTED 020890 AMG REAL ESTATE 67.45
784664 02/16/2022 PRINTED 020894 FIDELITY NATIONAL TITLE C 774.55 784665 02/16/2022 PRINTED 020895 LAWYERS TITLE 87.86
784666 02/16/2022 PRINTED 020891 OPENDOOR LABS INC 72.39 784667 02/16/2022 PRINTED 020897 ORANGE COAST TITLE CO 116.24 784668 02/16/2022 PRINTED 020893 OZEL DEVELOPING INC 798.20 784669 02/16/2022 PRINTED 007194 SULLY-MILLER CONTRACTING 986.12 784670 02/16/2022 PRINTED 020896 TICOR TITLE CO 16.23
784671 02/16/2022 PRINTED 020892 WU, PING 53.96
784672 02/16/2022 PRINTED 020830 YEPREMIAN, JACK AGOP 66.04 784673 02/16/2022 PRINTED 020337 ZILLOW HOMES PROPERTY TRU 96.16 293 CHECKS CASH ACCOUNT TOTAL 8,137,001.17 .00
Wires initiated through Wells Fargo Bank

DATE OF
WIRE ACCOUNT NAME DESCRIPTION AMOUNT WELLS FARGO BANK CONF # 02/11/22 Vantage Transfer Agents - 401 Vantage Transfer Agents - 401 Payment $ 821.36 CHIPS:0223718/001207/001207 02/22/22 CFD 01-01 Spl Tax Bond, 2005 SerA Principal and Interest payment $ 51,769.54 02/22/22 CFD 07-01 Principal and Interest payment $ 66,579.70 02/22/22 CFD 01-01 Spl Tax Bond, 2002 SerA Principal and Interest payment $ 16,448.75 Total: $ 135,619.35
Item Number: 6
City Council / Board of Directors
Consent Calendar
Meeting of: March 1, 2022
Submitted By:

John Mendiola, Finance Director / City Treasurer

Subject:

Payroll Warrant List
Recommendation:

That the City Council and Board of Directors ratify Payroll Demand Schedule No.7B for Payroll Period January 07, 2022 through January 21, 2022, in the amount of $1,548,994.16 covering Check No. 32634 through 32654, including Vendor checks.

Please note employee Check No. 32640 and 32641 have a live Check and an EFT Advice. Also included are Advice Nos. 284638 through 285068, per adopted budget for Fiscal Year 2020-2021 period covering July 1, 2021 through June 30, 2022.

Fiscal Impact:

A total fiscal impact of $1,548,994.16 is authorized with this action. The attached report details the payments by check numbers.

Discussion:

I hereby certify that the claims or demands covered by the attached list of warrants have been audited as to the accuracy and availability of funds for payment thereof and that said claims or demands are accurate and the funds are available for payment thereof.

Attachments: A. Payroll Report PPE 012122
Attachment A
Payroll Report PPE 012122
City of Victorville Council Payroll Report 01/28/2022Page 1 of 12 City of Victorville
City Council Payroll Report
Payroll Period Beginning: January 07, 2022 through January 21, 2022 Checks
Check Number Employee ID Check Date Total Net
32634 3551 01/28/2022 $606.27
32635 3554 01/28/2022 $136.57
32636 3466 01/28/2022 $136.57
32637 3614 01/28/2022 $136.57
32638 3556 01/28/2022 $136.57
32639 3623 01/28/2022 $542.24
32640 2705 01/28/2022 $819.44
32641 3510 01/28/2022 $1,543.14
32642 3621 01/28/2022 $542.24
32643 3620 01/28/2022 $548.12
32644 3622 01/28/2022 $542.24
32645 3617 01/28/2022 $1,614.51
32646 74 01/28/2022 $100.00
32647 74 01/28/2022 $200.00
32648 240 01/28/2022 $5.00
32649 787 01/28/2022 $233.00
32650 1145 01/28/2022 $100.00
32651 1182 01/28/2022 $100.00
32652 13491 01/28/2022 $422.31
32653 18154 01/28/2022 $175.00
32654 20821 01/28/2022 $423.00
Checks Total 9,062.79
City of Victorville Council Payroll Report 01/28/2022Page 2 of 12 Advices
Check Number Employee ID Check Date Total Net
32640 2705 01/28/2022 $2,000.00
32641 3510 01/28/2022 $385.79
284638 3180 01/24/2022 $4,682.75
284639 3608 01/28/2022 $2,143.38
284640 1099 01/28/2022 $657.43
284641 3495 01/28/2022 $1,686.17
284642 3597 01/28/2022 $3,058.42
284643 3243 01/28/2022 $2,553.58
284644 2115 01/28/2022 $4,766.73
284645 3142 01/28/2022 $1,419.67
284646 2682 01/28/2022 $2,021.52
284647 3297 01/28/2022 $630.71
284648 3458 01/28/2022 $357.45
284649 3229 01/28/2022 $3,660.55
284650 3283 01/28/2022 $2,227.45
284651 1064 01/28/2022 $6,100.01
284652 3467 01/28/2022 $1,797.55
284653 1706 01/28/2022 $4,229.99
284654 2395 01/28/2022 $2,714.44
284655 2624 01/28/2022 $2,324.20
284656 3596 01/28/2022 $2,555.50
284657 3043 01/28/2022 $1,761.51
284658 3031 01/28/2022 $2,408.98
284659 1748 01/28/2022 $2,561.44
284660 2361 01/28/2022 $1,988.46
284661 3618 01/28/2022 $1,598.42
284662 3502 01/28/2022 $1,764.25
284663 3561 01/28/2022 $2,340.92
284664 1903 01/28/2022 $1,602.91
284665 3616 01/28/2022 $2,107.70
284666 3527 01/28/2022 $1,514.86
284667 2627 01/28/2022 $1,871.14
284668 2366 01/28/2022 $1,675.08
284669 2618 01/28/2022 $1,580.16
284670 2594 01/28/2022 $2,434.15
284671 2297 01/28/2022 $1,685.22
284672 3516 01/28/2022 $2,271.21
284673 2093 01/28/2022 $1,400.85
284674 1973 01/28/2022 $3,158.14
284675 2019 01/28/2022 $2,401.45
284676 3494 01/28/2022 $2,224.69
City of Victorville Council Payroll Report 01/28/2022Page 3 of 12 284677 3538 01/28/2022 $1,611.08
284678 2102 01/28/2022 $2,669.89
284679 2233 01/28/2022 $3,034.87
284680 2606 01/28/2022 $1,958.65
284681 3046 01/28/2022 $1,772.29
284682 1635 01/28/2022 $4,252.12
284683 3327 01/28/2022 $1,989.92
284684 3619 01/28/2022 $1,514.64
284685 2287 01/28/2022 $2,581.81
284686 3009 01/28/2022 $3,522.84
284687 2619 01/28/2022 $2,152.88
284688 2603 01/28/2022 $1,606.84
284689 2491 01/28/2022 $2,212.77
284690 2235 01/28/2022 $3,710.02
284691 2300 01/28/2022 $2,952.04
284692 2655 01/28/2022 $1,420.86
284693 2032 01/28/2022 $2,635.69
284694 2685 01/28/2022 $1,723.24
284695 3521 01/28/2022 $2,022.78
284696 3528 01/28/2022 $1,762.57
284697 3045 01/28/2022 $2,271.38
284698 3499 01/28/2022 $1,863.75
284699 3362 01/28/2022 $1,833.15
284700 2232 01/28/2022 $2,473.70
284701 1957 01/28/2022 $2,135.77
284702 3290 01/28/2022 $1,904.30
284703 3085 01/28/2022 $1,896.63
284704 3246 01/28/2022 $2,955.53
284705 2042 01/28/2022 $4,221.54
284706 3615 01/28/2022 $2,282.59
284707 2323 01/28/2022 $2,903.34
284708 1767 01/28/2022 $2,696.78
284709 2225 01/28/2022 $3,152.97
284710 3544 01/28/2022 $1,778.77
284711 3221 01/28/2022 $2,339.32
284712 1855 01/28/2022 $136.57
284713 1533 01/28/2022 $2,165.45
284714 3501 01/28/2022 $3,359.18
284715 2833 01/28/2022 $1,849.76
284716 1627 01/28/2022 $3,607.08
284717 2211 01/28/2022 $3,850.47
284718 3497 01/28/2022 $1,029.45
284719 1426 01/28/2022 $1,023.58
284720 3105 01/28/2022 $1,644.13
City of Victorville Council Payroll Report 01/28/2022Page 4 of 12 284721 2254 01/28/2022 $3,058.14
284722 3354 01/28/2022 $2,967.51
284723 3011 01/28/2022 $1,558.02
284724 3508 01/28/2022 $1,800.12
284725 3295 01/28/2022 $1,650.01
284726 3184 01/28/2022 $2,737.15
284727 3400 01/28/2022 $1,844.87
284728 3547 01/28/2022 $1,069.15
284729 2742 01/28/2022 $2,517.80
284730 3089 01/28/2022 $2,771.11
284731 2379 01/28/2022 $1,789.32
284732 3565 01/28/2022 $963.11
284733 2711 01/28/2022 $1,570.69
284734 2099 01/28/2022 $1,523.14
284735 3586 01/28/2022 $1,667.77
284736 3190 01/28/2022 $2,565.59
284737 2249 01/28/2022 $4,542.42
284738 3250 01/28/2022 $1,029.45
284739 3548 01/28/2022 $1,069.15
284740 3511 01/28/2022 $2,013.64
284741 3581 01/28/2022 $1,253.75
284742 3396 01/28/2022 $2,037.55
284743 3519 01/28/2022 $2,158.55
284744 3541 01/28/2022 $2,042.83
284745 2499 01/28/2022 $2,586.99
284746 3379 01/28/2022 $1,981.70
284747 2105 01/28/2022 $3,754.99
284748 2515 01/28/2022 $2,060.74
284749 2679 01/28/2022 $2,565.92
284750 3490 01/28/2022 $1,892.45
284751 3475 01/28/2022 $2,493.76
284752 3353 01/28/2022 $2,291.93
284753 3542 01/28/2022 $2,195.86
284754 1955 01/28/2022 $2,334.87
284755 3147 01/28/2022 $2,532.22
284756 1632 01/28/2022 $2,289.23
284757 3148 01/28/2022 $2,703.61
284758 3195 01/28/2022 $1,680.69
284759 3602 01/28/2022 $2,155.73
284760 1970 01/28/2022 $2,196.20
284761 1520 01/28/2022 $2,098.54
284762 2605 01/28/2022 $1,874.36
284763 3505 01/28/2022 $3,876.27
284764 2540 01/28/2022 $3,074.55
City of Victorville Council Payroll Report 01/28/2022Page 5 of 12 284765 3522 01/28/2022 $1,736.12
284766 2377 01/28/2022 $2,463.82
284767 1079 01/28/2022 $2,353.15
284768 3463 01/28/2022 $2,298.27
284769 2312 01/28/2022 $7,112.79
284770 1901 01/28/2022 $5,199.29
284771 3068 01/28/2022 $1,884.75
284772 3129 01/28/2022 $3,130.90
284773 1998 01/28/2022 $2,574.35
284774 2376 01/28/2022 $3,987.22
284775 2111 01/28/2022 $2,887.45
284776 3303 01/28/2022 $3,147.48
284777 3558 01/28/2022 $2,251.01
284778 1655 01/28/2022 $2,479.55
284779 3285 01/28/2022 $2,755.60
284780 1529 01/28/2022 $1,670.84
284781 3238 01/28/2022 $3,634.19
284782 3242 01/28/2022 $2,224.78
284783 3346 01/28/2022 $1,858.98
284784 1776 01/28/2022 $2,805.84
284785 3192 01/28/2022 $1,850.05
284786 2635 01/28/2022 $2,239.75
284787 2798 01/28/2022 $2,173.48
284788 2522 01/28/2022 $949.84
284789 3265 01/28/2022 $1,795.20
284790 1503 01/28/2022 $2,408.17
284791 1515 01/28/2022 $2,082.79
284792 2505 01/28/2022 $2,280.26
284793 3299 01/28/2022 $1,841.41
284794 3113 01/28/2022 $2,036.34
284795 1007 01/28/2022 $3,080.03
284796 2343 01/28/2022 $669.34
284797 3273 01/28/2022 $2,171.76
284798 3121 01/28/2022 $2,035.80
284799 1497 01/28/2022 $2,161.62
284800 3537 01/28/2022 $2,027.67
284801 2192 01/28/2022 $1,625.79
284802 2034 01/28/2022 $1,864.36
284803 2275 01/28/2022 $2,580.45
284804 3380 01/28/2022 $2,024.81
284805 3191 01/28/2022 $2,089.28
284806 2530 01/28/2022 $2,608.04
284807 3496 01/28/2022 $293.35
284808 3051 01/28/2022 $1,784.26
City of Victorville Council Payroll Report 01/28/2022Page 6 of 12 284809 1750 01/28/2022 $2,204.17
284810 2770 01/28/2022 $1,729.39
284811 2228 01/28/2022 $2,497.70
284812 3482 01/28/2022 $856.82
284813 3101 01/28/2022 $2,399.65
284814 3335 01/28/2022 $1,882.16
284815 3611 01/28/2022 $1,150.68
284816 3388 01/28/2022 $1,164.76
284817 1249 01/28/2022 $1,813.33
284818 3284 01/28/2022 $2,021.46
284819 3580 01/28/2022 $1,012.05
284820 3270 01/28/2022 $1,499.50
284821 1117 01/28/2022 $3,025.55
284822 1625 01/28/2022 $2,948.05
284823 2248 01/28/2022 $1,803.95
284824 3263 01/28/2022 $1,465.68
284825 1588 01/28/2022 $1,960.91
284826 2189 01/28/2022 $2,238.73
284827 3560 01/28/2022 $1,461.89
284828 3509 01/28/2022 $1,734.12
284829 3226 01/28/2022 $2,622.23
284830 3257 01/28/2022 $1,629.78
284831 1121 01/28/2022 $2,154.23
284832 2689 01/28/2022 $1,008.95
284833 3149 01/28/2022 $2,191.41
284834 2181 01/28/2022 $2,078.01
284835 1865 01/28/2022 $2,173.98
284836 3479 01/28/2022 $542.24
284837 3331 01/28/2022 $1,824.17
284838 1723 01/28/2022 $1,291.15
284839 3288 01/28/2022 $997.65
284840 3296 01/28/2022 $1,823.15
284841 3572 01/28/2022 $1,138.53
284842 2531 01/28/2022 $2,612.37
284843 1513 01/28/2022 $1,955.15
284844 2118 01/28/2022 $984.59
284845 3387 01/28/2022 $974.04
284846 3330 01/28/2022 $1,457.47
284847 2681 01/28/2022 $3,035.92
284848 2119 01/28/2022 $1,680.27
284849 1612 01/28/2022 $1,815.27
284850 1282 01/28/2022 $2,403.31
284851 3610 01/28/2022 $1,069.15
284852 3277 01/28/2022 $1,667.34
City of Victorville Council Payroll Report 01/28/2022Page 7 of 12 284853 3287 01/28/2022 $1,740.37
284854 3037 01/28/2022 $2,032.77
284855 1449 01/28/2022 $2,400.23
284856 3481 01/28/2022 $997.65
284857 2677 01/28/2022 $4,382.24
284858 3341 01/28/2022 $2,533.41
284859 1137 01/28/2022 $1,624.75
284860 2383 01/28/2022 $1,751.97
284861 3130 01/28/2022 $1,681.88
284862 2489 01/28/2022 $1,764.93
284863 3361 01/28/2022 $1,767.54
284864 3139 01/28/2022 $1,528.30
284865 3099 01/28/2022 $2,205.35
284866 2696 01/28/2022 $1,663.81
284867 1287 01/28/2022 $2,723.12
284868 3536 01/28/2022 $2,026.14
284869 1254 01/28/2022 $1,796.03
284870 3187 01/28/2022 $1,748.47
284871 2368 01/28/2022 $1,770.88
284872 3095 01/28/2022 $1,820.52
284873 3532 01/28/2022 $1,770.30
284874 3258 01/28/2022 $1,022.32
284875 3100 01/28/2022 $2,343.48
284876 3259 01/28/2022 $1,022.32
284877 3344 01/28/2022 $1,783.18
284878 1338 01/28/2022 $3,194.93
284879 3507 01/28/2022 $962.29
284880 2229 01/28/2022 $1,566.07
284881 1049 01/28/2022 $2,130.26
284882 1506 01/28/2022 $1,757.59
284883 3568 01/28/2022 $259.49
284884 1959 01/28/2022 $2,883.92
284885 3004 01/28/2022 $1,590.29
284886 1893 01/28/2022 $1,818.87
284887 1581 01/28/2022 $2,309.98
284888 3279 01/28/2022 $1,927.03
284889 2460 01/28/2022 $1,790.53
284890 3112 01/28/2022 $1,689.95
284891 2732 01/28/2022 $1,676.99
284892 3338 01/28/2022 $1,438.75
284893 2552 01/28/2022 $1,760.78
284894 2476 01/28/2022 $3,020.15
284895 2279 01/28/2022 $3,197.86
284896 3515 01/28/2022 $4,430.31
City of Victorville Council Payroll Report 01/28/2022Page 8 of 12 284897 3092 01/28/2022 $2,372.55
284898 3138 01/28/2022 $2,534.57
284899 3146 01/28/2022 $2,529.09
284900 2749 01/28/2022 $819.30
284901 2748 01/28/2022 $1,943.90
284902 2669 01/28/2022 $2,956.54
284903 2623 01/28/2022 $1,732.07
284904 2637 01/28/2022 $2,692.58
284905 3079 01/28/2022 $1,615.28
284906 2638 01/28/2022 $2,560.47
284907 3513 01/28/2022 $1,744.28
284908 3109 01/28/2022 $2,262.93
284909 2671 01/28/2022 $2,952.39
284910 3019 01/28/2022 $2,767.94
284911 2593 01/28/2022 $2,145.81
284912 3328 01/28/2022 $1,952.98
284913 3461 01/28/2022 $1,744.33
284914 2626 01/28/2022 $1,986.02
284915 3038 01/28/2022 $2,060.86
284916 3052 01/28/2022 $1,805.94
284917 2290 01/28/2022 $1,810.70
284918 3110 01/28/2022 $2,223.80
284919 2641 01/28/2022 $1,842.29
284920 2612 01/28/2022 $2,372.50
284921 2642 01/28/2022 $2,744.60
284922 2674 01/28/2022 $2,198.35
284923 3231 01/28/2022 $2,148.85
284924 3228 01/28/2022 $2,217.17
284925 2628 01/28/2022 $2,399.66
284926 3301 01/28/2022 $1,520.63
284927 2630 01/28/2022 $2,901.00
284928 2643 01/28/2022 $1,813.09
284929 3182 01/28/2022 $2,239.78
284930 2599 01/28/2022 $2,362.62
284931 2683 01/28/2022 $2,014.26
284932 2753 01/28/2022 $2,051.84
284933 2610 01/28/2022 $2,484.35
284934 3323 01/28/2022 $1,707.98
284935 1389 01/28/2022 $3,003.70
284936 3264 01/28/2022 $2,044.47
284937 2808 01/28/2022 $2,150.78
284938 2646 01/28/2022 $2,729.49
284939 2600 01/28/2022 $2,793.24
284940 2524 01/28/2022 $2,254.25
City of Victorville Council Payroll Report 01/28/2022Page 9 of 12 284941 2686 01/28/2022 $2,850.58
284942 2193 01/28/2022 $3,555.17
284943 3322 01/28/2022 $2,282.55
284944 3230 01/28/2022 $2,773.08
284945 1931 01/28/2022 $1,734.09
284946 2038 01/28/2022 $1,674.50
284947 2339 01/28/2022 $2,118.68
284948 2678 01/28/2022 $3,221.78
284949 3240 01/28/2022 $1,942.10
284950 3215 01/28/2022 $2,502.49
284951 3035 01/28/2022 $2,006.59
284952 3185 01/28/2022 $2,034.59
284953 1853 01/28/2022 $2,614.11
284954 3503 01/28/2022 $2,266.84
284955 3589 01/28/2022 $830.51
284956 3570 01/28/2022 $76.48
284957 3376 01/28/2022 $2,740.50
284958 3384 01/28/2022 $741.68
284959 3386 01/28/2022 $1,799.70
284960 2488 01/28/2022 $510.13
284961 3120 01/28/2022 $846.67
284962 3474 01/28/2022 $1,062.65
284963 3582 01/28/2022 $583.17
284964 3252 01/28/2022 $2,577.81
284965 3070 01/28/2022 $1,948.17
284966 1866 01/28/2022 $1,497.26
284967 3371 01/28/2022 $959.77
284968 3577 01/28/2022 $370.57
284969 3267 01/28/2022 $867.75
284970 2478 01/28/2022 $719.38
284971 3470 01/28/2022 $755.93
284972 3315 01/28/2022 $895.76
284973 3471 01/28/2022 $919.25
284974 3531 01/28/2022 $3,387.12
284975 3587 01/28/2022 $794.85
284976 3029 01/28/2022 $1,639.11
284977 3326 01/28/2022 $2,917.27
284978 3609 01/28/2022 $794.85
284979 3492 01/28/2022 $286.67
284980 3566 01/28/2022 $491.53
284981 3397 01/28/2022 $1,843.89
284982 2006 01/28/2022 $124.09
284983 2684 01/28/2022 $1,418.66
284984 1966 01/28/2022 $1,992.38
City of Victorville Council Payroll Report 01/28/2022Page 10 of 12 284985 2204 01/28/2022 $2,829.47
284986 2355 01/28/2022 $2,110.98
284987 3500 01/28/2022 $2,027.70
284988 3601 01/28/2022 $1,497.78
284989 2039 01/28/2022 $1,705.98
284990 3281 01/28/2022 $1,542.37
284991 1990 01/28/2022 $2,383.20
284992 3550 01/28/2022 $2,064.90
284993 2629 01/28/2022 $1,874.61
284994 3348 01/28/2022 $1,520.36
284995 1544 01/28/2022 $2,254.12
284996 3543 01/28/2022 $1,752.60
284997 3107 01/28/2022 $1,959.92
284998 3081 01/28/2022 $1,869.09
284999 3523 01/28/2022 $3,138.28
285000 3271 01/28/2022 $1,645.15
285001 3017 01/28/2022 $3,937.59
285002 3512 01/28/2022 $2,168.26
285003 2027 01/28/2022 $1,113.93
285004 2330 01/28/2022 $2,151.11
285005 1932 01/28/2022 $1,635.12
285006 2590 01/28/2022 $2,829.28
285007 3437 01/28/2022 $4,930.45
285008 3416 01/28/2022 $2,603.62
285009 3421 01/28/2022 $2,963.94
285010 3439 01/28/2022 $2,146.78
285011 3440 01/28/2022 $2,010.92
285012 3441 01/28/2022 $4,600.31
285013 3559 01/28/2022 $4,429.48
285014 3473 01/28/2022 $2,361.44
285015 3406 01/28/2022 $5,723.65
285016 3422 01/28/2022 $2,358.55
285017 3407 01/28/2022 $3,668.76
285018 3442 01/28/2022 $2,899.32
285019 3368 01/28/2022 $1,245.47
285020 3433 01/28/2022 $4,008.03
285021 3469 01/28/2022 $13,188.91
285022 3424 01/28/2022 $2,583.10
285023 3414 01/28/2022 $5,245.25
285024 3425 01/28/2022 $4,218.20
285025 3443 01/28/2022 $3,231.08
285026 3600 01/28/2022 $3,141.04
285027 3598 01/28/2022 $4,480.61
285028 3418 01/28/2022 $2,031.89
City of Victorville Council Payroll Report 01/28/2022Page 11 of 12 285029 3444 01/28/2022 $3,242.88
285030 3583 01/28/2022 $5,943.90
285031 3585 01/28/2022 $2,983.14
285032 1718 01/28/2022 $8,786.68
285033 3409 01/28/2022 $2,955.86
285034 3426 01/28/2022 $4,769.85
285035 3584 01/28/2022 $3,987.10
285036 3410 01/28/2022 $2,945.79
285037 3447 01/28/2022 $3,872.46
285038 3427 01/28/2022 $2,527.80
285039 3607 01/28/2022 $2,876.28
285040 3411 01/28/2022 $6,387.27
285041 3448 01/28/2022 $4,307.12
285042 3571 01/28/2022 $1,875.16
285043 3518 01/28/2022 $6,388.57
285044 3449 01/28/2022 $5,195.95
285045 3428 01/28/2022 $4,031.53
285046 3429 01/28/2022 $3,389.18
285047 3455 01/28/2022 $4,663.11
285048 3451 01/28/2022 $5,163.74
285049 3595 01/28/2022 $4,820.44
285050 3430 01/28/2022 $3,326.43
285051 3452 01/28/2022 $4,239.82
285052 3417 01/28/2022 $2,035.47
285053 3431 01/28/2022 $2,962.92
285054 3419 01/28/2022 $2,634.96
285055 3524 01/28/2022 $1,637.80
285056 3412 01/28/2022 $4,556.50
285057 3564 01/28/2022 $2,121.90
285058 3420 01/28/2022 $5,991.67
285059 3378 01/28/2022 $3,749.54
285060 3435 01/28/2022 $3,185.46
285061 3432 01/28/2022 $4,004.26
285062 3408 01/28/2022 $3,457.87
285063 3445 01/28/2022 $3,087.16
285064 3456 01/28/2022 $3,920.91
285065 3591 01/28/2022 $3,503.07
285066 3392 01/28/2022 $3,423.42
285067 2210 01/28/2022 $2,457.69
285068 3434 01/28/2022 $2,072.60
Advices Total 1,012,834.21
City of Victorville Council Payroll Report 01/28/2022Page 12 of 12 Electronic Vendor Payments
Vendor Check Date Total Gross
IRS 1/19/2022 114.08
IRS 1/24/2022 990.14
IRS 1/28/2022 176635.03
State Taxes 1/20/2022 0.66
State Taxes 1/24/2022 298.41
State Taxes 1/31/2022 48563.88
CASDU 1/28/2022 4126.53
Deferred Comp (457) 1/28/2022 2998.04
Deferred Comp (457) 1/31/2022 61009.31
Deferred Comp (401a) 1/28/2022 352.64
PERS 2/4/2022 229188.44
VV Professional Firefighters 1/27/2022 2,820.00
Total Electronic Payments 527,097.16
Item Number: 7
City Council / Board of Directors
Written Communications
Meeting of: March 1, 2022
Submitted By:

John Mendiola, Finance Director / City Treasurer

Subject:

Annual Financial Reports for the Fiscal Year Ended June 30, 2021 Recommendation:

That the City Council and Board of Directors approve a motion to receive and file the following: (1) City of Victorville Annual Comprehensive Financial Report for the Fiscal Year ended June 30, 2021, (2) Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Governmental Auditing Standards for the Fiscal Year ended June 30, 2021, (3) Victorville Water District Basic Financial Statements for the Fiscal Year ended June 30, 2021, and (4) Southern California Logistics Airport Authority Basic Financial Statements for the Fiscal Year ended June 30, 2021.

Fiscal Impact:

There is no fiscal impact for this item as it is information only to receive and file.

Background:

The City's financial statements for the Fiscal Year ended June 30, 2021 were audited by the independent audit firm CliftonLarsonAllen LLP, Certified Public Accountants. The City of Victorville's Audit Committee, which includes Mayor Debra Jones and Mayor Pro Tem Leslie Irving, met on February 22, 2022, to review and discuss the draft Annual Comprehensive Financial Report (ACFR) for Fiscal Year ended June 30, 2021.

After discussion, the final version of the ACFR is being presented to the City Council and the Board of Directors for receipt and filing. Also being presented to the City Council and the Board of Directors for receipt and filing are the audited Victorville Water District Basic Financial Statements and the Southern California Logistics Airport Authority Basic Financial Statements for the Fiscal Year ended June 30, 2021. The Victorville Water District and the Southern California Logistics Airport Authority issue separate financial 2 4
5 3
statements since they are considered component units of the City; however, the financial information for these component units is also in the ACFR.

Discussion:

Audit Opinion
Beginning with period ending on or after December 15, 2020, new standards require the Independent Auditors’ Report (Attachment A, Page 1) to follow a new format and new wording. This includes the opinion section wording as shown in the attached reports. Any qualifying matters are disclosed in the paragraphs directly below the opinion entitled Emphasis of Matter and Other Matters. AICPA defines an Unmodified Opinion as “The opinion expressed by the auditor when the auditor concludes that the financial statements are presented fairly, in all material respects, in accordance with the applicable financial reporting framework.” (2021 AICPA Professional Standards AU-C §700.10). The auditors have issued Unmodified Opinions on all three financial statements for the City, Victorville Water District, and Southern California Logistics Airport Authority. This means they are “clean” audits.

Financial Highlights
Below are some financial highlights:
General Fund
The General Fund is the chief operating fund of the City of Victorville. At the end of the current fiscal year, the unrestricted fund balance of the General Fund was $34.1 million, while the total fund balance was $39.2 million. This is an increase of $14.7 million in total fund balance from Fiscal Year 2020. As a measure of the General Fund’s liquidity, the unrestricted fund balance represents 50.8% of the total General Fund expenditures and the total fund balance represents 58.4% of the General Fund expenditures. The General Fund reserve policy established a target that the unrestricted fund balance represents 17% of the total General Fund expenditures.

General Fund revenue increased by $13.9 million during Fiscal Year 2021 compared to Fiscal Year 2020. This increase was mainly due to the increase in revenue generated from taxes in the amount of $11.1 million and licenses and permits in the amount of $1.5 million.

The Measure P 1% transactions and use tax was approved by the voters in November 2020 and took effect in April 2021. The Measure P Fund is included with the “General Fund” in the main financial statements; however, it is accounted for separately in the City’s financial system and is not included in the calculations above in regards to the General Fund’s liquidity and reserve policy. To provide additional information, the breakdown of the “General Fund” amounts in the financial statements is shown in the ACFR Supplementary Information Section on pages 130 and 131. The amount of Measure P revenue recorded for the last three months of the fiscal year was $7.1 million; however, since the expenditures were 2 4
5 3
minimal, a calculation is not done to measure the liquidity for Fiscal Year 2021.

This calculation will be done in future years and management would like it to have the same reserve policy as the General Fund with a target of 17%.

General Fund expenditures increased by $3.6 million as compared to the prior fiscal year, primarily due to cost increases resulting from public safety. Enterprise Funds
The Victorville Municipal Utility Services (VMUS) electric fund continues to expand its services and improve its infrastructure throughout the Southern California Logistics Airport (SCLA) and its rate structure was sufficient to cover operating expenditures for the current year. VMUS also executed another renewable power purchase agreement. With this agreement in place, VMUS exceeds current regulatory requirements. Adding renewable energy to our resource mix also enables VMUS to offer fair and reasonable rates and meet customer demands for clean energy. During fiscal year 2021 we also undertook a very important project to upgrade pipe in our natural gas distribution system for Victorville Municipal Utility Services (VMUS). We replaced 7,000 feet of outdated plastic pipe to add safety and reliability for our VMUS customers; and we added nine new services to increase our capacity for future growth.

The Sanitary Sewer Division made $2.1 million in sewer improvements near Del Rey during the fiscal year as part of the capital plan as well as work in the Santa Fe Wash and infrastructure for the Green Tree Extension. As planned with the current rate structure, expenditures slightly exceeded revenues in the use of capital reserves for several sewer main installations and infrastructure improvements. The current rate structure performed sufficiently to handle the current operating expenditures.

The Victorville Water District continued to evaluate and upgrade its infrastructure with replacement of aging small diameter pipe and plastic service lines with new larger PVC, replacing 960 water services lines in 2021.

The Southern California Logistics Airport Authority (SCLAA) continued to improve and rehabilitate its infrastructure with the continuation of phase two of the Runway 17-35 rehabilitation project through the assistance of FAA grants. SCLAA continues to cover annual expenditures with annual revenues received. Capital Accomplishments
This marked the third year of pavement impact fees, which are set aside in the General Fund as the required Maintenance of Effort (MOE) in order to receive SB1 tax funding from the State. In 2021, work started on Liberty Village Slurry Seal, Seventh and Arrowhead, Third and Herbert, and Industrial Silica Road projects.

The majority of these construction projects are continuing in Fiscal Year 2022 and are estimated at a combined cost of over $7.0 million in the SB1 gas tax fund. 2 4
5 3
Other special revenue funds such as Measure I, Local Transportation Funds (LTF) and Federal and State Grants have also aided in funding the completion of capital projects. We continue to make great progress on our Green Tree Extension since our groundbreaking in June 2021. We are extending Green Tree Boulevard to Ridgecrest/Yates Road connecting the communities of Victorville and Apple Valley. We re-located a sewer main line, and the major utility and drainage work is complete. Right now, crews are constructing the 600-foot bridge over the BNSF Railroad. Barring any delays, our Green Tree Extension will be complete by Summer 2023.
Coronavirus (COVID-19)
This pandemic first became a real concern to City leadership in March 2020. The executive and leadership teams have continued to collaborate and provide preventative measures not only to city employees and city sites, but proactively throughout the community. Through the Coronavirus Aid Relief and Economic Security Act (CARES) funding and other grant opportunities and donations, the City has been able to put together all the preventative measures it has without experiencing a drain on the general fund reserves.

As the City’s annual audit process for the Fiscal Year ended June 30, 2021, has been completed and the City’s independent auditor has issued an “Unmodified Opinion” or “Clean” opinion for the reports, staff recommends the Council and Board of Directors receive and file the following reports: (1) City of Victorville Annual Comprehensive Financial Report for the Fiscal Year ended June 30, 2021, (2) Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Governmental Auditing Standards for the Fiscal Year ended June 30, 2021, (3) Victorville Water District Basic Financial Statements for the Fiscal Year ended June 30, 2021, and (4) Southern California Logistics Airport Authority Basic Financial Statements for the Fiscal Year ended June 30, 2021.

Staff remains available for any questions or comments.

Attachments: A. City of Victorville Annual Comprehensive Financial Report (ACFR) for Fiscal Year Ended June 30, 2021
B. Independent Auditors Report for Fiscal Year Ended June 30, 2021 C. Victorville Water District Basic Financial Statements for Fiscal Year Ended June 30, 2021
D. Southern California Logistics Airport Authority Basic Financial Statements for Fiscal Year Ended June 30, 2021
Attachment A
City of Victorville Annual
Comprehensive Financial Report
(ACFR) for Fiscal Year Ended
June 30, 2021

CITY OF VICTORVILLE

VICTORVILLE, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT

YEAR ENDED JUNE 30, 2021

CITY OF VICTORVILLE

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2021

INTRODUCTORY SECTION

TRANSMITTAL LETTER I

ORGANIZATIONAL CHART VIII

LIST OF ELECTED AND APPOINTED OFFICIALS IX

LEADERSHIP TEAM XI

FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT 1
MANAGEMENT’S DISCUSSION AND ANALYSIS 4
FUND STATEMENTS 5

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 19
STATEMENT OF ACTIVITIES 22

FUND FINANCIAL STATEMENTS

GOVERNMENTAL FUNDS
BALANCE SHEET 25

RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL
FUNDS TO THE STATEMENT OF NET POSITION 26

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES – GOVERNMENTAL FUNDS 27

RECONCILIATION OF THE STATEMENT OF REVENUES,

EXPENDITURES, AND CHANGES IN FUND BALANCES OF
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES 28

PROPRIETARY FUNDS
STATEMENT OF NET POSITION 30

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND
NET POSITION 34
STATEMENT OF CASH FLOWS 36

CITY OF VICTORVILLE

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2021

FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET POSITION 40
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION 41
NOTES TO BASIC FINANCIAL STATEMENTS 43

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS DURING THE MEASUREMENT PERIOD (AGENT PLAN) 114
SCHEDULE OF PLAN CONTRIBUTIONS (AGENT PLAN) 116
SCHEDULE OF PLAN’S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY (COST SHARING PLAN) 118
SCHEDULE OF PLAN CONTRIBUTIONS (COST SHARING PLAN) 120

SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS 122

STATEMENTS OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
GENERAL FUND 124
CITY HOUSING ASSET SUCCESSOR SPECIAL REVENUE FUND 125
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION 126

SUPPLEMENTARY INFORMATION

GENERAL FUND
DESCRIPTION OF GENERAL FUNDS 129
COMBINING BALANCE SHEET 130

COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE 131

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL – CAPITAL IMPACT FACILITIES – MAJOR FUND 132

NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET 136

CITY OF VICTORVILLE

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2021

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES 138

SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL
MEASURE I FUND 140
OTHER FEDERAL GRANTS FUND 141

LANDSCAPE MAINTENANCE AND DRAINAGE FACILITIES
ASSESSMENT DISTRICT FUND 142
STREET LIGHTING FUND 143
TRAFFIC SAFETY FUND 144
ASSET SEIZURE FUND 145
STORM DRAIN UTILITY FUND 146
GAS TAX FUND 147
TRANSPORTATION TAX FUND 148
OTHER STATE/LOCAL GRANTS FUND 149
HUD GRANTS FUND 150
COVID-19 FUND 151
FOXBOROUGH RAIL FUND 152

FIDUCIARY FUNDS
COMBINING SCHEDULE OF FIDUCIARY NET POSITION – CUSTODIAL FUNDS 154
COMBINING SCHEDULE OF CHANGES IN FIDUCIARY NET POSITION – CUSTODIAL FUNDS 155

STATISTICAL SECTION

FINANCIAL TRENDS
NET POSITION BY COMPONENT 159
CHANGES IN NET POSITION BY COMPONENT 160
FUND BALANCES OF GOVERNMENTAL FUNDS 162
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS 163

CITY OF VICTORVILLE

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2021

REVENUE CAPACITY
ASSESSED VALUE OF TAXABLE PROPERTY 164
DIRECT AND OVERLAPPING PROPERTY TAX RATES 165
PRINCIPAL PROPERTY TAXPAYERS 166
PROPERTY TAX LEVIES AND COLLECTIONS BY DISTRICT 167

DEBT CAPACITY
RATIOS OF OUTSTANDING DEBT BY TYPE 168
RATIOS OF OUTSTANDING DEBT BY TYPE 169
RATIO OF GENERAL BONDED DEBT OUTSTANDING 170
LEGAL DEBT MARGIN 171
DIRECT AND OVERLAPPING DEBT 172
PLEDGE REVENUE COVERAGE 173

DEMOGRAPHIC AND ECONOMIC INFORMATION
DEMOGRAPHIC AND ECONOMIC STATISTICS 174

OPERATING INFORMATION
FULL-TIME AND PART-TIME CITY EMPLOYEES BY FUNCTION 175
OPERATION INDICATORS BY FUNCTION 176
CAPITAL ASSET STATISTICS BY FUNCTION 178

INTRODUCTORY SECTION

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760.955.5000
FAX 760.245.7243
[email protected]
http://ci.victorville.ca.us
14343 Civic Drive
P.O. Box 5001

CITY OF

VICTORVILLE

February xx, 2022

The Honorable Mayor, Members of the City Council
and the Citizens of the City of Victorville, California

In accordance with the City Charter of the City of Victorville and California state law, please accept submission of the Annual Comprehensive Financial Report (ACFR) for the fiscal year ending June 30. 2021. Responsibility for the accuracy of the data, completeness, and fairness of the presentation, including all disclosures, rests with the City. Consequently, management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal controls it has established for this purpose. We believe the data included is accurate in all material aspects and is presented in a manner designed to fairly set forth the financial position and operational achievements of the City, as measured by the financial activity of its various funds. In addition, all disclosures necessary to enable the reader to gain maximum understanding of the City’s financial activities have been included.

The City Charter requires an annual audit of the City’s financial statements by an independent Certified Public Accountant. Accordingly, this year’s audit was completed by Clifton Larson Allen LLP in conformance with generally ac cepted auditing standards (GAAS). The ACFR was prepared in conformance with generally accepted accounting principles (GAAP) as promulgated by the Governmental Accounting Standards Bo ard (GASB). An inde pendent audit involves examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting princi ples used and significant estimates made by management; and evaluating the overall financial statement presentation. The auditor’s unmodified opinion on the basic financial statement is included in the Financial Section of this report.

Management’s discussion and analysis (MD&A) i mmediately follows the independent auditor’s report and provides a narrative introduction, overview, and analysis of the City’s basic financial statements. MD&A complements this letter of transmittal and should be read in conjunction with it.

City of Victorville Profile

The City of Victorville is in the High Desert along Interstate 15, about 40 miles north of the City of San Bernardino, and serves an area of 74.09 square miles with a population of approximately 134,810.

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The City of Victorville was incorporated as a general law city on September 21, 1962. On July 26, 2008, The City of Victorville became a charter city that operates under a Council-Manager form of government. The City Manager is responsible for the efficient implementation of Council policy and the effective administration of all Ci ty government affairs. There are five elected council members. On September 27, 2021, the Victorville City Council declared its intention to transition from at-large to district-based elections. After gathering community input through three community meetings and six public hearings, the City Council adopted Ordinance 2422, which includes the final district election map and corresponding sequencing. Additional information on terms can be found on the Council page or on the city website. Victorville’s economic community is a vital mix of retail, shopping, restaurants, service businesses, hotels, public services, and industry.

The City provides a full range of services including highways and streets, sanitation, park and recreation, library, aviation, municipal utilities, public improvements, planning and zoning, community development, code enforcement, animal control, fire, and general administrative services. The City contracts with the County of San Bernardino for police services. In addition to general government activities, the City Council also serves as the Board of Directors of Southern California Logistics Airport Authority (SCLAA) and Victorville Water District. Therefore, these activities have been included as part of the City of Victorville’s financial report. Additional information on these entities can be founded in Note 1 in the notes to the financial statements.

The City maintains extensive budgetary controls. The objective of these controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the Council. Activities of the general fund and special revenue funds are included in the annual appropriated budget. Project-length budgets are prepared for the capital project funds. The level of budgetary control (i.e., the level at which expenditures can not legally exceed the appropriated amount) is at the departmental level within each fund. The government also maintains an encumbrance accounting system as one method of maintaining budgetary control.

Ongoing capital budgets and grants roll forward to the following year. Other encumbered amounts lapse at year-end. However, outstanding operating encumbrances generally are re- appropriated as part of the following year’s budget.

Local Economy

Victorville has continued to strive with its economic growth. Although the pandemic hit many businesses hard, resulting in some closures, new businesses such as restaurants, gas stations, and retail stores, along with online shopping, helped boost the City of Victorville’s Sales Tax revenue for fiscal year 2021.

Nationally, unemployment rates have declined over the past year; however, Victorville rates still remain high in comparison to the State. The California Employment Development Department reports that for calendar year 2021, San Bernardino/Riverside Metropolitan Area was at 3.7%, down from 6.5% for calendar year 2020. Victorville’s December unemployment rate was 8.2%, which is high compared to the 5.2% for San Bernardino County as a whole.

Starting in fiscal year 2017, the sales tax revenue reverted to the original Bradley Burns tax rate of 1%. Auto sales and retail sales of general consumer goods continue to show strong numbers and make up more than 50% of sales tax revenue generated in the City of Victorville.

Restaurants, along with fuel and service stations, also produce a large portion of the sales tax revenue for the City.

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In November of 2020, Victorville voters elected to approve a 1% transactions and use tax on the ballot, designated as Measure P. This 1% general tax was effective April 1, 2021 and as of June 2021, brought in tax revenue of just over $7 million. Beginning in 2021, city council approved the hiring of additional police, fire, code and animal control enforcement personnel and equipment to aid response times for our citizens.

Southern California home prices continue to rise, and the number of sales, continues to decline.

Low mortgage interest rates slowly started climbing throughout the year but combined with low housing
inventory and stimulus money distributed through federal and state sources, the demand for housing continued, although at a slower rate as 2021 ended. Victorville’s median housing price at the end of June 2021 was $261,327 and at the end of 2021, there was a 1.18% increase in median home price value over the twelve-month period.

The economy is continuing to turn around despite setbacks related to the pandemic, as shown by an increase in retail sales of consumable goods. Strong sales and new business additions boosted sales tax revenues for the City. Property tax revenue also continued to grow. The current pattern of increases are anticipated to continue throughout most of fiscal year 2022.

CITY ACCOMPLISHMENTS
A strong fiscal position is key to us achieving our lofty goals. Through hard work, reduced spending, and increasing revenue streams, the City of Victorville is in a very strong fiscal position. We increased our General Fund Reserve Target from 15% to 17% this past year.

Currently, we are exceeding this reserve target, which puts the City in a very good position to weather unexpected future expenses.

Underscoring our strong fiscal position, we also received a credit rating from Standard and Poor’s of AA- as well as a clean audit for Fiscal Year 2019-20. The City received $61 million in grant funding to further our initiatives. We opened Fire Station 315 with the addition of six firefighter/paramedics, enabling us to expand service in the Southwest part of Victorville. We have four new fire apparatus on order which includes three Type 1 Engines and a Tiller. These new apparatuses will update our aging fleet to aid our fire & medical response. Also, Victorville Fire is the first fire agency in the region to equip every responding apparatus with a LUCAS Device that delivers automated chest compressions to improve patient outcomes. We added eleven police personnel - including five sheriff's deput ies, five sheriff's service specialists, and one crime analyst to help us prevent crime, and speed up response times. We are also adding fifty automatic license plate readers or ALPRS, which will bring the total number of ALPRS in Victorville to 107. The ALPRS are proving to be very effective in helping us prevent, investigate, and solve crime.

The Victorville economy is thriving. A key indicator of this is the explosive growth at our Southern California Logistics Airport (SCLA). Currently, four large industrial buildings totaling nearly 3 million square feet are under construc tion at SCLA thanks to our development partner, ProLogis. This development nearly equals all the dev elopment at SCLA over the past 22 years.

One of the buildings under construction is an Amazon Fulfilment Center, which is expected to bring 1,000 new jobs to Victorville. SCLA is the largest employment center in the region, and we look forward to more opportunities to bring good paying jobs to our community.

We issued more than 2,000 business licenses in 2021 including more than 100 new retail businesses. A few of the notable businesses were Amazon Last Mile Delivery Station that moved into the old, vacant Walmart on Bear Valley Road; the much-anticipated Chick-fil-A on

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Mariposa Road, and the Multi-tenant retail development located on Bear Valley Road near Cottonwood that included Dutch Bros Coffee, Jersey Mike's, Cricket Wireless, and Buffalo Spot.

We have continued to see sustained increases in most of our major permit categories, but especially in the area of single-family home development. As of November 2021, we issued 740 single-family home permits - an increase of 46% over last year.

We have made great progress on our Green Tree Extension since our groundbreaking last June. We are extending Green Tree Boulevard to Ridgecrest/Yates Road connecting the communities of Victorville and Apple Valley. We re-located a sewer main line, and the major utility and drainage work is complete. Right now, crews are constructing the 600-foot bridge over the BNSF Railroad. Barring any delays, our Green Tree Extension will be complete by Summer 2023.

In 2021, we undertook several significant road improvement projects. We reconstructed Industrial Boulevard and Silica Drive. We also replaced 960 water services and repaired 15 miles of roadway in the Liberty Village Area. We installed a new traffic signal at the intersection of Mariposa & Yates. Public works crews were busy throughout the year and filled 7,611 potholes, repaired 215,630 linear feet of streets with crack sealing and poured 21,335 square feet of concrete.

During fiscal year 2021 we also undertook a very important project to upgrade pipe in our natural gas distribution system for Victorville Municipal Utility Services (VMUS). We replaced 7,000 feet of outdated plastic pipe to add safety and reliability for our VMUS customers; and we added nine new services to increase our capacity for future growth. Our VMUS also executed another renewable power purchase agreement. With this agreement in place, VMUS exceeds regulatory requirements at this time. Adding renewable energy to our resource mix also enables VMUS to offer fair and reasonable rates and meet customer demands for clean energy.

We used GIS technology to collect data about our water distribution network. This data will help us optimize water distribution and more-easily plan for future capacity growth as needed. We continue to upgrade our systems to enhance our customer service. During 2021, we installed two customer drive through kiosks in front of Ci ty Hall that enable customers to pay bills and make bill inquiries 24 hours a day, seven days a week and two more in the lobby for contact free interaction. We upgraded our Citizen Self-Service Portal. Now, the portal is easier to use on a variety of browsers, and provides easy, convenient self-service options for permits, plans, licenses, inspections, and fees.

In December 2021, we learned that we have been awarded a 28-million-dollar grant from the state to construct our Wellness Center Campus, which is key to our efforts to reduce homelessness in Victorville. We expect to begin construction in 2022. The City also funded the operation of an interim homeless shelter at Westwinds Sports Center to increase access to shelter and services. The shelter operator, Illumination Foundation began operation in June.

We also constructed a few field treatment tents at the interim shelter that were used for COVID- 19 quarantine and isolation of shelter occupants. Additionally, Desert Haven opened in September. We collaborated with the County on this 52-unit complex that provides housing to the chronically homeless.

As an entitlement City, we receive Federal Department of Housing and Urban Development (HUD) dollars that we gladly invest in our community. This year, we distributed more than $3.2 million dollars to local service organizations and programs that provide beneficial services to our community members. Through our many abatement efforts and community clean ups, we collected more than eleven-hundred tons of trash that was illegally dumped in our desert. New for 2022, we added five code enforcement officers to help us be more proactive in responding to nuisance complaints including illegal dumping. We also started using work release prisoners to

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conduct large-scale cleanups once or twice a month. With their help, we cleaned up several large dump sites and encampments. Usage of our Recycling Drop Off Center increased significantly. This year, we hit a milestone with nearly 12,900 visitors taking advantage of the center; and the tons collected increased 65% over last year's total.

Connecting with our community is one of our greatest priorities. When COVID-restrictions allowed, we hosted a variety of events that brought our community together to connect and have fun. This includes our first-ever Concert in the Park Series and Victorville Sings Competition, which drew thousands of communi ty members to Hook Park each Friday in September. We repaired the pool deck that was damaged by the Ridgecrest Earthquake and resumed swim lessons at Doris Davies Park Pool in July and August. We also hosted our first- ever adult cornhole tournament. In December, we were awarded a $3.3-million-dollar grant from the state department of parks and recreation to expand offerings and upgrade existing features to increase inclusivity at Eva Dell Park.

We also used our communication platform to engage with our community. In 2021, we distributed 134 news bulletins to our community and shared nearly 600 posts to our social media channels. Subscribers to our digital newsletter, Victorville Connect, grew to 35,000; and we now have nearly 23,000 social media followers, which is double the followers we had in 2019.

COVID-19

In March 2020, the Victorville City Council, in response to declarations by the United States President and the California Governor along with proclamation by the San Bernardino County Board of Supervisors, adopted Proclamation 20-01 wherein the Director of Emergency Services for Victorville proclaimed a State of Emergency and activated the Emergency Operations Center (EOC). This made the City eligible to receive funding to assist in costs incurred in the response to this pandemic.

During fiscal year 2021, the City received a total of $6.5 million in Coronavirus Aid, Relief, and Economic Security Act (CARES) funding passed through various agencies, including the State of California, Department of Housing and Ur ban Development (HUD), and the County of San Bernardino. These funds were spent to provide the Victorville community through continued services since March 2020 with purchas es of emergency management equipment and resources, telecommuting equipment, strengthened broadband, additional cybersecurity to ensure safety of data, online payments, permitting and licensing, community meetings with audio visual improvements to council chambers, online library book ordering, safety measures to public buildings, small business loans and aid, and assistance to the homeless as well as other COVID-19 related necessities. Additional expenditures not covered by CARES funding are anticipated to be reimbursed through FEMA assistance.

The City was allocated $33.5 million of federal assistance through the Federal American Rescue Plan Act (ARPA), of which the first tranche of $16.75 million was received in June 2021 with the second tranche of $16.75 million to be received in June 2022. A presentation of funding opportunities for this assistance was given to council on July 20, 2021 and the budget for expenditures was approved with the first program of utility assistance rolling out. Additional programs continue to be implemented in support of continuing providing excellent service to the community.

Long-term Financial Planning

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The 2022 fiscal year budget continues to practice conservative revenue estimates. Overall, the 2022 budget anticipates an increase in revenues. The total estimated revenue for the general fund is $76.5 million, an increase of approximat ely $7.8 million as compared to 2021 fiscal year budget, resulting from increased charges for services in 2022 mostly relating to recreation and library closures in 2021 and increases in Sales Tax received primarily. The total General fund expenditures are estimated higher than fiscal year 2021 due to a continued increase in the public safety contracts, increase in recreation and library staff programs, employee investment programs and the rising costs in contributions to the State’s CalPERS pension system.

Annually, the City of Victorville updates its five-year Capital Improvement Project (CIP) plan.

Infrastructure improvements are considered ca pital improvement projects when the expected life is more than five years and expenditures are at least $50,000. In contrast, scheduled purchases of vehicles, computer hardware and equipment are capitalized when the individual cost is $5,000 or more, with an estimated useful life of at least five years. These routine purchases are generally accounted for out of special funds or enterprise funds. During the 2021 Calendar year there were several completed projects including $5.7 million in road rehabilitation and slurry seal on Industrial Boulevard and Silica Road as well as in the Liberty Village area.

Upgrades and new water service in area five as well as El Rio and Calvary totaled $1.9 million.

A new traffic signal was installed at the intersection of Mariposa and Yates. In preparation for the connection of Green Tree Boulevard to Yucca Loma, the Green Tree sewer trunk line was put into service and improvements were done for increase of sewer capacity in the C-1 area at a total cost of just over $4.5 million. Improvements continued out at the SCLAA with $653 thousand in natural gas replacement to improve service to the tenants there. There are 45 vehicle, equipment and computer capital purchases budgeted for 2022, totaling $4.9 million.

Pension costs are expected to continue to rise annually because of reductions to the expected rate of return assumption change approved by the CalPERS board. This adjustment will affect pension costs for all employees and the remaining unfunded liability that exists for the former Victorville fire employees. Other Post-Employment Benefits (OPEB) also continue to grow as a liability mostly resulting from increasing medical insurance costs. Additional information on retirement benefit costs can be found in Notes 10 through 14 of these financial statements.

Despite the economic challenges the City has faced, the City of Victorville continues to maintain the following goals and objectives in alignment with the city council’s three-year strategic plan from October 2020: provide and uphold fiscal accountability and sustainability; dedicate necessary resources for public safety; assist the local economy’s growth and progression; excel in maintaining, enhancing, and improving the City’s public facilities and infrastructure; and the promoting of conservative thinking.

Cash Management Policies and Practices

Cash, which is temporarily idle during the year, was invested in the Local Agency Investment Fund. The City’s investment policy is to minimize credit and market risks while maintaining a competitive yield on its portfolio. Nearly all investments held by the City as of June 30, 2021 are classified in the category of lowest custodial credit risk as defined by the Government Accounting Standards Board.

This Investment Policy is reviewed annually to ensure its consistency with respect to the overall objectives of safety, liquidity and yield, and its relevance to current laws and financial trends.

Although, no amendments to the policy are proposed, it is the goal of management to pursue a more diversified investment portfolio in 2022 to try to achieve a better return overall. Proposed

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amendments to the Policy are prepared by Finance staff and reviewed and approved by City Manager and the City Council.

Risk Management

The City participates in the Public Entity Risk Management Authority (PERMA), a joint powers insurance authority formed under Section 990 of the California Government Code for the purpose of jointly funding programs of insurance coverage for its members. PERMA provides $50 million of general liability coverage per occurrence and is responsible for paying claims in excess of the City’s $50,000 deductible. The City also participates in PERMA’s worker’s compensation coverage program. In addition, various risk control techniques, including a safety committee, have been implemented to minimize losses. During Fiscal Year 2020-21, the City decided to bring the risk management supervisi on in house and hired a full-time Risk Manager starting in Fiscal Year 2021-22.

Acknowledgements

I would like to express my appreciation to all the dedicated employees of the City of Victorville who assisted and contributed to the preparation of this report. Credit must also be given to the Mayor, City Council members, and the City Manager for their support in maintaining the highest standards of professionalism in the management of the City of Victorville’s finances.

Respectfully submitted,

John Mendiola
Director of Finance/City Treasurer

CITY OF VICTORVILLE

ORGANIZATIONAL CHART
JUNE 30, 2021

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CITY OF VICTORVILLE

ELECTED AND APPOINTED OFFICIALS
JUNE 30, 2021

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Executive Team

City Manager .................................................................................. Keith C. Metzler Deputy City Manager ..................................................................... Sophie L. Smith Deputy City Manager .................................................................... Jenele Davidson

Legal Counsel

City Attorney .......................................................................... Andre de Bortnowsky

CITY OF VICTORVILLE

ELECTED AND APPOINTED OFFICIALS
JUNE 30, 2021

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Appointed Officials Team

Appointed By
Date
Appointed Term Expires
Planning Commission
Kenneth Cook-Askins, Jr. Irving 01-2021 December 2024
Robert Kurth Becerra 01-2021 December 2024
Bill Thomas Gomez 02-2021 December 2024
Robert Harriman Jones 01-2019 December 2022
Kimberly Mesen Vacant 11-2021 December 2022

Community Services Advisory Committee
Loretta Star-Bolden Irving 01-2021 December 2024
Brandon Dixon Becerra 02-2021 December 2024
Adrian Belcher Gomez 07-2021 December 2024
Michael Smith Jones 01-2018 December 2022
Bill Pyle Ramirez 12-2018 December 2022

Measure P Oversight Committee
Category
Mark Creffield Chamber of Commerce 04-2021
Michael Krause Education 04-2021
Matthew Pellouchoud Major Retail Industry 04-2021
Margaret Cooker Senior Community 04-2021
Vacant Business Owne r
Vacant Youth/Recreation
Vacant Clergy
Non-Profit Social

Vacant Services Provide r

CITY OF VICTORVILLE

LEADERSHIP TEAM
JUNE 30, 2021

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Leadership Team

Fire Chief ..................................................................................... Jeffrey Armstrong Police Captain (Sheriff) ...................................................................... John Wickum City Clerk .................................................................................. Charlene Robinson Public Information Officer (PIO) ............................................................. Sue Jones Director of Public Works/Water ....................................................... Doug Mathews City Engineer ..................................................................................... Brian Gengler Airport Director ........................................................................................... Eric Ray City Planner ........................................................................................... Scott Webb Building Official ................................................................................. Kevin Collins Code Enforcement Official .................................................................. Jorge Duran Technology Officer ................................................................... Frank Rick (Interim) Human Resources Officer .................................................................. Josie Trevino Director of Finance ........................................................................... John Mendiola VMUS Utility Director ................................................................... Brenda Hampton

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FINANCIAL SECTION

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INDEPENDENT AUDITORS’ REPORT

The Honorable City Council
City of Victorville
Victorville, California

Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business type activities, each major fund, and the aggregate remaining fund information of the City of Victorville, California (the City), as of and for the year ended June 30, 2021, and the related notes to the basic financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

The Honorable City Council
City of Victorville
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Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2021 and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Emphasis of Matter
During the fiscal year ended June 30, 2021, the City adopted GASB Statement No. 84, Fiduciary Activities. As a result of the implementation of this standard, the previously reported Deposit and Foxborough Rail agency funds were reclassified to special revenue funds with a portion of the Deposit agency fund reclassified to the General Fund since these activities no longer meet the definition of fiduciary activities and beginning fund balance and net position was restated (See Notes 1D and 23).

Our opinion is not modified with respect to this matter.

Other Matters
Report on Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysi s, General Fund Budgetary Comparison Schedule, Housing Asset Successor Special Revenue Fund Budgetary Comparison Schedule, Agent Plan Schedule of Changes in Net Pension Liability and Related Ratios and Schedule of Plan Contributions, Cost Sharing Plan Schedule of the Proportionate Share of the Net Pension Liability and Schedule of Plan Contributions, and Schedule of Changes in the Total OPEB Liability and Related Ratios, identified as Required Supplementary Information (RSI) in the accompanying table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the RSI in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the RSI because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The introductory section, Capital Impact Facilities – Major Fund Budget and Actual Schedule, combining and individual nonmajor fund financial statements and schedules (supplementary information), and statistical section, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The Honorable City Council
City of Victorville
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Other Matters (Continued)
Other Information (Continued)
The supplementary information, as listed in the table of contents, is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated, in all material respects in relation to the basic financial statements taken as a whole.

The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, acco rdingly, we express no opinion or provide any assurance on them.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards , we have also issued our report dated REPORT DATE, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

CliftonLarsonAllen LLP
Irvine, California

REPORT DATE

CITY OF VICTORVILLE
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021

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As management of the City of Victorville, we offe r readers of Victorville’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2021. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in the transmittal letter along with the accompanying table of contents.

Using the Accompanying Financial Statements

This annual report consists of a series of financial statements. The Statement of Net Position and the Statement of Activities provide information about t he activities by the City as a whole and present a longer-term view of the City’s finances. Also included in the accompanying report are fund financial statements. For governmental activities, the fund financial statements tell how these services were financed in the short term, as well as what remains for future spending. For proprietary funds, the statements offer the short- and long-term financial information on the activities operating like businesses. Fund financial statements also report the City’s operations in more detail than the government-wide statements by providing information about the City’s most significant funds. The remaining statements provide financial information about activities for which the City acts solely as trustee or agent for the benefit of those outside of the government.

OVERVIEW OF THE FINANCIAL STATEMENTS

The annual report consists of four parts – management’s discussion and analysis (this section), the basic financial statements , required supplementary information , and supplementary information that presents combining statements for non-major governmental funds and internal service funds. The basic financial statements include two kinds of statements that present different views of the City:

The first two statements are government-wide financial statements that provide both long-term and short-term information about the City’s overall financial status. The remaining statements are fund financial statements that focus on individual parts of the City government, reporting the City’s operations in more detail than the government-wide statements.

 The governmental funds statements tell how general government services like public safety were financed in the short term as well as what remains for future spending.  Proprietary fund statements offer short -term and long-term financial information about the activities the government operates like businesses: such as airport, water, and sanitation activities.
 Fiduciary fund statements provide information about the fiduciary relationships – like the agency funds of the City – in which the City acts solely as agent or trustee for the benefit of others, to whom the resources in question belong.

The financial statements also include notes that explain some of the information in the financial statements and provide more detailed data. The statements are followed by a section of required supplementary information that provides additional financial and budgetary information.

CITY OF VICTORVILLE
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021

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The figure below summarizes the major features of the City’s financial statements, including the portion of the City government they cover and the types of information they contain.

Fund Statements
Government-wide
Statements Governmental Funds Proprietary Funds Fiduciary Funds

Scope

Entire City
government (except
fiduciary funds) and
the City’s
component units

The activities of the City
that are not proprietary or
fiduciary

Activities the City
operates similar to
private businesses

Instances in which
the City is the
trustee or agent
for someone
else’s resources

Required
financial
statements
Statement of Net
Position,
Statement of
Activities
Balance sheet;
Reconciliation of the
balance sheet to the
statement of net position;
Statement of revenues,
expenditures and
changes in fund
balances; Reconciliation
of the statement of
revenues, expenditures
and changes in fund
balance to the statement
of activities
Statement of Net
Position,
Statement of
Revenues,
expenses, and
changes in net
position,
Statement of cash
flows
Statement of
Fiduciary Net
Position,
Statement of
Changes in Fiduciary
Net Position

Accounting
basis and
measurement
focus
Accrual accounting
and economic
resources focus
Modified accrual
accounting and current
financial resources focus
Accrual accounting
and economic
resources focus
Accrual accounting
and economic
resources focus

Type of asset,
deferred
outflows,
liability, and
deferred
inflows
information
All assets, liabilities,
and deferred
outflows and
inflows of
resources, both
financial and
capital, and short-
term and long-term
Only assets expected to
be used up and liabilities
that come due during the
year or soon thereafter;
no capital assets or long-
term debt included
All assets, liabilities,
and deferred
outflows and inflows
of resources, both
financial and capital,
and short-term and
long-term
All assets and
liabilities, both
short-term and
long-term; the
City’s fiduciary
funds do not
currently contain
capital assets,
although they can
Type of inflow/
outflow
information
All revenues and
expenses during
year, regardless of
when cash is
received or paid
Revenues for which cash
is received during or
soon after the end of the
year; expenditures when
goods or services have
been received and
payment is due during
the year or soon
thereafter
All revenues and
expenses during the
year, regardless of
when cash is
received or paid
All revenues and
expenses during
year, regardless of
when cash is
received or paid

CITY OF VICTORVILLE
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021

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Reporting the City as a Whole

The accompanying government-wide financial statements include two statements that present financial data for the City as a whole. One of the most important questions asked about the City’s finances is, “Is the City as a whole better off or wors e off as a result of the year’s activities?” The Statement of Net Position and the Statement of Activities report information about the City as a whole and about its activities in a way that helps answer this question. These statements include all assets, liabilities, and deferred outflows and inflows of resources using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All current year’s revenues and expenses are taken into account regardless of when cash is received or paid.

These two statements report the City’s net position and changes within. You can think of the City’s net position – the difference between assets plus deferred outflows of resources and liabilities plus deferred inflows of resources – as one way to measure the City’s financial health, or financial position . Over time, increases and decreases in the City’s net position is one indicator of whether its financial health is improving or deteriorating. You will need to consider other nonfinancial factors, however, such as changes in the City’s property tax base and the condition of the City’s roads, in order to assess the overall health of the City.

In the Statement of Net Position and the Statement of Activities, we divide the City into three kinds of activities:

Governmental activities – Most of the City’s basic services are reported here. Sales taxes, property taxes, state subventions, and other revenues finance most of these activities.

Business-type activities – The City charges a fee to customers to help it cover all, or most, of the cost of the services accounted for in these funds.

Component units – The City includes two separate legal entities in its report:

Southern California Logistics Airport Authority and Victorville Water District. Although legally separate, these “blended component units” are important because they are part of the City’s operations and so data from these units are reported with the interfund data of the primary government.

Reporting the City’s Major Funds

The fund financial statements provide detailed information about the City’s most significant funds – not the City as a whole. Some funds are required to be established by State law, or by bond covenants.

However, City Council establishes many other funds to help it control and manage money for particular purposes, or to show that it is meeting administrative responsibilities for using certain taxes, grants, or other money (like grants received). The City’s two kinds of funds – governmental and proprietary – use different accounting approaches.

Governmental funds – Most of the City’s basic services are reported in governmental funds, which focus on how money flows into and out of those funds as well as the balances that are left at year end which are available for spending. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other current financial assets that can be readily converted to cash. The governmental fund statements provide a detailed short-term view of the City’s general government operations and the basic services it provides. Governmental fund information helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. We describe the relationship or differences between

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MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021

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governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds in a reconciliation at the bottom of the fund financial statements.

Proprietary funds – When the City charges customers for the services it provides, whether to outside customers or to other units of the City, these services are generally reported in proprietary funds.

Proprietary funds are reported in the same way that all activities are reported in the Statement of Net Position and the Statement of Activities. In fact, the City’s enterprise funds (a component of proprietary funds) are the same as the business-type activities we report in the government-wide statements, but provide more detail and additional information, such as cash flows, for proprietary funds. The internal service funds (the other component of proprietary funds) report activities that provide supplies and services for the City’s other programs and activities.

Reporting the City’s Fiduciary Responsibilities

The City is an agent for certain assets held for, and under the control of, other organizations and individuals. All of the City’s fiduciary activities are reported in a separate Statement of Fiduciary Net Position. We exclude these activities from the City’s other financial statements because the City cannot use these assets to finance its operations. The City is responsible for ensuring that the assets reported in these funds are used for their intended purpose.

CITY OF VICTORVILLE
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021

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GOVERNMENT-WIDE FINANCIAL ANALYSIS

A summary of the government-wide statement of net position follows:

City of Victorville’s Net Position (table 1)
(In Thousands)

2021 2020 2021 2020 2021 2020
Cash and Investments 103,629$ 54,959$ 140,840$ 128,948$ 244,469$ 183,907$ Other Assets 51,977 43,636 15,816 12,888 67,794 56,524 Interfund Balances 4,802 5,897 (4,802) (5,897) - - Capital Assets 454,542 467,902 353,828 362,658 808,370 830,560 Total a ssets 614,951 572,394 505,682 498,597 1,120,633 1,070,991 Deferred outflows - pension 8,006 7,588 4,682 4,370 12,688 11,958 Deferred outflows - OPEB 4,733 1,527 3,192 1,039 7,925 2,566 Deferred charge on refunding - - 1,667 1,801 1,667 1,801 Total deferred outflows of
resources 12,739 9,115 9,541 7,210 22,280 16,325 Short-Term Liabilities 27,548 6,090 12,235 11,900 39,783 17,990 Total OPEB Liability 22,159 20,358 17,352 15,487 39,511 35,845 Net Pension Liability 44,945 42,026 23,725 21,694 68,670 63,720 Other Long-Term Liabilities 9,119 7,966 360,339 366,467 369,458 374,433 Total Liabilities 103,771 76,439 413,651 415,549 517,422 491,988 Deferred inflows - pension 30 1,179 393 920 423 2,099 Deferred inflows - OPEB 6,923 4,328 4,587 3,798 11,509 8,126 Total deferred inflows of
resources 6,952 5,507 4,980 4,717 11,932 10,224 Net Position:

Net Inv estment in Capital
Assets 451,333 466,516 38,243 42,900 489,576 509,416 Restricted 86,627 77,665 - - 86,627 77,665 Unrestricted (20,993) (44,619) 58,348 42,641 37,355 (1,978) Total Net Position 516,967$ 499,563 $ 96,591$ 85,541$ 613,558$ 585,104$ Governmental
Activities
Business-Type
Activities Total

CITY OF VICTORVILLE
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021

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Net Position serves as a useful indicator of a government’s financial position. In the case of the City of Victorville, the total net position increased by $28.5 million primarily due to the increase in cash and investments and a restatement of $475,499 due to th e implementation of GASB No. 84 that resulted in the reclassification of fiduciary funds to governmental activities. Cash and investments increased by $60.6 million; however, it was offset by the decrease in value of capital assets and the increases in short-term liabilities and the pension and OPEB liabilities. The restricted portion of the net position represents resources that are subject to external restrictions on how they may be used.

Brief explanations for the other changes shown in Table 1 are as follows:

Total Assets:

 Total Governmental assets increased by $42.6 million primarily due to an increase in cash and investments of $48.7 million.
 A total decrease of $22.2 million in capital assets for both Governmental and Business–Type Activities (a $13.4 million decrease for governmental activities and a $8.8 million decrease for business-type activities) was largely due to recorded depreciation of $38.6 million for the fiscal year.

Total Liabilities:

 Governmental total liabilities increased by $27.3 million primarily due to an increase in unearned revenue of $16.75 million from the receipt of American Rescue Plan Act funding in this amount with the remainder primarily coming from the reclassifying of the engineering deposit funds into governmental from fiduciary with GASB 84 implementation. Increases also occurred in the total OPEB liability of $1.8 million and net pension liability of $2.9 million.  Business-type total liabilities decreased by $1.9 million due to the reduction of bonds payable resulting from the annual principal debt service payments. Principal debt service payments totaled $7.7 million for the Business-type (Enterprise) Funds. The reduction of these liabilities was offset by the increase in OPEB and pension liabilities.

GOVERNMENTAL ACTIVITIES

During the year ended June 30, 2021, the City’s governmental activities had an increase of $17.4 million in the total net position as compared to fiscal year 2020. Significant changes in the revenue and expenses within the City’s governmental activities presented are as follows:

 Total revenue increased by $27 million for the governmental activities. Charges for services increased by $6.4 million as a result of increased permit activity by developers and homeowners from the prior year and operating contributions and grants revenue increased by $7.2 million over the prior year. See Coronavirus Relief Funding below for detailed information contributing to the increase in governmental activities. Capital contributions and grants revenue decreased by $3.9 million from the prior year.
 Property tax revenue increased by $3.8 million from the prior year and sales and transaction tax revenue increased by $13.8 million due to the additional amount received from the passing of Measure P. There was not a significant change in franchise tax, with an increase of only $124 thousand.
 Investment income decreased by half compared to fiscal year 2020 due to the decrease in interest rates during the fiscal year.
 Total governmental expenses increased by $11.4 million as compared to fiscal year 2020. The increase is primarily due to the increase in Community Development resulting from higher activity for planning and building and Public Safety due to increased police costs as well as

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MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021

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capital and other needed purchases for fire. See Coronavirus Relief Funding below for detailed information contributing to the increase in governmental activities.  General Government expenditures decreased from the prior year by $1.5 million. This was primarily related to the shutdown of recreation activities in response to COVID-19 mandates as well as the delay of several capital projects and purchases.  Coronavirus Relief Funding - During fiscal year 2021, the City received a total of $6.5 million in Coronavirus Aid, Relief, and Economic Security Act (CARES) funding passed through various agencies, including the State of California, Department of Housing and Urban Development (HUD), and the County of San Bernardino. These funds were spent to provide the Victorville community through continued services since March 2020 with purchases of emergency management equipment and resources, telecommuting equipment, strengthened broadband, additional cybersecurity to ensure safety of data, online payments, permitting and licensing, community meetings with audio visual improv ements to council chambers, online library book ordering, safety measures to public buildings, small business loans and aid, and assistance to the homeless as well as other COVID-19 related necessities. Additional expenditures not covered by above funding are anticipated to be reimbursed through FEMA assistance.

 The City was allocated $33.5 million of federal assistance through the Federal American Rescue Plan Act (ARPA), of which the first tranche of $16.75 million was received in June 2021 with the second tranche of $16.75 million to be received in June 2022. A presentation of funding opportunities for this assistance was given to council on July 20, 2021 and the budget for expenditures was approved with the first program of utility assistance rolling out. Additional programs continue to be implemented in support of continuing providing excellent service to the community.

CITY OF VICTORVILLE
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021

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City of Victorville’s Change in Net Position (table 2)
(In Thousands)

2021 2020 2021 2020 2021 2020
Revenues:

Program Revenues:

Charges for Services 28,837 $ 22,402 $ 108,779$ 96,215 $ 137,615$ 118,617 $ Operating Contributions and Grants 11,719 4,555 - - 11,719 4,555 Capital Contributions and Grants 7,992 11,916 13,777 6,393 21,769 18,309 General Revenues:

Property Taxes 31,980 28,211 22,405 20,772 54,386 48,983 Sales Taxes 42,330 28,566 - - 42,330 28,566 Transient Occupancy Tax 1,899 1,539 - - 1,899 1,539 Franchise Taxes 4,112 3,988 - - 4,112 3,988 Investment Income (391) 574 216 1,918 (176) 2,492 Miscellaneous Revenues 818 515 259 630 1,076 1,145 Total Revenues 129,295 102,267 145,436 125,928 274,731 228,195 Expenses:

General Government 19,440 20,924 - - 19,440 20,924 Public Safety 45,868 42,413 - - 45,868 42,413 Community Development 9,231 1,314 - - 9,231 1,314 Public Works 32,425 31,103 - - 32,425 31,103 Park and Recreation 7,035 6,826 - - 7,035 6,826 Sanitary - - 16,552 17,314 16,552 17,314 Airport - - 40,578 34,860 40,578 34,860 Solid Waste Management - - 18,616 17,850 18,616 17,850 Water - - 42,734 39,439 42,734 39,439 Municipal Utility - Gas - - 2,064 2,353 2,064 2,353 Municipal Utility - Electric - - 12,156 11,717 12,156 11,717 Interest on Long-Term Debt 51 104 - - 51 104 Total Expens es 114,051 102,684 132,701 123,533 246,752 226,216 Change in Net Assets before Transfers 15,244 (417) 12,735 2,396 27,979 1,979 Transfers 1,685 - (1,685) - - - Change in net position 16,929 (417) 11,051 2,396 27,979 1,979 Net Position - Beginning of Year (as
restated) 500,038 499,980 85,541 83,145 585,579 583,124 Net Position - End of Year 516,967$ 499,563$ 96,591$ 85,541$ 613,558$ 585,104$ Governmental
Activities
Busine ss-Type
Activities Total

CITY OF VICTORVILLE
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021

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Revenues by Source - Governmental Activities

Expenses by Function - Governmental Activities

CITY OF VICTORVILLE
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021

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Revenue by Source - Business-Type Activities

Expenses by Function – Business-Type Activities

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MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021

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BUSINESS TYPE ACTIVITIES

During the year ended June 30, 2021, the City’s business-type activities had an increase of $11 million in the total net position as compared to fiscal year 2020.

Significant changes in the revenue and expenses within the business-type activities are as follows:

 Overall revenues improved by $19.5 million from the prior year with the majority coming from charges for services and capital grants and contributions.  Charges for services increased $12.6 million, mainly due to increases for the Water District and Sanitary revenues resulting from increased usage as a result of COVID-19 stay at home orders.  Property taxes grew $1.6 million due to the increase in tax increment revenue receipts for SCLAA and Water District. Capital contributions and grants also increased by $7.4 million with several additional Federal Aviation Administration (FAA) grants being awarded and completed.  Overall expenditures for business-type activities increased by $9.2 million with the majority in Water and Airport. The Airport had a significant increase in expenditures in the amount of $5.7 million with the majority related to capital improvement projects of roofing and runway improvements. Water also had large capital improvements in its infrastructure.

As noted earlier, the City uses fund accounting to provide proper financial management of the City’s resources and to demonstrate compliance with finance-related legal requirements.

MAJOR GOVERNMENTAL FUNDS

General Fund

The General Fund (GF) is the chief operating fund of the City of Victorville. For the purposes of the financial statements, the General Fund is comprised of General Fund, Measure P Fund, Technology Fund Fueling Stations Fund, and Developer Deposit Fund. Details on revenue and expenditures in each of these funds is found in the supplemental information section of these financial reports. At the end of the current fiscal year, the unrestricted fund balance of the General Fund was $41.1 million, while the total fund balance was $46.3 million. This is an increase of $21.8 million in total fund balance from fiscal year 2020. As a measure of the General Fund’s liquidity, the unrestricted fund balance represents 61.2% of the total General Fund expenditures and the total fund balance represents 68.9% of the General Fund expenditures. The General Fund reserve policy requires that the unrestricted fund balance represents 17% of the total GF expenditures.

General Fund revenue increased by $21.1 million during this fiscal year over the last fiscal year, mainly due to the increase in revenue generated from taxes and assessments of $18.2 million. Sales tax increased by $13.9 million and the first quarter of transactions and use tax was $7.1 million. Pass- through distribution of former redevelopment property tax increased by $2.7 million.

General Fund expenditures increased by $3.6 million as compared to last fiscal year. Public safety had the largest increase in expenditures in the amount of $3.4 million as a result of the annual schedule A amendment.

Measure P is a 1% Transactions and Use Tax adopted by the voters of Victorville in November 2020.

The tax went into effect April 1, 2021. Revenue received for this transactions tax in Fiscal Year 2021 was $7.1 million. Per the Public Safety Plan presented to council in May 2020 and the committee formed to review and comment on revenue and expenditures in this fund, expenditures for the year

CITY OF VICTORVILLE
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021

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included public safety staffing of additional police, code enforcement, animal control, and fire departments.

Budget vs. Actual – The General Fund revenue original budget was $64.9 million, and the final budget was adjusted throughout the year to $69.6 million. Actual revenue at the end of the year totaled $88.9 million, which was $19.3 million over revised budgeted amount. This variance was primarily related to the first quarter of Measure P Transactions and Use Tax revenue which had not been budgeted and adjustments to other tax revenue that decreased the budget for expected shortfalls; however, realized amounts came in better than expected. Charges for services and investment income were also better than expected by $1.7 million.

The General Fund expenditures original budget was $68.4 million and was adjusted throughout the year to $70.9 million. This increase was primarily for public safety and capital outlay expenditures.

Actual expenditures were only $67.2 million with most of the cost savings realized in public safety and general government. Capital expenditure actuals were $948 thousand with the balance rolled forward to the Fiscal Year 2021-22 budget for projects that were not completed in the current fiscal year.

City as Housing Asset Successor

The City Housing Asset Successor (CHAS) fund is a special revenue fund relating to the housing aspect of the dissolved Redevelopment Agency of the City. The assets of this fund primarily consist of properties allocated to it in the Dissolution Housing Asset Transfer (HAT) and the Mortgage Assistance Program loans that were outstanding and were previously accounted for in the low and moderate housing redevelopment agency fund. At the end of the current fiscal year, fund balance decreased from $32.36 million to $28.99 million. This was primar ily due to an expenditure relating to impairment of some of the remaining land for current market value on the HAT.

Capital Impact Fees

This fund accounts for the acquisition or construction of major capital facilities related to public improvements needed as population increases. Fund balance increase of just over $6.2 million resulted from charges for services revenue of $8.6 million from increased developer activity and total expenditures of only $2.3 million as construction for the Greentree Extension project gets underway in FY2021-22. The Capital Impact Facilities has a fund balance of $18.6 million.

MAJOR ENTERPRISE FUNDS

The major enterprise funds of the City of Victorville are the Victorville Water District, Southern California Logistic Airport Authority (SCLAA), Municipal Elec tric Utility, Solid Waste Management, and Sanitary.

The Municipal Gas Utility is reported as a nonmajo r enterprise fund. All enterprise funds reported an increase in net position for fiscal year 2021, except for the Southern California Logistics Airport Authority with a net position decrease of $3.5 million. Other factors concerning the finances of these funds have already been addressed in the discussion of the City’s business-type activities.

CITY OF VICTORVILLE
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021

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CAPITAL ASSETS AND DEBT ADMINISTRATION
City of Victorville’s Capital Assets
(Net of depreciation)
(In Thousands)

2021 2020 2021 2020 2021 2020
Land 59,460$ 59,460$ 25,153$ 25,153$ 84,614$ 84,614$ Land Right of Way 178,172 180,002 - - 178,172 180,002 Buildings and Improvements 45,147 45,510 92,032 97,144 137,180 142,654 Furniture and Equipment 3,079 2,766 11,122 12,442 14,201 15,207 Computers and Communications 696 630 67 124 764 754 Vehicles 3,134 3,399 2,257 2,232 5,391 5,631 Infrastructure 148,666 158,394 192,889 195,548 341,555 353,943 Land Improvement 5,786 7,277 540 552 6,326 7,830 Water Rights - - 12,678 12,678 12,678 12,678 Intangible Assets 293 565 3,967 3,996 4,260 4,561 Idle Assets - - 3,018 3,018 3,018 3,018 Construction in Progress 10,107 9,899 10,104 9,770 20,212 19,669 Total 454,542$ 467,902$ 353,828$ 362,658$ 808,370$ 830,560$ Governmental
Activities
Busine ss-Type
Activities Total

Capital assets: The City of Victorville’s investment in capital assets for its governmental and business- type activities as of June 30, 2021 amounted to $808 million (net of accumulated depreciation). This investment in capital assets includes land, buildings and improvements, furniture and equipment, computers and communications, vehicles, roads, streets, storm drain, sewer, water and gas lines, intangible assets and construction in progress. The total decrease in the City of Victorville’s investment in capital assets for the current fiscal year is $22 million (a $13.4 million decrease for governmental activities and a $8.8 million decrease for business-type activities). The decrease is primarily due to annual depreciation.

Additional information on the City of Victorville’s capital assets can be found in Note 4 of the Notes to the Basic Financial Statements.

CITY OF VICTORVILLE
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021

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City of Victorville’s Outstanding Debt
(In Thousands)

Long-term debt: At the end of the current fiscal year, the City of Victorville had a total outstanding debt of $466 million, an increase of $3 million as compared to the prior fiscal year. This increase is primarily due to the increase in the City’s Pension and OPEB liabilities.

Additional information on the City of Victorville’s long–term debt can be found in Notes 7 and 8 of the Notes to the Basic Financial Statements.

CONTACTING THE CITY’S FINANCIAL MANAGEMENT
These Basic Financial Statements are intended to provide citizens, taxpayers, investors, and creditors with a general overview of the City’s finances. Questions about this report should be directed to the Finance Department, at 14343 Civic Drive, Victorville, CA 92392.

2021 2020 2021 2020 2021 2020
Compensated Absences 4,234$ 4,343$ 723$ 771$ 4,957$ 5,114$ Capital Lease 889 1,048 - - 889 1,048 OPEB Liability 22,159 20,358 17,352 15,487 39,511 35,845 Net Pension Liability 44,945 42,026 23,725 21,694 68,670 63,720 Claim Payable 2,952 1,327 2,510 2,950 5,462 4,277 Pollution Remediation Obligation 1,044 1,248 - - 1,044 1,248 Tax Allocation Bond - - 291,960 296,558 291,960 296,558 Lease Revenue Bond - - 46,710 48,115 46,710 48,115 Certificate of Participation - - 8,930 9,310 8,930 9,310 Refunding Charges & Unamortized
Discount/Premiums - - (2,091) (2,177) (2,091) (2,177) Total 76,223$ 70,349$ 389,820$ 392,709$ 466,043$ 463,059$ Governmental
Activities
Busine ss-Type
Activities Total

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BASIC FINANCIAL STATEMENTS

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CITY OF VICTORVILLE

STATEMENT OF NET POSITION
JUNE 30, 2021

See accompanying Notes to Basic Financial Statements.
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Governmental Business-Type
Activities Activities Total
ASSETS
Cash and Investments 103,629,386$ 109,943,141$ 213,572,527$ Cash With Fiscal Agent - 30,896,926 30,896,926 Receivables:

Accounts, Net 3,864,407 11,431,877 15,296,284 Interest 75,911 25,368 101,279
Due from Other Governments 18,838,505 2,345,643 21,184,148 Due from Successor Agency 12,514,738 - 12,514,738 Deposits and Prepaid Items 21,348 312,725 334,073 Inventory and Other Assets 255,978 1,263,998 1,519,976 Interfund Balances 4,802,141 (4,802,141) - Investment in Joint Venture - 436,647 436,647 Land Held for Resale 2,479,641 - 2,479,641 Capital Assets, Net:

Nondepreciable 247,739,720 55,445,506 303,185,226 Depreciable, Net 206,802,473 298,382,022 505,184,495 Long-Term Notes Receivable 13,926,795 - 13,926,795 Total Assets 614,951,043 505,681,712 1,120,632,755

DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows - OPEB Related 4,732,976 3,192,161 7,925,137 Deferred Outflows - Pension Related 8,006,218 4,681,575 12,687,793 Deferred Charge on Refunding - 1,666,928 1,666,928 Total Deferred Outflows of Resources 12,739,194 9,540,664 22,279,858

CITY OF VICTORVILLE

STATEMENT OF NET POSITION (CONTINUED)
JUNE 30, 2021

See accompanying Notes to Basic Financial Statements.
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Governmental Business-Type
Activities Activities Total

LIABILITIES

CURRENT LIABILITIES
Accounts Payable 5,080,918$ 8,439,054$ 13,519,972$ Accrued Liabilities 1,407,602 - 1,407,602 Interest Payable 28,093 1,460,857 1,488,950 Deposits Payable 4,148,368 2,073,394 6,221,762 Prepaid Water Connection Fees - 217,489 217,489 Unearned Revenue 16,883,054 44,066 16,927,120

NONCURRENT LIABILITIES
Accrued Rent Credit Payable - 601,572 601,572 Advances from Other Governments - 10,995,517 10,995,517 Total OPEB Liability:

Due Within One Year 281,765 294,850 576,615 Due in More Than One Year 21,877,259 17,057,555 38,934,814 Net Pension Liability 44,944,871 23,725,015 68,669,886 Long-Term Liabilities:

Due Within One Year 2,964,504 9,801,533 12,766,037 Due in More Than One Year 6,154,552 338,940,457 345,095,009 Total Liabilities 103,770,986 413,651,359 517,422,345

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows - OPEB Related 6,922,708 4,586,655 11,509,363 Deferred Inflows - Pension Related 29,508 393,055 422,563 Total Deferred Inflows of Resources 6,952,216 4,979,710 11,931,926

NET POSITION (DEFICIT)
Net Investment in Capital Assets 451,332,844 38,243,033 489,575,877 Restricted for:

Public Safety 68,414 - 68,414 Community Development 31,578,373 - 31,578,373 Public Works 54,980,691 - 54,980,691 Unrestricted (20,993,287) 58,348,274 37,354,987 Total Net Position 516,967,035$ 96,591,307$ 613,558,342$

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CITY OF VICTORVILLE

STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2021

See accompanying Notes to Basic Financial Statements.
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PRIMARY GOVERNMENT
Governmental Activities:

General Government
Public Safety
Community Development
Public Works
Parks and Recreation
Interest Expense
Total Governmental Activities
Business-Type Activities:

Water
Airport
Gas Utility
Electric Utility
Solid Waste Management
Sanitary
Total Business-Type Activities
Total Primary Government

GENERAL REVENUES
Taxes:

Property Taxes
Sales Taxes
Transactions and Use Tax
Transient Occupancy Tax
Franchise Taxes
Investment Income
Miscellaneous Revenues
Gain on Disposal of Assets
Transfers
Total General Revenues
and Transfers

CHANGE IN NET POSITION
Net Position - Beginning of Year, as Restated

NET POSITION - END OF YEAR
Operating Capital
Charges for Grants and Grants and
Expenses Services Contributions Contributions
19,440,477$ 10,159,471$ 159,606$ -$ 45,867,510 1,466,169 5,249,479 192,148 9,231,263 8,066,157 5,447,542 1,002,214 32,425,132 8,310,218 862,538 6,797,660 7,035,167 834,488 - - 51,495 - - - 114,051,044 28,836,503 11,719,165 7,992,022 42,734,294 42,167,002 - 6,662,821 40,577,596 11,056,341 - 6,344,691 2,064,496 2,657,229 - 12,487 12,156,206 15,830,202 - 757,246 18,616,463 19,776,298 - - 16,551,591 17,291,832 - - 132,700,646 108,778,904 - 13,777,245 246,751,690$ 137,615,407$ 11,719,165$ 21,769,267$ Program Revenues

CITY OF VICTORVILLE

STATEMENT OF ACTIVITIES (CONTINUED)
YEAR ENDED JUNE 30, 2021

See accompanying Notes to Basic Financial Statements.
(23)

Governmental Business-Type
Activities Activities Total
(9,121,400)$ -$ (9,121,400)$ (38,959,714) - (38,959,714) 5,284,650 - 5,284,650 (16,454,716) - (16,454,716) (6,200,679) - (6,200,679) (51,495) - (51,495) (65,503,354) - (65,503,354) - 6,095,529 6,095,529 - (23,176,564) (23,176,564) - 605,220 605,220 - 4,431,242 4,431,242 - 1,159,835 1,159,835 - 740,241 740,241 - (10,144,497) (10,144,497) (65,503,354) (10,144,497) (75,647,851) 31,980,216 22,405,298 54,385,514
35,226,994 - 35,226,994 7,102,985 - 7,102,985 1,899,038 - 1,899,038 4,111,950 - 4,111,950 (391,468) 215,839 (175,629) 817,563 148,875 966,438 - 109,829 109,829 1,684,653 (1,684,653) -
82,431,931 21,195,188 103,627,119 16,928,577 11,050,691 27,979,268
500,038,458 85,540,616
585,579,074
516,967,035$ 96,591,307$ 613,558,342$
Net (Expense) Revenue and
Changes in Net Position

(24)

MAJOR GOVERNMENTAL FUNDS

General Fund
The chief operating fund of a local government. The general fund is used to account for all financial resources except those required to be accounted for in another fund.

Housing Asset Successor Special Revenue Fund
This fund accounts for the housing activities of the City that were previously accounted for in the low and moderate housing redevelopment agency fund. Funding sources consists primarily of loan repayments and corresponding interest that are used to increase, improve, and preserve the community’s supply of low- and moderate-income housing.

Capital Impact Facilities Fund
This capital projects fund accounts for the acquisition or construction of major capital facilities related to public improvements needed as population increases.

CITY OF VICTORVILLE

BALANCE SHEET

GOVERNMENTAL FUNDS
JUNE 30, 2021

See accompanying Notes to Basic Financial Statements.
(25)

Special Capital
Revenue Projects Nonmajor
Housing Asset Capital Impact Governmental
General Successor Facilities Funds Totals
ASSETS
Cash and Investments 26,430,581$ 100,391$ 21,515,990$ 55,582,424$ 103,629,386$ Accounts Receivable 1,375,135 - - 2,489,272 3,864,407 Interest Receivable 75,911 - - - 75,911 Notes Receivable - 12,030,867 - 1,895,928 13,926,795 Due from Other Funds 4,163,082 - - - 4,163,082 Advances to Other Funds 4,877,304 1,864,932 - 267,483 7,009,719 Due from Other Governments 12,577,030 - - 6,261,475 18,838,505 Due from the Successor Agency - 12,514,738 - - 12,514,738 Inventories 255,978 - - - 255,978 Prepaid Items 15,902 - - 5,446 21,348 Land Held for Resale - 2,479,641 - - 2,479,641 Total Assets 49,770,923$ 28,990,569$ 21,515,990$ 66,502,028$ 166,779,510$

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable 2,021,906$ 213$ 691,818$ 2,366,981$ 5,080,918$ Accrued Liabilities 1,407,602 - - - 1,407,602 Deposits Payable 85,278 - - 4,063,090 4,148,368 Due to Other Funds - - - 4,163,082 4,163,082 Unearned Revenue 153 -
- 16,882,901 16,883,054
Advances from Other Funds - - 2,207,578 - 2,207,578 Total Liabilities 3,514,939 213 2,899,396 27,476,054 33,890,602

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - - - 6,019,131 6,019,131 Total Deferred Inflows of Resources - - - 6,019,131 6,019,131

FUND BALANCES
Nonspendable:

Advances to Other Funds 4,877,304 - - - 4,877,304 Prepaid Items 15,902 - - 5,446 21,348 Inventories 255,978 - - - 255,978 Restricted:

Public Safety - - - 68,414 68,414 Highways and Street Projects - - 18,616,594 34,498,459 53,115,053 Community Development - 28,990,356 - 1,380,969 30,371,325 Unassigned 41,106,800 - - (2,946,445) 38,160,355 Total Fund Balances 46,255,984 28,990,356 18,616,594 33,006,843 126,869,777 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 49,770,923$ 28,990,569$ 21,515,990$ 66,502,028$ 166,779,510$

CITY OF VICTORVILLE

RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS

TO THE STATEMENT OF NET POSITION
JUNE 30, 2021

See accompanying Notes to Basic Financial Statements.
(26)

Fund Balances - Governmental Funds 126,869,777$
Amounts reported for governmental activities in the statement of net position are different because:

Capital assets, net of depreciation, used in governmental activities are not current financial resources and, therefore, are not reported in the governmental funds balance sheet.

Capital Assets 918,069,703
Accumulated Depreciation (463,527,510)
Accrued interest on long-term debt is not due and payable in the current period and is not reported in the governmental funds. (28,093)
Claims payable did not require current financial resources. Therefore, claims payable were not reported as a liability in the governmental funds. (2,951,890) Long-term liabilities applicable to the City governmental activities are not due and payable in the current period and, accordingly, are not reported as fund liabilities. All liabilities, both current and long-term, are reported in the Statement of Net Position.

Capital Lease (889,473)
Compensated Absences (4,233,586)
Pollution Remediation (1,044,107)
Pension and OPEB related debt applicable to the City governmental activities are not due and payable in the current period and, accordingly, are not reported as fund liabilities. Deferred outflows of resources and deferred inflows of resources related to pension and OPEB are only reported in the Statement of Net Position as the changes in these amounts effect only the government-wide statements for governmental activities:

Deferred Outflows - OPEB Related 4,732,976
Deferred Inflows - OPEB Related (6,922,708)
Total OPEB Liability (22,159,024)
Deferred Outflows - Pension Related 8,006,218
Deferred Inflows - Pension Related (29,508)
Net Pension Liability (44,944,871)
Certain revenues in the governmental funds are unavailable because they are not collected within the prescribed time period after year-end. Those revenues are recognized on the accrual basis in the government-wide statements. 6,019,131 Net Position of Governmental Activities 516,967,035$

CITY OF VICTORVILLE

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021

See accompanying Notes to Basic Financial Statements.
(27)

Special Capital
Revenue Projects Nonmajor
Housing Asset Capital Impact Governmental
General Successor Facilities Funds Totals

REVENUES
Taxes and Assessments 69,488,310$ -$ -$ 13,681,477$ 83,169,787$ Licenses and Permits 4,244,266 - - - 4,244,266 Intergovernmental 95,255 375,000 - 8,680,120 9,150,375 Charges for Services 13,480,288 - 8,486,660 1,959,665 23,926,613 Fines and Forfeitures 649,020 - - 54,846 703,866 Gain (Loss) on Sale of Property Held -
for Resale - - 109,091 - 109,091 Investment Income (424,335) 556,320 30,661 113,806 276,452 Other 1,351,300 1,821,512 - 769,510 3,942,322 Total Revenues 88,884,104 2,752,832 8,626,412 25,259,424 125,522,772

EXPENDITURES
Current:

General Government 11,977,814 - - - 11,977,814 Public Safety 43,280,102 - - 1,758,418 45,038,520 Community Development 53,240 6,127,459 - 2,553,593 8,734,292 Public Works 6,392,285 - 12,763 12,894,197 19,299,245 Parks and Recreation 4,307,982 - - - 4,307,982 Capital Outlay 947,924 - 2,311,333 4,168,809 7,428,066 Debt Service:

Principal 158,890 - - - 158,890 Interest on Advanc
es 39,733 - 16,779 - 56,512 Total Expenditures 67,157,970 6,127,459 2,340,875 21,375,017 97,001,321

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 21,726,134 (3,374,627) 6,285,537 3,884,407 28,521,451

OTHER FINANCING SOURCES (USES)
Transfers in 46,482 - - 1,710,798 1,757,280 Transfers Out - - - (72,627) (72,627) Total Other Financing
Sources (Uses) 46,482 - - 1,638,171 1,684,653 NET CHANGE IN FUND BALANCES 21,772,616 (3,374,627) 6,285,537 5,522,578 30,206,104 Fund Balances - Beginning of Year,
as Restated 24,483,368 32,364,983 12,331,057 27,484,265 96,663,673 FUND BALANCES - END OF YEAR 46,255,984$ 28,990,356$ 18,616,594$ 33,006,843$ 126,869,777$

CITY OF VICTORVILLE

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN

FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2021

See accompanying Notes to Basic Financial Statements.
(28)

Net Change in Fund Balances - Total Governmental Funds 30,206,104$ Amounts reported for governmental activities in the statement of activities are different because:

Governmental funds report capital outlay as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period.

Capital Outlay 5,783,916
Depreciation Expense (19,144,134)
Certain revenues in the governmental funds are unavailable if they are not collected within the prescribed time period after year-end. Those revenues are recognized on the accrual basis in the government-wide statements. 3,772,196
The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of the governmental funds. Issuance of loan proceeds is an other financing source and repayment of loan principal is an expenditure in the governmental funds, but issuance increases long-term liabilities and the repayment reduces long-term liabilities in the statement of net position.

Repayment of Principal 158,890
Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds.

Change in Accrued Interest on Long-Term Debt 5,017
Change in Compensated Absences 109,257
Change in Claims Payable (1,624,841)
Change in Pollution Remediation Payable 203,768
OPEB expense reported in the governmental funds includes the insurance premiums paid. in the statement of activities, OPEB expense includes the change in the OPEB liability, and related change in OPEB amounts for deferred outflows of resources and deferred inflows of resources. (1,189,996)
Pension expense reported in the governmental funds includes the annual required contributions. in the statement of activities, pension expense includes the change in the net pension liability, and related change in pension amounts for deferred outflows of resources and deferred inflows of resources. (1,351,600) Change in Net Position of Governmental Activities 16,928,577$

(29)

PROPRIETARY FUNDS

Major Proprietary Funds
Victorville Water District Fund
The Victorville Water District is a subsidiary district of the City of Victorville that was created by LAFCO to account for the consolidated operation and maintenance of the City’s Water Department, Baldy Mesa Water District, and Victor Valley Water District. This fund is supported by user charges and other fees.

The City includes the Industrial Wastewater Treatment Plant asset within the scope of the Victorville Water District Fund because of its importance in providing reclaimed and recycled water for public and private uses. The Victorville Water District has imposed connection fees to finance the acquisition and replacement costs of this plant.

Southern California Logistics Airport Authority Fund (SCLAA) Accounts for both operation and capital acquisition of the activities surrounding the airport. The former George Air Force Base now known as Southern California Logistics Airport Authority is a joint powers authority formed by the City of Victorville and the Victorville Redevelopment Agency. In 2012, the Victorville Water District was added as a member of the JPA, shortly thereafter, the Victorville Redevelopment Agency was removed as a result of the dissolution of all Redevelopment Agencies.

The authority was created to effectuate the redevelopment of the former base and certain properties within an eight-mile radius of the boundaries of the airport. The airport funding sources comprised of federal grants, charges for services, and tax increment revenues passed through from the Victor Valley Economic Development Authority (VVEDA).

Electric Utility Fund
Accounts for the operation, maintenance, and capital assets of the City’s electric utility, which is funded by user charges, other fees and loans.

Solid Waste Management Fund
Accounts for activities in the following programs: Solid Waste Management, Source Reduction and Recycling, Landfill Mitigation, Household Hazardous Waste, and the California Department of Conservation Grants.

Sanitary Fund
The City has defined the Sanitary Fund to account for the collection of sewage from the point of origin to be conveyed to the point of treatment or disposal. This fund includes infrastructure of pipes, pumps, and channels to collect and convey sewage to treatment or disposal. The fund provides for collection of revenues from customers and provides payment for maintenance of infrastructure and payment of contractors for disposal. Revenue received is comprised of sewer user fees and connection fees.

Nonmajor Proprietary Fund
Gas Utility Fund
Accounts for the operation and maintenance, and capital assets of the City’s gas utility, which is funded by user charges, other fees and loans.

CITY OF VICTORVILLE

STATEMENT OF NET POSITION

PROPRIETARY FUNDS
JUNE 30, 2021

See accompanying Notes to Basic Financial Statements.
(30)

Southern
California
Logistics
Victorville Airport Electric Solid Waste
Water District Authority Utility Fund Management
ASSETS

CURRENT ASSETS
Cash and Investments 61,344,992 $ 17,453,500 $ 11,890,324 $ 5,274,325 $ Cash With Fiscal Agent 836,313 23,952,767 6,107,846 - Accounts Receivable, Net 4,814,719 452,419 1,346,039 2,512,067 Interest Receivable 25,368 - - - Due from Other Governments 14,711 2,241,469 - 89,463 Inventory and Other Assets 1,247,678 16,320 - - Total Current Assets 68,283,781 44,116,475 19,344,209 7,875,855

NONCURRENT ASSETS
Prepaid Deposits 203,888 2,759 103,800 944 Advances to Other Funds - 1,940,095 - - Investment in Joint Venture - - - 436,647 Capital Assets:

Not Being Depreciated 29,397,572 15,806,452 379,170 348,278 Being Depreciated, Net 128,298,559 116,571,538 11,581,914 994,230 Total Noncurrent Assets 157,900,019 134,320,844 12,064,884 1,780,099 Total Assets 226,183,800 178,437,319 31,409,093 9,655,954

DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows - OPEB Related 2,285,798 322,970 99,843 149,116 Deferred Outflow - Pension Related 2,723,322 789,736 176,696 336,952 Deferred Charges on Refunding - 1,666,928 - - Total Deferred Outflows of Resources 5,009,120 2,779,634 276,539 486,068

CITY OF VICTORVILLE

STATEMENT OF NET POSITION (CONTINUED)

PROPRIETARY FUNDS
JUNE 30, 2021

See accompanying Notes to Basic Financial Statements.
(31)

Nonmajor
Sanitary Gas
Fund Utility Fund Totals
11,307,964$ 2,672,036$ 109,943,141$
- - 30,896,926 2,163,003 143,630 11,431,877
- - 25,368 - - 2,345,643 - - 1,263,998 13,470,967 2,815,666 155,906,953
1,334 - 312,725 - - 1,940,095 - - 436,647 9,476,413 37,621 55,445,506
39,196,167 1,739,614 298,382,022
48,673,914 1,777,235 356,516,995
62,144,881 4,592,901 512,423,948
316,045 18,389 3,192,161
614,879 39,990 4,681,575
- - 1,666,928 930,924 58,379 9,540,664

CITY OF VICTORVILLE

STATEMENT OF NET POSITION (CONTINUED)

PROPRIETARY FUNDS
JUNE 30, 2021

See accompanying Notes to Basic Financial Statements.
(32)

Southern
California
Logistics
Victorville Airport Electric Solid Waste
Water District Authority Utility Fund Management

LIABILITIES

CURRENT LIABILITIES
Accounts Payable 2,279,680 $ 1,265,784 $ 895,928 $ 1,476,868 $ Interest Payable 175,208 1,283,294 2,355 - Prepaid Water Connection Fees 217,489 - - - Deposits Payable 1,438,378 - 615,997 1,180 Unearned Revenue - 44,066 - - Total OPEB Liability - Due Within One Year 224,298 28,165 7,571 12,002 Long-Term Debt - Due Within One Year 781,743 6,349,790 1,480,000 - Total Current Liabilities 5,116,796 8,971,099 3,001,851 1,490,050

NONCURRENT LIABILITIES
Accrued Rent Credit Payable - 601,572 - - Advances from Other Funds - 1,864,932 4,877,304 - Advances from Other Governments - 10,995,517 - - Total OPEB Liability 11,579,695 2,186,816 587,844 931,848 Net Pension Liability 14,076,845 3,838,581 1,046,259 1,666,944 Long-Term Debt - Due Beyond One Year 8,734,544 283,655,913 45,230,000 - Total Noncurrent Liabilities 34,391,084 303,143,331 51,741,407 2,598,792 Total Liabilities 39,507,880 312,114,430 54,743,258 4,088,842

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows - OPEB Related 3,036,460 589,499 171,638 256,621 Deferred Inflows - Pension Related 260,383 76,839 (3,624) 32,856 Total Deferred Inflows of Resources 3,296,843 666,338 168,014 289,477 NET PO

SITION (DEFICIT)
Net Investment in Capital Assets 148,855,087 (132,728,001) (28,744,815) 1,342,508 Unrestricted 39,533,110 1,164,186 5,519,175 4,421,195 Total Net Position 188,388,197$ (131,563,815)$ (23,225,640)$ 5,763,703$

CITY OF VICTORVILLE

STATEMENT OF NET POSITION (CONTINUED)

PROPRIETARY FUNDS
JUNE 30, 2021

See accompanying Notes to Basic Financial Statements.
(33)

Nonmajor
Sanitary Gas
Fund Utility Fund Totals
2,519,763$ 1,031$ 8,439,054$
- - 1,460,857 - - 217,489 - 17,839 2,073,394 - - 44,066 21,375 1,439 294,850
1,190,000 - 9,801,533 3,731,138 20,309 22,331,243

- - 601,572 - - 6,742,236 - - 10,995,517 1,659,621 111,731 17,057,555
3,005,504 90,882 23,725,015
1,320,000 - 338,940,457 5,985,125 202,613 398,062,352
9,716,263 222,922 420,393,595
500,013 32,424 4,586,655
23,834 2,767 393,055
523,847 35,191 4,979,710
47,741,019 1,777,235 38,243,033
5,094,676 2,615,932 58,348,274
52,835,695$ 4,393,167$ 96,591,307$

CITY OF VICTORVILLE

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2021

See accompanying Notes to Basic Financial Statements.
(34)

Southern
California
Logistics
Victorville Airport Electric Solid Waste
Water District Authority Utility Fund Management

OPERATING REVENUES
Charges for Services 40,741,945$ 10,496,816$ 15,759,119$ 19,515,651$ Pass-Thru Charges for Services 1,084,485 - - - Fines and Forfeitures - 34,986 - - Other 340,572 524,539 71,083 260,647 Total Operating Revenues 42,167,002 11,056,341 15,830,202 19,776,298

OPERATING EXPENSES
Personnel Services 10,901,457 2,794,061 1,087,493 1,619,133 Maintenance and Operations 16,916,550 11,570,873 2,487,767 16,813,076 Production Costs 4,631,287 - 7,120,395 - Pass-Thru Production Costs 2,530,813 - - - Depreciation 7,338,599 9,073,542 1,380,494 184,254 Total Operating Expenses 42,318,706 23,438,476 12,076,149 18,616,463 OPERATING INCOME (LOSS) (151,704) (12,382,135) 3,754,053 1,159,835

NONOPERATING REVENUES (EXPENSES)
Property Taxes 1,096,573 21,308,725 - - Investment Income 112,170 49,414 21,325 8,834 Interest Expense (415,588) (17,139,120) (80,057) - Gain on Disposal of Assets 12,976 6,775 90,078 - Other Nonoperating Revenues (Expenses) 118,006 (19,487) - - Total Nonoperating Revenues (Expenses) 924,137 4,206,307 31,346 8,834

INCOME (LOSS) BEFORE TRANSFERS
AND CONTRIBUTIONS 772,433 (8,175,828) 3,785,399 1,168,669

CAPITAL CONTRIBUTIONS
Connection Fees 5,169,389 - 730,263 - Alternate Water Source Fees 903,332 - - - Capital Restricted Use Fees 590,100 - - - Capital Contributions - - - - Capital Grants - 6,344,691 26,983 - Transfers Out - (1,684,653) - - Total Capital Contributions 6,662,821 4,660,038 757,246 - CHANGE IN NET POSITION 7,435,254 (3,515,790) 4,542,645 1,168,669 Net Position (Deficit) - Beginning of Year 180,952,943 (128,048,025) (27,768,285) 4,595,034 NET POSITION (DEFICIT) - END OF YEAR 188,388,197$ (131,563,815) $ (23,225,640) $ 5,763,703 $

CITY OF VICTORVILLE

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION (CONTINUED)

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2021

See accompanying Notes to Basic Financial Statements.
(35)

Nonmajor
Sanitary Gas
Fund Utility Fund Totals
17,275,767$ 2,637,828$ 106,427,126$
- - 1,084,485 - - 34,986 16,065 19,401 1,232,307
17,291,832 2,657,229 108,778,904
3,305,284 257,219 19,964,647
11,943,114 141,742 59,873,122
- 1,539,607 13,291,289 - - 2,530,813 1,303,193 125,928 19,406,010
16,551,591 2,064,496 115,065,881
740,241 592,733 (6,286,977)
- - 22,405,298 20,002 4,094 215,839
- - (17,634,765) - - 109,829 50,356 - 148,875 70,358 4,094 5,245,076
810,599 596,827 (1,041,901)
- - 5,899,652 - - 903,332 - - 590,100 - 12,487 12,487 - - 6,371,674 - - (1,684,653) - 12,487 12,092,592 810,599 609,314
11,050,691
52,025,096 3,783,853 85,540,616
52,835,695$ 4,393,167$ 96,591,307$

CITY OF VICTORVILLE

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2021

See accompanying Notes to Basic Financial Statements.
(36)

Southern
California
Logistics
Victorville Airport Electric Solid Waste
Water District Authority Utility Fund Management

CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers 39,476,109 $ 11,085,240 $ 16,099,781 $ 19,292,373 $ Cash Payments to Employees for Services (10,014,033) (2,593,711) (971,031) (1,485,267) Cash Payments to Suppliers for Goods
and Services (16,036,451) (10,505,189) (9,057,412) (16,673,014) Net Cash Provided (Used) by
Operating Activities 13,425,625 (2,013,660) 6,071,338 1,134,092

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Cash Received from Other Governments 1,096,573 19,972,799 - - Cash Paid to Other Funds - (1,751,479) (1,093,352) - Net Cash Provided (Used) by
Noncapital Financing Activities 1,096,573 18,221,320 (1,093,352) -

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Cash Received from Sale of Capital Assets 37,023 6,775 90,078 - Capital Grants - 6,344,691 26,983 - Cash Payments to Acquire Capital and
Other Assets (4,410,837) (2,338,353) (735,725) - Principal Paid on Capital-Related Debt (380,000) (5,920,000) (1,405,000) - Interest Paid on Capital-Related Debt (428,194) (15,550,721) (56,036) - Interest Paid on Interfund Advance - - (27,161) - Net Cash Used by Capital and Related
Financing Activities (5,182,008) (17,457,608) (2,106,861) -

CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received on Investments 199,219 49,414 21,325 8,834 Net Cash Provided by Investing Activities 199,219 49,414 21,325 8,834

NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 9,539,409 (1,200,534) 2,892,450 1,142,926 Cash and Cash Equivalents - Beginning of Y
ear 52,641,896 42,606,801 15,105,720 4,131,399 CASH AND CASH EQUIVALENTS - END OF YEAR 62,181,305$ 41,406,267$ 17,998,170$ 5,274,325$

RECONCILIATION OF CASH AND CASH

EQUIVALENTS TO STATEMENT OF NET POSITION
Cash and Investments 61,344,992$ 17,453,500$ 11,890,324$ 5,274,325$ Cash With Fiscal Agent 836,313 23,952,767 6,107,846 - Cash and Cash Equivalents 62,181,305$ 41,406,267 17,998,170 5,274,325

CITY OF VICTORVILLE

STATEMENT OF CASH FLOWS (CONTINUED)

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2021

See accompanying Notes to Basic Financial Statements.
(37)

Nonmajor
Sanitary Gas
Fund Utility Fund Totals
16,842,256$ 2,664,415$ 105,460,174$
(3,012,550) (242,847) (18,319,439) (11,827,266) (1,827,628) (65,926,960)
2,002,440 593,940 21,213,775
- - 21,069,372 - - (2,844,831) - - 18,224,541 - - 133,876 - - 6,371,674 (3,095,178) (7,220) (10,587,313) - - (7,705,000) - - (16,034,951) - - (27,161) (3,095,178) (7,220) (27,848,875) 20,002 4,094 302,888
20,002 4,094 302,888
(1,072,736) 590,814 11,892,329
12,380,700 2,081,222 128,947,738
11,307,964$ 2,672,036$ 140,840,067$
11,307,964$ 2,672,036$ 109,943,141$
- - 30,896,926 11,307,964 2,672,036 140,840,067

CITY OF VICTORVILLE

STATEMENT OF CASH FLOWS (CONTINUED)

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2021

See accompanying Notes to Basic Financial Statements.
(38)

Southern
California
Logistics
Victorville Airport Electric Solid Waste
Water District Authority Utility Fund Management

RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED (USED) BY

OPERATING ACTIVITIES
Operating Income (Loss) (151,704)$ (12,382,135)$ 3,754,053$ 1,159,835$ Adjustments to Reconcile Operating Income (Loss)
to Net Cash Provided (Used) by
Operating Activities:

Depreciation 7,338,599 9,073,542 1,380,494 184,254 Nonoperating Miscellaneous Revenue (Expense) 6,780,827 (19,487) 730,263 - (Increase) Decrease in Assets:

Accounts Receivable, Net (147,293) 34,574 (214,888) (477,335) Due from Other Governments 1,050 - - (7,769) Inventory and Other Assets (491,887) (4,720) - - Prepaid Deposits 78,514 51,058 57 (319) Deferred Outflows - OPEB (1,532,401) (216,414) (72,415) (104,691) Deferred Outflows - Pension (174,814) (43,855) (17,294) (23,441) Increase (Decrease) in Liabilities:

Accounts Payable 747,732 1,019,346 (179,570) 140,380 Prepaid Water Connection Fees (498,044) - - 1,180 Deposits Payable (1,119,593) - 484,467 - Unearned Revenue - (2,344) - - Accrued Rent Credits Payable - 16,156 - - Compensated Absences 6,276 (53,902) - - Claims Payable - - - - Total OPEB Liability 1,515,258 121,332 41,242 59,251 Net Pension Liability 1,080,748 291,645 136,566 158,415 Deferred Inflows - OPEB 287,727 175,643
57,584 83,939
Deferred Inflows - Pension (295,370) (74,099) (29,221) (39,607) Net Cash Provided by Operating Activities 13,425,625$ (2,013,660)$ 6,071,338$ 1,134,092$

NONCASH CAPITAL, FINANCING AND

INVESTING ACTIVITIES
Interest Accretion Expenses -$ 1,321,695$ -$ -$

CITY OF VICTORVILLE

STATEMENT OF CASH FLOWS (CONTINUED)

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2021

See accompanying Notes to Basic Financial Statements.
(39)

Nonmajor
Sanitary Gas
Fund Utility Fund Totals
740,241$ 592,733$ (6,286,977)$

1,303,193 125,928 19,406,010
50,356 - 7,541,959 (433,139) (10,653) (1,248,734) - - (6,719) - - (496,607) (372) - 128,938 (215,437) (12,269) (2,153,627) (49,191) (3,049) (311,644) 489,427 (146,279) 2,071,036
- - (496,864) - 17,839 (617,287) - - (2,344) - - 16,156 - - (47,626) (440,000) - (440,000) 121,211 6,872 1,865,166
345,205 18,000 2,030,579
174,060 9,970 788,923
(83,114) (5,152) (526,563) 2,002,440$ 593,940$ 21,213,775$
-$ -$ 1,321,695$

CITY OF VICTORVILLE

STATEMENT OF FIDUCIARY NET POSITION

FIDUCIARY FUNDS
JUNE 30, 2021

See accompanying Notes to Basic Financial Statements.
(40)

Successor
Custodial Agency to the
Funds Victorville RDA
ASSETS
Cash and Investments 304,261 $ 4,070,553 $
Restricted Assets:

Cash and Investments With Fiscal Agent 1,712,638 1,866,712 Accounts Receivable, Net 2,699 -
Land Held for Resale - 3,084,917 Total Assets 2,019,598 9,022,182

LIABILITIES

CURRENT LIABILITIES
Accounts Payable 980,572 125,000
Interest Payable - 140,838
Due to The City - 12,514,738
Current Portion of Long-Term Liabilities:

Bonds Payable - 1,495,000
Total Current Liabilities 980,572 14,275,576

LONG-TERM LIABILITIES
Bonds Payable - 29,385,000
Total Liabilities 980,572 43,660,576

NET POSITION (DEFICIT)
Restricted for:

Individuals, Organizations, and Other Governments 1,039,026 (34,638,394) Total Net Position 1,039,026$ (34,638,394)$

CITY OF VICTORVILLE

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

FIDUCIARY FUNDS
YEAR ENDED JUNE 30, 2021

See accompanying Notes to Basic Financial Statements.
(41)

Successor
Custodial Agency to the
Funds Victorville RDA

ADDITIONS
RPTTF Distributions - $ 1,110,749$
Property Assessments Collected 458,964 -
Investment Income 1,137 67,187
Total Additions 460,101 1,177,936

DEDUCTIONS
Community Development 23,359 525,942
Public Safety 299,393 -
Other - 1,821,512
Loss on Sale of Land Held for Resale - 929,273 Payments on Special Assessment Debt 431,219 - Interest - 2,031,954
Total Deductions 753,971 5,308,681
CHANGE IN NET POSITION (293,870) (4,130,745)
Net Position (Deficit) - Beginning of Year 1,332,896 (30,507,649) NET POSITION (DEFICIT) - END OF YEAR 1,039,026$ (34,638,394) $

(42)

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CITY OF VICTORVILLE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

(43)

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the City of Victorville , California (City), have been prepared in accordance with generally accepted accounting principles (U.S. GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of the City’s accounting policies are described below.

A. Reporting Entity
The City of Victorville is situated approximately 97 miles northeast of Los Angeles in Southern California’s Mojave Desert. The City was incorporated in 1962 and had an estimated population on June 30, 2021 of 134,810.

On July 26, 2008, the City became a charter City that operates under the Council- Manager form of government, with five elected Council members served by a full time City Manager and staff. At June 30, 2021, the City’s staff comprised of 432 full and 72 part time employees who were responsible for the City-provided services.

The accounting policies of the City conform to U.S. GAAP as applicable to governments.

These financial statements present the City of Victorville and its component units, entities for which the City is considered to be financially accountable. The City is considered to be financially accountable for an organization if the City appoints a voting majority of that organization’s governing body and the City is able to impose its will on that organization or there is a potential for that organization to provide specific financial benefits to or impose specific financial burdens on the City. The City is also considered to be financially accountable for an organization if that organization is fiscally dependent (i.e., it is unable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval from the City). In certain cases, other organizations are included as component units if the nature and significance of their relationship with the City are such that their exclusion would cause the City’s financial statements to be misleading or incomplete.

Based upon the above criteria, the component units of the City include the Southern California Logistics Airport Authority (SCLAA) and the Victorville Water District.

Since City Council serves as the governing board for the SCLAA and Victorville Water District, the component units are considered to be blended component units. Blended component units, although legally separate entities, are in substance, part of the City’s operations and so data from these units are reported with the interfund data of the primary government. The SCLAA and the Victor ville Water District issue separate component unit financial statements. Upon completion, the financial statements of these component units can be obtained at the City of Victorville, located at 14343 Civic Drive, Victorville, CA 92392.

CITY OF VICTORVILLE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

(44)

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) A. Reporting Entity (Continued)
A brief description of the component units follows:

Southern California Logistics Airport Authority (SCLAA) The SCLAA is a joint powers authority (JPA) formed in 1997 between the City of Victorville and the former Redevelopment Agency of Victorville to provide for the coordination of long-range planning of the territory of George Air Force Base. In 2012, the Victorville Water District was added as a member of the JPA, shortly thereafter, the Victorville Redevelopment Agency was removed as a result of the dissolution of all Redevelopment Agencies. SCLAA has a financial benefit/burden relationship with the City and the financial data and transactions are included as an enterprise fund of the City. SCLAA prepares a budget in sufficient detail to constitute an operating outline for the source and amount of funds available to SCLAA and expenditures to be made during the ensuing fiscal year. SCLAA revenues consist primarily of grants and loans received by SCLAA and from profits, income, sales proceeds, interest earnings from leases and land sales, and tax increment revenues passed through from the Victor Valley Economic Development Authority (VVEDA).

Victorville Water District
On August 15, 2007, the Victor Valley Water District and the Baldy Mesa Water District were approved to be consolidated into a subsidiary district of the City of Victorville (City), known as the Victorville Water District (District, per Resolution No. 2977 of the Executive Officer of the Local Agency formation Comm ission (LAFCO) of San Bernardino County), which adopted a change of organization without election. All of the liabilities including debt obligations of the Victor Valley Water District and the Baldy Mesa Water District were assumed by this subsidiary district and the City effective July 1, 2007 upon consolidation.

Upon consolidation July 1, 2007 of the two districts the City consolidated the operations and activities of its Water Department and Water Funds into the district to serve all of the water customers of the City of Victorville under this District. The basic operations of the District are financed by user charges plus capital contributions to finance growth of the water delivery system. The District is governed by a five-member Board of Directors (City Council), each holding staggered four-year terms.

On December 21, 2011, Local Agency Formation Commission approved Resolution No. 3154 that ordered the change of organization for the Victorville Water District. The Commission approved the activation of sewer function and services within the boundaries of the Victorville Water District and determined, pursuant to Government Code Section 56824.14 that the service will be repaid for its costs in operating the SCLA Industrial Wastewater Treatment Plant and that the mechanism for repayment of the funds expended in the construction and development of the facility will be returned to the District. Victorville Water District has a financial benefit/burden relationship with the City and the financial data and transactions are included as an enterprise fund of the City.

CITY OF VICTORVILLE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

(45)

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Accounting, Measurement Focus and Financial Statement Presentation The basic financial statements of the City are composed of the following:

 Government-wide financial statements
 Fund financial statements
 Notes to the basic financial statements

The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources or economic resources.

The basis of accounting indicates the timing of transactions or events for recognition in the financial statements.

Government-Wide Financial Statements
While separate government-wide and fund financial statements are presented, they are interrelated. In the government-wide financial statements, the governmental activities column incorporates data from governmental funds while business-type activities incorporate data from the government’s enterprise funds.

Government-wide financial statements are presented using the economic resources measurement focus and the accrual basis of accounting. Under the economic resources’ measurement focus, all (both current and long-term) economic resources and obligations of the reporting government are reported in the government-wide financial statements. Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded when a liability takes place, regardless of the timing of related cash flows. Revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange- like transactions are recognized when the exchange takes place. Revenue from property taxes is recognized in the fiscal year in which the taxes are levied. Grants and similar items are recognized as revenue as soon as the eligibility requirements imposed by the provider have been satisfied. Unbilled receivables are recorded as revenues when the services are provided.

Government-wide financial statements display information about the reporting government as a whole, except for its fiduciary activities. These statements include separate columns for the governmental and business-type activities of the primary government (including its blended component units), as well as its discretely presented component units. The City has no discretely presented component units. Eliminations have been made in the statement of activities so that certain allocated expenses are recorded only once (by the function to which they were allocated). However, general government expenses have not been allocated as indirect expenses to the various functions of the City.

CITY OF VICTORVILLE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

(46)

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Accounting, Measurement Focus and Financial Statement Presentation (Continued)
Government-Wide Financial Statements (Continued)
The statement of activities demonstrates the de gree to which direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. The types of transactions reported as program revenues of the City are reported in three categories:

 Charges for services,
 Operating grants and contributions, and
 Capital grants and contributions

Charges for services include revenues from the reporting government’s citizenry who purchase, use, or directly benefit from goods, services, or privileges provided by a given function. Grants and contributions include revenues restricted to meeting the operational or capital requirements of a particular function. Program revenues are netted with program expenses in the statement of activities to present the net cost of each program.

Taxes and other items not included among pr ogram revenues are reported instead as general revenues.

As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Amount s paid to acquire capital assets are capitalized as assets in the government-wide financial statements, rather than reported as an expenditure. Proceeds of long-term debt and acquisitions of capital leases are recorded as a liability in the government-wide financial statements, rather than as an other financing source. Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as an expenditure. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount. Issuance costs, whether or not withheld form the actual debt proceeds received, are reported as debt service expenses.

Fund Financial Statements
The underlying accounting system of the City is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund equity, revenues and expenditures or expenses, as appropriate.

Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

CITY OF VICTORVILLE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

(47)

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Accounting, Measurement Focus and Financial Statement Presentation (Continued)
Fund Financial Statements (Continued)
Fund financial statements for the primary gov ernment’s governmental, proprietary, and fiduciary funds are presented after the government-wide financial statements. These statements display information about major funds individually and nonmajor funds in the aggregate for governmental and enterprise funds. Fiduciary statements include financial information for the City’s fiduciary activities. Fiduciary funds of the City primarily represent assets held by the City in a custodial capacity for other individuals or organizations.

Governmental Funds
In the fund financial statements, governmental funds are presented using the modified- accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. Measurable means that the amounts can be estimated, or otherwise determined. Available means that the amounts were collected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued for the reporting period. The City uses a 60-day availability period. The City accrues the following revenue types: taxes, licenses, intergovernmental revenues, fines and forfeitures, and other miscellaneous revenues. Exchange transactions are recognized as revenues in the period in which they are earned (i.e., the related goods or services are provided). Locally imposed derived tax revenues are recognized as revenues in the period in which the underlying exchange transaction upon which they are based takes place. Imposed nonexchange transactions are recognized as revenues in the period for which they were imposed. If the period of use is not specified, they are recognized as revenues when an enforceable legal claim to the revenues arises or when they are received, whichever occurs first. Government- mandated and voluntary nonexchange transactions are recognized as revenues when all applicable eligibility requirements have been met.

Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, rather than as fund assets. The proceeds of long-term debt and acquisitions under capital leases are recorded as an other financing sources rather than as a fund liability. Amounts paid to reduce long-term indebtedness are reported as fund expenditures.

In the fund financial statements, governmental funds are presented using the current financial resources measurement focus. This m eans that only current assets, liabilities, and deferred inflows of resources are generally included on their balance sheets. The reported fund balance is considered to be a measure of “available spendable resources.” Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in fund balance. Accordingly, they are said to present a summary of sources and uses of “available spendable resources” during a period.

CITY OF VICTORVILLE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

(48)

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Accounting, Measurement Focus and Financial Statement Presentation (Continued)
Governmental Funds (Continued)
Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by noncurrent liabilities. Since they do not affect fund balance, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities. Noncurrent portions of long-term receivables are reported on their balance sheets in spite of their spending measurement focus.

Governmental Fund Balances
Fund balances are reported in the fund statements in the following classifications:

Nonspendable Fund Balance
This includes amounts that cannot be spent because they are either not physically held in spendable form (such as prepaid items and inventory for all governmental funds, and advances to other funds for the general fund only) or are legally or contractually required to be maintained intact (such as endowments).

Spendable Fund Balance
Restricted Fund Balance – This includes amounts that can be spent only for specific purposes stipulated by legal requirements imposed by other governments, external resource providers, or creditors. City Council imposed restrictions do not create restricted fund balance unless the legal document that initially authorized the revenue (associated with that portion of fund balance) also included language that specified the limited use for which the authorized revenues were to be expended.

Committed Fund Balance – This includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the City Council. Those committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use by taking the same type of action (for example, resolution, ordinance, minutes action, etc.) that it employed to previously commit those amounts. If the Council action that limits the use of the funds was separate from the action that initially created the revenues that form the basis for the fund balance, then the resultant fund balance is considered to be committed, not restricted. The City considers a resolution to constitute a formal action of the City Council for the purposes of establishing committed fund balance.

Assigned Fund Balance – This includes amounts that are intended to be used for specific purposes as indicated either by the Council or by persons to whom has delegated the authority to assign amounts for specific purposes. The City Council has not delegated such authority as of the date of this report.

CITY OF VICTORVILLE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

(49)

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Accounting, Measurement Focus and Financial Statement Presentation (Continued)
Governmental Fund Balances (Continued)
Spendable Fund Balance (Continued)
Unassigned Fund Balance – This includes the remaining spendable amounts which are not included in one of the other classifications. In other funds, the unassigned classification is used only to report a deficit balance resulting from overspending for specific purposes for which amounts had been restricted, committed, or assigned. Only the General Fund shows a positive unassigned fund balance.

It is the City’s policy that restricted resources will be applied first, followed by (in order of application) committed, assigned, and unassigned resources, in the absence of a formal policy adopted by the City Council.

Proprietary and Fiduciary Funds
The City’s enterprise funds are proprietary funds. In the fund financial statements, proprietary funds are presented using the accrual basis of accounting. Revenues are recognized when they are earned and expenses are recognized when the related goods or services are delivered. In the fund financial statements, proprietary funds are presented using the economic resources measurement focus. This means that all assets, deferred outflows of resources, liabilities, and deferred inflows of resources (whether current or noncurrent) associated with their activity are included on their balance sheets. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in total net position.

Proprietary fund operating revenues, such as charges for services, pass-thru charges for services, and fines and forfeitures, result from exchange transactions associated with principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as property taxes and investment income result from nonexchange transactions or ancillary activities. Operating expenses for enterprise funds include the cost of sales and services, such as personnel services, maintenance and operations, production costs, pass-thru production costs, and depreciation on capital assets.

All expenses not meeting this definition, such as interest expense, are reported as nonoperating expenses. Amounts paid to acquire capital assets are capitalized as assets in the proprietary fund financial statements, rather than reported as an expense.

Proceeds of long-term debt and acquisitions under capital leases are recorded as a liability in the proprietary fund financial statements, rather than as other financing source.

Amounts paid to reduce long-term indebtedness of the proprietary funds are reported as a reduction of the related liability, rather than as expenditure. Bond premiums and discounts are deferred and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenses.

CITY OF VICTORVILLE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

(50)

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Accounting, Measurement Focus and Financial Statement Presentation (Continued)
Proprietary and Fiduciary Funds (Continued)
Custodial funds and the private-purpose trust fund are reported using the economic resources measurement focus and the accrual basis of accounting. Fiduciary funds do not involve the recording of City revenue and expenses and, therefore, are not included in the government-wide financial statements.

C. Major Funds and Fiduciary Fund Types
The City reports the following major governmental funds:

General Fund
The chief operating fund of a local government. The general fund is used to account for all financial resources except those required to be accounted for in another fund.

Housing Asset Successor Special Revenue Fund
This fund accounts for the housing activities of the City that were previously accounted for in the low and moderate housing redevelopment agency fund. Funding sources consists primarily of loan repayments and corresponding interest that are used to increase, improve, and preserve the community’s supply of low- and moderate-income housing.

Capital Impact Facilities Fund
This capital projects fund accounts for the acquisition or construction of major capital facilities related to public improvements needed as population increases.

The City reports the following major proprietary funds:

Victorville Water District
The Victorville Water District is a subsidiary district of the City of Victorville that was created by LAFCO to account for the consolidated operation and maintenance of the City’s Water Department, Baldy Mesa Water District, and Victor Valley Water District.

This fund is supported by user charges and other fees. The City includes the Industrial Wastewater Treatment Plant asset within the scope of the Victorville Water District Fund because of its importance in providing reclaimed and recycled water for public and private uses. The Victorville Water District has imposed connection fees to finance the acquisition and replacement costs of this plant.

CITY OF VICTORVILLE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

(51)

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Major Funds and Fiduciary Fund Types (Continued)
Southern California Logistics Airport Authority Fund (SCLAA) Accounts for both operation and capital acquisition of the activities surrounding the airport. The former George Air Force Base now known as Southern California Logistics Airport Authority is a joint powers authority formed by the City of Victorville and the Victorville Redevelopment Agency. In 2012, the Victorville Water District was added as a member of the JPA, shortly thereafter, the Victorville Redevelopment Agency was removed as a result of the dissolution of all Redevelopment Agencies.

The authority was created to effectuate the redevelopment of the former base and certain properties within an eight-mile radius of the boundaries of the airport. The airport funding sources are comprised of federal grants, charges for services, and tax increment revenues passed through from the Victor Valley Economic Development Authority (VVEDA).

Electric Utility Fund
Accounts for the operation, maintenance, and capital assets of the City’s electric utility, which is funded by user charges, other fees and loans.

Solid Waste Management
Accounts for activities in the following programs: Solid Waste Management, Source Reduction and Recycling, Landfill Mitigation, Household Hazardous Waste, and the California Department of Conservation Grants.

Sanitary Fund
The City has defined the Sanitary Fund to account for the collection of sewage from the point of origin to be conveyed to the point of treatment or disposal. This fund includes infrastructure of pipes, pumps, and channels to collect and convey sewage to treatment or disposal. The fund provides for collection of revenues from customers and provides payment for maintenance of infrastructure and payment of contractors for disposal.

Revenue received is comprised of sewer user fees and connection fees.

Additionally, the City reports the following fiduciary fund types:

Custodial Fiduciary Funds
Fiduciary fund used to account for assets held by the City as in a custodial capacity for individuals, private organizations, other governments and/or other funds.

Private-Purpose Trust Fiduciary Funds
Used to account for the activities of the Redevelopment Obligation Retirement Funds, and other Successor Agency funds, which accumulates resources for obligations previously incurred by the former Victorville Redevelopment Agency.

CITY OF VICTORVILLE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

(52)

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Major Funds and Fiduciary Fund Types (Continued)
The City reports the following fund types:

Special Revenue Funds
Special revenue funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes.

Enterprise Fund
The nonmajor enterprise fund is used to account for the operation, maintenance, and capital assets of the City’s gas utility, which is funded by user charges and other fees.

D. New Accounting Pronouncements
GASB 84
In January 2017, GASB issued Statement No. 84, Fiduciary Activities . This statement establishes criteria for identifying fiduciary activities of all state and local governments.

The focus of the criteria generally is on (1) whether a government is controlling the assets of the fiduciary activity and (2) the beneficiaries with whom a fiduciary relationship exists. Separate criteria are included to identify fiduciary component units and postemployment benefit arrangements that are fiduciary activities. An activity meeting the criteria should be reported in a fiduciary fund in the basic financial statements.

This statement also provides for recognition of a liability to the beneficiaries in a fiduciary fund when an event has occurred that compels the government to disburse fiduciary resources. Events that compel a government to disburse fiduciary resources occur when a demand for the resources has been made or when no further action, approval, or condition is required to be taken or met by the beneficiary to release the assets. The City adopted this standard in the current fiscal year. Implementation of GASB 84 resulted in the following: (1) reclassification of the previously reported Deposit and Foxborough Rail agency funds to special revenue funds with a portion of the Deposit agency fund reclassified to the General Fund since these activities no longer meet the definition of fiduciary activities, which resulted in (2) a restatement of beginning net position of the governmental activities and fund balance of the general fund, and nonmajor governmental funds, see Note 23.

CITY OF VICTORVILLE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

(53)

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) E. Cash and Investments
Cash includes demand deposits. The California Government Code and the City of Victorville’s investment policy permit the City of Victorville to invest in various instruments and pools.

Investments are reported in the accompanying balance sheet at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year. Investment income includes interest earnings, changes in fair value, any gains or losses realized upon the liquidation or sale of investments and rental income.

The City pools cash and investments of all funds, except for assets held by fiscal agents.

Each fund’s share in this pool is displayed in the accompanying financial statements as cash and investments. Investment income earned by the pooled investments is allocated to the various funds based on each fund’s average cash and investment balance.

F. Cash and Cash Equivalents
For purposes of the statement of cash flows, cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition. Cash equivalents represent the proprietary funds’ share in the cash and investment pool of the City of Victorville, and the cash recorded in the proprietary funds held by a fiscal agent that meet the definition noted above.

G. Loans Receivable
The accompanying financial statements reflect the recording of certain loans receivable that represent loans made to private developers and other parties. In certain cases, the amount of collection is dependent upon future residual receipts to be generated by the property or contingent upon the ability of the owner to sell the property at an amount sufficient to pay all liens against the property, including the obligation to the City. An estimate of the loss (if any) associated with nonrepayment cannot be reasonably estimated at this time.

H. Due from Other Governments
The amounts recorded as a receivable due from other governments include sales taxes, state gas taxes, motor vehicle in-lieu taxes, property taxes, and grant revenues collected or provided by Federal, State, County and City Governments and unremitted to the City as of June 30, 2021.

CITY OF VICTORVILLE

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) I. Inventory and Prepaid Items
The City uses the consumption method of accounting for inventories. General Fund inventory consists of office supplies, hardware supplies, fuel and oil, which are valued at cost. Inventory in the proprietary funds consist primarily of water meters, pipe and pipe fittings for construction and repair. Materials and supplies items in the proprietary funds are valued at cost using the weighted average method.

Certain payments to vendors that reflect costs applicable to future accounting periods are recorded as prepaid items in both government-wide, fund and proprietary financial statements utilizing the purchases method.

J. Land Held for Resale
Land held for resale consists of property intended to be sold or contributed to other parties. Land held for resale is valued at the lower of cost or realizable value.

K. Capital Assets
Capital assets (including infrastructure) are reported in the applicable governmental or business-type activities column in the government-wide financial statements and the fund financial statements of proprietary funds.

Capital assets include public domain (infrastructure) capital assets consisting of certain improvements other than buildings, including roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems. Capital assets are valued at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are valued at acquisition value on the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Capital assets (including infrastructure) are defined as assets with an initial individual cost of more than $5,000 and an estimated useful life in excess of one year.

City construction of capital assets that are to be owned by other parties are accounted for as construction in progress during the construction phase of asset acquisition. Upon completion of the construction of the asset, the City records a contribution of the asset to the party identified as the owner of the asset at that time.

Depreciation has been provided using the straight-line method over the estimated useful life of the asset in the government-wide financial statements and in the fund financial statements of the proprietary funds.

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) K. Capital Assets (Continued)
A summary of the estimated useful lives of capital assets is as follows:

Buildings and Improvement 10 to 50 Years
Furniture and Equipment 5 to 10 Years
Computer and Communications 5 Years
Vehicles 5 -to 10 Years
Infrastructure 20 to 80 Years
Water Rights 10 to 25 Years
Intangibles 5 to 25 Years
Land Improvements 10 to 50 Years

L. Compensated Absences
A liability is recorded for unused vacation and similar compensatory leave balances since the employees’ entitlement to these balances are attributable to services already rendered and it is probable that virtually all of these balances will be liquidated by either paid time off or payments upon termination or retirement.

A liability is recorded for unused sick leave balances only to the extent that it is probable that the unused balances will result in termination payments. This is estimated by including in the liability the unused balances of employees currently entitled to receive termination payments, as well as those who are expected to become eligible to receive termination benefits as a result of continuing their employment with the City. Other amounts of unused sick leave are excluded from the liability since their payment is contingent solely upon the occurrence of a future event (illness), which is outside the control of the City and the employee.

Compensated absences (unpaid vacation and sick leave) are recorded as expenditures in the year they are paid. The balance of unpaid vacation and vested sick leave at year- end is recorded as a long-term liability in the government-wide financial statements and proprietary fund financial statements, as these amounts will be recorded as fund expenditures in the year in which they are paid or become due on demand to terminated employees.

M. Claims and Judgments
The City records a liability for litigation, judgments, and claims when it is probable that an asset has been impaired, or a liability has been incurred prior to year-end and the probable amount of loss can be reasonably estimated. Accordingly, such claims are recorded as liabilities in the government-wide financial statements and proprietary fund financial statements.

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) N. Property Taxes
Property taxes attach as an enforceable lien on property as of March 1. Taxes are levied on July 1 and are payable in two installments on December 10 and April 10. The County of San Bernardino, California bills and collects the property taxes and remits them to the City in installments during the year. City property tax revenues are recognized when levied to the extent that they result in current receivables within 60 days.

The County is permitted by State law (Proposition 13) to levy taxes at 1% of full market rate (at time of purchase) and can increase the property tax rate no more than 2% per year. As the City of Victorville did not receive property taxes during the period of 1976- 1978, the City negotiated its relative 1% share of taxes.

O. Net Position
Net position is classified in the following categories:

Net Investment in Capital Assets – This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt (including premiums and discounts) and other capital related payables that attributed to the acquisition, construction, or improvement of the assets.

Restricted Net Position – This amount is restricted by enabling legislation (such as external creditors, grantors, contributors, or laws or regulations of other governments).

Unrestricted Net Position – This amount is the remaining net position that does not meet the definition of “net investment in capital assets” or “restricted net position.”

Sometimes the City will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s practice to consider restricted net position to have been depleted before unrestricted net position is applied, unless otherwise directed by Council.

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) P. Deferred Outflows and Deferred Inflows of Resources
In addition to assets, the government-wide and proprietary funds statements of net position report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to future periods and so will not be recognized as an outflow of resources (expense) until that time. The City has the following items that qualify for reporting in this category:

 Unamortized loss on bond defeasance reported in the government-wide statement of net position and the proprietary funds financial statements. An unamortized loss on bond defeasance results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the life of the refunding debt.
 Deferred outflows related to pensions and OPEB equal to employer contributions made after the measurement date of the net pension liability and the total OPEB liability.
 Deferred outflows related to pensions differences between expected and actual experiences. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided with pensions through the plans.
 Deferred outflows related to pensions resulting from the net difference in projected and actual earnings on investments of the pension plan fiduciary net position. These amounts are amortized over five years.
 Deferred outflows related to OPEB for changes in assumptions. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided with retiree healthcare benefits through the plans.

In addition to liabilities, the government-wide and proprietary funds statements of net position and the governmental funds balance sheet report a separate section for deferred inflows of resources. This separ ate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to future periods and will not be recognized as an inflow of resources (revenue) until that time.

The City has the following items that qualify for reporting in this category:

 Deferred inflows from unavailable revenues, which arises only under a modified accrual basis of accounting and is r eported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from three sources: grants, sales tax, and investment income. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.
 Deferred inflows related to OPEB for differences between expected and actual experiences and changes in assumptions. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided with retiree healthcare benefits through the plans.

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) P. Deferred Outflows and Deferred Inflows of Resources (Continued)  Deferred inflows related to pension plans for the changes in proportion and differences between the employer’s contributions and the employer’s proportionate share of contributions. These amounts are amortized over a closed period equal to the average of the expected remaining services lives of all employees that are provided with pensions through the plans.

Q. Pensions
For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by the CalPERS. For this purpose, benefit payments (including refunds of empl oyee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. CalPERS audited financial statements are publicly available reports that can be obtained at CalPERS’ website under Forms and Publications.

R. Estimates
The presentation of basic financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, deferred outflows of resources, liabilities, and deferred inflows of resources and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenditures during the reporting period. Actual results could differ from those estimates.

NOTE 2 CASH AND INVESTMENTS
Cash and investments as of June 30, 2021 are classified in the accompanying financial statements as follows:

Statement of Net Position:

Cash and Investments 213,572,527$
Cash with Fiscal Agents 30,896,926
Fiduciary Funds:

Cash and Investments 4,374,814
Cash with Fiscal Agents 3,579,350
Total Cash and Investments 252,423,617$

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NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Cash and investments as of June 30, 2021 consist of the following:

Cash on Hand 10,304$
Deposits with Financial Institutions 93,882,273
Investments 158,531,040
Total Cash and Investments 252,423,617$

Investments Authorized by the California Government Code and the City’s Investment Policy
The table below identifies the investment types that are authorized for the City by the California Government Code and the City’s investment policy. The table also identifies certain provisions of the California Government Code (or the City’s investment policy, if more restrictive) that address interest rate risk, credit risk, and concentration of credit risk.

This table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy.

Authorized by Maximum Maximum
Investment Types Investment Maximum Percentage Investment Authorized by State Law Policy Matur ity* of Portfolio* in One Issuer* Local Agency Bonds Yes 5 Years 70% None
U.S. Treasury Obligations Yes 5 Years 70% None
U.S. Agency Securities Yes 5 Years 75%** None
Banker’s Acceptances No 180 Days 40% 30%
Commercial Paper - Non-Pooled Funds No 270 Days 25% 10% Commercial Paper - Pooled Funds No 270 Days 40% 10%
Negotiable Certificates of Deposit Yes 2 Years 30% None Repurchase Agreements No 1 Year None None
Reverse Repurchase Agreements No 92 Days 20% of Base Value None Medium-Term Notes No 5 Years 30% None
Mutual Funds*** No 5 Years 20%* 10%*
Money Market Mutual Funds*** Yes 5 Years 20%* None
Mortgage Pass-Through Securities No 5 Years 20% None
County Pooled Investment Funds No N/A None None
Local Agency Investment Fund (LAIF) Yes N/A None None
JPA Pools (Other Investment Pools) No N/A None None
* Based on state law requirements or investment policy requirements, whichever is more restrictive. ** Ginnie Mae is not to exceed 20% of the total portfolio. *** Fund must be an AAA rated Government or US Treasury money fund.

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NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Investments Authorized by Debt Agreements
Investment of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy. The table below identifies the investment types that are authorized for investments held by bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

Maximum Maximum
Authorized Maximum Percentage Investment
Investment Type Maturity Allowed In One Issuer
U.S. Treasury Obligations None None None
U.S. Agency Securities None None None
Banker's Acceptances 360 Days None None
Commercial Paper 270 Days None None
Money Market Mutual Funds None None None
Repurchase Agreements None None None
Investment Contracts None None None
Federal Housing Admin Debentures None None None
Certificates of Deposits None None None
State Obligations None None None
Local Agency Investment Fund (LAIF) None None None
Pre-refunded Municipal Obligations None None None

Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer-term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.

Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity:

Investment Type Total Within 12 13 to 24 25 to 60 60+
LAIF 124,054,764$ 124,054,764$ -$ -$ -$ Held by Bond Trustee:

Guaranteed Investment
Contract (GIC)* 816,500 - - - 816,500 Money Market Mutual Funds 33,659,776 33,659,776 - - - Total 158,531,040$ 157,714,540$ -$ -$ 816,500$ *The City’s GIC is with Financial Security Assurance (FSA). The contract required FSA to deposit cash, governmental securities, or governmental bonds as collateral with Bank of New York, at a value of at least 100%, 104%, or 105%, respectfully, of the investment balance. The termination of the investment contract and release of collateral would occur in the event of default by FSA. As of June 30, 2021, FSA was not in default and the value of the collateral met the requirements.

Remaining Maturities (in Months)

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NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating by Standard & Poor’s required by (where applicable) the California Government Code, the City’s investment policy, or debt agreements, and the actual Standard & Poor’s rating as of year-end for each investment type.

Minimum
Investment Type Total Legal Rating AAA Not Rated
LAIF 124,054,764 $ N/A - $ 124,054,764$ Held by Bond Trustee:

Guaranteed Investment
Contract (GIC) 816,500 N/A - 816,500 Money Market Mutual Funds 33,659,776 Multiple* 33,659,776 - Total 158,531,040 $ 33,659,776 $ 124,871,264 $
*Must receive highest ranking by not less than two nationally recognized statistical rating organizations or retain an investment advisor registered by the SEC or exempt from registration and who has not less than five years of experience investing in money market instruments with assets under management in excess of $500 million.

Ratings as of Year End

Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. The City has no investments in any one issuer (other than LAIF and money market mutual funds) that represent 5% or more of the City’s investments.

Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit).

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NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Custodial Credit Risk (Continued)
The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. At June 30, 2021, the City’s deposits (bank balances) were insured by the federal depository insurance limits or collateralized as required under California Law.

For investments identified herein as held by bond trustee, the bond trustee selects the investment under the terms of the applicable trust agreement, acquires the investment, and holds the investment on behalf of the reporting government.

Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the state of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts bas ed upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF.

Fair Value Measurements
The City categorizes its fair value measurement within the fair value hierarchy established by U.S. GAAP. The fair value framework provides a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of fair value hierarchy are described as follows:

Level 1 – Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets.

Level 2 – Inputs other than quoted prices included within the Level 1 that are observable for the asset or liability, either directly or indirectly and fair value is determined through the use of models or other valuation methodologies including:
- Quoted prices for similar assets or liabilities in active markets; - Quoted prices for identical or similar assets or liabilities in markets that are inactive;
- Inputs other than quoted prices that are observable for the asset or liability; - Inputs that are derived principally from or corroborated by observable market data by correlation of other items.

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NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Fair Value Measurements (Continued)
Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurements. These unobservable inputs reflect the City’s own assumptions about the inputs market participants would use in pricing the asset or liability (including assumptions about risk). These unobservable inputs are developed based on the best information available in the circumstances and may include the City’s own data.

The City’s investments in LAIF and money market mutual funds (held by bond trustee) are not subject to the fair value measurement hierarchy. The City’s investment in the GIC is included in Level 3 since they are not actively traded. To value the GIC, the City verified the collateral required was held at a minimum of 100% of the value reported above and recorded the investment at that amount.

NOTE 3 INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
The composition of interfund balances as of June 30, 2021 is as follows:

Fund Reporting Receivable Fund Reporting Payable Amount General Fund Nonmajor Governmental Funds 4,163,082$ a) Fund Reporting Receivable Fund Reporting Payable Amount Nonmajor Governmental Funds Capital Impact Facilities 267,483$ b) Capital Projects Fund
Housing Asset Successor
Special Revenue Fund SCLAA Enterprise Fund 1,864,932 c) SCLAA Enterprise Fund Capital Impact Facilities 1,940,095 d) Capital Projects Fund
General Fund Electric Utility Enterprise Fund 4,877,304 e) Total 8,949,814$
Due To/From Other Funds
Advances To/From Other Funds
Generally, the above balances result from:

a) These represent short term borrowings to cover negative cash balances due to grant funds that must paid out before reimbursement is received. It is anticipated these funds will come in from reimbursements received in FY 20-21.

b) Per a loan agreement approved on November 15, 2011 and renewed on August 9, 2016, the Nonmajor Storm Drain Utility Special Revenue Fund advanced to the Capital Impact Facilities Capital Projects Fund - Public Buildings $1,200,000 for the City Hall Expansion Project. The advance has a term ending July 1, 2021, with the annualized LAIF rate of return, as the interest rate. The outstanding balance of the advance as of June 30, 2021 is $267,483.

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NOTE 3 INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS (CONTINUED) c) Per a loan agreement approved on October 20, 2009 by the Board of the Victorville RDA, a $1,700,000 advance was made from the Low and Moderate Housing Fund to the SCLAA Enterprise Fund. The advance is to be used for SCLAA redevelopment activities.

In accordance with the Housing Asset Transfer report approved by the California Department of finance this loan was transferred to the City Housing Asset Successor Agency fund. The advance has an interest rate equal to the annualized LAIF rate of return. The loan had a repayment term of five years, which was due June 30, 2014, but has not yet been repaid due to funding issues with the SCLAA. There is no current payment schedule available for this advanc e. The outstanding balance of the advance as of June 30, 2021 is $1,864,932.

d) Per a loan agreement signed on September 21, 2010, by the board of the SCLAA, a $1,895,000 advance was made from the SCLAA Enterprise Fund to the Capital Impact Facilities Fund. The advance was to be used for the purchase of land. The advance has a term of repayment to automatically renew the loan until there are sufficient funds to repay. The City is working on a play to repay this loan in fiscal year 2021-2022. The advance has an interest rate equal to the annualized LAIF rate of return. The outstanding balance of the advance as of June 30, 2021 is $1,940,095.

e) A loan agreement was signed on July 1, 2018 by the City Council for a reimbursement of funds previously advanced from fiscal year 2003-2004 through 2007-2008 from the General Fund to the Municipal Utility Enterprise Fund for working capital, startup costs and operation funding shortfalls in the amount of $17,850,143. This loan agreement was recorded in fiscal year 2018-2019 through transfers in and out of the respective funds.

The loan has an interest rate equal to the annualized LAIF rate of return. The advance will be repaid over a term of eight years with $11,000,000 paid on July 1, 2018 and annual installments of $1,000,000 over the following six years with $850,143 due for the last year with each installment due on July 1 of each year. The outstanding balance of the advance as of June 30, 2021 is $4,877,304.

Transfers in/out:

Transfer In Transfer Out Amount
General Fund Nonmajor Governmental Funds 46,482$
Nonmajor Governmental Funds Nonmajor Governmental Funds 26,145 Nonmajor Governmental Funds SCLAA Enterprise Fund 1,684,653 1,757,280$

a) The transfer of $46,482 from the Nonmajor Traffic Safety Special Revenue Fund to the General Fund was to support the engineering function of traffic safety. b) The transfer of $26,145 from the Nonmajor Other State/Local Grants Special Revenue Fund to the HUD Grants Special Revenue Fund for loan repayments received in previous years that belong to the transferred fund.
c) Transfer of $1,684,653 from the SCLAA Enterprise Fund to the Nonmajor Other Federal Grants Special Revenue Fund for costs incurred in prior years for SCLAA grant activity.

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NOTE 4 CAPITAL ASSETS
Governmental Activities
The following is a summary of changes in capital assets for the year ended June 30, 2021:

Balance at Balance at
July 01, 2020 Additions Deletions Transfers June 30, 2021 Nondepreciable Assets:

Land 59,460,387$ -$ -$ -$ 59,460,387$ Right of Way 180,001,603 - (1,829,672) - 178,171,931 Construction in Progress 9,898,645 2,863,617 (2,654,860) - 10,107,402 Total Nondepreciable Assets 249,360,635 2,863,617 (4,484,532) - 247,739,720 Depreciable Assets:

Buildings and Improvements 85,629,331 1,967,397 - - 87,596,728 Furniture and Equipment 15,486,662 866,276 (650,196) - 15,702,742 Computer and Communications 2,771,314 331,219 - - 3,102,533 Land Improvements 14,775,383 - - - 14,775,383 Vehicles 6,618,294 150,586 (101,681) 17,583 6,684,782 Infrastructure 535,696,295 4,089,353 - - 539,785,648 Intangible Assets:

Computer Software 2,672,167 - - - 2,672,167 Right-Of-Way Easements 10,000 - - - 10,000 Total Depreciable Assets 663,659,446 7,404,831 (751,877) 17,583 670,329,983 Less Accumulated Depreciation:

Buildings and Improvements (40,119,623) (2,329,852) - - (42,449,475) Furniture and Equipment (12,721,075) (552,853) 650,196 - (12,623,732) Computer and Communications (2,141,460) (264,788) - - (2,406,248) Land Improvements (
7,497,914) (1,491,346) - - (8,989,260) Vehicles (3,218,936) (415,831) 101,681 (17,583) (3,550,669) Infrastructure (377,301,889) (13,817,270) - - (391,119,159) Intangible Assets: -
Computer Software (2,106,773) (272,194) - - (2,378,967) Right-Of-Way Easements (10,000) - - - (10,000) Total Accumulated Depreciation (445,117,670) (19,144,134) 751,877 (17,583) (463,527,510) Total Depreciable Assets, Net 218,541,776 (11,739,303) - - 206,802,473 Capital Assets, Net 467,902,411$ (8,875,686)$ (4,484,532)$ -$ 454,542,193$

Depreciation expense was charged in the following functions in the statement of activities:

General Government 6,182,099$
Public Safety 743,058
Community Development 6,900
Public Works 10,376,287
Parks and Recreation 1,835,790
Total 19,144,134$

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NOTE 4 CAPITAL ASSETS (CONTINUED)
Business-Type Activities
The following is a summary of capital assets for enterprise funds at June 30, 2021:

Balance at Balance at
July 01, 2020 Additions Deletions Transfers June 30, 2021 Nondepreciable Assets:

Land and Easements 25,153,443$ -$ -$ -$ 25,153,443$ Intangibles - Service Credit 3,954,891 - - - 3,954,891 Water Rights 12,678,475 - - - 12,678,475 Idle Assets 3,017,958 - - - 3,017,958 Land Improvements 536,342 - - - 536,342 Construction in Progress 9,769,981 6,763,936 (6,429,520) - 10,104,397 Total Nondepreciable Assets 55,111,090 6,763,936 (6,429,520) - 55,445,506 Depreciable Assets:

Buildings and Improvements 218,457,315 123,951 - - 218,581,266 Furniture and Equipment 49,343,134 771,562 (306,648) - 49,808,048 Computer and Communication 972,541 - - - 972,541 Vehicles 6,238,435 359,066 (106,855) (17,583) 6,473,063 Infrastructure 373,115,090 9,010,805 - - 382,125,895 Intangibles 1,589,862 - - - 1,589,862 Land Improvements 128,489 - - - 128,489 Total Depreciable Assets 649,844,866 10,265,384 (413,503) (17,583) 659,679,164 Less Accumulated Depreciation:

Buildings and Improvements (121,313,073) (5,235,760) - - (126,548,833) Furniture and Equipment (36,901,281) (2,091,489) 306,648 - (38,686,122) Computer and Communication (848,696) (56,627) - - (905,323) Vehicles (4,006,817) (309,875) 82,808 17,583 (4,216,301) Infrastructure (177,566,719) (11,670,582) - - (189,237,301) Intangibles (1,549,157) (28,828) - - (1,577,985) Land Improvements (112,428) (12,849) - - (125,277) Total Accumulated Depreciation (342,298,171) (19,406,010) 389,456 17,583 (361,297,142) Total Depreciable Assets, Net 307,546,695 (9,140,626) (24,047) - 298,382,022 Capital Assets, Net 362,657,785$ (2,376,690)$ (6,453,567)$ -$ 353,827,528$

Depreciation expense was charged in the following programs of the primary government:

Water 7,338,599$
Airport 9,073,542
Electric Utility 1,380,494
Solid Waste Management 184,254
Sanitary 1,303,193
Nonmajor Gas Utility 125,928
Total 19,406,010$

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NOTE 5 LAND HELD FOR RESALE
As of June 30, 2021, the Successor Agency to the Victorville Redevelopment Agency (RDA) and the City Housing Asset Successor Agency had acquired and developed parcels of land in the Bear Valley and Old Town/Midtown project areas. These parcels were purchased for the purpose of providing incentives to developers in order to construct future commercial projects on the property and are recorded as land held for resale at the net realizable values of $3,084,917 and $2,479,641, respectively.

NOTE 6 LONG-TERM NOTES RECEIVABLE
Affordable Housing Loans Receivable
The City has entered into agreements with developers to establish various affordable housing project loans, the significant loans are described below:

Pacific West Communities
In February 2010, the former RDA entered into an affordable housing loan agreement with Pacific West Communities to develop a housing project. The note accrues interest at 3% annual and repayments are based on earning of the housing facility. The expected payoff date is February 17, 2050. At June 30, 2021, the City Housing Asset Successor Special Revenue Fund has recorded outstanding loan receivable balance of $5,110,180.

Southern California Housing Development Corporation
In December 2001, the former RDA entered into an affordable housing loan agreement with Southern California Housing Development Corporation to develop the Impressions at Valley Center housing project. The note accrues interest at 3% annual and repayments are based on earning of the housing facility. The expected payoff date is December 20, 2041. At June 30, 2021, the City Housing Asset Successor Special Revenue Fund has recorded outstanding loan receivable balance of $1,104,965.

In December 2005, the former RDA entered into an affordable housing loan agreement with Southern California Housing Development Corporation to develop the Northgate Apartments housing project. The note accrues interest at 3% annual and repayments are based on earning of the housing facility. The expected payoff date is December 15, 2045. At June 30, 2021, the City Housing Asset Successor Special Revenue Fund has recorded outstanding loan receivable balance of $5,659,131.

Housing Assistance Grants
In conjunction with the City’s Mortgage Assistance Program, the City provides loans up to $55,000 to low-income first-time homebuyers. The loans act as down payment assistance and are deferred for up to 30 years as long as the eligible buyer occupies the property as its principal residence and is not in default under the affordability covenants and resale restrictions. The loans accrue simple interest at 3% per year. At June 30, 2021, the City Housing Asset Successor Special Revenue Fund has recorded outstanding loan receivable balance of $156,591.

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NOTES TO BASIC FINANCIAL STATEMENTS
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NOTE 6 LONG-TERM NOTES RECEIVABLE (CONTINUED)
Desert Haven
In November 2019, the City entered into an affordable housing loan agreement in a total amount of $1,509,505 with Desert Haven Victorville, LP, to repay the $1,500,000 borrowed from the Housing Authority of the County of San Bernardino to purchase the property known as Desert Haven and $9,505 for closing costs with the property acquisition. The note accrues simple interest at 1% annually and repayments are based on the earnings of the housing facility. The note is secured by a deed of trust against the property in the first priority position. The term of the note is 55 years and is expected to be paid off by October 1, 2074. At June 30, 2021, the City HUD Grants Special Revenue Fund has recorded an outstanding loan balance of $1,525,858.

Other Loans
At June 30, 2021, the Nonmajor Governmental Funds report first time homebuyer loans, secured by a deed of trust, that are due upon the sale of the property in the amount of $63,466. These loans are secured by a deed of trust. Also, at June 30, 2021, the Nonmajor Governmental Funds report residential curb appeal loans, which are 50% forgiven at five years and 100% forgiven at 10 years, that are due upon the sale of the property prior to the five- or ten-year time period in the amount of $285,844. Other various loans reported in the Nonmajor Governmental Funds total $20,760.

NOTE 7 GOVERNMENTAL LONG-TERM LIABILITIES
Changes in Long-Term Liabilities
A summary of changes in long-term liabilities for the year ended June 30, 2021 is as follows:

Balance at Balance at Due Within
July 01, 2020 Additions Retirements June 30, 2021 One Year Other Long-Term Liabilities:

Capital Lease 1,048,362$ -$ (158,889)$ 889,473$ 164,911$ Compensated Absences 4,342,843 2,726,375 (2,835,632) 4,233,586 2,056,017 Claims Payable 1,327,049 2,476,321 (851,480) 2,951,890 533,576 Pollution Remediation
Obligation 1,247,875 - (203,768) 1,044,107 210,000 Totals 7,966,129$ 5,202,696$ (4,049,769)$ 9,119,056$ 2,964,504$

Capital Lease
On September 6, 2018, the City entered into a financing agreement with Rev Financial Services, LLC to purchase two pumper trucks for the fire department in the amount of $1,201,450. The financing agreement bears interest at 3.79% and installment payments of $198,623 are due each September 6 over the next seven years with a final maturity date of September 6, 2025. The trucks are included in the City’s capital assets with a cost and accumulated depreciation of $1,390,358 and $(220,140), respectively, as of June 30, 2021.

The outstanding balance on this capital lease, which will be liquidated by the General Fund, is $889,472 as of June 30, 2021.

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NOTE 7 GOVERNMENTAL LONG-TERM LIABILITIES (CONTINUED)
Capital Lease (Continued)
The annual requirements for debt service payments are as follows:

Year Ending June 30, Principal Interest Total
2022 164,911$ 33,712$ 198,623$
2023 171,162 27,461 198,623
2024 177,649 20,974 198,623
2025 184,382 14,241 198,623
2026 191,369 7,254 198,623
Total 889,473$ 103,642$ 993,115$

Compensated Absences
The City’s policies relating to compensated absences are described in Note 1. This liability, amounting to $4,233,586 at June 30, 2021 will be paid in future years from future resources, generally liquidated by the General Fund.

Pollution Remediation
In February 2007, the City acquired a property that was previously used as a dry-cleaning facility. In May 2010, the United States Environmental Protection Agency (U.S. EPA) issued the Unilateral Administrative Order for the performance of a removal action to City and the prior owner, due to the presence of tetrachloroethylene (“PCE” aka dry-cleaning solvent) contamination on site.

The UAO ordered the City to conduct the necessary environmental investigation related to the presence of PCE on the property and thereafter conduct the remediation necessary to remediate the soil and groundwater contami nation found. The United States EPA has taken action against the City and the prior owner pursuant to its authority under CERCLA section 104, and in response to the UAO, City has undertaken the damages that the EPA has the right to assess for failure to comply an EPA order.

The investigation was conducted under the supervision and guidance of the U.S. EPA. In June 2011, the U.S. EPA issued a “Notice of Completion” letter related to soil contamination at the Site.

The City has drafted a Project Execution Plan (PEP) for the remedial efforts of groundwater contamination. Based upon ground water monitoring reports, the PEP estimates that the total project costs associated with the groundwater contamination remediation to be $1,457,598, and the duration of the efforts to be three years. This cost is anticipated to be covered with grant from the State Water Board in the amount of $1,457,598.

The pollution remediation obligation is an estimate and subject to changes resulting from price increases or reductions, technology, or changes in applicable laws or regulations. As of June 30, 2021, the City is in the second year of the PEP and has spent a total of $413,491 with a remaining Pollution Remediation liability of $1,044,107.

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NOTE 8 BUSINESS-TYPE LONG-TERM LIABILITIES
Changes in Long-Term Liabilities
A summary of changes in long-term liabilities for the year ended June 30, 2021 is as follows:

Balance at Balance at Due Within
July 01, 2020 Additions Retirements June 30, 2021 One Year Other Long-Term Liabilities:

Compensated Absences 770,675$ 627,216$ (674,842)$ 723,049$ 511,533$ Claims Payable 2,950,000 - (440,000) 2,510,000 1,190,000 Other Debt:

Tax Allocation Bonds:
2005 Tax Allocation Bonds 15,320,000 - (1,115,000) 14,205,000 1,165,000 2006 Tax Allocation Bonds (Non-Housing) 48,995,000 - (1,155,000) 47,840,000 1,205,000 2006 Tax Allocation Bonds (Housing) 13,160,000 - (310,000) 12,850,000 325,000 2006 Tax Allocation Parity Bonds 41,675,000 - (145,000) 41,530,000 155,000 2006 Tax Allocation Revenue Parity Bonds 30,230,000 - (575,000) 29,655,000 610,000 2006 Tax Allocation Revenue Bonds 54,810,000 - (1,070,000) 53,740,000 1,135,000 2007 Tax Allocation Bonds (Housing) 34,055,000 - (720,000) 33,335,000 760,000 2007 Tax Allocation Bonds (Non-Housing) 35,550,000 - (725,000) 34,825,000 765,000 2008 Tax Allocation Bonds 22,763,420 1,321,695 (105,000) 23,980,115 105,000 Unamortized Discounts/Premiums (2,275,932) - 91,868 (2,184,064) - Tax Allocation Bonds Subtotal 294,282,488 1,321,695 (5,828,132) 289,776,051 6,225,000 Lease Revenue Bonds:
2007A Variable Rate Lease Revenue Bond 48,115,000 - (1,405,000) 46,710,000 1,480,000 Certificates of Participation (COP):
2006 COPs 9,310,000 - (380,000) 8,930,000 395,000 Unamortized Discounts/Premiums 99,083 - (6,193) 92,890 - Total 355,527,2 4
6$ 1,948,911$ (8,734,167)$ 348,741,990$ 9,801,533$

See Note 10 for pledged revenue information.

Compensated Absences
The City’s policies relating to compensated absences are described in Note 1. This liability, amounting to $723,049 at June 30, 2021, will be paid in future years from future resources, generally liquidated by the Victorville Water District, Victorville Municipal Utility and the SCLAA Enterprise Funds.

Tax Allocation Bonds
Tax Allocation Parity Bonds, Series 2005A
In June 2005, the SCLAA issued $42,185,000 principal amount of Tax Allocation Parity Bonds, Series 2005A. This debt was issued to finance certain public capital improvements benefiting the SCLAA.

On February 8, 2006, $1.8 million of bond proceeds was invested in land for the construction of a new City library. Prior to this purchase (on November 3, 2005), the Board of Directors of the SCLAA adopted a resolution with the intent of entering into a loan agreement between the SCLAA and the City with respect to this land purchase. On September 21, 2010 City Council approved this loan agreement. Legal counsel for the City has indicated that approval by the bond insurer is not required for the investment of proceeds not held by the bond trustee.

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NOTE 8 BUSINESS-TYPE LONG-TERM LIABILITIES (CONTINUED)
Tax Allocation Bonds (Continued)
Tax Allocation Parity Bonds, Series 2005A (Continued)
Bonds maturing on December 1, 2010, December 1, 2016, December 1, 2020, December 1, 2025, December 1, 2030, and December 1, 2035 in the amounts of $2,765,000, $3,365,000, $5,140,000, $6,335,000, $7,870,000 and $15,335,000 are term bonds. The outstanding bonds bear interest at 3.50% to 5.00% due June 1 and December 1 of each year.

The bonds are subject to redemption prior to maturity as described in the bond covenants.

The bonds maturing on or after June 1, 2016 are subject to optional redemption in whole or in part by lot, without premium.

The bonds maturing on December 1, 2010, December 1, 2016, December 1, 2020, December 1, 2025, December 1, 2030, and December 1, 2035 are subject to mandatory redemption in part by lot, without premium, commencing December 1, 2007, December 1, 2012, December 1, 2016, December 1, 2021, December 1, 2026, and December 1, 2031, respectively, from sinking fund payments made by SCLAA.

In the fiscal year ended June 30, 2006 these bonds were partially defeased by the issuance of the Tax Allocation Revenue Parity Bonds, Refunding Series 2005 (Non-Housing). As of June 30, 2021, required reserve for the Bonds was met with fiscal agent cash. The Bonds are a special obligation of the SCLAA payable from tax increment revenues. The amount of bonds outstanding at June 30, 2021 is $14,205,000.

Tax Allocation Revenue Parity Bonds, Refunding Series 2006 (Non-Housing) In June 2006, the SCLAA issued $62,780,000 principal amount of Tax Allocation Revenue Parity Bonds, Refunding Series 2006. The proceeds were used to refund the 2001 Tax Allocation Bonds, the 2003 Tax Allocation Bonds, and a portion of 2005 Tax Allocation Bonds. As a result, the 2001 and 2003 Tax Allocation Bonds are considered to be defeased, and the 2005 Tax Allocation Bonds are considered to be partially defeased. The respective liabilities have been removed from the statement of net position.

Bonds maturing on December 1, 2026, December 1, 2031, December 1, 2036 and December 1, 2043 in the amounts of $6,895,000, $8,595,000, $10,810,000 and $20,335,000 are term bonds. The outstanding bonds bear interest at 4.50% to 5.00% due June 1 and December 1 of each year.

The bonds are subject to redemption prior to maturity as described in the bond covenants.

The bonds maturing on or after June 1, 2016 are subject to optional redemption in whole or in part by lot without premium.

The bonds maturing on December 1, 2026, December 1, 2031, December 1, 2036 and December 1, 2043 are subject to mandatory redemption in part by lot, without premium, commencing December 1, 2022, December 1, 2027, December 1, 2032 and December 1, 2037, respectively, from sinking fund payments made by SCLAA.

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NOTE 8 BUSINESS-TYPE LONG-TERM LIABILITIES (CONTINUED)
Tax Allocation Bonds (Continued)
Tax Allocation Revenue Parity Bonds, Refunding Series 2006 (Non-Housing) (Continued) As of June 30, 2021, required reserve for the Bonds was met with fiscal agent cash. The bonds are a special obligation of the SCLAA payable from tax increment revenues. The amount of bonds outstanding at June 30, 2021 is $47,840,000.

Tax Allocation Revenue Parity Bonds, Refunding Series 2006 (Housing Set-Aside) In June 2006, the SCLAA issued $16,855,000 principal amount of Housing Set-Aside Revenue Bonds, Refunding Series 2006. The proceeds were used to refund all of the 2003 Tax Allocation Bonds and a portion of the 2005 Tax Allocation Parity Bonds. As a result, the 2003 Tax Allocation Bond is considered to be defeased and the liability has been removed from the statement of net position.

Bonds maturing on December 1, 2026, December 1, 2031, December 1, 2036 and December 1, 2043 in the amounts of $1,855,000, $2,305,000, $2,905,000 and $5,460,000 are term bonds. The outstanding bonds bear interest at 4.50% to 5.00% due June 1 and December 1 of each year.

The bonds are subject to redemption prior to maturity as described in the bond covenants.

The bonds maturing on or after June 1, 2016 are subject to optional redemption in whole or in part by lot without premium.

The bonds maturing on December 1, 2026, December 1, 2031, December 1, 2036 and December 1, 2043 are subject to mandatory redemption in part by lot, without premium, commencing December 1, 2022, December 1, 2027, December 1, 2032 and December 1, 2037, respectively, from sinking fund payments made by SCLAA.

As of June 30, 2021, required reserve for the Bonds was met with fiscal agent cash. The bonds are a special obligation of the SCLAA payable from tax increment revenues. The amount of bonds outstanding at June 30, 2021 is $12,850,000.

Tax Allocation Revenue Parity Bonds, Taxable Series 2006 In June 2006, the SCLAA issued $45,020,000 principal amount of Tax Allocation Revenue Parity Bonds, Taxable Series 2006. The proceeds were used to finance certain redevelopment activities benefiting the SCLAA.

Bonds maturing on December 1, 2036, and December 1, 2043 in the amounts of $20,080,000, and $24,940,000 are term bonds. The outstanding bonds bear interest at

6.10% due June 1 and December 1 of each year.

The bonds are subject to redemption prior to maturity as described in the bond covenants.

The bonds are subject to optional redemption in whole or in part by lot, subject to a premium.

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NOTE 8 BUSINESS-TYPE LONG-TERM LIABILITIES (CONTINUED)
Tax Allocation Bonds (Continued)
Tax Allocation Revenue Parity Bonds, Taxable Series 2006 (Continued) The bonds maturing on December 1, 2036, December 1, 2043 are subject to mandatory redemption in part by pro rata, without premium, commencing December 1, 2006, December 1, 2037, respectively, from sinking fund payments made by SCLAA.

As of June 30, 2021, required reserve for the Bonds was met with fiscal agent cash. The bonds are a special obligation of the SCLAA payable from tax increment revenues. The amount of bonds outstanding at June 30, 2021 is $41,530,000.

Taxable Tax Allocation Revenue Parity Bonds, Forward Series 2006 In November 2006, SCLAA issued $34,980,000 principal amount of Taxable Tax Allocation Revenue Parity Bonds, Forward Series 2006. The proceeds were used to finance and refinance certain redevelopment activities benefiting the SCLAA.

The bonds mature from December 1, 2007 to December 1, 2043 in varying amounts.

Principal is payable in annual installments ranging from $50,000 to $2,320,000, commencing December 1, 2007. The bonds accrue interest at rates between 6.25% and

6.30%. Interest on the bonds is payable semiannually on each June 1 and December 1, commencing June 1, 2007.

The bonds are subject to optional and mandatory redemption prior to maturity.

The bonds are secured by pledged tax revenues - see Note 10. As of June 30, 2021, required reserve for the Bonds was met with fiscal agent cash. The bonds are a special obligation of the SCLAA payable from tax increment revenues. The amount of bonds outstanding at June 30, 2021 is $29,655,000.

Taxable Subordinate Tax Allocation Revenue Bonds, Series 2006 In November 2006, the SCLAA issued $64,165,000 principal amount of Taxable Subordinate Tax Allocation Revenue Bonds, Series 2006. The proceeds were used to finance certain redevelopment activities benefiting the SCLAA.

The bonds mature from December 1, 2007 to December 1, 2043 in varying amounts.

Principal is payable in annual installments ranging from $395,000 to $4,135,000, commencing December 1, 2007. The bonds accrue interest at 6.05%. Interest on the bonds is payable semiannually on each June 1 and December 1, commencing June 1, 2007.

The bonds are subject to optional and mandatory redemption prior to maturity.

The bonds are secured by pledged tax revenues - see Note 10. As of June 30, 2021, required reserve for the Bonds was met with fiscal agent cash. The bonds are a special obligation of the SCLAA payable from tax increment revenues. The amount of bonds outstanding at June 30, 2021 is $53,740,000.

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NOTE 8 BUSINESS-TYPE LONG-TERM LIABILITIES (CONTINUED)
Tax Allocation Bonds (Continued)
Taxable Housing Set-Aside Revenue Parity Bonds, Series 2007 In March 2007, the SCLAA issued $41,460,000 principal amount of Taxable Housing Set- Aside Revenue Parity Bonds, Series 2007. The proceeds were used to finance certain low- and moderate-income housing programs of the Authority. On July 7, 2009, $20,000,000 of bond proceeds were invested in a loan to the Victorville Water District. Legal counsel for the City has indicated that approval by the bond insurer is not required for the investment of proceeds not held by the bond trustee. In February 2013 this loan was repaid in full with interest.

Bonds maturing on December 1, 2012, December 1, 2017, December 1, 2022, December 1, 2027, and December 1, 2043 in the amounts of $3,265,000, $2,800,000, $3,620,000, $4,685,000 and $27,090,000 are term bonds. The outstanding bonds bear interest at 5.00%,

5.20%, 5.25%, 5.40% and 5.55% due June 1 and December 1 of each year.

The bonds are subject to optional redemption in whole or in part by lot, without premium.

As of June 30, 2021, required reserve for the Bonds was met with fiscal agent cash and an insurance policy. The bonds are a special obligation of the SCLAA payable from tax increment revenues. The amount of bonds outstanding at June 30, 2021 is $33,335,000.

Subordinate Tax Allocation Revenue Bonds, Series 2007
In December 2007, the SCLAA issued $42,000,000 principal amount Subordinate Tax Allocation Revenue Bonds, Series 2007. The proceeds were used to finance certain redevelopment activities benefiting the SCLAA.

Bonds maturing on December 1, 2008, December 1, 2009, December 1, 2012, December 1, 2017, December 1, 2022, December 1, 2027, December 1, 2032, December 1, 2032, December 1, 2037, December 1, 2037, December 1, 2037, December 1, 2043 and December 1, 2043 in the amounts of $480,000, $425,000, $1,395,000, $2,805,000, $3,640,000, $4,745,000, $3,000,000, $3,275,000, $3,325,000, $3,800,000, $1,250,000, $9,210,000 and $4,650,000 are term bonds. The outstanding bonds bear interest at 4.000%,

4.200%, 4.375%, 5.250%, 5.375%, 5.600%, 5.900%, 6.000%, 5.900%, 6.000%, 6.100%,

5.900% and 6.150% due June 1 and December 1 of each year.

The bonds are subject to redemption prior to maturity at the option of the Authority, on or after December 1, 2017, in whole or in part by lot, without premium.

The bonds maturing on the dates described above are subject to mandatory redemption in part by lot, without premium, commencing December 1, 2010, December 1, 2013, December 1, 2018, December 1, 2023, December 1, 2028, December 1, 2028, December 1, 2033, December 1, 2033, December 1, 2033, December 1, 2038, and December 1, 2038, respectively, from sinking fund payments made by SCLAA.

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NOTE 8 BUSINESS-TYPE LONG-TERM LIABILITIES (CONTINUED)
Tax Allocation Bonds (Continued)
Subordinate Tax Allocation Revenue Bonds, Series 2007 (Continued) As of June 30, 2021, required reserve for the Bonds was met with fiscal agent cash. The bonds are a special obligation of the SCLAA payable from tax increment revenues. The amount of bonds outstanding at June 30, 2021 is $34,825,000.

Subordinate Tax Allocation Revenue Bonds, Series 2008
In May 2008, the SCLAA issued $13,334,925 principal amount of Subordinate Tax Allocation Revenue Bonds, Series 2008A. The proceeds were used to finance certain redevelopment activities benefiting the SCLAA and to partially refund the $35,000,000 principal amount of Subordinate Tax Allocation Revenue Notes, Series 2008.

Bonds maturing on December 1, 2010, December 1, 2013, December 1, 2018, December 1, 2023, December 1, 2033, December 1, 2038, and December 1, 2043 in the amounts of $130,000, $215,000, $340,000, $530,000, $1,675,000, $1,285,000, and $1,720,000 are Current Interest Bonds. The outstanding bonds bear interest at 4.25%, 4.50%, 5.00%,

5.25%, 6.00%, 6.00% and 6.00% due June 1 and December 1 of each year.

Bonds maturing on December 1 of each year beginning 2044 through 2050 in the initial principal amounts of $1,316,266, $1,216,397, $1,123,621, $1,037,536, $957,600, $883,633, and $814,910 are Capital Appreciation Bonds. The outstanding bonds bear yields to maturity of 7.300%, 7.320%, 7.340%, 7.360%, 7.380%, 7.400% and 7.420%. All of the bonds have a future maturity value of $131,805,000 at June 30, 2021.

The current interest bonds are subject to redemption prior to maturity at the option of the Authority, on or after December 1, 2018, in whole or in part by lot, without premium. The Capital Appreciation Bonds are subject to optional redemption in whole or in part by lot, without premium.

As of June 30, 2021, required reserve for the Bonds was met with fiscal agent cash. The bonds are a special obligation of the SCLAA payable from tax increment revenues. The amount of bonds outstanding at June 30, 2021 is $23,980,115, which includes an accretion balance of $11,620,190.

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NOTE 8 BUSINESS-TYPE LONG-TERM LIABILITIES (CONTINUED)
Tax Allocation Bonds (Continued)
Variable Rate Lease Revenue Bonds, Series 2007A
In May 2007, the Victorville Joint Powers Financing Authority issued $83,770,000 principal amount of Variable Rate Lease Revenue Bonds, Series 2007A. The bonds were issued to refund the 2005 Variable Rate Lease Revenue Bonds, Series A ($41,000,000) and 2006 Variable Rate Lease Revenue Bonds, Series A ($23,645,000). The proceeds were used to assist the City of Victorville in financing a cogeneration power plant and other related facilities. The bonds are subject to optional redemption in whole or in part by lot, without premium. The payments of principal and interest are supported by an irrevocable letter of credit that will be utilized if other funds are not available to make the debt service payments.

The letter of credit is applicable as long as the interest is at a variable rate. The Authority has pledged and placed a first and prior lien upon and granted a security interest in the leased properties to secure the obligation. Such lien is subject to no other liens other than the lien in favor of the trustee on behalf of the holders on the bonds.

As of June 30, 2021, required reserve for the Bonds was met with fiscal agent cash. The bonds are a special obligation of the Victorville Joint Powers Financing Authority payable from revenues consisting primarily of base rental lease payments paid by the city and amount held in the funds and established under the indenture. The amount of bonds outstanding at June 30, 2021 is $46,710,000.

2006 Certificates of Participation
On March 1, 2006, the City of Victorville’s Baldy Mesa Water District issued 2006 Certificates of Participation. The proceeds were used to finance public improvements within the Baldy Mesa Water District service area.

The Certificates of Participation had a stated interest rates ranging from 3.20% to 5.00%.

The annual debt service is a special limited obligation of the District payable from and secured by a pledge of and lien on the net revenues of the District - see Note 10. Principal and interest payments are due each August 1 and interest only payments are due each February 1. The required reserve for the Bonds is $816,500. As of June 30, 2021, the reserve amount was $836,333. The amount of Certificates of Participation outstanding at June 30, 2021 is $8,930,000.

Rate Covenant
The 2006 Certificate of Participation require that the Baldy Mesa Water District to generate sufficient net revenues which are at least equal to 110% of the amount of the installment payments and Parity Obligation coming due and payable in each fiscal year. The 2006 Certificate of Participations were issued before Baldy Mesa and Victor Valley Water District were consolidated into Victorville Water Dist rict. The City performed the calculation that demonstrated compliance with rate covenant for the fiscal year ended June 30, 2021. The calculation was prepared using revenues and the proportionate expenses applicable to the Baldy Mesa Water District and is included in Note 10.

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NOTE 8 BUSINESS-TYPE LONG-TERM LIABILITIES (CONTINUED)
Debt Service Requirements to Maturity
The annual requirements to amortize outstanding propr ietary funds debt of the City as of June 30, 2021, are as follows for each fiscal year ending June 30:

Tax Tax Lease Lease
Allocation Allocation Certificat e of Certificate of Revenue Revenue Bonds Bonds Participation Participation Bonds Bonds
Year Ending June 30, Principal * Interest Principal Interest Principal Interest 2022 6,225,000 $ 15,238,104 $ 395,000 $ 412,403 $ 1,480,000 $ 698,800 $ 2023 6,550,000 14,906,577 410,000 395,388 1,560,000 676,500 2024 6,885,000 14,555,859 425,000 377,226 1,645,000 652,994 2025 7,245,000 14,184,559 445,000 358,304 1,730,000 628,212 2026 7,630,000 13,792,810 465,000 338,511 1,825,000 602,144 2027-31 44,665,000 62,262,070 2,655,000 1,355,924 10,675,000 2,568,082 2032-36 58,425,000 48,026,395 3,360,000 630,500 13,835,000 1,673,656 2037-41 77,350,000 28,526,413 775,000 19,375 13,960,000 519,550 2042-46 94,184,999 47,291,605 - - - - 2047-2051 90,425,001 77,127,009 - - - - Subtotal 399,585,000 335,911,401 8,930,000 3,887,631 46,710,000 8,019,938 Discounts/Premiums (2,184,064) - 92,890 - - - Total 397,400,936$ 335,911,401$ 9,022,890$ 3,887,631$ 46,710,000$ 8,019,938$ * This total includes capital appreciation of $107,624,885 for tax allocation bonds that will be accrued in the future years.

NOTE 9 SUCCESSOR AGENCY LONG-TERM LIABILITIES
Changes in Long-Term Liabilities
A summary of changes in long-term liabilities for the year ended June 30, 2021 is as follows:

Balance at Balance at Due Within
July 01, 2020 Additions Retirements June 30, 2021 One Year Redevelopment Agency Debt:

Other Debt:

Tax Allocation Bonds:
2002A Tax Allocation Bonds 5,675,000$ -$ (350,000)$ 5,325,000$ 370,000$ 2003A Tax Allocation Bonds 6,015,000 - (380,000) 5,635,000 395,000 2003B Tax Allocation Bonds 2,960,000 - (190,000) 2,770,000 195,000 2006A Tax Allocation Bonds 17,650,000 - (500,000) 17,150,000 535,000 Totals 32,300,000$ -$ (1,420,000)$ 30,880,000$ 1,495,000$

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NOTE 9 SUCCESSOR AGENCY LONG-TERM LIABILITIES (CONTINUED) Tax Allocation Bonds
2002 Tax Allocation Bonds, Series A
In August 2002, the Redevelopment Agency issued $9,710,000 principal amount of Tax Allocation Bonds, Series A. The proceeds were used to finance certain redevelopment activities within and of the benefit to the project area.

Bonds maturing in the years 2003 to 2021 are serial bonds payable December 1 in annual installments of $80,000 to $290,000. Bonds maturing on December 1, 2014, December 1, 2031 and December 1, 2031 in the amounts of $455,000, $1,545,000 and $3,890,000 are term bonds. The outstanding bonds (serial and term) bear interest at 3.00% to 5.14% due December 1 of each year.

The bonds are subject to redemption prior to maturity as described in the bond covenants.

The serial bonds maturing on December 1, 2013 are subject to optional redemption in whole or in part by lot, with premium of 2%, 1% and 0% for periods December 1, 2012 to November 30, 2013, December 1, 2013 to November 30, 2014 and December 1, 2014 and thereafter, respectively.

The term bonds maturing on December 1, 2014, December 1, 2031 and December 1, 2031 are subject to mandatory redemption in part by lot, without premium commencing December 1, 2005, December 1, 2015 and December 1, 2022 respectively, from sinking fund payments made by the Agency.

As of June 30, 2021, the required reserve for the was met with fiscal agent cash and an insurance policy. The bonds are payable solely from the tax revenues allocated and paid to the Victorville Redevelopment Agency with respect to the Redevelopment Project Area - see Note 10. The amount of bonds outstanding at June 30, 2021 is $5,325,000.

2003 Tax Allocation Bonds, Series A
In September 2003, the Redevelopment Agen cy issued $10,195,000 principal amount of Tax Allocation Bonds, Series A. The proceeds were used to refund the 1994 Tax Allocation Bonds, Series A, as well as finance certain redevelopment activities within and of the benefit to the project area.

Bonds maturing in the years 2004 to 2020 are serial bonds payable December 1 in annual installments of $95,000 to $380,000. Bonds maturing on December 1, 2023, December 1, 2027 and December 1, 2031 in the amounts of $1,250,000, $1,975,000 and $2,410,000 are term bonds. The outstanding bonds (serial and term) bear interest at 3.00% to 5.09% due December 1 of each year.

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NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

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NOTE 9 SUCCESSOR AGENCY LONG-TERM LIABILITIES (CONTINUED) Tax Allocation Bonds (Continued)
2003 Tax Allocation Bonds, Series A (Continued)
The term bonds maturing on December 1, 2023, December 1, 2027 and December 1, 2031 are subject to mandatory redemption in part by lot, without premium commencing December 1, 2021, December 1, 2024 and December 1, 2028 respectively, from sinking fund payments made by the Agency.

As of June 30, 2021, the required reserve for the Bonds was met with fiscal agent cash and an insurance policy. The bonds are payable solely from the tax revenues allocated and paid to the Victorville Redevelopment Agency with respect to the Redevelopment Project Area - see Note 10. The amount of bonds outstanding at June 30, 2021 is $5,635,000.

2003 Tax Allocation Bonds, Series B
In September 2003, the Redevelopment Agency issued $5,025,000 principal amount of Tax Allocation Bonds, Series B. The proceeds were used to refund the 1994 Tax Allocation Bonds, Series C, as well as finance certain redevelopment activities within and of the benefit to the project area.

Bonds maturing in the years 2004 to 2022 are serial bonds payable December 1 in annual installments of $60,000 to $205,000. Bonds maturing on December 1, 2027 and December 1, 2031 in the amounts of $1,185,000 and $1,185,000 are term bonds. The outstanding bonds (serial and term) bear interest at 3.00% to 5.09% due December 1 of each year.

The term bonds maturing on December 1, 2027 and December 1, 2031 are subject to mandatory redemption in part by lot, without premium commencing December 1, 2023 and December 1, 2028 respectively, from sinking fund payments made by the Agency.

As of June 30, 2021, the required reserve for the Bonds was met with fiscal agent cash and an insurance policy. The bonds are payable solely from the tax revenues allocated and paid to the Victorville Redevelopment Agency with respect to the Redevelopment Project Area - see Note 10. The amount of bonds outstanding at June 30, 2021 is $2,770,000.

2006 Taxable Tax Allocation Parity Bonds, Series A
In May 2006, the Redevelopment Agency issued $22,975,000 principal amount of Taxable Tax Allocation Parity Bonds, Series A. The proceeds were used to finance certain redevelopment activities benefiting the project area.

Bonds maturing on December 1, 2011, December 1, 2021 and December 1, 2036 in the amounts of $2,185,000, $4,175,000 and $16,615,000 are term bonds. The outstanding bonds bear interest at 5.375% to 6.000% due June 1 and December 1 of each year. The bonds are subject to redemption prior to maturity as described in the bond covenants.

CITY OF VICTORVILLE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

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NOTE 9 SUCCESSOR AGENCY LONG-TERM LIABILITIES (CONTINUED) Tax Allocation Bonds (Continued)
2006 Taxable Tax Allocation Parity Bonds, Series A (Continued) The bonds maturing on December 1, 2011, December 1, 2021 and December 1, 2036 are subject to mandatory redemption in part by pro rata, without premium commencing December 1, 2006, December 1, 2012 and December 1, 2022 respectively, from sinking fund payments made by the Agency.

As of June 30, 2021, the required reserve for the Bonds was met with fiscal agent cash and an insurance policy. The bonds are payable solely from the tax revenues allocated and paid to the Victorville Redevelopment Agency with respect to the Redevelopment Project Area - see Note 10. The amount of bonds outstanding at June 30, 2021 is $17,150,000.

Debt Service Requirements to Maturity
The annual requirements to amortize outstanding gener al long-term liabilities of the City as of June 30, 2021, are as follows for each fiscal year ending June 30:

Year Ending June 30, Principal Interest
2022 1,495,000$ 1,690,057$
2023 1,575,000 1,608,159
2024 1,660,000 1,521,006
2025 1,745,000 1,429,231
2026 1,840,000 1,332,556
2027-31 10,815,000 5,007,434
2032-36 11,380,000 1,569,872
2037 370,000 11,100
Total 30,880,000$ 14,169,415$

Advances To/From the Former Victorville Redevelopment Agency The composition of advances to or from the former Victorville RDA as of June 30, 2021 is as follows:

Fund Reporting Receivable Fund Reporting Payable Amount Housing Asset Successor
Special Revenue Fund RDA Successor Agency 12,514,738$ a) RDA Successor Agency SCLAA Enterprise Fund 10,995,517 b) 23,510,255$

a) The former Victorville Redevelopment Agency (RDA) entered into three agreements in which the Low- and Moderate-Income Fund (Low/Mod) advanced money to other funds within the RDA to fund the cost of redevelopment activity and capital improvements. In association with the RDA dissolution and Housing Asset Transfer process the Department of Finance approved the transfer of these advances to the City’s Housing Asset Successor. The outstanding balance of these three advances as of June 30, 2021 is $12,514,738, and the terms of each are described below:

CITY OF VICTORVILLE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

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NOTE 9 SUCCESSOR AGENCY LONG-TERM LIABILITIES (CONTINUED) Advances To/From the Former Victorville Redevelopment Agency i) Per a loan agreement approved March 16, 2010 by the Board of the Victorville RDA, a $3,750,000 was made from the Low/Mod Fund to the Victor Valley Project Area Non- Housing Fund. The advance is to be used to cover necessary redevelopment activities of the Victor Valley Project Area. The advance bears interest at 3% using the simple interest method in accordance with SB-107. The outstanding balance of the advance as of June 30, 2021 is $5,380,403.

ii) Per a loan agreement approved on May 20, 2010 a $300,000 advance was made from the Bear Valley Road Low/Mod fund to the Old Town/Midtown Project Area. The advance is to be used to fund redevelopment activities within the Old Town/Midtown Project Area. The advance bears interest at 3% using the simple interest method in accordance with SB-107. The outstanding balance of the advance as of June 30, 2021 is $498,000.

iii) Per a loan agreement approved on May 4, 2010 a $5,000,000 advance was made from the Low/Mod Fund to the Victor Valley Project Area Non-Housing Fund. The advance is to be used to partially fund the Supplemental Educational Revenue Augmentation Fund (SERAF) payment. The advance bears interest at 3% using the simple interest method in accordance with SB-107. The outstanding balance of the advance as of June 30, 2021 is $6,636,335.

b) Southern California Logistics Airport Authority (SCLAA) entered into an agreement to borrow money from the Victorville Redevelopment Agency to fund the cost of redevelopment activity and prior years’ capital improvements and redevelopment projects that were incurred by the SCLAA in prior years.

Per a loan agreement approved on September 15, 2009 by the Board of Victorville RDA, a $10,000,000 advance was made from the Bear Valley Road Redevelopment Project Area (RDA Capital Project Fund) to the SCLAA. The advance is to be used to continue redevelopment at SCLAA and to fund prior years’ capital improvements and redevelopment project expenses. The advance bears interest at 3% using the simple interest method in accordance with SB-107. The outstanding balance of the advance as of June 30, 2021 is $10,995,517. Since this loan has been denied repayment by the California Department of Finance, as of June 30, 2021, the receivable within the Successor Agency to the Victorville RDA Fiduciary Fund has an allowance of an equal amount.

NOTE 10 PLEDGED REVENUE
The City and its component units have a number of debt issuances outstanding that are collateralized by the pledging of certain revenues. The amount and term of the remainder of these commitments are indicated in the debt service to maturity tables presented in the accompanying notes. The purposes for which the proceeds of the related debt issuances were utilized are disclosed in the debt descriptions in the accompanying notes.

CITY OF VICTORVILLE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

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NOTE 10 PLEDGED REVENUE (CONTINUED)
As a result of the state’s action to dissolve all redevelopment agencies in the state of California, the Successor Agency to the dissolved Redevelopment Agency of the City no longer receives the full amount of tax increment previously pledged by the dissolved redevelopment agency to its bondholders. In its place is a new revenue stream (RPTTF distributions) provided to the Successor Agency that represents only that portion of tax increment that is necessary to pay the approved enforceable obligations that come due for that fiscal year. The aforementioned statutory li mitation on tax increment distributions also applies to the VVEDA funding that represents the primary revenue of the SCLAA.

Also, as noted previously, the 2006 Certificates of Participation result in a pledge of the net revenues of the Victorville Water District Enterprise Fund.

For the current year, pledged gross revenue (net of certain expenses where so required by the debt agreement) as a percentage of debt service payments are indicated in the table below:

Annual Amount of Annual Debt
Pledged Revenue Service Payment Debt Service as
(Net of Expenses, (of All Debt Secured a Percentage of
Description of Pledged Revenue Where Required) by This Revenue) Pledged Revenue Coverage Property Tax Increment pledged by the
Successor Agency of the Victorville
Redevelopment Agency 640,807$ 3,186,854$ 497% 20% Property Tax Increment and Other
Revenue Pledged by the Southern
California Logistics Airport Authority 23,020,692 21,470,720 93% 107% Net Revenues Pledged by the Victorville
Water District for the 2006 Certificates
of Participation 1,294,351 808,195 62% 160%

It should be noted that the coverage ratios identified above are calculated based on Pledged Revenues, which represent the potential funds that VVEDA may be able to access for debt service, if needed. These financial statements report the coverage ratio based on revenue received. Because Dissolution Law restricts Successor Agencies from receiving more revenue than is needed for enforceable obligations, these financial statements will generally show coverage ratios of approximately 1.00, and potentially less than 1.00, if revenues from prior years are retained.

While the above shows that the Successor Agency has only 20% of net revenues to cover the debt service, the State of California Department of Finance communicated in a letter dated April 7, 2021, that the Successor Agency had approximately $3.6 million on hand from previous RPTTF distributions to fund the enforceable obligations, including the debt service payments. Therefore, the Successor Agency has sufficient funds to make the required debt service payments.

CITY OF VICTORVILLE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

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NOTE 11 FUND DISCLOSURES
The following funds had deficit fund balances/net position as of June 30, 2021:

Deficit Fund
Balance
Nonmajor Special Revenue Funds:

Other Federal Grants Fund (348,889) $ (a)
COVID-19 Funds (2,597,556) (b)
Enterprise Funds:

SCLAA (131,563,815) (c)
Electric Utility Fund (23,225,640) (d)

(a) The deficit fund balance in this fund is the result of grant expenditures being incurred during the fiscal year while the related reimbursements were collected outside the City’s availability period.
(b) The deficit fund balance is this fund is the result of expenditures related to the emergency response to COVID-19 for which CARES Act funding from the State and County will be received in fiscal year 2021-2022.
(b) See footnote 20 for further information regarding the deficit balance in the SCLAA fund. (c) The deficit fund balance in the Electric Utility Fund is primarily the result of an impairment on capital assets that was recognized in prior years and a transfer out of $17,850,143 to the General Fund in fiscal year 2018-2019 for reimbursement of historical start-up costs paid from the General Fund. The City is working on a refinancing mechanism for the current debt and is preparing a cost-of-service study to ensure sufficient revenues will be collected to cover the long-term liabilities.

NOTE 12 PENSION PLANS
General Information about the Pension Plans
Plan Descriptions
All qualified permanent and probationary employees are eligible to participate in the City’s Miscellaneous Plan, agent multiple-employer defined benefit pension plan, or the City’s Safety plan, a cost-sharing multiple-employer defined benefit pension plan, both administered by California Public Employees ’ Retirement System (CalPERS). For the Miscellaneous Plan, CalPERS acts as a common investment and administrative agent for its participating member employers and the Plan is included within the Public Employees’ Retirement Fund A (PERF A). The CalPERS Safety Plan consists of safety pools (referred to as “risk pools”), which are comprised of i ndividual employer safety rate plans. The risk pools are included within the Public Employees’ Retirement Fund C (PERF C). The CalPERS Safety Plan was closed to new entrants until the measurement period ended June 30, 2020, which is the time period in which the City ceased outsourcing the safety function of the City. Benefit provisions under the Plan are established by State statute and Local Government resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

CITY OF VICTORVILLE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

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NOTE 12 PENSION PLANS (CONTINUED)
General Information about the Pension Plans (Continued) Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 to 62 with statutorily reduced benefits. For employees hired into a plan with the 1.5% at 65 formula, eligibility for service retirement is age 55 with at least five years of services. PEPRA miscellaneous members become eligible for service retirement upon attainment of age 52 with at least five years of service. All members are eligible for nonduty disability benefits after five years of service. The death benefit is one of the following: The Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. Safety members can receive a special death benefit if the member dies while actively employed and the death is job-related. Fire members may receive the alternate death benefit in lieu of the Basic Death Benefit or the 1957 Survivor Benefit if the member dies while actively employed and has at least 20 years of total CalPERS service. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

The Plan’s provisions and benefits in effect as of the measurement period ended June 30, 2020, are summarized as follows:

Prior to on or after
Hire Date January 1, 2013 January 1, 2013
Benefit Formula 2.5%@55 2.0%@62
Benefit Vesting Schedule 5 Years of Service 5 Years of Service Benefit Payments Monthly for Life Monthly for Life
Retirement Age 50 to 55 52 to 67
Required Employee Contribution Rates 8.00% 6.75%
Required Employer Contribution Rates:

Normal Cost Rate 10.59% 9.69%
Payment of Unfunded Liability $3,368,321 N/A
Prior to on or after
Hire Date January 1, 2013 January 1, 2013
Benefit Formula 2.0%@50 2.7%@57
Benefit Vesting Schedule 5 Years of Service 5 Years of Service Benefit Payments Monthly for Life Monthly for Life
Retirement Age 50 to 55 52 to 57
Required Employee Contribution Rates 9.00% 13.75%
Required Employer Contribution Rates:

Normal Cost Rate 20.89% 13.88%
Payment of Unfunded Liability $1,029,329 $958
Miscellaneous
Safety

CITY OF VICTORVILLE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

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NOTE 12 PENSION PLANS (CONTINUED)
General Information about the Pension Plans (Continued) Employees Covered
As of the June 30, 2020 measurement date, the following employees were covered by the benefit terms for the Miscellaneous Plan:

Miscellaneous
Active Employees 338
Inactive Employees Or Beneficiaries Currently
Receiving Benefits 370
Inactive Employees Entitled To, But Not Yet
Receiving Benefits 409
Total 1,117

Contributions
Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. City contribution rates may change if plan contracts are amended. Paym ents made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contributions requirements are classified as plan member contributions. For the fiscal year ended June 30, 2021, the City contributed $5,961,400 and $1,820,085 to the miscellaneous and safety plans, respectively, which results in total contributions of $7,781,485.

Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Relation to Pensions
Actuarial Assumptions
The total pension liability for both the Miscellaneous and Safety Plans for the June 30, 2020 measurement period was determined by an actuarial valuation as of June 30, 2019, with update procedures used to roll forward the total pension liability to June 30, 2020. The total pension liability for both the Miscellaneous and Safety Plans was based on the following assumptions:

CITY OF VICTORVILLE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

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NOTE 12 PENSION PLANS (CONTINUED)
Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Relation to Pensions (Continued)
Actuarial Assumptions (Continued)
Valuation Date June 30, 2019
Measurement Date June 30, 2020
Actuarial Cost Method Entry Age Normal
Asset Valuation Method Market Value of Assets
Actuarial Assumptions:

Discount Rate 7.15%
Inflation 2.50%
Salary Increases (1)
Mortality Rate Table (2)
Post Retirement Benefit Increase (3)
(1) Varies by entry age and service.
(2) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates includes 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries.

For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from December 2017 that can be found on the CalPERS website.
(3) The less of contract COLA or 2.50% until Purchasing Power Protection Allowance Floor on purchasing power applies, 2.50% thereafter.

Long-term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long term expected rate of return, CalPERS took into account both short term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short term (first 10 years) and the long-term (11+ years) using a building block approach. Using the expected nominal returns for both short term and long term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjus ted to account for assumed administrative expenses.

CITY OF VICTORVILLE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

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NOTE 12 PENSION PLANS (CONTINUED)
Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Relation to Pensions (Continued)
Long-term Expected Rate of Return (Continued)
The expected real rates of return by asset class are as follows:

Assumed
Asset Real Return Real Return
Asset Class (a) Allocation Years 1 - 10 (b) Years 11+ (c) Global Equity 50.00 % 4.80 % 5.98 %
Fixed Income 28.00 1.00 2.62
Inflation Assets - 0.77 1.81
Private Equity 8.00 6.30 7.23
Real Assets 13.00 3.75 4.93
Liquidity 1.00 - (0.92)
100.00 %
(a) In the CalPERS CAFR, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities
(b) An expected inflation of 2.0% used for this period
(c) An expected inflation of 2.92% used for this period

Discount Rate
The discount rate used to measure the total pension liability was 7.15%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

CITY OF VICTORVILLE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

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NOTE 12 PENSION PLANS (CONTINUED)
Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Relation to Pensions (Continued)
Changes in Net Pension Liability – Miscellaneous Agent Multiple-Employer Plan The changes in the net pension liability for the Miscellaneous Plan are as follows:

Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (c) = (a) - (b)
Balance at June 30, 2019 (MD) 202,652,096$ 150,980,795$ 51,671,301$ Changes Recognized for the
Measurement Period:

Service Cost 3,917,361 - 3,917,361 Interest on Total Pension Liability 14,388,003 - 14,388,003 Change in Assumptions - - - Differences between Expected and
Actual Experience 901,693 - 901,693 Plan to Plan Resource Movement - - - Contributions from the Employer - 5,479,864 (5,479,864) Contributions from the Employees - 1,928,672 (1,928,672) Net Investment Income - 7,528,774 (7,528,774) Benefit Payments, including Refunds
of Employee Contributions (8,563,342) (8,563,342) - Administrative Expenses - (212,846) 212,846 Other Miscellaneous Expense - - - Balance at June 30, 2020 (MD) 213,295,811$ 157,141,917$ 56,153,894$ Increase (Decrease)

Proportionate Share of Net Pension Liability – Safety Cost-Sharing Plan As of June 30, 2021, the City reported a net pension liability for its proportionate share of the collective net pension liability of the Safety Plan as follows:

Proportionate
Share of
Net Pension
Liability
Safety 12,515,992 $

The City’s net pension liability for each Plan is measured as the proportionate share of the net pension liability. The City’s proportionate share of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined.

CITY OF VICTORVILLE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

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NOTE 12 PENSION PLANS (CONTINUED)
Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Relation to Pensions (Continued)
Proportionate Share of Net Pension Liability – Safety Cost-Sharing Plan (Continued) The City’s proportionate share of the net pension liability for each Plan as of the measurement date ended June 30, 2019 and 2020 was as follows:

Safety
Proportion - June 30, 2019 0.19301%
Proportion - June 30, 2020 0.18786%
Change - Increase (Decrease) -0.00515%

Pension Expense and Deferred Outflows and Inflows of Resources Miscellaneous Agent Multiple-Employer Plan
For the year ended June 30, 2021, the City recognized pension expense of $8,602,598 for the Miscellaneous agent multiple-employer Plan. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources for the Miscellaneous Plan:

Deferred Deferred
Outflows of Inflows of
Resources Resources
Pension Contributions Subsequent to the
Measurement Date 5,961,400$ -$
Changes in Assumptions - (132,130) Differences Between Expected and Actual Experience 2,336,752 - Net Difference Between Projected and Actual
Earnings on Pension Plan Investments 1,326,979 - Total 9,625,131$ (132,130)$
$5,961,400 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2022. Differences between projected and actual investment earnings are amortized on a five-year straight-line basis and all other amounts are amortized over the expected average remaining service lives of all members that are provided with benefits. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Deferred
Measurement Period Inflows of
Ended June 30, Resources
2022 700,926 $
2023 1,292,141
2024 901,662
2025 636,872
2026 -
Thereafter -

CITY OF VICTORVILLE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

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NOTE 12 PENSION PLANS (CONTINUED)
Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Relation to Pensions (Continued)
Pension Expense and Deferred Outflows and Inflows of Resources (Continued) Safety Cost-Sharing Plan
For the year ended June 30, 2021, the City recognized pension expense of $1,725,153 for the Safety cost-sharing Plan. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources for the Safety Plan:

Deferred Deferred
Outflows of Inflows of
Resources Resources
Pension Contributions Subsequent to the
Measurement Date 1,820,085$ -$
Differences Between Expected and Actual
Experiences 970,552 -
Changes in Assumptions - (41,691) Net Difference Between Projected and Actual
Earnings on Pension Plan Investments 272,025 - Changes in Proportion and Differences Between
Employer Contributions and Employer's
Proportionate Share of Contributions - (248,742) Total 3,062,662$ (290,433)$

$1,820,085 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2022. Differences between projected and actual investment earnings are amortized on a five-year straight-line basis and all other amounts are amortized over the expected average remaining service lives of all members that are provided with benefits. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Deferred
Measurement Period Inflows of
Ended June 30, Resources
2022 111,797$
2023 406,009
2024 298,039
2025 136,299
2026 -
Thereafter -

CITY OF VICTORVILLE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

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NOTE 12 PENSION PLANS (CONTINUED)
Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Relation to Pensions (Continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the City for each Plan, calculated using the discount rate for each Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate:

1% Decrease Current Rate 1% Increase
(6.15%) (7.15%) (8.15%)
Miscellaneous Agent Multiple-Employer Plan 86,277,212$ 56,153,894$ 31,439,809$ Safety Cost-Sharing Plan 18,267,388 12,515,992 7,796,427 Discount Rate

Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separate issued CalPERS financial reports.

Payable to the Pension Plan
At June 30, 2021, the City had no outstanding amount of contributions to the Miscellaneous Agent Multiple-Employer or Safety Cost-Sharing pension plans required for the year ended June 30, 2021.

Summary of Plan Amounts for Government-Wide Financial Statements The following is a summary of the net pension liability, deferred outflows of resources, and deferred inflows of resources for the Miscellaneous Agent Multiple-Employer Plan and the Safety Cost-Sharing Plan for the government-wide financial statements:

Net Pension Deferred Deferred
Liability Outflows Inflows
Miscellaneous Agent Multiple-Employer Plan (56,153,894)$ 9,625,131$ (132,130)$ Safety Cost-Sharing Plan (12,515,992) 3,062,662 (290,433) Total (68,669,886)$ 12,687,793$ (422,563)$

CITY OF VICTORVILLE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

(92)

NOTE 13 DEFERRED COMPENSATION
As of January 1, 2021, employees shall be eligible to transfer up to $19,500 of annual salary per year into a City-approved Deferred Compensation Plan; employees 50 years of age and above are allowed a catch-up provision of $6,500. An additional standard provision is available to employees who are planning on retiring within three years. Under this provision, funds not utilized may be contributed the year prior to retirement. Deferred Compensation funds may be accessed through a loan program. A 401(a) Defined Contribution Plan is available for new full-time employees who may elect an employee contribution, under Section 401(a) of the IRC. The plan document allows a 60-day period for the individuals to make an election from the initial date of hire. Pursuant to Federal Regulations, effective December 31, 2009, existing full-time employees may not enroll or modify an existing 401(a) plan. The City makes no contribution to the plan on behalf of the members and the City has no liability for losses under the plan.

The City has established a deferred compensation plan through Great-West Life and Annuity Insurance Company in accordance with IRC Section 457(b), whereby the City employees may elect to defer portions of thei r compensation in a self-directed investment plan for retirement. The City makes no contribution to the plan on behalf of the members except for those specific positions as noted below. Plan assets are invested in each individual’s name with several deferred compensation plan providers. Distributions are made upon the participant’s termination, retirement, death or total disability, and in a manner in accordance with the election made by the participant. The City has no liability for losses under the plan.

The following Victorville Fire Department positions will receive employer contributions per month: Fire Chief $800, Division Chief $750, Battalion Chief $750, Fire Marshal $750, Fire Training Captain Officer $600, Fire Captain $600, Fire Engineer $250. For the fiscal year ended June 30, 2021, the City contributed $191,975 for covered payroll totaling $4,799,965.

NOTE 14 OTHER POSTEMPLOYMENT BENEFIT (OPEB) PLANS
The City of Victorville contributes to two single employer defined benefit healthcare plans:

City Retiree Healthcare Plan (City Plan) and Water District Retiree Healthcare Plan (District Plan). The plan description and other related information for each plan are included below.

Other Postemployment Benefits Plan – City Plan
Valuation Date June 30, 2020
Measurement Date June 30, 2020
Measurement Period July 1, 2019 to June 30, 2020

CITY OF VICTORVILLE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

(93)

NOTE 14 OTHER POSTEMPLOYMENT BENEFIT (OPEB) PLANS (CONTINUED) Other Postemployment Benefits Plan – City Plan (Continued) Plan Descriptions
The City Plan provides medical benefits to eligible retired City employees and beneficiaries in accordance with various labor agreements. The plan covers employees who retire directly from the City with 8 years of service. The City provides a contribution up to a certain amount (a portion of the Health Net HMO single premium). The percentage varies based on years of City service.

Funding Policy
The contribution requirements of plan members and the City are established and may be amended by City Council. The contribution required to be made under City Council and labor agreement requirements is based on a pay-as-you-go basis (i.e., as medical insurance premiums become due). The City has not established a trust that is administered by the City for the purpose of holding assets accumulated for plan benefits.

Employees Covered
As of the June 30, 2020 measurement date, the following current and former employees were covered by the benefit terms under the Plan:

Active Employees 322
Inactive Employees Or Beneficiaries Currently
Receiving Benefits 59
Inactive Employees Entitled To, But Not Yet
Receiving Benefits 151
Total 532

Contributions
The City Plan and its contribution requirements are established by Memoranda of Understanding with the applicable employee bargaining units and may be amended by agreements between the City and the bargaining units.

The annual contribution is based on the year’s retiree medical premiums (pay-as-you-go basis). For the fiscal year ended June 30, 2021, the City’s cash contributions were $275,577 for current premiums and the estimated implied subsidy was $109,000 resulting in total payments of $384,577.

CITY OF VICTORVILLE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

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NOTE 14 OTHER POSTEMPLOYMENT BENEFIT (OPEB) PLANS (CONTINUED) Other Postemployment Benefits Plan – City Plan (Continued) Total OPEB Liability
The City’s Total OPEB liability was measure as of June 30, 2020 and was determined by an actuarial valuation as of June 30, 2020.

Actuarial Cost Method Entry Age Normal
Actuarial Assumptions:

Discount Rate 2.21%
Inflation 2.75%
Salary Increases 3.0% per annum, in aggregate
Investment Rate of Return N/A
Mortality, Retirement, Disability
Termination 1997-2015 Experience Study
Mortality Improvement Postretirement mortality projected fully generational with Scale MP-2020
Healthcare Trend Rate Non-Medicare: 7.0% for 2022, decreasing to an ultimate rate of 4.0% in 2076
Medicare (Non-Kaiser) - 6.1% for 2022, decreasing to an ultimate rate of 4.0% in 2076
Medicare (Kaiser) - 5.0% for 2022, decreasing to an
ultimate rate of 4.0% in 2076

Discount Rate
The discount rate used to measure the total OPEB liability was 2.21%. The discount rate is determined based on the Bond Buyer 20-bond index since the City has not established a trust.

Change in Actuarial Assumptions
The discount rate changed from 3.50% at the beginning of the measurement period to

2.21% based on changes in the index. In addition, the medical trend rate for Kaiser Senior Advantage plans decreased from 6.5% to 5.0%.

Changes in the Total OPEB Liability
The changes in the total OPEB liability for the City Plan are as follows:

Total OPEB
Liability
Total OPEB Liability 6/30/2019 (MD) 25,556,102$
Service Cost 1,486,270
Interest 940,317
Differences Between Expected and Actual Experience (4,403,383) Changes of Assumptions 4,480,447
Benefit Payments (352,317)
Net Changes During 2019-2020 (MP) 2,151,334
Total OPEB Liability 6/30/2020 (MD) 27,707,436$

CITY OF VICTORVILLE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

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NOTE 14 OTHER POSTEMPLOYMENT BENEFIT (OPEB) PLANS (CONTINUED) Other Postemployment Benefits Plan – City Plan (Continued) Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability of the City if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate:

1% Decrease Current Rate 1% Increase
(1.21%) (2.21%) (3.21%)
Total OPEB Liability 33,510,351 $ 27,707,436$ 23,183,204$ Discount Rate

Sensitivity of the Total OPEB Liability to Changes in Health Care Cost Trend Rates The following presents the total OPEB liability of the City if it were calculated using health care cost trend rates that are one percentage point lower (Non-Medicare: 6.0% for 2022 decreasing to 3.0% in 2076; Medicare (Non-Kaiser): 5.1% for 2022, decreasing to an ultimate rate of 3.0% in 2076; Medicare (Kaiser): 4.0% for 2022, decreasing to an ultimate rate of 3.0% in 2076) or one percentage point higher (Non-Medicare: 8.0% for 2022 decreasing to 5.0% in 2076; Medicare (Non-Kaiser): 7.1% for 2022, decreasing to an ultimate rate of 5.0% in 2076; Medicare (Kaiser): 6.0% for 2022, decreasing to an ultimate rate of 5.0% in 2076) than the current rate:

1% Decrease Current Rate 1% Increase
Total OPEB Liability 22,297,384$ 27,707,436$ 34,986,241$ Healthcare Trend Rate

Recognition of Deferred Outflows and Deferred Inflows of Resources Gains and losses related to changes in the total OPEB liability are recognized in OPEB expense systematically over time. Amounts ar e first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are recognized in future OPEB expense.

The recognition period differs depending on the source of the gain or loss:

Net Difference Between Projected
and Actual Earnings on OPEB
Plan Investments 5 Years
All Other Amounts Expected average remaining service
lifetime (EARSL) (9.1 Years at
June 30, 2020 measurement date)

CITY OF VICTORVILLE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

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NOTE 14 OTHER POSTEMPLOYMENT BENEFIT (OPEB) PLANS (CONTINUED) Other Postemployment Benefits Plan – City Plan (Continued) OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2021, the City recognized OPEB expense of $1,804,451.

As of the fiscal year ended June 30, 2021, the City reported deferred outflows/inflows of resources related to OPEB from the following sources:

Deferred Deferred
Outflows of Inflows of
Resources Resources
Employer Contributions Subsequent To The
Measurement Date 384,577$ -$
Differences Between Expected and Actual Experience - (5,691,340) Changes of Assumptions 5,254,762 (2,781,563)
Total 5,639,339$ (8,472,903)$

$384,577 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the total OPEB liability during the fiscal year ending June 30, 2022. Other amounts reported as deferred outflows/inflows of resources related to OPEB will be recognized as expense as follow:

Deferred
Outflows/
(Inflows) of
Year Ended June 30, Resources
2022 (623,383) $
2023 (623,383)
2024 (623,383)
2025 (623,383)
2026 (623,379)
Thereafter (101,230)

Payable to the OPEB Plan
At June 30, 2021, the City had no outstanding amount of contributions to the OPEB plan required for the year ended June 30, 2021.

CITY OF VICTORVILLE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

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NOTE 14 OTHER POSTEMPLOYMENT BENEFIT (OPEB) PLANS (CONTINUED) Other Postemployment Benefits Plan – Water District Plan Plan Descriptions
The District Plan provides medical benefits to eligible retired Water District employees and beneficiaries in accordance with various labor agreements. The plan covers employees who retire directly from the District with five years of service. The District Plan also provides Dental and Vision benefits to eligible former Water District employees with 15 years of service. The District also pays life insurance premium for eight Water District retirees and no benefit is available for future retirees. The District provides a contribution up to a certain amount (a portion of the Health Net HMO single premium). The percentage varies based on years of service.

Funding Policy
The contribution requirements of plan members and the District are established and may be amended by City Council. The contribution required to be made under City Council and labor agreement requirements is based on a pay-as-you-go basis (i.e., as medical insurance premiums become due). The District has not established a trust for the purpose of holding assets accumulated for plan benefits.

Employees Covered
As of the June 30, 2020 measurement date, the following current and former employees were covered by the benefit terms under the Plan:

Active Employees 81
Inactive Employees Or Beneficiaries Currently
Receiving Benefits 28
Inactive Employees Entitled To, But Not Yet
Receiving Benefits 4
Total 113

Contributions
The District Plan and its contribution requirements are established by Memoranda of Understanding with the applicable employee bargaining units and may be amended by agreements between the District and the bargaining units.

The annual contribution is based on the year’s retiree medical premiums (pay-as-you-go basis). For the fiscal year ended June 30, 2021, the District’s cash contributions were $205,788 for current premiums and the estimated implied subsidy was $48,000 resulting in total payments of $253,788.

CITY OF VICTORVILLE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

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NOTE 14 OTHER POSTEMPLOYMENT BENEFIT (OPEB) PLANS (CONTINUED) Other Postemployment Benefits Plan – Water District Plan (Continued) Total OPEB Liability
The District’s total OPEB liability was measured as of June 30, 2020 and was determined by an actuarial valuation as of June 30, 2020.

Actuarial Cost Method Entry Age Normal
Actuarial Assumptions:

Discount Rate 2.21%
Inflation 2.75%
Salary Increases 3.0% per annum, in aggregate
Investment Rate of Return N/A
Mortality, Retirement, Disability
Termination 1997-2015 Experience Study
Mortality Improvement Post-retirement mortality projected fully generational with Scale MP-2020
Healthcare Trend Rate Non-Medicare: 7.0% for 2022, decreasing to an ultimate rate of 4.0% in 2076
Medicare (Non-Kaiser) - 6.1% for 2022, decreasing to an ultimate rate of 4.0% in 2076
Medicare (Kaiser) - 5.0% for 2022, decreasing to an
ultimate rate of 4.0% in 2076

Discount Rate
The discount rate used to measure the total OPEB liability was 2.21%. The discount rate is determined based on the Bond Buyer 20-bond index since the City has not established a trust.

Change in Actuarial Assumptions
The discount rate changed from 3.50% at the beginning of the measurement period to

2.21% based on changes in the index. In addition, the medical trend rate for Kaiser Senior Advantage plans decreased from 6.5% to 5.0%.

Changes in the Total OPEB Liability
The changes in the total OPEB liability for the District Plan are as follows:

Total OPEB
Liability
Total OPEB Liability 6/30/2019 (MD) 10,288,735 $
Service Cost 474,890
Interest 372,802
Differences Between Expected and Actual Experience (904,000) Changes of Assumptions 1,795,864
Benefit Payments (224,298)
Net Changes During 2019-2020 (MP) 1,515,258
Total OPEB Liability 6/30/2020 (MD) 11,803,993 $

CITY OF VICTORVILLE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

(99)

NOTE 14 OTHER POSTEMPLOYMENT BENEFIT (OPEB) PLANS (CONTINUED) Other Postemployment Benefits Plan – Water District Plan (Continued) Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability of the District if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate:

1% Decrease Current Rate 1% Increase
(1.21%) (2.21%) (3.21%)
Total OPEB Liability 14,080,594 $ 11,803,993$ 10,010,162$ Discount Rate

Sensitivity of the Total OPEB Liability to Changes in Health Care Cost Trend Rates The following presents the total OPEB liability of the City if it were calculated using health care cost trend rates that are one percentage point lower (Non-Medicare: 6.0% for 2022 decreasing to 3.0% in 2076; Medicare (Non-Kaiser): 5.1% for 2022, decreasing to an ultimate rate of 3.0% in 2076; Medicare (Kaiser): 4.0% for 2022, decreasing to an ultimate rate of 3.0% in 2076) or one percentage point higher (Non-Medicare: 8.0% for 2022 decreasing to 5.0% in 2076; Medicare (Non-Kaiser): 7.1% for 2022, decreasing to an ultimate rate of 5.0% in 2076; Medicare (Kaiser): 6.0% for 2022, decreasing to an ultimate rate of 5.0% in 2076) than the current rate:

1% Decrease Current Rate 1% Increase
Total OPEB Liability 9,802,311$ 11,803,993$ 14,437,580$ Healthcare Trend Rate

Recognition of Deferred Outflows and Deferred Inflows of Resources Gains and losses related to changes in the total OPEB liability are recognized in OPEB expense systematically over time. Amounts ar e first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are recognized in future OPEB expense.

The recognition period differs depending on the source of the gain or loss:

Net Difference Between Projected
and Actual Earnings on OPEB
Plan Investments 5 Years
All Other Amounts Expected average remaining service
lifetime (EARSL) (8.2 Years at
June 30, 2020 measurement date)

CITY OF VICTORVILLE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

(100)

NOTE 14 OTHER POSTEMPLOYMENT BENEFIT (OPEB) PLANS (CONTINUED) Other Postemployment Benefits Plan – Water District Plan (Continued) OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2021, the District recognized OPEB expense of $524,372. As of the fiscal year ended June 30, 2021, the District reported deferred outflows/inflows of resources related to OPEB from the following sources:

Deferred Deferred
Outflows of Inflows of
Resources Resources
Employer Contributions Subsequent To The
Measurement Date 253,788$ -$
Differences Between Expected and Actual Experience - (2,015,486) Changes of Assumptions 2,032,010 (1,020,974)
Total 2,285,798$ (3,036,460)$

The $253,788 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the total OPEB liability during the fiscal year ending June 30, 2022. Other amounts reported as deferred outflows/inflows of resources related to OPEB will be recognized as expense as follows:

Deferred
Outflows/
(Inflows) of
Year Ended June 30, Resources
2022 (323,853) $
2023 (323,853)
2024 (323,853)
2025 (286,603)
2026 (73,662)
Thereafter 327,374

Payable to the OPEB Plan
At June 30, 2021, the District had no outstanding amount of contributions to the OPEB plan required for the year ended June 30, 2021.

Summary of OPEB Amounts for Government-Wide Financial Statements Total OPEB Deferred Deferred
Liability Outflows Inflows
City OPEB Plan (27,707,436)$ 5,639,339$ (8,472,903)$ Water District OPEB Plan (11,803,993) 2,285,798 (3,036,460) Total (39,511,429)$ 7,925,137$ (11,509,363)$

CITY OF VICTORVILLE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

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NOTE 15 JOINTLY GOVERNED ORGANIZATIONS
The City participates in certain jointly governed organizations that have been formally organized as separate entities under the Joint Exercise of Powers Act of the state of California. As separate legal entities, these entities exercise all of the powers within the scope of the related Joint Powers Agreements including the preparation of annual budgets, accountability for all funds, the power to make and execute contracts and the right to sue and be sued. Each jointly governed organization is governed by a board consisting of representatives from member municipalities. Each board controls the operations of the respective jointly governed organizations, including selection of management and approval of operating budgets, independent of any influence by member municipalities beyond their representation on that board. The City of Victorville does not control appointments to a majority of the governing boards for any of these organizations. A summary of the City’s jointly governed organizations are included below:

Regional Fire Protection Authority
Regional Fire Protection Authority (RFPA) was formed in 1979 by the City of Victorville, Apple Valley Fire Protection Agency and Hesperia Fire Protection District on an equal basis to provide fire protection, emergency dispatch, and related functions in order to reduce individual agency financial and personnel requirements. An Advisory Committee was established with a representative appointed by each member agency. The Advisory Committee adopts an annual budget for RFPA. The Authority was dissolved and all assets distributed to the member agencies as of June 20, 2021.

There were no separate financial statements prepared for the authority.

Mojave Desert and Mountain Integrated Waste Management Authority Mojave Desert and Mountain Integrated Waste Management Authority (the Authority) was formed in September of 1991 by the cities of Victorville, Barstow, Big Bear Lake, Needles, Twenty-nine Palms, the Towns of Apple Valley and Yucca Valley and the County of San Bernardino to fund the annual operating costs of a recycling processing center known as the Victor Valley Materials Recovery Facility (the facility). The Governing body of the Authority is made up of representatives from each significant participant in the Authority. Budgeting and financing are the responsibility of the Authority. Contributions Rates from member agencies are based on each member’s current population as a percentage of the total population of the Authority. The Authority does not own the facility that is used in the recycling operation.

Rather, the facility is owned by the City and the Town of Apple Valley, each of which has a 50% interest in the facility. The City’s investment in the Authority has been recorded using the equity method of accounting and is reflected as an investment in joint venture in the Solid Waste Fund of the accompanying financial statements.

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NOTES TO BASIC FINANCIAL STATEMENTS
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NOTE 15 JOINTLY GOVERNED ORGANIZATIONS (CONTINUED)
Mojave Desert and Mountain Integrated Waste Management Authority (Continued) The following schedule summarizes the City’s investment in the Authority as of June 30, 2021 and the gain (loss) on the investment recognized in the statement of revenues, expenses, and changes in fund net position for the year ended June 30, 2021:

City’s Share of
Joint Venture
Percentage Total Joint City’s Equity Net Income
Ownership Venture Equity Interest (Loss)
50% 873,294$ 436,647$ -$

Financial statements may be obtained by mailing a request to the Town of Apple Valley, 14955 Dale Evans Parkway, Apple Valley, California 92307.

Victor Valley Economic Development Authority
The Victor Valley Economic Development Authority (VVEDA) was formed in 1992 by the Cities of Victorville and Hesperia, the Town of Apple Valley and the County of San Bernardino to provide the mechanism and funding to manage development of the property formerly known as the George Air Force Base, facilitate the successful reuse of the property and promote economic development within the area surrounding the Air Base. In 2000, the City of Adelanto was added as a member of the Authority. In December 2011 Assembly Bill 1X 26 (the bill) dissolved VVEDA, and as such all assets of the former VVEDA have been transferred to the VVEDA Successor Agency and are subject to the distribution’s provisions of the bill. The SCLAA contains a portion of the VVEDA Successor Agency with the Town of Apple Valley and City of Adelanto comprising the rest of the VVEDA Successor Agency. The RPTTF (tax increment distributions) from VVEDA represent the primary revenue of the SCLAA. Financial statements may be obtained by sending a written request to Victor Valley Economic Development Authority, 18374 Phantom Street, Victorville, CA 92394.

Victor Valley Transit Authority
The Victor Valley Transit Authority (VVTA) was formed in 1993 by the Cities of Victorville, Adelanto, and Hesperia, the Town of Apple Valley, and the County of San Bernardino.

VVTA is the regional transit entity that was created to provide a public transit system for the entire region associated with the Victor Valley. The governing body of VVTA is made up of representatives from each significant participant in VVTA. Budgeting and financing are the responsibility of VVTA. The City of Victorville has agreed to sell monthly bus passes issued by VVTA and to remit between the first and tenth day of each month the previous month’s sales receipts and proceeds. There is no resulting equity applicable to the City from this arrangement. Financial statements may be obtained by sending a written request to Victor Valley Transit Authority, 17150 Smoke Tree Street, Hesperia, CA 92345.

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NOTES TO BASIC FINANCIAL STATEMENTS
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NOTE 15 JOINTLY GOVERNED ORGANIZATIONS (CONTINUED)
Victor Valley Wastewater Reclamation Authority
The Victor Valley Wastewater Reclamation Authority (VVWRA) was formed in 1999 between the Cities of Victorville, Adelanto, and Hesperia, the Town of Apple Valley, and the County of San Bernardino for the purpose of construction, operation and maintenance of sewer collection, transmission and treatment facilities within the high desert region. The governing body of VVWRA is made up of representatives of each significant participant in VVWRA.

Budgeting and financing are the responsibility of the VVWRA. The City makes monthly payments to VVWRA for sewer treatment and connection fee services. The City made payments totaling $11,685,572 to VVWRA for the year ended June 30, 2021. The members have no measurable equity interest in the net position of the Authority. Section 61 of the Joint Powers Authority Agreement provides for no distribution of assets to the members upon dissolution of the Authority or upon otherwise exiting the Authority. Rather than an equity interest, Section 12.2(b) of the Joint Powers Authority Agreement provides each member with Purchased Capacity in return for its capital investment in the plant. Financial statements may be obtained by sending a writt en request to Victor Valley Wastewater Reclamation Authority, 20111 Shay Road, Victorville, CA 92394.

NOTE 16 PARTICIPATION IN RISK POOL
The City is a member of the Public Entity Risk Management Authority (PERMA), a joint powers authority formed under Section 990 of the California Government Code for the purpose of jointly funding programs of insurance coverage for its members. PERMA is comprised of thirty-one participating member agencies, twenty-one cities with populations ranging from 2,300 to 198,000, three transit agencies, and six special districts. The City participates in the liability, worker’s compensation, and employment practices liability programs of PERMA.

The liability program provides coverage up to $50 million per occurrence for personal injury, bodily injury, property damage and public offici als’ errors and omissions. The City has selected a self-insured retention of $50,000 and participates in risk sharing pools for losses up to $1 million followed by PERMA’s membership in the CSAC Excess Insurance Authority for excess coverage to the limits.

The workers’ compensation program provides statutory limits per accident for workers’ compensation and $5 million each accident for employers’ liability. The City self-insures up to a level of $250,000 per accident or employee and participates in a risk sharing pool for losses up to $500,000 followed by PERMA’s membership in the Local Agency Worker’s Compensation Excess Joint Powers Authority (LAWCX) and the CSAC Excess Insurance Authority for excess coverage to the limits.

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NOTE 16 PARTICIPATION IN RISK POOL (CONTINUED)
The employment practices liability program provides up to $50 million coverage for employment related lawsuits such as wrongful termination and discrimination. The City self- insures up to $25,000 per occurrence and participates in the Employment Risk Management Authority (ERMA) for losses up to $1 million. Coverage above $1 million and up to $50 million is available through PERMA’s membership in the CSAC Excess Insurance Authority for excess liability coverage.

Claim payments represent disbursements from deposits held by PERMA on behalf of the City. None of the above programs of protec tion have had settlements or judgments that exceeded pooled or insured coverage for the past three years.

Changes in the amount of claims payable for the past two fiscal years are as follows:

Claims and
Beginning Changes in Claim Ending Due Within
Year Balance Estimates Payments Balance One Year
2019-20 2,569,636$ 3,041,645 $ (1,334,232) $ 4,277,049 $ 1,490,000 $ 2020-21 4,277,049 2,476,321 (1,291,480) 5,461,890 1,723,576

NOTE 17 DEBT WITHOUT GOVERNMENT COMMITMENT
Special Tax Bonds
The City is the collection and paying agent for the Community Facilities District No. 01-01 of the City of Victorville Special Tax Bonds, 2002 Series A and 2005 Series A. The special tax bonds are secured by valid assessment liens upon certain lands within the special assessment district and are not direct liabilities of the City and, accordingly, are not included in the accompanying general purpose financial statements. The City has no obligation beyond the balances in the designated custodial funds for any delinquent assessment district bond payments. If delinquencies occur beyond the amounts held in the reserve funds created from bond proceeds, the City has no duty to pay the delinquency out of any available funds of the City. Neither the faith, credit nor taxing power of the City is pledged to the payment of the bonds. The City acts solely as an agent for those paying assessments and for the bondholders. The outstanding balance at June 30, 2021, for the 2002 Series A and 2005 Series A was $585,000 and $2,130,000, respectively.

The City is the collection and paying agent for the Community Facilities District No. 07-01 of the City of Victorville Special Tax Bonds, 2012. The special tax bonds are secured by valid assessment liens upon certain lands within the special assessment district and are not direct liabilities of the City and, accordingly, are not included in the accompanying general purpose financial statements. The City has no obligation beyond the balances in the designated custodial funds for any delinquent assessm ent district bond payments. If delinquencies occur beyond the amounts held in the reserve funds created from bond proceeds, the City has no duty to pay the delinquency out of any available funds of the City. Neither the faith, credit or taxing power of the City is pledged to the payment of the bonds. The City acts solely as an agent for those paying assessments and for the bondholders. The outstanding balance at June 30, 2021 was $2,600,000.

CITY OF VICTORVILLE

NOTES TO BASIC FINANCIAL STATEMENTS
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NOTE 18 COMMITMENTS AND CONTINGENCIES
A. Litigation
The City is a defendant in certain legal actions arising in the normal course of operations. The accompanying basic financial statements reflect a liability for the probable amounts of loss associated with these claims. In the normal course of municipal operations, the City has recorded a liability for claims and judgments based upon management’s best estimate of the probable amount of loss associated with those claims. Additional amounts of potential loss have not been accrued because management has not determined those additional amounts to be probable of payment.

B. Commitments for the Purchase of Electricity
Victorville Municipal Utility Services (“VMUS,” an enterprise fund of the City of Victorville) executed agreements for the purchase of electricity with Shell Energy North America (US), L.P. in March 2016. These commitments extend through June 30, 2021 and were not renewed past this date. A long-term power purchase agreement for the Boulder Canyon Project was executed between VMUS, the Western Area Power Administration, and the Bureau of Reclamation, effective October 1, 2016. The annual energy allocation from the Boulder Canyon Project represents approximately 5% of current VMUS customer requirements, and the term of the agreement runs from October 1, 2017, through September 30, 2067. In November 2019, VMUS entered into an agreement with ZGlobal to contract for scheduling coordination and other settlement services through December 31, 2023.

On June 4, 2020, VMUS entered into a Power Purchase Agreement (PPA) with AM Wind Repower LLC (AM Wind) for the acquisition of renewable energy from the Alta Mesa RP27 Wind Energy Center located in Riverside County. The scheduled “Commercial Operation Date” is January 1, 2022, which serves as the commencement date for the 25-year purchase obligation period in the total amount of $41,380,000. The annual obligation is forecasted to be $1,655,200 over the 25-year period. This power purchase agreement will supply 11 MW of renewable power to VMUS from the Alta Mesa RP27 Wind Energy Center for a fee of $40 per megawatt-hour. This is in response to the California Renewable Portfolio Standard Regulations (RPS) that requires load serving entities (LSE) to procure eligible renewable energy resources (ERRs) so that the amount of electricity generated from ERRs equals or exceeds a specified percentage of the total electricity sold to retail customers in California. Beginning in 2021, at least 65% of the LSE’s RPC compliance requirements must be procured from generation-owned resources or power purchase agreements that are least 10 years in duration.

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NOTE 18 COMMITMENTS AND CONTINGENCIES (CONTINUED)
C. Southern California Logistics Airport Authority and Stirling Enterprise LLC In the early 1990’s the U.S. Air Force closed George Air Force Base (former Base). In response the local communities formed the Victor Valley Economic Development Authority (VVEDA). VVEDA and the Air Force entered into agreements to lease and ultimately transfer title to the former Base to VVEDA. The subject land is designated as either Public Benefit Transfer (PBT) Parcels or Economic Development Conveyance (EDC) Parcels. The PBT Parcels are made up of approximately 2,200 acres previously used by the U.S. Air Force and are restricted to use as an airport. These parcels were transferred to SCLAA at no cost.

The EDC Parcels are made up of approximately 1,800 acres of adjacent property which may be developed for use as commercial property. SCLAA paid $1,636,489 and is required to pay additional $37,176 for these EDC Parcels. In 1993 a Redevelopment Plan was adopted by VVEDA establishing a redevelopment project area encompassing the former Base as well as approximately 55,000 additional acres. VVEDA delegated its decision-making authority relative to the former Base, now known as Southern California Logistics Airport or SCLA, to the Southern California Logistics Airport Authority (SCLAA).

SCLAA is a component unit entity of the City of Victorville. It is also a Joint Power Authority comprised of the City of Victorville and the Victorville Water District.

SCLAA adopted a Specific Plan in conformity with the Redevelopment Plan and adopted a Master Development Plan establishing its goal to develop the area as a cargo and aircraft maintenance facility and a business/industrial center thereby creating jobs and improving economic conditions in the Victor Valley.

In July 1998 SCLAA and Stirling Enterprises, LLC and its related entities (Stirling) entered into the first of several agreements for the marketing, acquisition, operation and development of SCLAA. The Fourth Amended and Restated Master Agreement (Stirling Agreement) is the current agreement superseding all previous versions.

D. Revenues from Sales of Land
In August 2016, three agreements with Stirling were approved by the SCLAA Board of Directors that were intended to serve as a framework that encourages development before the expiration of the Master Agreement (MA). The three agreements are a Satisfaction and Termination Agreement, a Disposition, Exchange and Development Agreement (#2) and an Option and Development Agreement.

The Disposition, Exchange and Development Agreement allows for the removal of approximately 280 acres of Airport-owned property from the definition of EDC Parcels and the title transfer in fee to Stirling, of approximately 280 acres. The Airport-owned property will become available for the Airport for revenue-producing purposes and the Airport will have the flexibility to develop the subject property on a ground-lease basis with aviation and nonaviation (Section 2.01 of the Development and Exchange Agreement). Revenue sharing will only exist relating to these parcels if the respective transaction is procured by Stirling and be split 80/20 with the larger share to benefit SCLAA.

CITY OF VICTORVILLE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

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NOTE 18 COMMITMENTS AND CONTINGENCIES (CONTINUED)
D. Revenues from Sales of Land (Continued)
The Agreement also provides for the disposition of additional off-airport property. In addition to the Stirling Exchange Parcels, SCLAA will then transfer, in fee, 200 acres of property for the $.0203/psf purchase price ($176,448) and participate in revenue sharing for net proceeds in an amount equal to 30% (Section 2.03 of the Development and Exchange Agreement). Net proceeds are generally defined to be revenues generated from the eventual sale by Stirling that are residual to infrastructure costs, EIR costs and developer credits. The Agreement also transfers the public infrastructure obligations of the Authority pursuant to the MA and DDA to Stirling.

Finally, the Option Agreement, in connection with performance obligations related to the Development and Exchange Agreement, will provide Stirling the ability to acquire additional acreage currently provided for in the Master Agreement. Such an exercise of option will occur in 50-acre increments based on Stirling having developed 500,000 square feet of property owned by it. The Option Agreement is set up to run through December 2050 and can terminate sooner due to nonperformance described in Section

1.5 of the Option and Development Agreement.

E. Management
Stirling is allowed to lease or cause to be leased the EDC Parcels and shall participate in 20% of the Net Lease Revenue from any such leases. The Authority has retained the right to lease the PBT Parcels and retain revenues from those leases but shall allow Stirling to participate in 20% of any net lease revenues from tenants who may be procured by Stirling and approval by the Authority. Any revenues from other interim uses on the former Base such as filming will be shared on a 50%/50% basis between Stirling and Authority.

F. Construction Commitments
The following material construction commitments existed at June 30, 2021:

Project Title Commitment
BM21-061 Water Service Area 5 196,748$
BM20-123 Mariposa/Yates Traffic Signal 330,915
BM21-048 Sewer Capacity Improvement 557,120
BM21-067 Industrial Blvd & Silica Road Improvement 3,549,965 CC21-103 Liberty Village Pavement Rehab 1,456,757
BM21-095 Natural Gas Replacement 747,118
BM21-064 GT Blvd Extension 33,020,251
BM21-046 Third Ave/Herbert Road Improvement 281,184
CC21-111 Pond 14 Overflow Discharge 99,368
BM21-101 Block Wall Gates Well Sites 216,617
CC21-116 Unity Hall Asbestos & Re-Roof 152,000
CC20-065 Runway 17-35 289,635

CITY OF VICTORVILLE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

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NOTE 18 COMMITMENTS AND CONTINGENCIES (CONTINUED)
G. COVID-19
On January 30, 2020, the World Health Organization (WHO) announced a global health emergency because of an outbreak of a new strain of coronavirus (the COVID-19 outbreak) and the risks that is posed to the international community as the virus spread globally beyond its point of origin. In March 2020, the WHO classified the COVID-19 outbreak as a pandemic based on the rapid increase in exposure globally.

The City’s operations are heavily dependent on the ability to raise sales taxes, property taxes and transient occupancy taxes and assess business licenses, developer fees and construction permits. Additionally, access to grants and contracts from federal, state, and local governments may decrease or may not be available depending on appropriations. The outbreak may have a continued adverse impact on economic and market conditions, triggering a period of global economic slowdown. The outbreak could also have other potential impacts, including disruptions or restrictions on employees’ ability to work. As such, this may hinder the ability for the City to meets the needs of its constituents. The City cannot estimate the length or gravity of the impact of the COVID- 19 outbreak at this time.

NOTE 19 SALES TAX ABATEMENTS
On September 7, 2012, the City Council appr oved a development agreement with Macerich Victor Valley LLC (Macerich), to further develop the Mall of the Victor Valley (the Mall) including the construction of a Macy’s department store. Under the Agreement the City is obligated to make assistance payments to Macerich equal to all sales tax revenue in excess of $1,000,000 generated from the new retail operations directly resulting from the development efforts. Payments are to be made in June of each year following calculation of each calendar year’s sales tax revenue.

The agreement term is 28 years and includes a maximum assistance allowance of $18,886,644. For the year ended June 30, 2021 the City did not remit a payment ot Macerich for sales tax revenue earned from January 2020 to December 2020 as the amount generated did not exceed $1,000,000 for the year. Additional payments are contingent upon the occurrence of uncertain future events, including the generation of sales tax revenue in excess of $1,000,000 per year.

CITY OF VICTORVILLE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

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NOTE 20 SCLAA’S FINANCIAL CONDITION, SIGNIFICANT FINANCIAL OBLIGATIONS AND

MANAGEMENT PLANS
Southern California Logistics Airport Authority (SCLAA) In Fiscal Year 08/09, the assessed value for the Victor Valley Redevelopment Project Area was approximately $9.49 billion. Beginning in FY 09/10, there were significant decreases in assessed value for the Victor Valley Redevelopment Project Area. Assessed values for the Project Area reached a low point of $6.6 Billion in FY 12/13. The decrease was largely the result of the Great Recession. Since FY 12/13, assessed values have increased steadily.

For Fiscal Year 2020-2021, the assessed value for the Project Area was approximately $9.99 billion. The steady increase in assessed values have resulted in the SCLAA paying all past due debt service in the previous fiscal year. As of the December 1, 2018 tax distribution, the SCLAA was no longer in default. In 2018, Moody’s issued an upgraded rating on the Successor Agency to the Victor Valley Economic Development Authority (VVEDA) housing set-aside Tax Allocation Bonds and the Non-Housing Tax Allocation Bonds to “stable” outlook as a result of resolving the outstanding defaults, and the prospective analysis on increasing assessed values in the project area.

During the current fiscal year and prior year, SCLAA had results that were not as favorable as fiscal year 2018-2019 with a net loss of $3.5 million and $2.5 million, respectively. A summary of the financial condition of the SCLAA enterprise fund is as follows:

SCLAA Deficit
Balance
Beginning Net Position (128,048,025) $
Net Income (Loss) (3,515,790)
Ending Net Position (131,563,815) $

Management’s Plans with Respect to its Financial Condition Management plans to ensure that annual expenditures do not exceed annual revenues and to build the reserves that are necessary to provide for economic uncertainties.

The City has continued to maintain a balance budget since 2007-2008 and all revenues are projected to cover current liabilities.

Regarding the SCLAA’s financial condition, an Interfund loan agreement was signed July 1, 2016, by the Board of SCLAA, and a $10,000,000 advance was made available from the 2007 SCLA Housing bond fund to the Airport Operations Fund and has been used to subsidize operations. The advance has a term repayment of five years, with an annualized Wall Street Journal Prime Rate as the interest rate. The outstanding balance of the advance as of June 30, 2021 is $8,824,244, which has been eliminated for financial statement purposes within the SCLAA since the advance is within the fund itself. SCLAA is currently preparing for payment of this loan in FY 2021-2022 using funding from property sales.

CITY OF VICTORVILLE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

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NOTE 21 SUCCESSOR AGENCY TRUST FOR ASSETS OF THE FORMER REDEVELOPMENT AGENCY
On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (the Bill) that provides for the dissolution of all redevelopment agencies in the state of California. This action impacted the reporting entity of the City of Victorville that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit. In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011) all redevelopment agencies in the state of California were dissolved and ceased to operate as a legal entity as of February 1, 2012.

The Bill provided that upon dissolution of a redevelopment agency, either the city or another unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. On January 17, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City resolution number 12-005.

After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the state of California cannot enter into new projects, obligations or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments).

NOTE 22 LEASES
The SCLAA has various leases for rental of portions certain real property and improvements for which the cost and accumulated depreciation cannot readily be determined. Lease terms vary. Future minimum rental payments to be re ceived on the leases that are contractually due as of June 30, 2021 are estimated as follows:

Lease
Year Ending June 30, Payments
2022 8,022,722 $
2023 8,185,944
2024 8,433,322
2025 8,700,875
2026 8,909,364
2027-2031 48,720,055
2032-2036 55,915,099
2037-2041 63,504,771
Total 210,392,152 $

CITY OF VICTORVILLE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

(111)

NOTE 23 RESTATEMENT
Beginning Net
Position or GASB 84 Beginning Net
Fund Balance Fiduciary Position or
As Previously Activities Fund Balance
Reported (a) As Restated
Governmental Activities 499,562,959 $ 475,499 $ 500,038,458$ General Fund 24,335,090 148,278 24,483,368 Nonmajor Governmental Funds 27,157,044 327,221 27,484,265 (a) Implementation of GASB 84, Fiduciary Activities, resulted in some previously reported fiduciary funds reclassified to governmental funds.

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REQUIRED SUPPLEMENTARY INFORMATION

CITY OF VICTORVILLE

SCHEDULE OF IN NET PENSION LIABILITY AND RELATED RATIOS

DURING THE MEASUREMENT PERIOD (AGENT PLAN)
LAST TEN FISCAL YEARS*

See accompanying Note to Required Supplementary Information. (114)

Reporting Fiscal Year
(Measurement Date)
Total Pension Liability:

Service Cost
Interest
Changes of Assumptions
Difference between Expected and Actual Experience
Benefit Payments, Including Refunds of Employee
Contributions
Net Change in Total Pension Liability
Total Pension Liability – Beginning
Total Pension Liability – Ending (a)
Plan Fiduciary Net Position:

Plan to Plan Resource Movement
Contributions – Employer
Contributions – Employee
Net Investment Income
Benefit Payments, Including Refunds of Employee
Contributions
Administrative Expense
Other Miscellaneous Income (Expense)
Net Change in Fiduciary Net Position
Plan Fiduciary Net Position – Beginning
Plan Fiduciary Net Position – Ending (b)
Plan Net Pension Liability – Ending (a) - (b)
Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability
Covered Payroll
Plan Net Pension Liability as a Percentage of
Covered Payroll
2021 2020 2019 2018
(2020) (2019) (2018) (2017)
3,917,361$ 3,878,156$ 3,925,313$ 3,913,955$ 14,388,003 13,664,664 12,780,111 12,143,449 - - (1,453,429) 10,784,766 901,693 3,533,778 1,426,643 (1,294,528) (8,563,342) (8,131,659) (7,556,833) (6,707,043) 10,643,715 12,944,939 9,121,805 18,840,599 202,652,096 189,707,157 180,585,352 161,744,753 213,295,811 202,652,096 189,707,157 180,585,352 - - (332) - 5,479,864 4,590,346 4,017,440 3,945,743 1,928,672 1,749,709 1,942,720 1,762,125 7,528,774 9,361,466 11,287,052 13,554,180 (8,563,342) (8,131,659) (7,556,833) (6,707,043) (212,846) (102,414) (209,479) (180,207) - 332 (397,805) - 6,161,122 7,467,780 9,082,763 12,374,798 150,980,795 143,513,015 134,430,252 122,055,454

157,141,917$ 150,980,795$ 143,513,015$ 134,430,252$ 56,153,894$ 51,671,301$ 46,194,142$ 46,155,100$

73.67% 74.50% 75.65% 74.44%
24,562,823$ 22,226,999$ 22,506,989 22,354,507 228.61% 232.47% 205.24% 206.47%

Notes to Schedule:

Benefit Changes:

There were no changes in benefits.

Changes in Assumptions:

From fiscal year June 30, 2015 to June 30, 2016:

GASB 68, paragraph 68 states that the long-term expected rate of return should be determined net of pension plan investment expense but without reduction for pension plan administrative expense. The discount rate of 7.50% used for the June 30, 2014 measurement date was net of administrative expenses. The discount rate of 7.65% used for the June 30, 2015 measurement date is without reduction of pension plan administrative expense.

From fiscal year June 30, 2016 to June 30, 2017:

There were no changes in assumptions.

From fiscal year June 30, 2017 to June 30, 2018:

The discount rate was reduced from 7.65% to 7.15%.

From fiscal year June 30, 2018 to June 30, 2021:

There were no significant changes in assumptions.
*Fiscal year 2015 was the first year of implementation, therefore only seven years are shown.

CITY OF VICTORVILLE

SCHEDULE OF IN NET PENSION LIABILITY AND RELATED RATIOS

DURING THE MEASUREMENT PERIOD (AGENT PLAN) (CONTINUED)
LAST TEN FISCAL YEARS*

See accompanying Note to Required Supplementary Information. (115)

Reporting Fiscal Year
(Measurement Date)
Total Pension Liability:

Service Cost
Interest
Changes of Assumptions
Difference between Expected and Actual Experience
Benefit Payments, Including Refunds of Employee
Contributions
Net Change in Total Pension Liability
Total Pension Liability – Beginning
Total Pension Liability – Ending (a)
Plan Fiduciary Net Position:

Plan to Plan Resource Movement
Contributions – Employer
Contributions – Employee
Net Investment Income
Benefit Payments, Including Refunds of Employee
Contributions
Administrative Expense
Other Miscellaneous Income (Expense)
Net Change in Fiduciary Net Position
Plan Fiduciary Net Position – Beginning
Plan Fiduciary Net Position – Ending (b)
Plan Net Pension Liability – Ending (a) - (b)
Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability
Covered Payroll
Plan Net Pension Liability as a Percentage of
Covered Payroll
2017 2016 2015
(2016) (2015) (2014)
3,391,116$ 3,399,557$ 3,479,263$
11,593,629 10,950,745 10,425,889
- (2,900,838) -
(114,587) (1,452,436) -
(6,190,255) (5,465,312) (5,288,466)
8,679,903 4,531,716 8,616,686
153,064,850 148,533,134 139,916,448
161,744,753 153,064,850 148,533,134
- 29,796 -
3,406,692 3,132,116 2,729,427
1,615,618 1,655,311 1,675,275
663,966 2,712,238 18,040,044
(6,190,255) (5,465,312) (5,288,466)
(74,739) (138,171) (138,890)
- - -
(578,718) 1,925,978 17,017,390
122,634,172 120,708,194 103,690,804
122,055,454$ 122,634,172$ 120,708,194$
39,689,299$ 30,430,678$ 27,824,940$

75.46% 80.12% 81.27%
19,918,813 19,872,318 19,389,560
199.26% 153.13% 143.50%

CITY OF VICTORVILLE

SCHEDULE OF PLAN CONTRIBUTIONS (AGENT PLAN)
LAST TEN FISCAL YEARS*

See accompanying Note to Required Supplementary Information. (116)

Fiscal Year
Contractually Required Contribution
(Actuarially Determined)
Contributions in Relation to the Actuarially
Determined Contributions
Contribution Deficiency (Excess)
Covered Payroll
Contributions as a Percentage
of Covered Payroll
Notes to Schedule:

Valuation Date
Methods and Assumptions Used to Determine
Contribution Rates:

Actuarial Cost Method
Amortization Method
Asset Valuation Method
Inflation
Salary Increases
Investment Rate of Return
Retirement Age
Mortality
2020-2021 2019-2020 2018-2019 2017-2018
5,961,400$ 5,477,574 $ 4,622,469 $ 4,014,719 $ (5,961,400) (5,477,574) (4,622,469) (4,014,719) -$ - $ - $ - $ 24,525,949$ 24,562,823 $ 22,226,999 $ 22,506,989 $

24.31% 22.30% 20.80% 17.84%
6/30/2018 6/30/2017 6/30/2016 6/30/2015
Entry Age Entry Age Entry Age Entry Age
(1) (1) (1) (1)
Fair Value Fair Value Fair Value Fair Value

2.50% 2.63% 2.75% 2.75%
(2) (2) (2) (2)

7.00% (3) 7.25% (3) 7.375% (3) 7.50% (3)
(4) (4) (4) (4)
(5) (5) (5) (5)
(1) Level percentage of payroll, closed
(2) Depending on age, service, and type of employment
(3) Net of pension plan investment expense, including inflation (4) 50 - 55 for 2.5%@55; 52 - 67 for 2.0%@62
(5) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board.
*Fiscal year 2015 was the first year of implementation, therefore only seven years are shown.

CITY OF VICTORVILLE

SCHEDULE OF PLAN CONTRIBUTIONS (AGENT PLAN) (CONTINUED) LAST TEN FISCAL YEARS*

See accompanying Note to Required Supplementary Information. (117)

Fiscal Year
Contractually Required Contribution
(Actuarially Determined)
Contributions in Relation to the Actuarially
Determined Contributions
Contribution Deficiency (Excess)
Covered Payroll
Contributions as a Percentage
of Covered Payroll
Notes to Schedule:

Valuation Date
Methods and Assumptions Used to Determine
Contribution Rates:

Actuarial Cost Method
Amortization Method
Asset Valuation Method
Inflation
Salary Increases
Investment Rate of Return
Retirement Age
Mortality
2016-2017 2015-2016 2014-2015
3,787,877$ 3,504,788$ 3,132,116$
(3,787,877) (3,504,788) (2,923,805)
-$ -$ 208,311$ 22,354,507$ 19,918,813$ 19,872,318$

16.94% 17.60% 15.76%
6/30/2014 6/30/2013 6/30/2012
Entry Age Entry Age Entry Age
(1) (1) (1)
Fair Value Fair Value 15-Year
Smoothed
Market Method

2.75% 2.75% 2.75%
(2) (2) (2)

7.50% (3) 7.50% (3) 7.50% (3)
(4) (4) (4)
(5) (5) (5)

CITY OF VICTORVILLE
SCHEDULE OF PLAN’S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY (COST SHARING PLAN)
LAST TEN FISCAL YEARS*

See accompanying Note to Required Supplementary Information. (118)

Reporting Fiscal Year
(Measurement Date)
Plan’s Proportion of the Net
Pension Liability
Plan’s Proportionate Share of the
Net Pension Liability
Plan’s Covered Payroll**
Plan’s Proportionate Share of the
Net Pension Liability as a
Percentage of Covered Payroll**
Plan’s Proportionate Share of the
Fiduciary Net Position as a
Percentage of the Plan’s Total
Pension Liability
2021 2020 2019 2018
(2020) (2019) (2018) (2017)

0.18786% 0.19301% 0.19843% 0.19780%
12,515,992$ 12,048,837$ 11,643,274$ 11,818,679$ 4,931,300$ 2,530,529$ N/A N/A
253.81% 476.14% N/A N/A

0.12039% 0.12227% 0.12558% 0.12223%

Notes to Schedule:

Benefit Changes:

There were no changes in benefits.

Changes in Assumptions:

From fiscal year June 30, 2015 to June 30, 2016:

GASB 68, paragraph 68 states that the long-term expected rate of return should be determined net of pension plan investment expense but without reduction for pension plan administrative expense. The discount rate of 7.50% used for the June 30, 2014 measurement date was net of administrative expenses. The discount rate of 7.65% used for the June 30, 2015 measurement date is without reduction of pension plan administrative expense.

From fiscal year June 30, 2016 to June 30, 2017:

There were no changes in assumptions.

From fiscal year June 30, 2017 to June 30, 2018:

The discount rate was reduced from 7.65% to 7.15%.

From fiscal year June 30, 2018 to June 30, 2019:

There were no significant changes in assumptions.

From fiscal year June 30, 2019 to June 30, 2020:

There were no changes in assumptions.
*Fiscal year 2015 was the first year of implementation, therefore only seven years are shown. **The plan has no active members until fiscal year ended 6/30/2019, and, therefore, no covered payroll.

CITY OF VICTORVILLE
SCHEDULE OF PLAN’S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY (COST SHARING PLAN) (CONTINUED)
LAST TEN FISCAL YEARS*

See accompanying Note to Required Supplementary Information. (119)

Reporting Fiscal Year
(Measurement Date)
Plan’s Proportion of the Net
Pension Liability
Plan’s Proportionate Share of the
Net Pension Liability
Plan’s Covered Payroll**
Plan’s Proportionate Share of the
Net Pension Liability as a
Percentage of Covered Payroll**
Plan’s Proportionate Share of the
Fiduciary Net Position as a
Percentage of the Plan’s Total
Pension Liability
2017 2016 2015
(2016) (2015) (2014)

0.20676% 0.21750% 0.20657%
10,708,540$ 8,961,994$ 7,748,626$

N/A N/A N/A

N/A N/A N/A

0.13033% 0.14547% 0.14547%

CITY OF VICTORVILLE

SCHEDULE OF PLAN CONTRIBUTIONS (COST SHARING PLAN)
LAST TEN FISCAL YEARS*

See accompanying Note to Required Supplementary Information. (120)

Fiscal Year
Contractually Required Contribution
(Actuarially Determined)
Contributions in Relation to the
Actuarially Determined
Contribution
Contribution Deficiency (Excess)
Covered Payroll **
Contributions as a Percentage
of Covered Payroll **
Notes to Schedule:

Valuation Date
Methods and Assumptions Used to Determine
Contribution Rates:

Actuarial Cost Method
Amortization Method
Asset Valuation Method
Inflation
Salary Increases
Investment Rate of Return
Mortality
2020-2021 2019-2020 2018-2019 2017-2018
1,820,085$ 1,737,805 $ 1,406,021 $ 862,264 $ (1,820,085) (1,737,805) (1,406,021) (862,264) -$ - $ - $ - $ 5,123,885 4,931,300 2,530,529 N/A

35.52% 35.24% 55.56% N/A
6/30/2018 6/30/2017 6/30/2016 6/30/2015
Entry Age Entry Age Entry Age Entry Age
(1) (1) (1) (1)
Fair Value Fair Value Fair Value Fair Value

2.50% 2.63% 2.75% 2.75%
(2) (2) (2) (2)

7.00% (3) 7.25% (3) 7.375% (3) 7.50% (3)
(4) (4) (4) (4)

(1) Level percentage of payroll, closed
(2) Depending on Age, service, and type of employment
(3) Net of pension plan investment expense, including inflation (4) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board.
*Fiscal year 2015 was the first year of implementation, therefore only seven years are shown. **The plan has no active members through June 30, 2018 and, therefore, no covered payroll.

CITY OF VICTORVILLE

SCHEDULE OF PLAN CONTRIBUTIONS (COST SHARING PLAN) (CONTINUED) LAST TEN FISCAL YEARS*

See accompanying Note to Required Supplementary Information. (121)

Fiscal Year
Contractually Required Contribution
(Actuarially Determined)
Contributions in Relation to the
Actuarially Determined
Contribution
Contribution Deficiency (Excess)
Covered Payroll **
Contributions as a Percentage
of Covered Payroll **
Notes to Schedule:

Valuation Date
Methods and Assumptions Used to Determine
Contribution Rates:

Actuarial Cost Method
Amortization Method
Asset Valuation Method
Inflation
Salary Increases
Investment Rate of Return
Mortality
2016-2017 2015-2016 2014-2015
700,198$ 650,960$ 585,811$
(700,198) (650,960) (585,811)
-$ -$ -$

N/A N/A N/A

N/A N/A N/A
6/30/2014 6/30/2013 6/30/2012
Entry Age Entry Age Entry Age
(1) (1) (1)
Fair Value Fair Value 15-Year
Smoothed
Market Method

2.75% 2.75% 2.75%
(2) (2) (2)

7.50% (3) 7.50% (3) 7.50% (3)
(4) (4) (4)

CITY OF VICTORVILLE

SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS LAST TEN FISCAL YEARS*

See accompanying Note to Required Supplementary Information. (122)

Reporting Fiscal Year
(Measurement Date)

TOTAL OPEB LIABILITY
Service Cost
Interest on the Total OPEB Liability
Changes of Assumptions
Differences Between Expected and
Actual Experience
Changes of Benefit Terms
Benefit Payments, Including Refunds and
the Implied Subsidy Benefit Payments
Net Change in Total OPEB Liability
Total OPEB Liability - Beginning
Total OPEB Liability - Ending (a)
Net OPEB Liability - Ending (a)-(b)
Plan Fiduciary Net Position as a Percentage
of the Total OPEB Liability
Covered-Employee Payroll
Total OPEB Liability as a Percentage of
Covered-Employee Payroll
City Water City Water
1,486,270$ 474,890$ 1,301,917$ 417,399$ 940,317 372,802 896,741 364,950 4,480,447 1,795,864 1,650,512 601,978 (4,403,383) (904,000) - - (352,317) (224,298) (325,520) (216,889) 2,151,334 1,515,258 3,523,650 1,167,438 25,556,102 10,288,735 22,032,452 9,121,297 27,707,436$ 11,803,993$ 25,556,102$ 10,288,735$ 27,707,436 11,803,993 25,556,102 10,288,735

0.00% 0.00% 0.00% 0.00%
29,376,376$ 7,618,996$ 24,330,808$ 7,078,295$

94.32% 154.93% 105.04% 145.36%
(June 30, 2020) (June 30, 2019)
June 30, 2020June 30, 2021

Notes to Schedule:

Changes in assumptions:

Discount rate 2.21% 2.21% 3.50% 3.50%
Mortality improvement rates Scale MP-2020 Scale MP-2020 Scale MP-2018 Scale MP-2018 The mortality, retirement, disability, and termination rates for the measurement periods ended June 30, 2017 and 2018 were based on the CalPERS 1997-2011 Experience Study and CalPERS 1997-2015 Experience Study, respectively.

In the June 30, 2018 measurement period, the pre-65 waived retiree re-election was updated to be 10% after age 65.

In the June 30, 2020 measurement period, the medical trend rate for Kaiser Senior Advantage plans decreased from 6.5% to

5.0%.
*Fiscal year 2018 was the first year of implementation, therefore only four years are shown.

CITY OF VICTORVILLE

SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS (CONTINUED) LAST TEN FISCAL YEARS*

See accompanying Note to Required Supplementary Information. (123)

Reporting Fiscal Year
(Measurement Date)

TOTAL OPEB LIABILITY
Service Cost
Interest on the Total OPEB Liability
Changes of Assumptions
Differences Between Expected and
Actual Experience
Changes of Benefit Terms
Benefit Payments, Including Refunds and
the Implied Subsidy Benefit Payments
Net Change in Total OPEB Liability
Total OPEB Liability - Beginning
Total OPEB Liability - Ending (a)
Net OPEB Liability - Ending (a)-(b)
Plan Fiduciary Net Position as a Percentage
of the Total OPEB Liability
Covered-Employee Payroll
Total OPEB Liability as a Percentage of
Covered-Employee Payroll
City Water City Water
1,467,025$ 494,095$ 1,740,815$ 583,831$ 902,150 404,923 763,058 345,325 (1,253,215) (509,085) (3,502,958) (1,452,630) (2,657,769) (1,985,311) - - - - - - (316,872) (199,802) (285,893) (185,817) (1,858,681) (1,795,180) (1,284,978) (709,291) 23,891,133 10,916,477 25,176,111 11,625,768 22,032,452$ 9,121,297$ 23,891,133$ 10,916,477$ 22,032,452 9,121,297 23,891,133 10,916,477

0.00% 0.00% 0.00% 0.00%
20,246,960$ 6,818,328$ 17,722,441$ 4,577,527$ 108.82% 133.78% 134.81% 238.48%
(June 30, 2018) (June 30, 2017)
June 30, 2019 June 30, 2018

CITY OF VICTORVILLE

BUDGETARY COMPARISON SCHEDULE

GENERAL FUND
YEAR ENDED JUNE 30, 2021

See accompanying Note to Required Supplementary Information. (124)

Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Taxes and Assessments 49,805,010$ 53,360,010$ 69,488,310$ 16,128,300$ Licenses and Permits 2,350,028 3,091,300 4,244,266 1,152,966 Intergovernmental 100,857 100,857 95,255 (5,602) Charges for Services 11,948,222 11,775,924 13,480,288 1,704,364 Fines and Forfeitures 358,380 403,380 649,020 245,640 Investment Income 80,000 80,000 (424,335) (504,335) Other 285,550 812,135 1,351,300 539,165 Total Revenues 64,928,047 69,623,606 88,884,104 19,260,498

EXPENDITURES
Current:

General Government 12,591,143 13,117,396 11,977,814 1,139,582 Public Safety 43,651,974 44,501,066 43,280,102 1,220,964 Public Works 6,416,725 6,635,434 6,392,285 243,149 Parks and Recreation 4,908,110 5,177,215 4,307,982 869,233 Capital Outlay 596,220 1,258,607 947,924 310,683 Debt Service:

Principal 158,890 158,890 158,890 - Interest on Advances 39,733 39,733 39,733 - Total Expenditures 68,362,795 70,888,341 67,157,970 3,730,371

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (3,434,748) (1,264,735) 21,726,134 22,990,869

OTHER FINANCING SOURCES
Transfers In 23,000 23,000 46,482 23,482 NET CHANGE IN FUND BALANCES (3,411,748) (1,241,735) 21,772,616 23,014,351 Fund Balances - Beginning of Year,
as Restated 24,483,368 24,483,368 24,483,368 - FUND BALANCES - END OF YEAR 21,071,620$ 23,241,633$ 46,255,984$ 23,014,351$ Budgeted Amounts

CITY OF VICTORVILLE

BUDGETARY COMPARISON SCHEDULE

CITY HOUSING ASSET SUCCESSOR SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021

See accompanying Note to Required Supplementary Information. (125)

Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Investment Income 216,000$ 259,360$ 556,320$ 296,960$ Other - - 1,821,512 1,821,512 Total Revenues 216,000 259,360 2,752,832 2,493,472

EXPENDITURES
Current:

Community Development 180,403 6,210,286 6,127,459 82,827

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 35,597 (5,950,926) (3,374,627) 2,576,299 Fund Balances - Beginning of Year 32,364,983 32,364,983 32,364,983 - FUND BALANCES - END OF YEAR 32,400,580$ 26,414,057$ 28,990,356$ 2,576,299$ Budgeted Amounts

CITY OF VICTORVILLE

NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2021

(126)

NOTE 1 BUDGETARY DATA
The City follows these procedures in establishing the budgetary data in the financial statements.

a. The City Manager submits to the City Council a proposed operating budget. The operating budget includes the proposed expenditures and source of financing;

b. Public hearings are conducted to obtain taxpayer comments;

c. A budget is legally enacted through passage of a resolution;

d. The City Manager is authorized to transfer budgeted amounts within individual funds; however, any revisions that alter total appropriations of a fund must be approved by City Council. The legal level of budgetary control has been established at the fund level;

e. Budgeted amounts are as originally adopted and as further amended by the City Council;

f. Formal budgetary integration is employed as a management control device during the year for all funds, other than debt service funds and capital project funds. Budgets are adopted on a basis consistent with U.S. GAAP. Capital project funds are budgeted on a project length basis. Effective budgetary control is achieved for debt service funds through the contractual requirements of bond indenture provisions. The Engineering Security Special Revenue Fund does not have a legally adopted budget.

g. The COVID-19 Special Revenue Fund had total appropriations of $1,565,703 and actual expenditures of $2,836,030, which resulted in excess expenditures over appropriations of $1,270,327 for the year ended June 30, 2021.

(127)

SUPPLEMENTARY INFORMATION

(128)
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CITY OF VICTORVILLE

DESCRIPTION OF GENERAL FUNDS
YEAR ENDED JUNE 30, 2021

(129)

General Fund
This fund accounts for all general activity not within the funds mentioned below.

Measure P
This fund accounts for the 1% transactions and use tax approved by the voters in November 2020. This is a general tax that the City Council and Measure P committee are involved in reviewing the expenditures budget and making recommendations and comments.

Technology
This fund accounts for fees charged to ensure the support of the permitting system by the users of the system.

Fueling Stations
This fund accounts for fees charged to upgrade the fueling stations as needed and their continued maintenance.

Engineering Deposits
This fund accounts for monies paid by developers for the City to perform the developer required infrastructure improvements at the time the area is built out. These funds are separately tracked to ensure funding is available at the time needed.

CITY OF VICTORVILLE

COMBINING BALANCE SHEET

GENERAL FUND
JUNE 30, 2021

(130)

Fueling Engineering
General Measure P Technology Stations Deposits Totals
ASSETS
Cash and Investments 22,169,528$ 1,576,061$ 514,468$ 2,021,972$ 148,552$ 26,430,581$ Accounts Receivable 1,174,865 - 60 200,210 - 1,375,135 Interest Receivable 75,911 - - - - 75,911 Due from Other Funds 4,163,082 - - - - 4,163,082 Advances to Other Funds 4,877,304 - - - - 4,877,304 Due from Other Governments 7,103,189 5,473,841 - - - 12,577,030 Inventories 255,978 - - - - 255,978 Prepaid Items 15,902 - - - - 15,902 Total Assets 39,835,759$ 7,049,902$ 514,528$ 2,222,182$ 148,552$ 49,770,923$

LIABILITIES AND FUND BALANCES

LIABILITIES
Accounts Payable 1,969,504$ -$ 96$ 52,306$ -$ 2,021,906$ Accrued Liabilities 1,407,602 - - - - 1,407,602 Deposits Payable 85,278 - - - - 85,278 Unearned Revenue 153 - - - - 153 Total Liabilities 3,462,537 - 96 52,306 - 3,514,939

FUND BALANCES
Nonspendable:

Advances to Other Funds 4,877,304 - - - - 4,877,304 Prepaid Items 15,902 - - - - 15,902 Inventories 255,978 - - - - 255,978 Unassigned 31,224,038 7,049,902 514,432 2,169,876 148,552 41,106,800 Total Fund Balances 36,373,222 7,049,902 514,432 2,169,876 148,552 46,255,984 Total Liabilities and
Fund Balances 39,835,759$ 7,049,902$ 514,528$ 2,222,182$ 148,552$ 49,770,923$

CITY OF VICTORVILLE

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES

GENERAL FUND
YEAR ENDED JUNE 30, 2021

(131)

Fueling Engineering
General Measure P Technology Stations Deposits Totals

REVENUES
Taxes and Assessments 62,385,325 $ 7,102,985 $ - $ - $ - $ 69,488,310$ Licenses and Permits 4,244,266 - - - - 4,244,266 Intergovernmental 95,255 - - - - 95,255 Charges for Services 12,273,892 - 348,000 858,396 - 13,480,288 Fines and Forfeitures 649,020 - - - - 649,020 Investment Income (424,766) 157 - - 274 (424,335) Other 1,351,300 - - - - 1,351,300 Total Revenues 80,574,292 7,103,142 348,000 858,396 274 88,884,104

EXPENDITURES
Current:

General Government 11,852,122 - 125,692 - - 11,977,814 Public Safety 43,280,102 - - - - 43,280,102 Community Development - 53,240 - - - 53,240 Public Works 5,872,207 - - 520,078 - 6,392,285 Parks and Recreation 4,307,982 - - - - 4,307,982 Capital Outlay 947,924 - - - - 947,924 Debt Service:

Principal 158,890 - - - - 158,890
Interest on Advances 39,733 - - - - 39,733 Total Expenditures 66,458,960 53,240 125,692 520,078 - 67,157,970

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 14,115,332 7,049,902 222,308 338,318 274 21,726,134

OTHER FINANCING SOURCES
Transfers in 46,482 - - - - 46,482 Total Other Financing
Sources 46,482 - - - - 46,482 NET CHANGE IN FUND BALANCES 14,161,814 7,049,902 222,308 338,318 274 21,772,616 Fund Balances - Beginning of Year,
as Restated 22,211,408 - 292,124 1,831,558 148,278 24,483,368 FUND BALANCES - END OF YEAR 36,373,222$ 7,049,902$ 514,432$ 2,169,876$ 148,552$ 46,255,984$

CITY OF VICTORVILLE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE –

BUDGET AND ACTUAL
CAPITAL IMPACT FACILITIES – MAJOR FUND
YEAR ENDED JUNE 30, 2021

(132)

Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Charges for Services 9,062,866$ 8,051,644$ 8,486,660$ 435,016$ Gain (Loss) on Sale of Property Held
for Resale - 24,280 109,091 84,811 Investment Income 328,550 316,350 30,661 (285,689) Other 13,240 13,240 - (13,240) Total Revenues 9,404,656 8,405,514 8,626,412 220,898

EXPENDITURES
Current:

Public Works 10,938 12,397 12,763 (366) Capital Outlay 6,129,866 7,986,539 2,311,333 5,675,206 Debt Service:

Interest on Advances 84,140 234,140 16,779 217,361 Total Expenditures 6,224,944 8,233,076 2,340,875 5,892,201

EXCESS OF REVENUES
OVER EXPENDITURES 3,179,712 172,438 6,285,537 6,113,099 Fund Balance - Beginning of Year 12,331,057 12,331,057 12,331,057 - FUND BALANCE - END OF YEAR 15,510,769$ 12,503,495$ 18,616,594$ 6,113,099$ Budgeted Amounts

(133)

NONMAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS

Special revenue funds are used to account for rev enue derived from specific taxes or other revenue sources that are restricted by law or administrative action to expenditure for specified purposes.

Measure I
This fund accounts for the portion of sales tax revenue received from the County. The funds are legally restricted expenditures for the local street networks t hat have significant inter-jurisdictional or regional traffic.

Other Federal Grants
This fund accounts for federal moneys received for the following grants: COPS Fast Grant, Federal Demonstration, Transportation Enhancement Act, Congestion Mitigation Air Quality Grant, Police Hiring Supplement Grant, Federal Asset Seizure, and EPA Water Reuse Grant.

Landscape Maintenance and Drainage Facilities Assessment District This fund accounts for the revenue and expenditures of Assessment Districts which provided benefits to the property owner served. These improvements include items such as enhanced landscape, blocked walls, irrigation and drainage system. Since the maintenance of these enhanced facilities directly benefit the individual parcels within the district rather than the City as a whole, the maintenance costs are assessed to the property owners with the Maintenance Assessment District boundaries.

Street Lighting
This fund accounts for revenue received from assessments levied within the District and disbursed funds are for street lighting maintenance activities.

Traffic Safety
This fund accounts for revenue received from fines and forfeitures under Section 1463 of the Penal Code and disbursed funds are related to the maintenance and improvement of traffic control devices, as well as the compensation of school crossing guards who are not regular full-time members of the police department of the City.

Asset Seizure
This fund accounts for a portion of revenues received from sales of assets seized during drug-related arrests and disbursed for authorized public safety activities.

Storm Drain Utility
This fund accounts for revenue received from storm drain user fees and expensed funds are related to storm drains.

(134)

NONMAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS (CONTINUED)

Gas Tax
This fund accounts for revenue received from the state of California under Street and Highways Code Section 2105, 2106, and 2107. The allocations should be spent for street and highway maintenance and improvements.

Transportation Tax
This fund accounts for revenue received for public transportation projects through the Local Transportation Fund, which derived from a ¼ cent of the General Sales Tax. Eligible expenses include projects related to maintenance and repair of streets and roads.

Other State / Local Grants
This fund accounts for moneys received from the Calif ornia Law Enforcement Equipment Program, AB 3229 Grant, Office of Traffic Safety Grant, California Integrated Waste Management, Job-Housing Incentive Grant, Homeland Security Grant, and Alcoholic Beverage Control Grant.

HUD Grants
This fund accounts for the revenues and expenditures under the guidelines of the Federal Community Development Block Grant and HOME Grant programs of the U.S. Department of Housing and Urban Development. The grants are primarily used for the development of viable urban communities by providing decent housing, suitable living env ironments, and expanding economic opportunities for persons of low and moderate incomes.

COVID-19 Funds
This fund accounts for the revenues and expenditures received from federal, state, and county funds for COVID-19 relief and response. The grants are primarily used for public safety, telecommuting, homelessness and outreach, and social distancing communications.

Engineering Security
This fund accounts for various deposits that the City receives as deposits. These deposits are held by the City and returned to the depositor upon completion of projects or fulfillment of purpose and cannot be utilized for any other purpose.

Foxborough Rail
This fund accounts for the revenue and expenditures related to rail activities in the Foxborough area.

The activities include lead track usage fees collected and reserved for maintenance and repair of the rail and related expenditures including contract services as related to rail maintenance and repair.

(135)
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CITY OF VICTORVILLE

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021

(136)

Other
Federal Landscape Street Traffic Asset
Measure I Grants Maintenanc e Lighting Safety Seizure
ASSETS
Cash and Investments 8,870,021$ -$ 10,482,171$ 2,453,558$ -$ 68,414$ Accounts Receivable 1,862,261 - - - 17,667 - Notes Receivable 12,673 - 2,498 - - - Advances to Other Funds - - - - - - Due from Other Governments - 538,096 16,234 20,607 - - Prepaid Items 986 - 1,070 432 - - Total Assets 10,745,941$ 538,096$ 10,501,973$ 2,474,597$ 17,667$ 68,414$

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable 94,346$ 300,543$ 174,278$ 116,661$ -$ -$ Deposits Payable - - - - - - Due to Other Funds - 48,866 - - - - Unearned Revenue - 26,460 100 - - - Total Liabilities 94,346 375,869 174,378 116,661 - -

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - 511,116 - - - - Total Deferred Inflows of Resources - 511,116 - - - -

FUND BALANCES (DEFICIT)
Nonspendable:

Prepaid Items 986 - 1,070 432 - - Spendable:

Restricted:

Public Safety - - - - - 68,414 Highways and Street Projects 10,650,609 - 10,326,525 2,357,504 17,667 - Community Development - - - - - - Unassigned - (348,889) - - - - Total Fund Balances (Deficit) 10,651,595 (348,889) 10,327,595 2,357,936 17,667 68,414 Total Liabilities, Deferred Inflows of
Resources and Fund Balances 10,745,941$ 538,096$ 10,501,973$ 2,474,597$ 17,667$ 68,414$

CITY OF VICTORVILLE

COMBINING BALANCE SHEET (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021

(137)

Storm Other
Drain Gas Transportation State / Loc al HUD COVID-19 Engineering Foxborough Utility Tax Tax Grants Grants Funds Security Rail Totals 2,643,970$ 6,987,734$ 963,923$ 1,260,571$ 637,488$ 16,750,333$ 4,065,876$ 398,365$ 55,582,424$ 12,477 3,425 525,572 1,498 66,372 - - - 2,489,272 - - 5,589 63,466 1,811,702 - - - 1,895,928 267,483 - - - - - - - 267,483 - 743,618 - 1,102,935 1,242,429 2,597,556 - - 6,261,475 968 1,946 44 - - - - - 5,446 2,924,898$ 7,736,723$ 1,495,128$ 2,428,470$ 3,757,991$ 19,347,889$ 4,065,876$ 398,365$ 66,502,028$ 70,218$ 1,001,081$ 17,290$ 285,270$ 243,422$ 8,495$ 12,974$ 42,403$ 2,366,981$ - 105 10,201 - - - 4,052,784 - 4,063,090 - - 598,599 - 926,556 2,589,061 - - 4,163,082 - -
- 106,008 - 16,750,333 - - 16,882,901 70,218 1,001,186 626,090 391,278 1,169,978 19,347,889 4,065,758 42,403 27,476,054 95,002 - 505,478 1,102,935 1,207,044 2,597,556 - - 6,019,131 95,002 - 505,478 1,102,935 1,207,044 2,597,556 - - 6,019,131 968 1,946 44 - - - - - 5,446 - - - - - - - - 68,414 2,758,710 6,733,591 363,516 934,257 - - 118 355,962 34,498,459 - - - - 1,380,969 - - - 1,380,969 - - - - - (2,597,556) - - (2,946,445) 2,759,678 6,735,537 363,560 934,257 1,380,969 (2,597,556) 118 355,962 33,006,843 2,924,898$ 7,736,723$ 1,495,128$ 2,42
8,470$ 3,757,991$ 19,347,889$ 4,065,876$ 398,365$ 66,502,028$

CITY OF VICTORVILLE

COMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021

(138)

Other
Federal Landscape Street Traffic Asset
Measure I Grants Maintenanc e Lighting Safety Seizure

REVENUES
Taxes and Assessments 7,050,798 $ - $ 2,455,699$ 1,730,616 $ - $ - $ Intergovernmental - 1,032,973 - 746,263 - - Charges for Services 364,182 - - - - - Fines and Forfeitures - - - - 54,846 - Investment Income 38,063 17 18,201 3,653 - 129 Other 733,596 - - - - - Total Revenues 8,186,639 1,032,990 2,473,900 2,480,532 54,846 129

EXPENDITURES
Current:

Public Safety - 1,317 - - - 1,944 Community Development - - - - - - Public Works 2,153,898 - 2,214,431 2,154,676 - - Capital Outlay 1,249,746 850,616 32,371 117,959 - - Total Expenditures 3,403,644 851,933 2,246,802 2,272,635 - 1,944

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 4,782,995 181,057 227,098 207,897 54,846 (1,815)

OTHER FINANCING SOURCES (USES)
Transfers In - 1,684,653 - - - - Transfers Out - - - - (46,482) - Total Other Financing Uses - 1,684,653 - - (46,482) - NET CHANGE IN FUND BALANCES 4,782,995 1,865,710 227,098 207,897 8,364 (1,815) Fund Balances (Deficit) - Beginning of Year,
as Restated 5,868,600 (2,214,599) 10,100,497 2,150,039 9,303 70,229

FUND BALANCES (DEFICIT) -
END OF YEAR 10,651,595$ (348,889)$ 10,327,595$ 2,357,936$ 17,667$ 68,414$

CITY OF VICTORVILLE

COMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCE (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021

(139)

Storm Other
Drain Gas Transportation State / Loc al HUD COVID-19 Engineering Foxborough Utility Tax Tax Grants Grants Funds Security Rail Totals -$ 2,343,865$ -$ -$ -$ -$ -$ 100,499$ 13,681,477$ - 2,838,292 32,715 663,561 1,222,750 2,143,566 - - 8,680,120 1,576,340 6,889 12,254 - - - - - 1,959,665 - - - - - - - - 54,846 3,090 11,085 8,080 3,077 27,783 - - 628 113,806 3,942 4,909 27,063 - - - - - 769,510 1,583,372 5,205,040 80,112 666,638 1,250,533 2,143,566 - 101,127 25,259,424 - - - - - 1,755,157 - - 1,758,418 - - - 14,546 1,646,615 892,432 - - 2,553,593 1,252,400 2,952,709 1,068,617 777,950 247,248 - - 72,268 12,894,197 166,728 1,471,116
48,512 43,320 - 188,441 - - 4,168,809 1,419,128 4,423,825 1,117,129 835,816 1,893,863 2,836,030 - 72,268 21,375,017 164,244 781,215 (1,037,017) (169,178) (643,330) (692,464) - 28,859 3,884,407 - - - - 26,145 - - - 1,710,798 - - - (26,145) - - - - (72,627) - - - (26,145) 26,145 - - - 1,638,171 164,244 781,215 (1,037,017) (195,323) (617,185) (692,464) - 28,859 5,522,578 2,595,434 5,954,322 1,400,577 1,129,580 1,998,154 (1,905,092) 118 327,103 27,484,265 2,759,678$ 6,735,537$ 363,560$ 934,257$ 1,380,969$ (2,597,556)$ 118$ 355,962$ 33,006,843$

CITY OF VICTORVILLE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE –

BUDGET AND ACTUAL

MEASURE I FUND
YEAR ENDED JUNE 30, 2021

(140)

Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Taxes and Assessments 4,093,694 $ 4,093,694 $ 7,050,798 $ 2,957,104 $ Charges for Services 53,000 371,978 364,182 (7,796) Investment Income - - 38,063 38,063 Other - - 733,596 733,596 Total Revenues 4,146,694 4,465,672 8,186,639 3,720,967

EXPENDITURES
Current:

Public Works 2,497,063 2,483,012 2,153,898 329,114 Capital Outlay 2,828,480 5,142,884 1,249,746 3,893,138 Total Expenditures 5,325,543 7,625,896 3,403,644 4,222,252

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (1,178,849) (3,160,224) 4,782,995 7,943,219 NET CHANGE IN FUND BALANCE (1,178,849) (3,160,224) 4,782,995 7,943,219 Fund Balance - Beginning of Year 5,868,600 5,868,600 5,868,600 - FUND BALANCE - END OF YEAR 4,689,751$ 2,708,376 $ 10,651,595 $ 7,943,219 $ Budgeted Amounts

CITY OF VICTORVILLE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE –

BUDGET AND ACTUAL

OTHER FEDERAL GRANTS FUND
YEAR ENDED JUNE 30, 2021

(141)

Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Intergovernmental 40,015,318$ 31,286,684$ 1,032,973$ (30,253,711)$ Investment Income - - 17 17 Total Revenues 40,015,318 31,286,684 1,032,990 (30,253,694)

EXPENDITURES
Current:

Public Safety 107,019 107,019 1,317 105,702 Capital Outlay 61,551,924 47,329,281 850,616 46,478,665 Total Expenditures 61,658,943 47,436,300 851,933 46,584,367

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (21,643,625) (16,149,616) 181,057 16,330,673

OTHER FINANCINING SOURCES
Transfers In 30,948 30,985 1,684,653 1,653,668 NET CHANGE IN FUND BALANCE (21,612,677) (16,118,631) 1,865,710 17,984,341 Fund Balance (Deficit) - Beginning of Year (2,214,599) (2,214,599) (2,214,599) - FUND BALANCE (DEFICIT) - END OF YEAR (23,827,276)$ (18,333,230)$ (348,889)$ 17,984,341$ Budgeted Amounts

CITY OF VICTORVILLE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE –

BUDGET AND ACTUAL

LANDSCAPE MAINTENANCE AND DRAINAGE FACILITIES ASSESMENT DISTRICT FUND YEAR ENDED JUNE 30, 2021

(142)

Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Taxes and Assessments 2,449,086 $ 2,449,086 $ 2,455,699 $ 6,613 $ Investment Income - - 18,201 18,201 Total Revenues 2,449,086 2,449,086 2,473,900 24,814

EXPENDITURES
Current:

Public Works 2,715,046 2,742,124 2,214,431 527,693 Capital Outlay 6,265 306,811 32,371 274,440 Total Expenditures 2,721,311 3,048,935 2,246,802 802,133

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (272,225) (599,849) 227,098 826,947 NET CHANGE IN FUND BALANCE (272,225) (599,849) 227,098 826,947 Fund Balance - Beginning of Year 10,100,497 10,100,497 10,100,497 - FUND BALANCE - END OF YEAR 9,828,272$ 9,500,648 $ 10,327,595 $ 826,947 $ Budgeted Amounts

CITY OF VICTORVILLE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE –

BUDGET AND ACTUAL

STREET LIGHTING FUND
YEAR ENDED JUNE 30, 2021

(143)

Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Taxes and Assessments 1,415,000 $ 1,415,000 $ 1,730,616 $ 315,616 $ Intergovernmental 400,000 400,000 746,263 346,263 Investment Income 5,000 5,000 3,653 (1,347) Total Revenues 1,820,000 1,820,000 2,480,532 660,532

EXPENDITURES
Current:

Public Works 2,384,302 2,290,577 2,154,676 135,901 Capital Outlay 86,000 363,080 117,959 245,121 Total Expenditures 2,470,302 2,653,657 2,272,635 381,022

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (650,302) (833,657) 207,897 1,041,554 NET CHANGE IN FUND BALANCE (650,302) (833,657) 207,897 1,041,554 Fund Balance - Beginning of Year 2,150,039 2,150,039 2,150,039 - FUND BALANCE - END OF YEAR 1,499,737$ 1,316,382 $ 2,357,936 $ 1,041,554 $ Budgeted Amounts

CITY OF VICTORVILLE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE –

BUDGET AND ACTUAL

TRAFFIC SAFETY FUND
YEAR ENDED JUNE 30, 2021

(144)

Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Fines and Forfeitures 50,000 $ 33,000 $ 54,846 $ 21,846 $ Total Revenues 50,000 33,000 54,846 21,846

EXPENDITURES
Current:

Public Safety 27,000 27,000 - 27,000 Total Expenditures 27,000 27,000 - 27,000

EXCESS OF REVENUES OVER
EXPENDITURES 23,000 6,000 54,846 48,846

OTHER FINANCING USES
Transfers Out (23,000) (23,000) (46,482) (23,482) NET CHANGE IN FUND BALANCE - (17,000) 8,364 25,364 Fund Balance - Beginning of Year 9,303 9,303 9,303 - FUND BALANCE - END OF YEAR 9,303$ (7,697) $ 17,667 $ 25,364 $ Budgeted Amounts

CITY OF VICTORVILLE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE –

BUDGET AND ACTUAL

ASSET SEIZURE FUND
YEAR ENDED JUNE 30, 2021

(145)

Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Intergovernmental 4,500$ 4,500$ -$ (4,500)$ Investment Income - - 129 129 Total Revenues 4,500 4,500 129 (4,371)

EXPENDITURES
Current:

Public Safety 39,500 39,796 1,944 37,852 Total Expenditures 39,500 39,796 1,944 37,852

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (35,000) (35,296) (1,815) 33,481 NET CHANGE IN FUND BALANCE (35,000) (35,296) (1,815) 33,481 Fund Balance - Beginning of Year 70,229 70,229 70,229 - FUND BALANCE - END OF YEAR 35,229$ 34,933 68,414 33,481 Budgeted Amounts

CITY OF VICTORVILLE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE –

BUDGET AND ACTUAL

STORM DRAIN UTILITY FUND
YEAR ENDED JUNE 30, 2021

(146)

Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Charges for Services 1,555,368$ 1,480,515$ 1,576,340$ 95,825$ Fines and Forfeitures 15,000 15,000 - (15,000) Investment Income - - 3,090 3,090 Other - - 3,942 3,942 Total Revenues 1,570,368 1,495,515 1,583,372 87,857

EXPENDITURES
Current:

Public Works 1,746,155 1,756,524 1,252,400 504,124 Capital Outlay - 205,000 166,728 38,272 Total Expenditures 1,746,155 1,961,524 1,419,128 542,396

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (175,787) (466,009) 164,244 630,253 NET CHANGE IN FUND BALANCE (175,787) (466,009) 164,244 630,253 Fund Balance - Beginning of Year 2,595,434 2,595,434 2,595,434 - FUND BALANCE - END OF YEAR 2,419,647$ 2,129,425 $ 2,759,678 $ 630,253 $ Budgeted Amounts

CITY OF VICTORVILLE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE –

BUDGET AND ACTUAL

GAS TAX FUND
YEAR ENDED JUNE 30, 2021

(147)

Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Taxes and Assessments 2,174,850$ 2,174,850$ 2,343,865$ 169,015$ Intergovernmental 2,972,883 2,972,883 2,838,292 (134,591) Charges for Services 7,000 7,000 6,889 (111) Investment Income 14,000 14,000 11,085 (2,915) Other - - 4,909 4,909 Total Revenues 5,168,733 5,168,733 5,205,040 36,307

EXPENDITURES
Current:

Public Works 3,381,327 3,425,894 2,952,709 473,185 Capital Outlay 79,125 7,050,732 1,471,116 5,579,616 Total Expenditures 3,460,452 10,476,626 4,423,825 6,052,801

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 1,708,281 (5,307,893) 781,215 6,089,108 NET CHANGE IN FUND BALANCE 1,708,281 (5,307,893) 781,215 6,089,108 Fund Balance - Beginning of Year 5,954,322 5,954,322 5,954,322 - FUND BALANCE - END OF YEAR 7,662,603$ 646,429 $ 6,735,537 $ 6,089,108 $ Budgeted Amounts

CITY OF VICTORVILLE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE –

BUDGET AND ACTUAL

TRANSPORTATION TAX FUND
YEAR ENDED JUNE 30, 2021

(148)

Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Intergovernmental 763,253 $ 763,253 $ 32,715 $ (730,538) $ Charges for Services 7,206 - 12,254 12,254 Investment Income - - 8,080 8,080 Other 169,028 169,028 27,063 (141,965) Total Revenues 939,487 932,281 80,112 (852,169)

EXPENDITURES
Current:

Public Works 1,554,251 1,542,166 1,068,617 473,549 Capital Outlay 244,000 596,810 48,512 548,298 Total Expenditures 1,798,251 2,138,976 1,117,129 1,021,847

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (858,764) (1,206,695) (1,037,017) 169,678 NET CHANGE IN FUND BALANCE (858,764) (1,206,695) (1,037,017) 169,678 Fund Balance - Beginning of Year 1,400,577 1,400,577 1,400,577 - FUND BALANCE - END OF YEAR 541,813$ 193,882$ 363,560$ 169,678$ Budgeted Amounts

CITY OF VICTORVILLE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE –

BUDGET AND ACTUAL

OTHER STATE/LOCAL GRANTS FUND
YEAR ENDED JUNE 30, 2021

(149)

Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Intergovernmental 7,301,544 $ 9,654,396 $ 663,561 $ (8,990,835)$ Investment Income - - 3,077 3,077 Total Revenues 7,301,544 9,654,396 666,638 (8,987,758)

EXPENDITURES
Current:

Public Safety 750,406 116,197 - 116,197 Community Development 588,494 756,849 14,546 742,303 Public Works 6,849,918 5,171,234 777,950 4,393,284 Capital Outlay 4,936,054 3,168,329 43,320 3,125,009 Total Expenditures 13,124,872 9,212,609 835,816 8,376,793

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (5,823,328) 441,787 (169,178) (610,965)

OTHER FINANCING USES
Transfers Out - - (26,145) (26,145) NET CHANGE IN FUND BALANCE (5,823,328) 441,787 (195,323) (637,110) Fund Balance - Beginning of Year 1,129,580 1,129,580 1,129,580 - FUND BALANCE - END OF YEAR (4,693,748)$ 1,571,367$ 934,257$ (637,110)$ Budgeted Amounts

CITY OF VICTORVILLE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE –

BUDGET AND ACTUAL

HUD GRANTS FUND
YEAR ENDED JUNE 30, 2021

(150)

Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Intergovernmental 27,724,095$ 21,401,105 $ 1,222,750$ (20,178,355)$ Investment Income 57,595 717,094 27,783 (689,311) Total Revenues 27,781,690 22,118,199 1,250,533 (20,867,666)

EXPENDITURES
Current:

Public Safety 2,057,591 318,269 - 318,269 Community Development 20,843,476 19,850,232 1,646,615 18,203,617 Public Works 2,847,386 2,565,991 247,248 2,318,743 Parks and Recreation 120,000 116,580 - 116,580 Capital Outlay 270,944 227,907 - 227,907 Total Expenditures 26,139,397 23,078,979 1,893,863 21,185,116

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
1,642,293 (960,780) (643,330) 317,450

OTHER FINANCING SOURCES (USES)
Transfers In 659,499 - 26,145 26,145 Transfers Out (29,152) - - - Total Other Financing Sources (Uses) 630,347 - 26,145 26,145 NET CHANGE IN FUND BALANCE 2,272,640 (960,780) (617,185) 343,595 Fund Balance - Beginning of Year 1,998,154 1,998,154 1,998,154 - FUND BALANCE - END OF YEAR 4,270,794$ 1,037,374$ 1,380,969$ 343,595$ Budgeted Amounts

CITY OF VICTORVILLE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE –

BUDGET AND ACTUAL
COVID-19 FUND
YEAR ENDED JUNE 30, 2021

(151)

Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Intergovernmental 1,565,703$ 35,066,369$ 2,143,566$ (32,922,803)$

EXPENDITURES
Current:

Public Safety 227,912 227,912 1,755,157 (1,527,245) Community Development 1,143,511 1,143,511 892,432 251,079 Capital Outlay 194,280 194,280 188,441 5,839 Total Expenditures 1,565,703 1,565,703 2,836,030 (1,270,327)

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
- 33,500,666 (692,464) (34,193,130) Fund Balance (Deficit) - Beginning of Year (1,905,092) (1,905,092) (1,905,092) - FUND BALANCE (DEFICIT) - END OF YEAR (1,905,092)$ 31,595,574$ (2,597,556)$ (34,193,130)$ Budgeted Amounts

CITY OF VICTORVILLE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE –

BUDGET AND ACTUAL

FOXBOROUGH RAIL FUND
YEAR ENDED JUNE 30, 2021

(152)

Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Taxes and Assessments 116,878$ 116,878 $ 100,499$ (16,379)$ Investment Income - - 628 628 Total Revenues 116,878 116,878 101,127 (15,751)

EXPENDITURES
Current:

Public Works 120,500 170,500 72,268 98,232

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (3,622) (53,622) 28,859 82,481 Fund Balance - Beginning of Year 327,103 327,103 327,103 - FUND BALANCE - END OF YEAR 323,481$ 273,481 $ 355,962$ 82,481$ Budgeted Amounts

(153)

FIDUCIARY FUNDS

CUSTODIAL FUNDS

Custodial funds are one of four types of fiduciary funds. Custodial funds are used to report resources held by the reporting government in a purely custodial capacity. Custodial funds typically involve only the receipt, temporary investment, and remittance of fiduciary resources to individuals, private organizations, or other governments.

Community Facilities District 90-01
This fund accounts for the Brentwood, West Creek and Joshua Ridge assessment district in accordance with the Mello-Roos Community Facilities Act of 1982. The taxes received are for the payment made to the debt service related to this bond issuance. The debt is debt without government commitment of the City of Victorville.

Community Facilities District 07-01
This fund accounts for the Senna, Solana, and Sierra Project assessment district in accordance with the Mello-Roos Community Facilities Act of 1982. The taxes received are for the payment made to the debt service related to this bond issuance. The debit is debt without government commitment of the City of Victorville.

Community Facilities District 01-01
This fund accounts for the Eagle Ranch assessment district in accordance with the Mello-Roos Community Facilities Act of 1982. The taxes received are for the payment made to the debt service related to this bond issuance. The debit is debt without government commitment of the City of Victorville.

Community Facilities District Cahuenga
This fund accounts for the Cahuenga assessment district in accordance with the Mello-Roos Community Facilities Act of 1982. The taxes received are for the payment made to the debt service related to this bond issuance. The debit is debt without government commitment of the City of Victorville.

Regional Fire Protection Authority
This agency fund accounts for the agency activities of the City of Victorville on behalf of the Regional Fire Protection Agency. The Authority was dissolved and all assets distributed as of June 30, 2021.

CITY OF VICTORVILLE

COMBINING SCHEDULE OF FIDUCIARY NET POSITION

CUSTODIAL FUNDS
JUNE 30, 2021

(154)

Community Regional
Community Community Community Facilities Fire
Facilities Facilities Facilities District Protection
District 90-01 District 07-01 District 01-01 Cahuenga Authority Totals ASSETS
Cash and Investments 76,535$ 192,385$ -$ 35,341$ -$ 304,261$ Restricted Assets:

Investments With Fiscal Agent - 270,961 1,441,677 - - 1,712,638 Accounts Receivable - 1,126 1,573 - - 2,699 Total Assets 76,535$ 464,472$ 1,443,250$ 35,341$ -$ 2,019,598$

LIABILITIES
Accounts Payable - 169 980,403 - - 980,572 Total Liabilities - 169 980,403 - - 980,572

NET POSITION
Restricted for:

Individuals, Organizations,
and Other Governments 76,535$ 464,303$ 462,847$ 35,341$ -$ 1,039,026$

CITY OF VICTORVILLE

COMBINING SCHEDULE OF CHANGES IN FIDUCIARY NET POSITION

CUSTODIAL FUNDS
YEAR ENDED JUNE 30, 2021

(155)

Community Regional
Community Community Community Facilities Fire
Facilities Facilities Facilities District Protection
District 90-01 District 07-01 District 01-01 Cahuenga Authority Totals

ADDITIONS
Property Assessments Collected - $ 177,732$ 281,232 $ - $ - $ 458,964$ Investment Income 143 245 144 65 540 1,137 Total Additions 143 177,977 281,376 65 540 460,101

DEDUCTIONS
Community Development 1,623 7,847 13,889 - - 23,359 Public Safety - - - - 299,393 299,393 Payments on Special Assessment Debt - 165,248 265,971 - - 431,219 Total Deductions 1,623 173,095 279,860 - 299,393 753,971 CHANGE IN NET POSITION (1,480) 4,882 1,516 65 (298,853) (293,870) Net Position - Beginning of Year 78,015 459,421 461,331 35,276 298,853 1,332,896 NET POSITION - END OF YEAR 76,535$ 464,303$ 462,847$ 35,341$ -$ 1,039,026$

(156)
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(157)

STATISTICAL SECTION

This part of the City’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information say about the City’s overall financial health.

Financial Trends
These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time.

Revenue Capacity
These schedules contain information to help the reader assess the City’s most significant local revenue source, property taxes.

Debt Capacity
These schedules present information to help the reader assess the adorability of the City’s current level of outstanding debt, and the City’s ability to issue additional debt in the future.

Demographic and Economic Information
This schedule presents information to help the reader understand the environment within which the City’s financial activities take place.

Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to t he services the City provides and the activities it performs.

(158)

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CITY OF VICTORVILLE

NET POSITION BY COMPONENT

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(IN THOUSANDS)

(159)

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Governmental activities
Net investment in capital
assets 479,821$ 478,455 $ 462,432 $ 484,943 $ 479,306 $ 473,590 $ 462,796 $ 480,006 $ 466,516 $ 451,333 $ Restricted 27,686 48,921 45,594 44,922 56,682 58,111 58,571 63,733 77,665 86,627 Unrestricted (7,794) (13,830) (11,484) (46,227) (47,079) (47,596) (50,734) (43,759) (44,619) (20,993) Total governmental
activities net position 499,712 513,546 496,542 483,638 488,909 484,105 470,633 499,980 499,563 516,967 Business-type activities
Invested in capital
assets, net of related
debt 418,557 363,671 188,425 150,794 66,591 59,439 64,164 49,262 42,900 38,243 Restricted 4,431 7,200 8,604 8,911 9,600 11,981 13,937 0 0 0 Unrestricted (296,361) (199,817) (26,466) (35,217) 54,098 48,212 24,147 33,883 42,640 58,348 Total business-type
activities net position 126,628
171,054 170,563 124,488 130,290 119,632 102,248 83,145 85,541 96,591 Primary government
Invested in capital assets,
net of related debt 898,378 842,126 650,857 635,737 545,897 533,029 526,960 529,267 509,416 493,517 Restricted 32,117 56,121 54,198 53,833 66,282 70,092 72,508 63,733 77,665 86,627 Unrestricted (304,155) (213,647) (37,951) (81,444) 7,020 616 (26,587) (9,876) (1,978) 33,414 Total primary government
net position 626,340$ 684,600 $ 667,104 $ 608,125 $ 619,199 $ 603,738 $ 572,881 $ 583,124 $ 585,104 $ 613,558 $ Fiscal Year

CITY OF VICTORVILLE

CHANGES IN NET POSITION BY COMPONENT

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(IN THOUSANDS)

(160)

2012 2013 2014 2015 2016 2017 2018 2019 2020* 2021
Expenses
Governmental activities:

General government $4,977 $13,691 $14,342 $12,188 $12,121 $8,982 $21,271 $19,256 $20,924 $19,440 Public safety 30,724 32,422 35,679 36,066 35,624 37,719 37,294 45,498 42,413 45,868 Community Development 1,589 4,094 2,931 1,780 1,646 5,375 1,696 1,552 1,314 9,231 Public works 31,675 29,846 33,472 28,856 31,972 33,835 29,076 28,971 31,103 32,425 Park and recreation 4,550 4,509 4,395 3,188 4,911 5,245 5,113 6,090 6,826 7,035 Interest on long-term debt 1,397 74 61 63 102 177 44 112 104 51 Total governmental activities expenses 74,913 84,637 90,880 82,141 86,376 91,332 94,493 101,481 102,685 114,051 Business-type activities
Sanitary Sewer 10,555 11,114 12,415 13,523 11,960 12,651 17,019 14,994 17,314 16,552 Golf course 2,372 2,419 2,231 1,716 1,566 1,507 1,544 439 - - Airport 33,583 30,845 32,528 35,453 31,597 32,742 37,406 32,756 34,860 40,578 Water 29,782 29,842 28,419 30,298 33,851 40,185 35,431 41,110 39,439 42,734 Rail 269 275 269 - - - - - - - Solid Waste 11,398 12,383 13,011 13,144 14,197 15,467 16,614 16,516 17,850 18,616 Municipal Utilities* 12,236 11,767 10,747 11,603 11,016 10,479 12,967 13,569 - - $ Municipal Utilies - Gas - - ------2 , 3 5 3 2,064 Municipal Utilities - Electric -
- - - - - - - 11,717 12,156
Total business-type activities expensess 100,195 98,645 99,621 105,736 104,186 113,031 120,982 119,383 123,533 132,701 Total primary government expenses 175,108 183,282 190,501 187,877 190,563 204,363 215,475 220,864 226,217 246,752 Program Revenues
Governmental activities:

Charges for services:

General government 2,860 3,559 4,351 4,203 3,136 3,221 5,493 9,144 10,240 10,159 Public safety 1,409 1,425 2,451 1,570 874 720 575 571 887 1,466 Community development 2,593 1,528 3,896 960 1,950 3,163 2,874 5,163 5,800 8,066 Public works 4,216 3,532 15,236 3,519 4,142 4,745 4,560 4,591 4,905 8,310 Parks and recreation 939 890 917 935 930 956 876 856 569 834 Operating grants and contributions 5,309 18,266 5,859 5,191 15,165 10,654 3,964 6,947 4,555 11,719 Capital contributions and grants 6,818 6,940 9,251 7,745 10,626 8,076 4,702 10,312 11,916 7,992 Total governmental activities program
revenues 24,143 36,139 41,962 24,123 36,822 31,537 23,044 37,584 38,873 48,548 Business-type activities:

Charges for services:

Sanitary Sewer 12,608 14,934 14,729 15,560 13,381 11,374 11,694 13,196 14,663 17,292 Golf course 1,160 1,171 849 395 583 432 470 - - - Airport 9,070 8,204 8,184 8,110 8,027 6,949 7,531 9,315 11,198 11,056 Water 26,558 26,207 27,470 25,978 27,704 31,146 30,907 31,820 35,607 42,167 Solid Waste 11,528 12,069 12,004 12,342 12,716 13,965 14,336 17,546 18,867 19,776 Municipal Utilities* 10,290 11,270 12,464 13,638 13,899 14,483 13,885 14,882 - - Municipal Utilities - Gas - - - - - - - - 2,616 2,657 Municipal Utilities - Electric - - - - - - - - 13,131 15,830 Operating grants and contributions 10,635 10,912 - - - - - - - - Capital contributions and grants 11,847 11,557 2,657 54 6,263 2,297 5,178 12,688 6,393 13,777 Total business-type activities program
revenues 93,696 96,324 78,356 76,076 82,573 80,647 84,002 99,446 102,474 122,556 Total primary government program revenues $117,839 $132,463 120,318$ 100,199$ 119,395$ 112,184$ 107,046$ 137,031$ 141,347$ 171,104$ * Started reporting Gas and Electric utilities separately in FY2020.

Fiscal Year

CITY OF VICTORVILLE

CHANGES IN NET POSITION BY COMPONENT (CONTINUED)

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(IN THOUSANDS)

(161)

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Net (expense) revenue
Governmental activities (50,770) $ (48,498) $ (48,918) $ (58,018) $ (49,554) $ (59,796) $ (71,449) $ (63,897) $ (63,812) $ (65,503) $ Business-type activities (6,499) (2,321) (21,265) (29,660) (21,614) (32,384) (36,980) (19,937) (21,058) (10,144) Total primary government net expense (57,269) (50,818) (70,183) (87,678) (71,168) (92,180) (108,429) (83,834) (84,870) (75,648) General Revenues and Other Changes in Net Position
Governmental activities:

Taxes:

Property taxes 26,967 21,926 21,522 22,138 23,752 24,097 25,662 27,202 28,211 31,980 Sales taxes 16,431 20,671 22,329 24,085 28,212 26,802 26,653 30,629 28,566 35,227 Transactions and Use Tax* - - - - - - - - - 7,103 Transient occupancy tax 709 841 881 1,064 1,074 1,138 1,305 1,487 1,539 1,899 Other taxes 6,378 2,684 2,892 3,000 3,039 2,840 3,737 3,816 3,988 4,112 Investment income 297 169 138 68 158 478 726 1,148 574 (391) Motor vehicle in lieu 61 51 - - - - - - - - Gain on sale of assets (3) - 31 55 - - - - - - Miscellaneous revenues 522 691 190 314 201 192 377 384 515 818 SERAF Obl
igation - - - - - - - - - - Transfers (1,099) (2,328) 992- 24,090 (779) (554) (521) 26,795 - 1,685 Extraordinary Gain (29,740) - - - - - - - - - Legal Settlement - 1,754 34 - - - - - - - Total governmental activities 20,524 46,459 47,024 74,815 55,657 54,992 57,940 91,461 63,394 82,432 Business-type activities:

Taxes 541 521 18,418 19,781 24,879 25,918 29,070 24,659 20,772 22,405 Other Taxes - - 177 - - - - - - Investment income 1,749 200 192 - 1,002 726 1,828 2,374 1,918 216 Gain on sale of assets 538 60 - - 125 17 290 - - 110 Miscellaneous revenues 961 1,768 1,902 2,003 1,432 1,779 1,099 190 630 149 Impairment loss on Capital assets - - (24,090) - - - - - - Legal Settlement - 52,246 - - - - - - - - Transfers 1,099
2,328 992 - 779 554 521 (26,795) - (1,685) Total business-type activities 4,888 57,123 21,505 (2,129) 28,217 28,993 32,808 429 23,320 21,195 Total primary government 25,411 103,582 68,529 72,686 83,874 83,985 90,748 91,890 86,714 103,627 Change in Net Position
Governmental activities (30,246) (2,039) (1,894) 16,797 6,103 (4,803) (13,510) 27,564 (418) 16,929 Business-type activities (1,612) 54,803 240 (31,789) 6,604 (3,392) (4,171) (19,509) 2,262 11,051 Total primary government (31,858)$ 52,764 $ (1,654) $ (14,992)$ 12,706 $ (8,195) $ (17,681)$ 8,056 $ 1,844 $ 27,979$ * Measure P Transactions and Use Tax was approved by voters in November 2020 election and went into effect April 1, 2021.

Fiscal Year

CITY OF VICTORVILLE

FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(IN THOUSANDS)

(162)

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General fund
Nonspendable 67$ 211 $ 179 $ 195 $ 192 $ 172 $ 472 $ 7,236$ 6,225$ 5,149 $ Restricted 14 30 30 - - - - - - - Unassigned 3,661 5,047 4,595 3,238 4,630 5,181 6,179 12,812 18,110 41,107 Total general fund 3,742$ 5,288$ 4,804$ 3,433$ 4,822$ 5,353$ 6,651$ 20,049$ 24,335$ 46,256$ All other governmental funds
Unreserved, reported in:

Nonspendable 8,547 $ 212 $ 180 $ 195 $ 194 $ 174 $ 474 $ 4 $ 11$ 5 $ Restricted 20,673 48,494 43,869 44,922 56,305 58,108 60,819 62,198 75,962 83,555 Assigned - 573 1,911 - - - - - Unassigned (4,390) (2,843) (1,543) (3,111) (2,587) (882) (2,487) (7,599) (4,120) (2,946) Total all other governmental funds 24,830$ 46,436$ 44,417$ 42,006$ 53,912$ 57,400$ 58,807$ 54,602$ 71,853$ 80,614$ Beginning in 2011, the City started reporting fund balance in conformity with GASB 54, which changed fund balance reclassification.

Fiscal Year

CITY OF VICTORVILLE

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(IN THOUSANDS)

(163)

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Revenue
Taxes 50,456$ 46,123 $ 47,624 $ 50,287 $ 55,966 $ 54,877 $ 57,357 $ 65,402 $ 64,092 $ 83,170 $ Licenses and permits 1,198 1,107 1,230 1,533 1,387 1,463 1,863 2,633 2,786 4,244 Intergovernmental 8,649 9,928 17,249 13,833 25,947 19,293 8,404 8,920 14,651 9,150 Charges for services 10,606 9,256 10,480 9,587 11,627 13,247 15,016 17,236 23,306 23,927 Fines and forefitures 1,037 1,355 1,142 1,308 737 793 514 473 418 704 Investment income 297 169 138 68 158 478 726 966 1,437 276 Sale of assets - - - - - (3,544) - - - 109 Legal Settlement - 1,754 34 - - - - - - - Other 522 203 190 314 201 192 464 532 849 3,942 Total revenues 72,765$ 69,894 $ 78,086 $ 76,930 $ 96,022 $ 86,798 $ 84,345 $ 96,164 $ 107,539 $ 125,523 $ Expenditures
General government 8,610 8,218 9,751 11,171 9,676 9,272 11,105 10,625 11,650 11,978 Public safety 30,360 32,061 34,272 35,674 35,875 37,855 39,185 45,004 41,731 45,039 Community development 2,722 3,930 2,788 1,769 1,438 1,899 1,629 1,118 1,128 8,734 Public works 29,116 18,481 23,697 28,349 31,956 29,412 26,185 17,781 18,926 19,299 Park and recreation 2,797 3,022 2,866 2,956 3,363 3,746 3,739 4,047 4,238 4,308 Capital Outlay* - - - - - - - 21,593 8,068 7,428 Debt services:

Principal 1,067 32 6,082 - - - - - 153 159 Interest & Fiscal agent
charges 1,397
74 61 63 102 177 44 74 109 57 Total expenditures 76,069$ 65,818 $ 79,516 $ 79,982 $ 82,411 $ 82,362 $ 81,887 $ 100,243 $ 86,003 $ 97,001 $ Excess of revenues
over (under)
expenditures (3,305) 4,075 (1,430) (3,052) 13,611 4,437 2,458 (4,080) 21,536 28,521 Other financing sources
(uses):

Capital lease proceeds - - - - - - - 1,201 - - Transfer in 5,832 21,519 365 1,289 218 246 80 18,424 41 1,757 Transfer out (6,931) (2,653) (1,327) (2,200) (997) (800) (601) (6,649) (41) (73) Gain (loss) on sale of
assets - - 31 55 1,058 156 28 - - - Total other financing
sources(uses) (1,099)
18,866 (931) (856) 280 (398) (494) 12,977 - $ 1,685 Extraordinary gain(loss) (65,439) - - - - - - - - - Net change in fund
balances (69,843)
22,941 (2,361) (3,908) 13,890 4,039 1,964 8,897 21,536 30,206 Debt service as a
percentage of noncapital
expenditures

3.2% 0.2% 7.7% 0.1% 0.1% 0.2% 0.1% 0.1% 0.3% 0.2%
*Starting in FY2019, Capital outlay was broken out of categorical expenditures Fiscal Year

CITY OF VICTORVILLE

ASSESSED VALUE OF TAXABLE PROPERTY

LAST TEN FISCAL YEARS

(164)

Fiscal Year Secured Property Unsecured Property SBE Nonunitary Total Assessed Total Direct Tax Rate
2012 6,015,259,937 486,592,953 324,863,210 6,826,716,100 20.63% 2013 5,983,453,352 502,968,659 279,763,216 6,766,185,227 21.62% 2014 6,079,669,684 578,809,444 232,263,205 6,890,742,333 18.33% 2015 6,523,751,292 563,911,351 180,492,248 7,268,154,891 18.25% 2016 6,961,515,866 598,447,036 177,480,228 7,737,443,130 18.24% 2017 7,358,274,302 548,314,490 225,429,163 8,132,017,955 18.23% 2018 7,751,404,680 507,854,639 106,929,139 8,366,188,458 18.22% 2019 8,173,462,255 553,108,056 104,329,108 8,830,899,419 18.21% 2020 8,697,654,376 549,306,339 98,788,971 9,345,749,686 18.20% 2021 9,212,471,887 608,604,365 100,188,971 9,921,265,223 18.19% In 1978, the voters of the State of California passed Proposition 13 which limited taxes to a total Maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of the property may be increased by an "inflation factor" (limited to a maximum of 2%). With few exceptions, property is only reassessed as a result of new construction activitiy or at the time it is sold to a new owner. At that point, the property is reassessed based upon the added value of the construction or at the purchase price (market value) or economic value of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitation described above.

Source: County of San Bernardino Assessor and HdL, Coren & Cone $0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Millions
Secured Property Unsecured Property SBE Nonunitary

CITY OF VICTORVILLE

DIRECT AND OVERLAPPING PROPERTY TAX RATES
(RATE PER $100 OF TAXABLE VALUE)

LAST TEN FISCAL YEARS

(165)

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Basic Levy* 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 Adelanto Elementary Bond 0.0665 0.0707 0.0746 0.0810 0.0797 0.0830 0.0871 0.0970 0.0835 0.0916 Mojave Water Agency 0.1675 0.1675 0.1675 0.1675 0.1675 0.1675 0.1675 0.1675 0.1675 0.1675 Oro Grande Elementary Bond 0.0348 0.0381 0.0377 0.0379 0.0378 0.0898 (0.0102) 0.0000 0.0000 0.0000 Victor Elementary Bond 0.0932 0.1026 0.1086 0.1022 0.1124 0.1162 0.1216 0.1204 0.0406 0.0611 Victor High School Bond 0.0619 0.0768 0.0792 0.0770 0.0716 0.0986 0.0915 0.0958 0.0703 0.0445 Victor Valley Community College Bond 0.0253 0.0274 0.0264 0.0262 0.0197 0.0174 0.0198 0.0181 0.0181 0.0198 Total Direct and Overlapping Tax Rates 1.4492 1.4831 1.4940 1.4918 1.4887 1.5725 1.4773 1.4988 1.3800 1.3845 City's basic rate** 0.1605 0.1605 0.1605 0.1605 0.1605 0.1605 0.1605 0.1605 0.1605 0.1605 Total Direct Rate^ 0.2063 0.2162 0.1833 0.1825 0.1824 0.1823 0.1822 0.1821 0.1820 0.1819 Notes:

Source: San Bernardino County Auditor/ Controller's Office and HDL, Coren & Cone * In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resideds within. In additon to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds. ** City's Share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the city. ERAF general fund tax shifts may not be included in the ratio figures. ^ Total Direct Rate is the weighted average of all individual direct rates applied by the government preparing the statistical section information and excludes revenues derived from aircraft. Beginning in 2013/14 the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas. Challenges to recognized enforcible obligations are assumed to have been resolved during 2012/13. For the purposes of this report, residual revenue is assumed to be distributed to the City in the same proportions as general fund revenue.

Fiscal Year

CITY OF VICTORVILLE

PRINCIPAL PROPERTY TAXPAYERS

CURRENT YEAR AND NINE YEARS AGO

(166)

2021 2012
Taxpayer
Taxable
Assessed Value
Percentage of
Total City
Taxable
Assessed Value
Taxable
Assessed Value
Percentage of
Total City
Taxable
Assessed Value
Stirling Capital Investments 148,459,257$ 1.50% 75,034,252$ 1.10% Macerich Victor Valley 143,662,318 1.45% 101,833,556 1.49% High Desert Power Trust 99,400,000 1.00% 323,700,000 4.74% Cemex Construction Materials Pacific 83,365,688 0.84% 64,910,362 0.95% The American Bottling Company 81,680,656 0.82% 87,884,123 1.29% Desert Valley Hospital Inc, 69,769,074 0.70% Nutro Products Inc. 67,095,857 0.68% 96,793,998 1.42% Walmart Stores Inc. 65,034,821 0.66% 32,308,043 0.47% Federal Express Corporation 53,463,287 0.54% Veyron KDP 1 Partners 50,121,635 0.51%
Prime A Investments LLC 55,662,965 0.82%
Plastipak Packaging Inc. 34,947,028 0.51%
Goodyear Tire and Rubber Company 3,270,125 0.48% 862,052,593$ 8.70% 876,344,452$ 13.27%
Data is only presented for the top ten property in each of the two years presented.

Source: HdL Coren & Cone

CITY OF VICTORVILLE

PROPERTY TAX LEVIES AND COLLECTIONS BY DISTRICT

LAST TEN FISCAL YEARS

(167)

Fire
District*** Tax Levy
Current Tax
Collections
Percent of
Total Tax
Collections to
Tax Levy
Park
District*** Tax Levy
Current Tax
Collections
Percent of
Total Tax
Collections to
Tax Levy
2012 - - 0.00% 2012 - - 0.00% 2013 - - 0.00% 2013 - - 0.00% 2014 - - 0.00% 2014 - - 0.00% 2015 - - 0.00% 2015 - - 0.00% 2016 - - 0.00% 2016 - - 0.00% 2017 - - 0.00% 2017 - - 0.00% 2018 - - 0.00% 2018 - - 0.00% 2019 - - 0.00% 2019 - - 0.00% 2020 - - 0.00% 2020 - - 0.00% 2021 - - 0.00% 2021 - - 0.00% Sanitary
District** Tax Levy
Current Tax
Collections
Percent of
Total Tax
Collections to
Tax Levy
Street
Lighting
District Tax Levy

Current Tax
Collections
Percent of
Total Tax
Collections to
Tax Levy
2012 - - 0.00% 2012 576,592 575,926 99.88% 2013 - - 0.00% 2013 651,767 648,817 99.55% 2014 - - 0.00% 2014 718,124 713,835 99.40% 2015 - - 0.00% 2015 751,196 737,646 98.20% 2016 - - 0.00% 2016 814,455 764,955 93.92% 2017 - - 0.00% 2017 725,345 723,720 99.78% 2018 - - 0.00% 2018 706,459 704,679 99.75% 2019 - - 0.00% 2019 735,987 734,996 99.87% 2020 - - 0.00% 2020 756,545 754,972 99.79% 2021 - - 0.00% 2021 756,546 754,973 99.79%

Source: San Bernardino County Assessor's Office
*In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only reassessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation d
ata shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above. As the City of Victorville did not receive property taxes during the period of 1976-1978, the City negotiated its relative 1% share of taxes. Additional tax levy is based on the districts above. ** In fiscal year 2010, LAFCO approved consolidation of Sanitary District to the City. This property tax revenue is currently recorded in the General Fund.
*** In fiscal year 2011, LAFCO approved consolidation of Fire and Park Districts to the City. This property tax revenue is currently recorded in the General Fund.

CITY OF VICTORVILLE

RATIOS OF OUTSTANDING DEBT BY TYPE

LAST TEN FISCAL YEARS

(168)

Fiscal
Year
Certificate of
Participation
Tax Allocation
Bonds*
Capital Lease
Agreement Other**
Total
Governmental
Activities
2012 -$ - $ - $ 13,821$ 13,821 $ 2013 -$ - $ - $ 21,933$ 21,933 $ 2014 -$ - $ - $ 45,100$ 45,100 $ 2015 -$ - $ - $ 44,078$ 44,078 $ 2016 -$ - $ - $ 33,111$ 33,111 $ 2017 -$ - $ - $ 59,503$ 59,503 $ 2018 -$ - $ - $ 65,026$ 65,026 $ 2019 -$ - $ 1,201$ 62,594$ 63,795 $ 2020 -$ - $ - $ 70,349$ 70,349 $ 2021 -$ - $ - $ 76,223$ 76,223 $ the revenue bond for this fund also got reclass. - $
** In Fiscal Year 2015, the City implemented GASB68, which adjusted the amount for 2014 to reflect prior Net Pension Liability. In Fiscal Year 2018, the City implemented GASB75 which adjusted the amount for 2017 to reflect prior Net OPEB Liability.

Source: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
*In 2012, the Redevelopment Agency dissolution caused the bonds to go to the Successor Agency to the Redevelopment Agency, a private purpose trust.

Governmental Activities
^ In Fiscal Year 2007, the City reclass Solid Waste from Governmental activities to Business-type

CITY OF VICTORVILLE

RATIOS OF OUTSTANDING DEBT BY TYPE

LAST TEN FISCAL YEARS
(IN THOUSANDS)

(169)

Fiscal
Year
Lease
Purchase
Agreement
Tax
Allocation
Bonds
Lease
Revenue
Bonds
Revenue
Bonds^
Certificate of
Participation Other
Total
Business-
Type
Activities
Total
Primary
Government
Debt Per
Capita*
% of
Personal
Income*
2012 1,500$ 327,034 $ 83,070 $ - $ 13,630$ - $ 425,234$ 439,055 $ 3,688 226.85 2013 1,133$ 321,469 $ 53,070 $ 1,543 $ 13,260$ 2,791 $ 393,265$ 415,198$ 3,449 215.49 2014 748$ 321,508 $ 53,070$ 1,353$ 12,875$ 16,418 $ 405,972$ 451,072$ 3,741 229.37 2015 347$ 318,564 $ 53,070$ 1,155$ 12,465$ 13,651 $ 399,252$ 443,330$ 3,680 228.88 2016 -$ 314,936 $ 53,070$ 945$ 12,035$ 13,866 $ 394,851$ 427,962$ 3,465 225.42 2017 -$ 311,741 $ 51,925$ 725$ 10,360$ 21,160 $ 395,910$ 455,413$ 3,686 238.40 2018 -$ 308,400 $ 50,720$ 495$ 10,025$ 35,661 $ 405,301$ 470,327$ 3,806 234.98 2019 -$ 300,964 $ 49,450$ 253$ 9,675$ 20,481 $ 380,822$ 444,618$ 3,514 208.77 2020 -$ 294,282 $ 48,214$ -$ 9,310$ 40,902 $ 392,709$ 463,058$ 3,663 200.58 2021 -$ 289,776 $ 46 ,710$ -$ 8,930$ 44,403 $ 389,819$ 466,042$ 3,665 192.45 ^ In Fiscal Year 2007, the City reclassed Solid Waste from Governmental activities to Business- type activities. Thus, the revenue bond for this fund was also reclassed.
* This ratio is calculated using population and personal income for the prior calendar year.

Source: Details regarding the City's outstanding debt can be found in the notes to the financial statements. ** In Fiscal Year 2015, the City implemented GASB68, which adjusted the amount for 2014 to reflect prior Net Pension Liability. In Fiscal Year 2018, the City implemented GASB75 which adjusted the amount for 2017 to reflect prior Net OPEB Liability.

Business-Type Activities

CITY OF VICTORVILLE

RATIO OF GENERAL BONDED DEBT OUTSTANDING

LAST TEN FISCAL YEARS

(170)

Fiscal
Year
Certificate of
Participation
Revenue
Bonds
Tax Allocation
Bonds¤ Total
Percentage
Assessed
Value* Per Capita
2012 - - - - 0.00% - 2013 - - - - 0.00% - 2014 - - - - 0.00% - 2015 - - - - 0.00% - 2016 - - - - 0.00% - 2017 - - - - 0.00% - 2018 - - - - 0.00% - 2019 - - - - 0.00% - 2020 - - - - 0.00% - 2021 - - - - 0.00% - Source: City of Victorville Comprehensive Annual Financial Reports FY21 * Assessed value has been used because the actual value of taxable property is not readily available in the State of California.
¤ The dissolution of the Redevelopment Agency in fiscal year 2012 caused the Tax Allocation bonds, liabilities of the former Redevelopment Agency, to be transferred to the Successor Agency , a private purpose trust fund.

CITY OF VICTORVILLE

LEGAL DEBT MARGIN

LAST TEN FISCAL YEARS
(IN THOUSANDS

(171)

Fiscal Year
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Debt Limit 1,024,007$ 1,014,928 $ 1,033,611 $ 1,090,223 $ 1,160,616 $ 1,219,803 $ 1,254,928 $ 1,324,635 $ 1,401,862 $ 1,488,190$ Total net debt applicable to
limit - - - - - - - - - - Legal debt margin 1,024,007 1,014,928 1,033,611 1,090,223 1,160,616 1,219,803 1,254,928 1,324,635 1,401,862 1,488,190 Total net debt applicable to
the limit as a percentage of
debt limit 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Legal Debt Margin Calculation for Fiscal Year 2020
Assessed value 9,921,265 $
Debt Limit (15% of total
assessed value) 1,488,190
Debt applicable to limit:

General obligation bond -
-
Total net debt applicable to
limit -
Legal debt margin 1,488,190
$
Note: Under state finance law, the City of Victorville's outstanding general obligation debt should not exceed 15 percent of total assessed property value.

By law, the general obligation debt subject to the limitation may be offset by amounts set aside for repaying obligation bonds.

Source: HdL Companies
Less: Amount set aside for
repayment of general
obligation debt

CITY OF VICTORVILLE

DIRECT AND OVERLAPPING DEBT

(172)

2020-21 Assessed Valuation: $9,919,352,933
Total Debt City’s Share of
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2021 % Applicable (1) Debt 6/30/21 Victor Valley Joint Community College District $159,002,414 28.526% $45,357,029 Victor Valley Joint Union High School District 115,292,037 62.032 71,517,956 Adelanto School District 2,690,991 43.169 1,161,674
Victor School District 49,806,332 84.095 41,884,635
Mojave Water Agency Assessments 3,290,000 24.805 816,085 Adelanto School District Community Facilities District No. 1, I.A. A 13,380,000 100.000 13,380,000 Adelanto School District Community Facilities District No.2 2,995,000 100.000 2,995,000 Hesperia Unified School District Community Facilities Districts 8,280,000 100.000 8,280,000 Snowline Joint Unified School District Community Facilities Districts 9,415,000 100.000 9,415,000 Victor School District Community Facilities Districts 28,895,000 100.000 28,895,000 Victor Valley Joint Union High School District Community Facilities Districts 5,220,000 100.000 5,220,000 City of Victorville Community Facilities Districts 5,315,000 100.000 5,315,000 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $234,237,379
DIRECT AND OVERLAPPING GENERAL FUND DEBT:

San Bernardino County General Fund Obligations $214,095,000 3.963% $8,484,585 San Bernardino Pension Obligation Bonds 180,825,585 3.963 7,166,118 San Bernardino County Flood Control District General Fund Obligations 51,360,000 3.963 2,035,397 Victor Valley Union High School District Certificates of Participation 20,235,000 62.032 12,552,175 Hesperia Unified School District General Fund Obligations 120,650,000 7.354 8,872,601 Snowline Joint Unified School District General Fund Obligations 63,210,000 14.899 9,417,658 Adelanto School District Certificates of Participation 6,340,000 43.169 2,736,915 Oro Grande School District Certificates of Participation 33,160,000 0.570 189,012 City of Victorville General Fund Obligations 0 100 0
TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $51,454,461 OVERLAPPING TAX INCREMENT DEBT (Successor Agencies): $316,219,925 66.778 - 100. % $221,424,295 TOTAL DIRECT DEBT $0
TOTAL OVERLAPPING DEBT $507,116,135
COMBINED TOTAL DEBT $507,116,135 (2)
Ratios to 2020-21 Assessed Valuation:

Total Overlapping Tax and Assessment Debt 2.36%
Total Direct Debt ($0) 0.00%
Combined Total Debt 5.11%
Ratios to Redevelopment Successor Agencies Incremental Valuation ($5,509,185,995) Total Overlapping Tax Increment Debt 4.02%
Source: California Municipal Statistics, Inc.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue bonds and non-bonded capital lease obligations. (1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.

CITY OF VICTORVILLE

PLEDGE REVENUE COVERAGE

LAST TEN FISCAL YEARS
(IN THOUSANDS)

(173)

Pledged
Fiscal Year Revenue Principal Interest Coverage
2012 3,333 925 2,276 104% 2013 3,201 965 2,236 100% 2014 4,927 2,010 2,190 117% 2015 5,600 1,060 2,139 175% 2016 5,343 1,110 2,085 167% 2017 5,689 1,165 2,029 178% 2018 3,955 1,225 1,965 124% 2019 3,569 1,285 1,907 112% 2020 2,797 1,350 1,840 88% 2021 641 1,420 1,767 20% Pledged
Fiscal Year Revenue Principal Interest Coverage
2012 17,059 3,830 17,699 79% 2013 19,893 4,005 17,525 92% 2014 17,562 4,195 17,321 82% 2015 18,554 4,410 17,150 86% 2016 25,176 4,635 16,950 117% 2017 24,649 4,865 16,746 114% 2018 28,983 4,405 17,580 132% 2019 23,801 5,365 16,208 110% 2020 20,407 5,635 15,845 95% 2021 23,021 5,920 15,551 107% Pledged
Fiscal Year Revenue Principal Interest Coverage
2012 1,444 365 633 145% 2013 1,480 375 619 149% 2014 1,321 395 602 132% 2015 1,157 415 583 116% 2016 1,183 430 564 119% 2017 1,244 320 485 155% 2018 1,244 335 471 154% 2019 1,285 350 457 159% 2020 1,330 365 443 165% 2021 1,294 380 428 160% Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements
Fiduciary Trust Activities - Successor Agency Tax Allocation Bond Debt Service
Business Type Activities Debt - SCLAA Tax Allocation Bond Debt Service
Business Type Activities Debt - Water District Certificates of Participation Debt Service

CITY OF VICTORVILLE

DEMOGRAPHIC AND ECONOMIC STATISTICS

LAST TEN FISCAL YEARS

(174)

Fiscal Year
City of Victorville
Population
Personal Income
(in thousands)
Unemployment
Rate*
Per Capital
Personal Income
2011 119,059 1,935,423$ 15.8% 16,256$
2012 120,368 1,926,731$ 11.6% 16,007$
2013 120,590 1,966,582$ 10.1% 16,308$
2014 120,485 1,936,917$ 8.6% 16,076$
2015 123,510 1,898,511$ 6.9% 15,371$
2016 123,565 1,910,290$ 6.1% 15,459$
2017 123,565 2,001,567$ 7.1% 16,198$
2018 126,543 2,129,706$ 5.7% 16,829$
2019 126,432 2,308,617$ 5.5% 18,259$
2020 127,170 2,421,637$ 12.4% 19,042$
Source: HdL Coren & Cone; Decennial Census Data, CA State Department of Finance, CA EDD 100,000
105,000
110,000
115,000
120,000
125,000
130,000
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
City of Victorville Population

5.0%

7.0%

9.0%

11.0%

13.0%

15.0%

17.0%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Unemployment Rate*
$-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Thousands
Personal Income (in thousands)
$-
$3,000
$6,000
$9,000
$12,000
$15,000
$18,000
$21,000
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Per Capital Personal Income

CITY OF VICTORVILLE

FULL-TIME AND PART-TIME CITY EMPLOYEES BY FUNCTION

LAST TEN FISCAL YEARS

(175)

2012 2013 2014 2016 2017 2018 2019 2020 2021
Function
General government 71 71 72 72 73 77 77 75 76
Public Safety* 0 1 1 0 0 1 60 59 60
Public Works 113 124 114 110 113 116 113 118 116
C o m m u n i t y D e v e l o p m e n t 1 1 44444433
Community Services 110 110 104 75 75 82 78 86 85
A i r p o r t 2 32 12 42 52 62 62 62 42 4
W a t e r * * 6 05 65 05 76 36 66 65 95 6
Total 388 387 369 343 354 372 424 424 420
Source: City of Victorville Finance Department.
* Only includes Fire Services. In fiscal year 2018, fire staff were added for start up of new City fire department.

Fiscal Year

CITY OF VICTORVILLE

OPERATION INDICATORS BY FUNCTION

LAST TEN FISCAL YEARS

(176)

Function 2012 2013 2015 2016 2017 2018 2019 2020 2021
Public Safety
Police
Physical arrests 4,202 4,096 5,389 5,194 5,716 5,733 *** Traffic Violations 7,828 9,404 6,759 4,070 5,561 3,635 *** Public works
Street Maintenance
Potholes repaired (number) 3,004 3,124 3,832 4,138 5,667 7,427 7,713 11,444 8,653 Graffiti removal (locations) 12,460 14,708 5,687 4,708 2,824 3,116 2,592 2,966 3,240 Streets sweeping (tons) 1,862 1,907 1,782 1,687 1,627 1,544 1,712 1,878 1,877 Sanitation
Refuse collected (tons/day) 177 166 182 202 206 210 220 228 236 Recyclables collected (tons/day) 31 28 32 33 32 32 33 35 39 Community Services
Park and Recreation
Athletic field permits issued 4,970 6,788 5,970 5,905 6,310 5,785 5,020 162 41*** Community center enrollments 30,193 30,915 31,384 29,958 25,343 19,518 14,503 1,973 882** Facilities rental used 1,819 2,062 2,036 2,388 2,469 2,252 1,803 62 9** Water
Residential 6,617,018 6,198,485 5,991,545 5,191,845 5,505,636 5,722,934 4,961,977 5,135,298 5,522,763 Multi Residential 516,645 483,968 467,812 405,373 444,737 490,302 752, 766 781,018 840,414 Commercial 1,639,355 1,535,667 1,484,402 1,286,280 1,357,027 1,587,468 1,325,873 1,551,122 1,628,740 Institutional 496,774 465,354 449,819 389,782 437,698 470,500 773,125 857,134 852,178 Irrigation 665,678 623,574 602,757 522,308 491,157 471,954 460,627 486,095 541,868 Fire service 16 22 43 50 94 148 2,963 3,919 3,112 Recycled - - 407,194 274,824 127,752 205,354 316,953 275,268 344,982 Total 9,935,486 9,307,070 9,403,572 8,070,462 8,364,101 8,948,660 8,594,284 9,089,854 9,734,057 Water Sold (in acre feet) 22,809 21,366 20,653 17,896 19,201 20,543 19,730 20,868 22,346 Number of Customer Connections
Residential 31,694 32,145 32,841 32,884 32,650 32,386 32,680 33,047 33,709 Multi Residential 192 195 195 198 197 776 768 759 762 Commercial 1,058 1,059 1,064 1,066 1,074 1,099 1,333 1,325 1,358 Institutional 203 204 205 206 207 169 256 225 226 Irrigation 235 235 236 236 239 266 331 371 386 Fire service 554 554 555 555 564 580 598 608 616 Recycled - - 2 2 2 4 4 5 7 Total 33,936 34,392 35,098 35,147 34,933 35,280 35,970 36,340 37,064 20,362 19,074 19,272 16,540 17,142 16,917 17,614 18,629 19,950 Estimated Population 117,978 119,658 122,233 121,419 121,608 122,699 123,758 125,085 127,543 173 159 158 136 141 138 142 149 156 Rainfall in inches 1.90 2.75 0.92 5.69 4.92 0.69 4.16 4.95 0.25 Source: City of Victorville departments
Note: Indicators are not available for the general government function. * Indicator information unavailable at this time. San Bernarndino County changed reporting software for Police and information has not been retreivable. ** Parks and Recreation facilities and classes were closed through most of the year related to COVID-19 restrictions. ***Athletic Permits issued for six month periods instead of the previous monthly periods.

Per Capita Average Daily
Consumption (in gallons)
Average Daily Consumption (in
thousands of gallons)
Water Consumption (in hundred
cubic feet)
Fiscal Year

CITY OF VICTORVILLE

OPERATION INDICATORS BY FUNCTION (CONTINUED)

LAST TEN FISCAL YEARS

(177)

2012 2013 2015 2016* 2017 2018 2019 2020 2021
Consumption (per hundred cubic feet)
Standard Domestic 1.47 $ 1.53 $ 1.53 $ 1.75$ 1.75$ 1.88 $ 2.03 $ 2.18 $ 2.35 $ Construction Flow 2.39 2.47 2.47 2.77 2.77 2.94 3.12 3.32 3.51 Untreated Well 0.50 0.52 0.52 0.60 0.60 0.64 0.69 0.74 0.80 Recycled 0.88 0.92 0.92 1.05 1.05 1.13 1.22 1.31 1.41 Public Benefit 0.59 0.61 0.61 - - - - - - Monthly Service Fee
Monthly per average
daily use 0.00-0.26 16.50$ 17.25 $ 17.25 $ -$ - $ - $ -$ - $ - $ Monthly per average
daily use 0.27-1.17 17.50 18.25 18.25 - - - - - - Monthly per average
daily use 1.18-6.60 35.00 36.50 36.50 - - - - - - Monthly per average
daily use > 6.60 125.00 130.50 130.50 - - - - - - 3/4 inch meter -$ - $
- $ 11.78$ 11.78$ 12.23 $ 12.68 $ 13.15 $ 13.36 $ 1 inch meter - - - 18.59 18.59 19.30 20.02 20.75 21.09 1 1/2 inch meter - - - 35.62 35.62 36.99 38.37 39.76 40.41 2 inch meter - - - 56.06 56.06 58.21 60.39 62.58 63.60 3 inch meter - - - 110.56 110.56 114.80 119.09 123.42 125.44 4 inch meter - - - 171.88 171.88 179.47 185.14 191.87 195.01 6 inch meter - - - 342.19 342.19 355.32 368.60 382.00 388.25 8 inch meter - - - 955.34 955.34 991.99 1,029.07 1,066.48 1,083.92 > 8 inch meter - - - 1,432.23 1,432.23 1,487.17 1,542.77 1,598.85 1,624.99 Fire Service Fee
1 inch meter 10.00$ 10.00 $ 10.00 $ 2.69$ 2.69$ 2.82 $ 2.96 $ 3.10 $ 3.20 $ 2 inch meter 10.00 10.00 10.00 5.19 5.19 5.48 5.78 6.09 4.64 2 1/2 inch meter 10.00 10.00 10.00 5.19 5.19 5.48 10.65 6.09 6.37 3 inch meter 9.50 9.50 10.06 19.62 11.27 11.83 4 inch meter 10.00 10.00 10.00 17.45 17.45 18.50 42.68 20.80 21.90 6 inch meter 10.00 10.00 10.00 37.88 37.88 40.21 73.44 45.31 47.78 8 inch meter 10.00 10.00 10.00 65.13 65.13 69.16 114.45 77.99 82.30 > 8 inch meter 10.00 10.00 10.00 101.45 101.45 107.75 114.45 121.56 128.31 Source: Victorville Water District
* In 2016, the Water District changed billing method from Monthly Service Fee by usage to Monthly Service Fee by meter size.

Fiscal Year
Principal Water Rates

CITY OF VICTORVILLE

CAPITAL ASSET STATISTICS BY FUNCTION

LAST TEN FISCAL YEARS

(178)

Function 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Public Safety
Police:

Stations 1 1 1 1 1 1 1 1 1 1 Patrol Units 52 52 52 52 52 55 54 54 54 70 Fire Stations 6 6 6 6 5 5 5 5 5 5 Public Works
Highways and streets:

Streets (miles) 448 448 448 448 449 449 449 449 449 449 Streetlights 376 376 392 392 396 404 408 418 418 428 Traffic Signals 83 83 87 87 88 90 91 94 94 97 Sewer:

Sanitary sewers (miles) 419 419 419 419 440 440 443 443 449 455 Storm sewers (miles) 473 473 473 473 473 473 473 473 473 473 Number of treatment plants 2 2 2 2 2 2 2 2 2 2 Number of service connections 37,081 40,226 40,152 40,029 40,092 40,551 41,232 41,723 36,616 36,222 Community Services
Parks acreage 263 263 263 263 263 180 180 180 180 180 Park 18 18 18 18 18 19 19 19 19 19 Golf Courses 1 1 1 1 1 1 1 1 1 1 Swimming pools 1 1 1 1 1 1 1 1 1 1 Tennis courts 6 6 6 6 6 6 6 6 6 6 Community Centers 6 6 6 6 6 7 7 7 7 7 Airport
Runway length (miles) 5 5 5 5 5 5 5 5 5 5 Sewer pipeline 25 30 30 30 30 30 30 30 30 30 Number of hangars 25 2 6 26 26 26 26 26 26 26 26 Number of buildings 47 52 52 52 52 52 52 52 52 52 Water
Water Production in Acre feet 23,520 23,518 23,830 22,030 20,905 22,476 24,383 21,755 22,017 23,487 Domestic Water Tanks (Reservoirs) 26 26 26 26 26 26 26 26 26 26 Domestic Storage in Millions of Gallons 74 74 74 74 74 74 74 74 74 74 Recycled Water Tanks (Reservoirs) 1 1 1 1 1 1 1 1 1 1 Recycled Storage in Millions of Gallons 1 1 1 1 1 1 1 2 2 2 Wells 32 32 32 32 32 32 32 34 34 34 Pipeline - Linear Feet (in thousands) 3,666 3,666 3,666 3,666 3,666 3,666 3,666 3,666 3,666 3,666 Pipeline - Miles 694 694 694 694 694 694 694 694 709 709 Booster Pumping Stations 4 4 4 4 4 4 4 4 4 4 Pressure Regulating Stations 24 24 24 24 24 25 25 25 25 25 Source: City of Victorville departments
Note: Indicators are not available for the general government function.

Fiscal Year

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Attachment C
Victorville Water District Basic
Financial Statements for Fiscal
Year Ended June 30, 2021

VICTORVILLE WATER DISTRICT
(A COMPONENT UNIT OF THE CITY OF VICTORVILLE,

CALIFORNIA)

FINANCIAL STATEMENTS AND

SUPPLEMENTARY INFORMATION

YEAR ENDED JUNE 30, 2021

VICTORVILLE WATER DISTRICT
(A COMPONENT UNIT OF THE CITY OF VICTORVILLE, CALIFORNIA)

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2021

INDEPENDENT AUDITORS’ REPORT 1

BASIC FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 4
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION 6 STATEMENT OF CASH FLOWS 7
NOTES TO FINANCIAL STATEMENTS 9

REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF PLAN’S PROPORTIONATE SHARE OF NET PENSION LIABILITY 33 SCHEDULE OF PLAN CONTRIBUTIONS 34
SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS 35

SUPPLEMENTARY INFORMATION
COMBINING SCHEDULE OF NET POSITION 37

COMBINING SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION 38

(1)

INDEPENDENT AUDITORS’ REPORT

Honorable Mayor and City Council
Victorville Water District
Victorville, California

Report on the Financial Statements
We have audited the accompanying financial statements of the Victorville Water District (the District), a component unity of the City of Victorville, California, as of and for the year ended June 30, 2021, and the related notes to the financial statements which collectively comprise the District’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Honorable Mayor and City Council
Victorville Water District

(2)
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the District as of June 30, 2021, and the changes financial position and cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters
Prior Year Comparative Information
We have previously audited the District’s June 30, 2020 financial statements, and we expressed an unmodified opinion on the financial statements of the District in our report dated February 23, 2021. In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2020, is consistent, in all material respects, with the audited financial statements from which it has been derived.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the schedule of the plan’s proportionate share of the net pension liability, schedule of plan contributions, and schedule of the plan’s proportionate share of the total OPEB liability, identified as Required Supplementary Information (RSI) in the accompanying table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of the financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain lim ited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Management has omitted management’s discussion and an alysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of the financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information.

Honorable Mayor and City Council
Victorville Water District

(3)
Other Information
Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the District’s basic financial statements. The combining schedule of net position and the combining schedule of revenues, expenses and changes in net position (supplementary information), as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in a ccordance with auditing standards generally accepted in the United States of America. In our opinion, suppl ementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

We also previously audited, in accordance with auditing standards generally accepted in the United States of America, the basic financial statements of the District as of and for the year ended June 30, 2020 (not presented herein), and have issued our report thereon dated February 23, 2021, which contained an unmodified opinion on the financial statements of the District. The combining schedule of net position and the combining schedule of revenues, expenses and changes in net position (supplementary information) for the year ended June 30, 2020, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the June 30, 2020 financial statements. The supplementary information has been subjected to the auditing procedures applied in the audit of the June 30, 2020 basic financial statements and certain additional proc edures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare those financial statements or to those financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated in all material respects in relation to the basic financial statements as a whole for the year ended June 30, 2020.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards , we have also issued a report dated REPORT DATE on our consideration of the District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness on the District’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District’s internal control over financial reporting and compliance.

CliftonLarsonAllen LLP

Irvine, California

REPORT DATE

VICTORVILLE WATER DISTRICT

STATEMENT OF NET POSITION
JUNE 30, 2021
(WITH COMPARATIVE DATA FOR JUNE 30, 2020)

See accompanying Notes to Financial Statements.
(4)

2021 2020
ASSETS

CURRENT ASSETS
Cash and Investments 61,344,992$ 51,805,262$
Cash and Investments With Fiscal Agent 836,313 836,634 Accounts Receivable, Net 4,814,719 4,667,426
Interest Receivable 25,368 112,417
Due from Other Governments 14,711 15,761
Inventory 1,247,678 755,791
Total Current Assets 68,283,781 58,193,291

NONCURRENT ASSETS
Prepaid Deposits 203,888 282,402
Nondepreciable Capital Assets 29,397,572 31,941,407 Depreciable Capital Assets, Net 128,298,559 128,706,533 Total Noncurrent Assets 157,900,019 160,930,342
Total Assets 226,183,800 219,123,633

DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflow - OPEB Related 2,285,798 753,397 Deferred Outflow - Pension Related 2,723,322 2,548,508 Total Deferred Outflows of Resources 5,009,120 3,301,905

VICTORVILLE WATER DISTRICT

STATEMENT OF NET POSITION (CONTINUED)
JUNE 30, 2021
(WITH COMPARATIVE DATA FOR JUNE 30, 2020)

See accompanying Notes to Financial Statements.
(5)

2021 2020

LIABILITIES

CURRENT LIABILITIES
Accounts Payable 2,279,680$ 1,531,948$
Interest Payable 175,208 181,621
Prepaid Water Connection Fees 217,489 715,533 Deposits Payable 1,438,378 2,557,971
Total OPEB Liability - Due Within One Year 224,298 - Long-Term Liabilities, Due Within One Year 781,743 761,824 Total Current Liabilities 5,116,796 5,748,897

NONCURRENT LIABILITIES
Total OPEB Liability 11,579,695 10,288,735
Net Pension Liability 14,076,845 12,996,097
Long-Term Liabilities, Due in More Than One Year 8,734,544 9,134,380 Total Noncurrent Liabilities 34,391,084 32,419,212 Total Liabilities 39,507,880 38,168,109

DEFERRED INFLOWS OF RESOURCES
Deferred Inflow - OPEB Related 3,036,460 2,748,733 Deferred Inflow - Pension Related 260,383 555,753 Total Deferred Inflows of Resources 3,296,843 3,304,486

NET POSITION
Net Investment in Capital Assets 148,855,087 151,694,293 Unrestricted 39,533,110 29,258,650
Total Net Position 188,388,197$ 180,952,943$

VICTORVILLE WATER DISTRICT

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION YEAR ENDED JUNE 30, 2021
(WITH COMPARATIVE DATA FOR THE YEAR ENDED JUNE 30, 2020)

See accompanying Notes to Financial Statements.
(6)

2021 2020

OPERATING REVENUES
Utility Sales 32,996,925$ 27,405,638$
Meter and Service Fees 7,481,406 7,217,219
Pass-Thru Charges 1,084,485 289,000
Fines and Forfeitures - 231,994
Arsenic Surcharge 263,614 264,302
Other 340,572 198,467
Total Operating Revenues 42,167,002 35,606,620

OPERATING EXPENSES
Personnel Services 10,901,457 11,689,745
Maintenance and Operations 16,916,550 15,718,657
Production Costs 4,631,287 4,034,055
Pass-Thru Production Costs 2,530,813 289,000
Depreciation 7,338,599 7,276,463
Total Operating Expenses 42,318,706 39,007,920
OPERATING LOSS (151,704) (3,401,300)

NONOPERATING REVENUES (EXPENSES)
Taxes 1,096,573 912,768
Investment Income 112,170 998,042
Interest Expense (415,588) (430,914)
Gain on Disposition of Assets 12,976 -
Other Nonoperating Revenues 118,006 292,774
Total Nonoperating Revenues (Expenses) 924,137 1,772,670 INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS 772,433 (1,628,630)

CAPITAL CONTRIBUTIONS
Capital Restricted Use Fees 5,169,389 3,619,685
Alternate Water Source Fees 903,332 574,233
Contributions from the City of Victorville 590,100 1,048,742 Capital Grants - 60,020
Total Capital Contributions 6,662,821 5,302,680
CHANGE IN NET POSITION 7,435,254 3,674,050
Net Position - Beginning of Year 180,952,943 177,278,893 NET POSITION - END OF YEAR 188,388,197$ 180,952,943$

VICTORVILLE WATER DISTRICT

STATEMENT OF CASH FLOWS
YEAR ENDED JUNE 30, 2021
(WITH COMPARATIVE DATA FOR THE YEAR ENDED JUNE 30, 2020)

See accompanying Notes to Financial Statements.
(7)

2021 2020

CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers 39,476,109$ 35,062,940$ Cash Payments to Employees for Services (10,014,033) (9,848,593) Cash Payments to Suppliers for Goods and Services (16,036,451) (15,557,548) Net Cash Provided by Operating Activities 13,425,625 9,656,799

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Cash Received from Other Governments 1,096,573 912,768 Net Cash Provided by Noncapital Financing Activities 1,096,573 912,768

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Cash Received from the Sale of Capital Assets 37,023 - Capital Grants - 60,020
Cash Payments to Acquire Capital Assets and Other Assets (4,410,837) (4,191,451) Principal Paid on Capital-Related Debt (380,000) (365,000) Interest Paid on Capital-Related Debt (428,194) (443,190) Net Cash Used by Capital and Related Financing Activities (5,182,008) (4,939,621)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received on Investments 199,219 1,077,974 Net Cash Provided by Investing Activities 199,219 1,077,974 NET INCREASE IN CASH AND CASH EQUIVALENTS 9,539,409 6,707,920 Cash and Cash Equivalents - Beginning of Year 52,641,896 45,933,976 CASH AND CASH EQUIVALENTS - END OF YEAR 62,181,305$ 52,641,896$

RECONCILIATION OF CASH AND CASH EQUIVALENTS TO
STATEMENT OF NET POSITION:

Cash and Investments 61,344,992$ 51,805,262$
Cash and Investments With Fiscal Agent 836,313 836,634 Cash and Cash Equivalents 62,181,305$ 52,641,896$

VICTORVILLE WATER DISTRICT

STATEMENT OF CASH FLOWS (CONTINUED)
YEAR ENDED JUNE 30, 2021
(WITH COMPARATIVE DATA FOR THE YEAR ENDED JUNE 30, 2020)

See accompanying Notes to Financial Statements.
(8)

2021 2020

RECONCILIATION OFOPERATING LOSS TO NET CASH
PROVIDED BY OPERATING ACTIVITIES (151,704)$ (3,401,300)$ Adjustments to Reconcile Operating Loss to Net Cash
Provided By Operating Activities:

Depreciation 7,338,599 7,276,463
Nonoperating Miscellaneous Expense 6,780,827 5,535,434 (Increase) Decrease in Assets and
Deferred Outflows of Resources:

Accounts Receivable, Net (147,293) (588,476)
Due from Other Governments 1,050 (2,905)
Inventory (491,887) (64,468)
Prepaid Deposits 78,514 255,504
Deferred Outflows - OPEB (1,532,401) (536,508)
Deferred Outflows - Pension (174,814) 230,521
Increase (Decrease) in Liabilities and
Deferred Inflows of Resources:

Accounts Payable 747,732 (1,063,831)
Prepaid Water Connection Fees (498,044) (897,936) Deposits Payable (1,119,593) 767,162
Compensated Absences 6,276 65,542
Total OPEB Liability 1,515,258 1,167,438
Net Pension Liability 1,080,748 1,469,663
Deferred Inflows - OPEB 287,727 (506,029)
Deferred Inflows - Pension (295,370) (49,475)
Net Cash Provided by Operating Activities 13,425,625$ 9,656,799$

VICTORVILLE WATER DISTRICT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021

(9)

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Description of the Reporting Entity
On August 15, 2007, the Victor Valley Water District and the Baldy Mesa Water District were consolidated into a subsidiary district of the City of Victorville (City), known as the Victorville Water District (District), per Resolution No. 2977 of the Executive Officer of the Local Agency Formation Commission (LAFCO) of San Bernardino County, which adopted a change of organization without election. All of the liabilities including debt obligations of the Victor Valley Water District and the Baldy Mesa Water District were assumed by this subsidiary district and the City upon consolidation. Upon consolidation of the two districts, the City consolidated the operations and activities of its Water Department and Water Funds into the District to serve all of the water customers of the City under this District. The basic operations of the District are financed by user charges plus capital contributions to finance growth of the water delivery system. The District is governed by a five-member Board of Directors (City Council), each holding staggered four-year terms.

The District is an integral part of the reporting entity of the City of Victorville (City) and is reflected as a blended component unit within the City of Victorville. Blended component units are, in substance, part of the primary government’s operations, even though they are legally separate entities. The District fund has been included within the scope of the basic financial statements of the City because the City Council is the governing board and has financial accountability over the operations of the District. Only the District fund is included herein and these financial statements, therefore, do not purport to represent the financial position or results of operations of the City of Victorville, California.

B. Basic Financial Statements
The basic financial statements are comprised of the statement of net position, the statement of revenues, expenses and changes in net position, the statement of cash flows, and the notes to the basic financial statements.

C. Basis of Accounting, Measurement Focus and Financial Statement Presentation The District reports its activities as an enterprise fund (proprietary fund type), which is used to account for operations that are financed and operated in a manner similar to a private business enterprise, where the intent of the District is that the costs of providing water to its customers on a continuing basis be financed or recovered primarily through user charges (water sales and services), capital grants and similar funding.

The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as econom ic resources. The basis of accounting indicates the timing of transactions or events for recognition in the financial statements.

VICTORVILLE WATER DISTRICT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Basis of Accounting, Measurement Focus and Financial Statement Presentation (Continued)
Proprietary funds are presented using the economic resources measurement focus. This means that all assets, deferred outflows of resources, liabilities, and deferred inflows of resources (whether current or noncurrent) associated with their activity are included on their statement of net position.

Proprietary funds are presented using the accrual basis of accounting. Revenues are recognized when they are earned and expenses are recognized when the related goods or services are delivered, regardless of when the related cash flows take place. Amounts paid to acquire capital assets are capitalized as assets. Proceeds of long-term debt and acquisitions under capital leases are recorded as a liability. Amounts paid to reduce long-term indebtedness are reported as a reduction of the related liability. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenses.

The District distinguishes operating revenues and expenses from nonoperating items.

Operating revenues, such as water sales and service charges that include utility sales, meter and service fees, pass-thru charges, fines and forfeitures, arsenic surcharge, and other reimbursements, result from exchange transactions associated with the principal activities of the District. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as taxes and investment income, result from nonexchange transactions, in which, the District gives (receives) value without directly receiving (giving) value in exchange.

Operating expenses, such as the cost or providing water, include the personnel services, maintenance and operations, productions costs, pass-thru production costs, and depreciation on capital assets. All expenses not meeting this definition, such as interest expense, are reported as nonoperating expenses.

D. Cash and Investments
Investments are reported in the accompanying statement of net position at fair value.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation or sale of investments.

VICTORVILLE WATER DISTRICT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) E. Cash Equivalents
For purposes of the statement of cash flows, cash equivalents are defined as short-term, highly liquid investments with original maturities of three months or less from the date of acquisition that are both readily convertible to known amounts of cash or so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Cash equivalents include the cash and investments held by a fiscal agent.

F. Accounts Receivable, Net
The District extends credit to customers in the normal course of operations. When management deems customer accounts uncollectible, the District uses the allowance method for the reservation and directly write-off of those accounts.

G. Inventory
The District uses the consumption method of accounting for inventories. Inventory consists primarily of water meters, pipe and pipe fittings for construction and repair to the District’s water transmission and distribution system. Materials and supplies are valued at cost using a weighted average method.

H. Prepaid Deposits
Certain payments to vendors reflect costs or deposits applicable to future accounting periods and are recorded as prepaid items in the basic financial statements utilizing the consumption method.

I. Capital Assets
Capital assets are valued at cost where historical records are available and at an estimated historical cost where no historical records exist. Donated assets are recorded at estimated acquisition value at the date of donation. The District capitalizes all assets with an initial individual cost of more than $5,000 and a useful life in excess of one year.

The cost of normal maintenance and repairs that do not add to the value of the assets or materially extend the life are not capitalized.

Depreciation is computed utilizing the straight-line method over the following useful lives:

Buildings and Improvements 10 to 50 Years
Computer and Communications 5 Years
Furniture and Equipment 3 to 7 Years
Infrastructure:

Transmission and Distribution Systems 40 Years
Source of Supply – Wells 10 to 40 Years
Water Treatment Systems 5 to 10 Years
Intangibles 5 to 25 Years
Vehicles 8 to 15 Years

VICTORVILLE WATER DISTRICT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) J. Customer Deposits
Based on a customer’s credit, the District may require a deposit deemed reasonable by the District. These deposits are held to pay off close out bills or to cover delinquent payments.

K. Compensated Absences
A liability is recorded for unused vacation and similar compensatory leave balances since the employees’ entitlement to these balances are attributable to services already rendered and it is probable that virtually all of these balances will be liquidated by either paid time off or payments upon termination or retirement.