City Council
FY 2022
-
2023 BUDGET WORKSHOP
June 14, 2022
5 :00 PM
City Council
Mayor – Debra Jones
Mayor Pro-Tem – Leslie Irving
Councilmember – Elizabeth Becerra
Councilmember – Blanca Gomez
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
Fiscal Year 2022-2023 Budget
2 Leadership Team
Fire Chief – Brian Fallon
Police Chief (Sheriff) – John Wickum
City Clerk – Jennifer Thompson
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 – Joseph Slegers
Code Enforcement Official – Jorge Duran
Interim Technology Officer – Matt Pugh
Human Resources Officer – Josie Trevino
Finance Director – John Mendiola
VMUS Utility Director – Brenda Hampton
Fiscal Year 2022-2023 Budget
3 4
City Manager’s Budget Message
“Relying on the Strategic Plan adopted by the
Victorville City Council in October of 2020,
this Budget was prepared considering our
adopted values which include providing
Excellent Customer Service, Integrity,
Accountability and Transparency. This budget
has also been prepared using as guidance, all
seven of our adopted multi-year goals and
priorities".
2023 Budget Highlights
• Strong Fiscal Health
• Public Safety Enhancements
• Community Service Enhancements
• Investment in Personnel
• Public Infrastructure Investments
5 Budget Assumptions
• FY 21-22 Sales Tax levels sustained
• FY 21-22 Development activity sustained
• Rate Plan Services- Recommended Rate Increases
• VMUS – 8% in August and a potential 3.2% increase on
January 1, 2023.
• Water – 3%
• Sewer – 10.88% (7.5% COV & 3.33% VWRA)
• Solid Waste – 3.2%
• New User Fees at 6 months
6 2022/2023 Organizational Chart
7 Business Development
Housing Successor Agency
Succesor Agency
Real Estate
Recreation
Library
Facilities
Parks
City Attorney
Records
City Clerk
Division of City
Manager Department
Risk Management
Division of City
Manager Department
Payroll
Purchasing
Customer Service
Finance
Department
Human Resources
Department
GIS Division
Information
Technology
Department
Sophie L. Smith
Deputy City Manager
PIO Divison
of City Manager
Department
City Manager's
Office of
Economic
Development
Police
Supression
Emergency Medical
Services
Prevention
Arson Investigation
Fire
Department
Electric
Natural Gas
Municipal Utilities
Department
Operations
Administration
Facilities
ARFF
Airport
Department
Community Services
Street Lighting
Traffic Control
Maintenance
Signals
Engineering
Department
Business License
Building
Department
Animal Care & Control Division
Code Compliance
Department
CDBG
Homelessness Solutions
Planning
Department
Water Conservation
Solid Waste/Recycling
LMAD
Storm Drain/Sanitary
Street Maint./Sweeping
Field/Meter Services
Production/Quality Services
Fleet
Public Works
& Water
Department
Jenele Davidson
Deputy City Manager
Keith C. Metzler
City Manager
City Council
Citizens
Budget Comparison
FY22/23 FY 21/22
Total Citywide Revenues: $334.7 Million $297.1 Million
Total Citywide Expenditures: $320.7 Million $293.7 Million Revenue Over Expenditures: $14.0 Million $3.4 Million
Capital Improvements: $44.5 Million $60.1 Million
Total Funds Managed: 82
8 $334.7 Million in Revenue Projected $320.7 Million in Expenditures Projected 9 Taxes
30%
Licenses &
Permits
1%Fines &
Forfeitures
0%
Intergovernmental
4%
Charges for
Services
42%
Investment
Income
4%
Sales of Assets
4%
Pass Through
9%
Transfers In*
1%
Cost
Allocations
Received
3% Misc
Revenue
2%
Revenue
by Category
Personnel
22%
Operations &
Maintenance
43%
Production
Costs
7%
Transfers
Out
1%
Cost
Allocations
Paid
3% Debt Service
10%
Misc
Charges
<1%
14%
Expenditures
By Category
Total City Expenditures by Fund Type
$320.7 Million
10 Measure P Fund
7%
General Fund
28%
Special Revenue
Funds
5%
Enterprise Funds
45%
Fiduciary Funds
1%
Capital from all
Funds
14%
General Fund
Total Revenue $91,731,061
Total Expenditure $92,196,303 Net Income ($465,242)
+FY2021/22 VMUS Loan PYMT1 $1,000,000
Surplus/(Deficit) $534,758
1) VMUS Loan payment is reflected as a balance sheet cash payment in FY2019/20 and forward.
The revenue for the loan was reflected in FY2018/19.
11 12
Revenue Source
2019
Actuals
2020
Actuals
2021
Actuals
2022 Revised
Budget
2023
Budget
% Change
from 2022
to 2023
% of GF
Revenue
2023 Budget
Property Tax 17,712,236 18,443,877 19,512,142 19,529,650 19,920,250 2% 22% Sales Tax 22,957,781 21,775,558 28,580,436 30,418,928 31,418,055 3% 34% Transient Occupancy Tax 1,487,091 1,539,332 1,899,038 1,770,000 1,787,700 1% 2% Franchise Fees 3,815,843 3,988,140 4,111,950 4,377,850 4,247,500 -3% 4% Cost Allocation 7,451,578 8,196,734 8,193,582 8,211,954 9,175,278 12% 10% Pass Through 5,373,077 5,546,370 8,281,759 7,215,907 7,360,225 2% 8% Subtotal 58,797,606 59,489,911 70,578,907 71,524,289 73,909,008 3% 80% Total GF Revenue 84,956,928 66,606,224 81,066,356 85,854,421 91,731,061 7% 100%
General Fund Expenditures by Department
$92.2 Million
13 Building
5%
Code Compliance
3%
Finance
4%
Human Resources
2%
Information Technology
7% Planning
2% Public Works & Water
10% Recreation & Library
4%General
<1%
City Management
6%
Engineering
1%
Fire
19%Police
36%
Economic Development
<1%
17% General Fund Reserve Forecast
Fiscal Year 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 Total Revenues ($Mils) 85.03 90.27 93.55 97.13 100.69 104.38 108.20 112.15 116.23 Sheriff Contract ($Mils) 32.57 31.08 32.63 34.26 35.98 37.77 39.66 41.65 43.73 Public Safety ($Mils) 18.02 18.95 19.49 20.04 20.61 21.20 21.80 22.43 23.07 Expenditures ($Mils) 31.14 42.17 40.75 41.86 43.00 44.18 45.38 46.62 47.90 Total Expenditures ($Mils) 81.73 92.20 92.87 96.17 99.59 103.15 106.85 110.69 114.69 Surplus/(Deficit) ($Mils) 3.30 (0.47) 2.17 2.47 2.64 2.79 2.93 3.05 3.17 VMUS Loan Repayment 1.00 1.00 1.00 0.70 - - - - -
General Fund Reserves ($Mils) 33.24 33.78 36.95 40.12 42.75 45.54 48.47 51.52 54.69 17% General Fund Reserve Requirement ($Mils) 14.08 15.67 15.79 16.35 16.93 17.54 18.16 18.82 19.50 Surplus Available 19.16 18.10 21.16 23.77 25.82 28.00 30.30 32.70 35.19 General Fund Reserve Level 41% 37% 40% 42% 44% 45% 46% 47% 48% 15 33,241,998.93 33,776,756.88
36,945,497.56
40,117,791.94 42,753,223.05
45,540,296.55
48,466,958.21 51,520,574.13
54,687,910.47
14,082,543.53
15,673,371.47
15,787,906.90
16,348,269.33
16,930,511.87
17,535,556.33
18,164,365.74
18,817,946.29
19,497,349.32
-
20,000,000
40,000,000
60,000,000
80,000,000
2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 General Fund Reserve
General Fund Reserves 17% General Fund Reserve Requirement Fiscal Year 2022
Accomplishments
16 • Opening of Fire Station 315
• Facility upgrades at Fire Station 311
• Addition of 11 Personnel to the Police Department
• Five New Code Compliance Officers
• Facility upgrades at Recreation Centers
• Park Improvements and ADA Compliance at City Parks
• New Library conceptual design underway at the Green Tree Golf Course Clubhouse
Revenues and Expenditures
Fiscal Year 2022-2023
17 Cash on Hand $19,423,904
Projected Revenue $29,513,871
Expenditures $31,377,650
Balance $17,560,125
Fiscal Year 22-23
Highlight Expenditures
18 • New Water Tender and engine equipment for three Type 1 Engines arriving this Fall
• Continue proactive approach in Code Compliance with four new officers and three Animal Control officers to continue homeless outreach and encampment clearance
• Phase B of the Library design
• Library vending machine and intelligent lockers
• Operations/Maintenance and grant matching funds for the new Wellness Center
• Facility upgrades at Recreation Centers
• Self-cleaning restrooms
Measure P Reserve Forecast
19 Fiscal Year 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 Total Revenues ($Mils) 29.51 29.82 30.13 30.45 30.76 31.09 31.41 31.74 Sheriff Contract ($Mils) 4.41 6.08 7.84 9.69 11.63 13.67 15.81 18.05 Public Safety ($Mils) 9.27 8.73 9.39 9.83 10.35 11.11 11.90 12.72 Expenditures ($Mils) 17.70 9.37 9.10 9.24 5.38 5.52 5.67 5.61 Total Expenditures ($Mils) 31.38 24.18 26.34 28.76 27.35 30.30 33.37 36.39 Surplus/(Deficit) ($Mils) (1.86) 5.64 3.80 1.69 3.41 0.78 (1.96) (4.64) Surplus Available ($Mils) 17.56 23.21 27.01 28.69 32.10 32.89 30.93 26.28 17% Measure P Reserve ($Mils) 5.33 4.11 4.48 4.89 4.65 5.15 5.67 6.19 Personnel/Organizational
20 21
22 Employees & City of Victorville’s Population
Fiscal Year Resolution No. No. Authorized Positions Fire Department Water Department COV Population 1999-2000 00-23 309 YES NO 64,029
2000-2001 01-13 327 YES NO 66,904
2001-2002 01-103 333 YES NO 70,256
2002-2003 03-16 371 YES NO 73,538
2003-2004 04-26 382 YES NO 79,081
2004-2005 04-196 410 YES NO 87,813
2005-2006 05-108 470 YES NO 96,564
2006-2007 06-109 535 YES NO 104,218
2007-2008 08-129 643 YES YES 109,321
2008-2009 08-131 563 NO YES 112,252
2009-2010 09-082 394 NO YES 115,532
2010-2011 10-069 352 NO YES 117,326
2011-2012 11-055 315 NO YES 119,688
2012-2013 12-061 320 NO YES 122,370
2013-2014 13-035 332 NO YES 122,861
2014-2015 14-043 338 NO YES 123,466
2015-2016 15-037 343 NO YES 124,422
2016-2017 16-023 354 NO YES 124,727
2017-2018 17-031 372 NO YES 125,291
2018-2019 18-061 424 YES YES 125,694
2019-2020 19-055 415 YES YES 127,518
2020-2021 20-051 420 YES YES 127,170
2020-2021 (M) 21-010 427 YES YES 127,170
2021-2022 21-052 459 YES YES 127,170
2021-2022 (M) 22-020 468 YES YES 135,950
2022-2023 516 YES YES 136,561
Salary & Benefit Recommendations
(Non-Represented Employees Only)
23 City-wide Salary Survey
• Completed May 17, 2022, to determine market
competitiveness of salary ranges
• 12 municipalities surveyed
• 63 positions benchmarked (out of 154 total positions) • Victorville competitively/very competitively priced for over 76% of benchmarked positions
24 City-wide Salary Survey Results
• Compensation table updated beyond Range 57
with 2.5% steps
• All Managers reclassified from Range 50 to Range
52 • All Directors reclassified to Range 66
• Deputy City Managers reclassified to Range 73
• Fire Battalion Chiefs salary adjustment
25 City Manager Recommendations
• Extend 2020 COVID PTO to June 30, 2023
• Add optional benefits to include 529 College
Savings Plan, legal aid and pet insurance programs
• Enhanced Parental leave programs
o 4 Weeks Pay
o 60% Pay
• Increased safety shoe allowance to $225 from $175
• Cost of Living Adjustment (COLA) at 10%
26 27
History of COLA
Fiscal Year Resolution No. COLA CPI COLA Given
1999-2000 00-23 2.2% 1.67%
2000-2001 01-13 3.5% 3.4%
2001-2002 01-103 3.2% 3.2%
2002-2003 03-16 2.8% 2.8%
2003-2004 04-26 3.9% 3.9%
2004-2005 04-196 1.8% 1.8%
2005-2006 05-108 4.0% 4.0%
2006-2007 06-109 4.7% 4.7%
2007-2008 08-129 3.8% 3.8%
2008-2009 08-131 3.3% 3.3%
2009-2010 09-082 -1.0% -1.0%
2010-2011 10-069 1.9% 0.0%
2011-2012 11-055 3.0% 3.0%
2012-2013 12-061 2.0% 0.0%
2013-2014 13-035 1.3% 0.0%
2014-2015 14-043 1.0% 1.0%
2015-2016 15-037 0.5% 1.7%*
2016-2017 16-023 1.7% 1.7%
2017-2018 17-031 2.7% 2.7%
2018-2019 18-061 3.8% 3.8%
2019-2020 19-042 2.8% 0.0%
2020-2021 20-051 2.3% 0.0%
2021-2022 21-052 3.6% 3.6%
2022-2023 Recommended 10.0% 10.0%
Total 58.8% 47.4%
Enterprise & Special Funds
28 Water Funds
Funds 410-413
Revenue
Victorville Water $43,028,712
Water District #2 $1,311,246
Wastewater Treatment Fund $11,262,781
Reclaimed Water $1,869,400
Water Total Revenue $57,472,139
Expenditures
Victorville Water $38,459,516
Water District #2 $403,968
Wastewater Treatment Fund $8,247,882
Reclaimed Water $424,698
Capital (All Funds) $7,775,750
Water Total Expenditures $54,661,029
Surplus/(Deficit) $2,811,110
Available Resources Projected at June 30, 2023 $47,343,413 Includes Adopted
Water Rate Plan
Increase of 3%
29 Sewer (Sanitary)
Fund 425
Revenue $23,316,722*
Expenditures
Sanitation Operations $21,689,986
Capital (All Funds) $3,046,037
Total Expenditures $24,746,024
Surplus/(Deficit) ($1,429,301)
Available Resources Projected at June 30, 2023 $5,864,129 *Includes 10.88% Rate Increase
Year 5 of 5-Year Rate Plan
30 Solid Waste
Funds 426 - 427
Revenue $22,982,206*
Expenditures
Operations $22,972,637
Capital (All Funds) $235,000
Total Expenditures $23,207,637
Surplus/(Deficit) ($255,431)
Available Resources Projected at June 30, 2023 $7,633,543** *Includes Solid Waste Rate Increase of 3.2%
**Includes $1,779,611 in Landfill Mitigation Reserves
31 Street Lighting Fund
Fund 200
Revenue $2,485,000
Expenditures
Street Lighting Operations $2,623,005
Capital (All Funds) $648,750
Total Expenditures $3,271,755
Surplus/(Deficit) ($786,755)
Available Resources Projected at June 30, 2023 $477,161 32 Storm Drain Fund
Fund 202
Revenue $1,709,380
Expenditures
Storm Drain Operations $1,515,059
Capital (All Funds) $125,000
Total Expenditures $1,640,059
Surplus/(Deficit) $69,321
Available Resources Projected at June 30, 2023 $2,388,480 33 34
Southern California Logistics Airport
Fund 450
Revenue
Airport Operations $11,996,481
Total Revenue $11,996,481
Expenditures
Airport Operations $10,547,159
Capital $1,029,597
Total Expenditures $11,576,756
Surplus/(Deficit) $419,725
SCLA Operations Available Resources at June 30, 2023 $4,896,687 Victorville Municipal Utility (VMUS)
Funds 419-423
Revenue $23,535,469
Expenditures
VMUS Electric Operations $13,370,157
VMUS Gas Operations $3,285,051
Debt Service $3,843,480
Capital $735,000
Total Expenditures $21,233,688
Surplus/(Deficit) $2,301,781
VMUS Gas Available Resources at June 30, 2023 $1,564,742 VMUS Electric Available Resources at June 30, 2023 $13,239,539 35 Capital Improvement Plan
36 CIP Projects
Airport
• Building 685 Roof Replacement, $225,000
• Building 682 Roof Replacement, $200,000
• Airport Security System Upgrade, $200,000
Parks
• Parks Parking Lot Resurfacing, $250,000
• Landscaping at the Activity Center, $150,000
• Sports Complex - Feasibility Study, $100,000
• Park Improvements, $100,000
Sewer
• Old Town Septic to Sewer Conversion, $567,287
• Sewer Main Lining - Phase II, $2,000,000
• Santa Fe Wash Sewer Main Relocation, $200,000
37 CIP Projects
VMUS Gas
• Pipe Replacement Project Phase IIII (Final), $350,000 Water
• Pipeline-Area 1, $1,144,000
• Pipeline-Area 2, $1,666,000
• Pipeline-Area 5, $2,310,000
• Fiber Extension, $276,000
Facilities
• City Hall Security Upgrades, $573,570
• Exeloo Self-Cleaning Restroom, $854,000
Police
• ALPR Phase 6, $210,000
38 CIP Projects
Streets
• Green Tree Blvd. Extension, $9,090,105
• Guardrail Replacement Project, $563,600
• Tract 16792 (South of Dos Palmas) Improvements, $733,596 • Bear Valley Road (Amethyst to US-395), $2,898,797
• Bear Valley Road Bridge over BNSF Railway, $2,408,173 • Old Town 7th Street on-street parking and streetscape design • One replacement street sweeper and shaker
Library
• Library Construction drawings w/ possible start of construction at Green Tree Clubhouse, $3,205,000
39 Major Equipment Purchases/Projects
VMUS Gas
• John Deere Backhoe Replacement, $165,000
Street Lighting
• Traffic Long Line Striper, $435,000
Code Compliance
• Truck Replacements (3), $230,000
Water
• Crane Truck Replacement, $234,000
• Small Dump Truck, $165,000
Fire
• Water Tender, $390,000
• Type 6 Engine, $300,000
Police
• Undercover Vehicles , $150,000
40 Forward Look
41 Forward Look (Projects Entitled or Under Construction) • Industrial – Amazon Fulfillment Center (1.33 million s/f), Iron Mountain warehouse (461k s/f), and Mars Petcare and Church & Dwight expansion (Foxborough Industrial Park)
• Shopping Center – Amethyst Crossings - 98k s/f multi-tenant shopping center located on Bear Valley & Amethyst Roads
• Retail/Commercial – AutoZone and Dollar General retail stores; Zendejas Restaurant (Bear Valley & Locust Avenue); Maverik fueling station and convenience store
• Hotel – Fairfield by Marriot 96-room on Cottonwood & Monarch Roads • Residential – Balsam and Winona Apartments 212 units; Lakeview Village Apartments 272 units; Tentative Tract Maps of 194 and 65 single family units • Wellness Center 170-bed lower barrier shelter
42 Forward Look (Projects in Planning Review)
• Industrial - 18k s/f warehouse and distribution facility • Commercial - Highway 395/Dos Palmas w/multi-tenant
commercial, two drive-through restaurants and 112-room
hotel
• Mixed Use – Victorville Connection (+230k s/f) commercial, retail, office and self-storage uses with 376 multi-family units • Residential - Seneca Villas Apartments 310 units
43 Forward Look – SCLA
On Airport
• New leases with ComAv, Mercury GSE and a second Urban Air Mobility Manufacturer
• New parking agreements with ComAv and Boeing. 100%
absorbed for aircraft parking ramp space
• SCLA Owned Assets had a 98% Occupancy Rate during FY21/22 and may result in a 100% tenancy in FY 22/23
Off Airport
• Proposed Hydrogen Production plant construction adjacent to the High Desert Power Plant
• New leases with SECC and BleuPeach
44 Next Steps
1. Leadership Team Available for Detailed Budget Questions
2. Staff will present budget at the June 21st Regular City Council Meeting for Adoption
45