Item Number: {{item.number}}
City Council / Board of Directors
Written Communications
Meeting of: April 16, 2024
Submitted By:
Doug Mathews, Director of Public Works and Water
Fredy Bonilla, City Engineer
Subject:
Fiscal Year 2023/2024 Budget Amendment – Victor Valley Wastewater Reclamation Authority (VVWRA) Connection Fees
Recommendation:
That the Honorable City Council adopt Resolution No. 24-028 amending the budget for Fiscal Year 2023-2024 to increase the revenue and expenses associated with passthrough connection fees collected on behalf of Victor Valley Wastewater Reclamation Authority in the amount of $656,000.
Fiscal Impact:
Proposed Resolution No. 24-028 will increase both the revenue and expense accounts associated with the collection of connection fees on behalf of VVWRA by $656,0000 each, resulting in a net fiscal impact of $0.00 to the City for the current fiscal year.
The associated account codes are:
• 4250710-44920, VVWRA Connection Fee (Revenue)
• 4250710-52380, VVWRA Pass Thru Connection Fee (Expense) Strategic Plan Goal:
This item aligns with Goal A – Financial Sustainability, as we are collecting connection fees to ensure proper financial resources for the regional treatment plant that provides services in service Area A.
Background:
The City of Victorville’s sewer collection system for the disposal and treatment of wastewater from residents and businesses is divided into two service areas. The Victor Valley Wastewater Reclamation Authority (VVWRA) services Area A and the City’s 3 5
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Industrial Wastewater Treatment Facility (IWWTF) services Area B. A map of these service areas has been included as Attachment C.
Pursuant to Victorville Municipal Code Section 10.01.040 (Attachment B), the City collects all sewer connection fees associated with Service Area A on behalf of VVWRA. The funds collected are then paid to VVWRA on a monthly basis.
Discussion:
Funds are budgeted annually for VVWRA’s connections by tracking development trends within the City and estimating the number of connection fees for the fiscal year. The budgeted funds for the current fiscal year were estimated at $950,000 for both revenue and expense accounts. The connection fees collected as of the end of March 2024 are $1,165,577. It is estimated that an additional $440,423 in connection fees will be collected for April - June. Thus, the additional appropriation needed to make VVWRA current is $215,577 + $440,423 (April – June) = $656,000, for a total budget of $1,606,000.
Staff recommends that the City Council adopt Resolution No. 24-028 amending the budget for Fiscal Year 2023-2024 to increase the revenue and expenses for connection fees collected on behalf of VVWRA in the amount of $656,000.
Staff remains available for any questions the City Council may have.
Attachments: A. Resolution No. 24-028
B. VMC Section 10.01.040(c)
C. Service Area Map