Agenda packet — Victorville City Council, June 18, 2024 (part 3 of 4)

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CITY OF VICTORVILLE

RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS

TO THE STATEMENT OF NET POSITION
JUNE 30, 2023

See accompanying Notes to Basic Financial Statements.
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Fund Balances - Governmental Funds196,599,831$ Amounts reported for governmental activities in the statement of net position aredifferent because:Capital assets, net of depreciation and amortization, used in governmental activities are not current financial resources and, therefore, are not reported in the governmental funds balance sheet.Capital Assets 1,018,683,631 Accumulated Depreciation (499,256,444) Claims payable did not require current financial resources. Therefore, claims payablewere not reported as a liability in the governmental funds. (1,926,713) Long-term liabilities applicable to the City governmental activities are not due and payablein 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.SBITAs (946,701) Compensated Absences (5,146,709) Pollution Remediation (550,694) Pension and OPEB related debt applicable to the City governmental activities are not due andpayable in the current period and, accordingly, are not reported as fund liabilities. Deferredoutflows of resources and deferred inflows of resources related to pension and OPEB areonly reported in the statement of net position as the changes in these amounts effect onlythe government-wide statements for governmental activities:Deferred Outflows - OPEB Related 3,861,459 Deferred Inflows - OPEB Related (11,929,972) Total OPEB Liability (18,671,341) Deferred Outflows - Pension Related 20,402,301 Deferred Inflows - Pension Related (840,089) Net Pension Liability (54,247,121) Certain revenues in the governmental funds are unavailable because they are not collectedwithin the prescribed time period after year-end. Those revenues are recognized on theaccrual basis in the government-wide statements. 11,364,023 Net Position of Governmental Activities657,395,461$

CITY OF VICTORVILLE

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2023

See accompanying Notes to Basic Financial Statements.
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REVENUESTaxes and AssessmentsLicenses and PermitsIntergovernmentalCharges for ServicesFines and ForfeituresInvestment Income OtherTotal RevenuesEXPENDITURESCurrent:General GovernmentPublic SafetyCommunity DevelopmentPublic WorksParks and RecreationCapital OutlayDebt Service:PrincipalInterest and Loan FeesPrincipal - SBITAInterest - SBITATotal ExpendituresEXCESS OF REVENUES OVER EXPENDITURESOTHER FINANCING SOURCES (USES)SBITA FinancingProceeds from Sale of AssetsTransfers InTransfers Out Total Other Financing Sources (Uses)NET CHANGE IN FUND BALANCESFund Balances (Deficit) - Beginning of YearFUND BALANCES (DEFICIT) - END OF YEAR Special Special Special Revenue Revenue Revenue Housing Asset Other State / COVID-19General Successor Local Grants Funds98,302,831$ -$ -$ -$ 4,036,465 - - - 141,144 250,000 21,295,865 13,935,259 18,701,444 - - - 801,755 - - - 2,846,097 648,595 283,585 - 943,353 26,775 - - 125,773,089 925,370 21,579,450 13,935,259 19,598,588 39,560 - 270,385 58,240,319 - 226,144 - 19,168 511,590 1,254,691 - 11,585,105 - 477,331 - 5,538,665 - - - 3,388,060 - 18,114,413 11,629,757 724,561 - - - 36,346 - - - 318,810 - - - 281 - - - 99,449,903 551,150 20,072,579 11,900,142 26,323,186 374,220 1,506,871 2,035,117 794,266 - - - 325,234 - - - 54,900 - - - - - - - 1,174,400 - - - 27,497,586 374,220 1,506,871 2,035,117 79,658,682 29,390,139 (1,261,999) (2,187,409) 107,156,268$ 29,764,359$ 244,872$ (152,292)$

CITY OF VICTORVILLE

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS (CONTINUED)
YEAR ENDED JUNE 30, 2023

See accompanying Notes to Basic Financial Statements.
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REVENUESTaxes and AssessmentsLicenses and PermitsIntergovernmentalCharges for ServicesFines and ForfeituresInvestment Income OtherTotal RevenuesEXPENDITURESCurrent:General GovernmentPublic SafetyCommunity DevelopmentPublic WorksParks and RecreationCapital OutlayDebt Service:PrincipalInterest and Loan FeesPrincipal - SBITAInterest - SBITATotal ExpendituresEXCESS OF REVENUES OVER EXPENDITURESOTHER FINANCING SOURCES (USES)SBITA FinancingProceeds from Sale of AssetsTransfers InTransfers Out Total Other Financing Sources (Uses)NET CHANGE IN FUND BALANCESFund Balances (Deficit) - Beginning of YearFUND BALANCES (DEFICIT) - END OF YEAR CapitalProjects NonmajorCapital Impact GovernmentalFacilities Funds Totals-$ 14,739,853$ 113,042,684$ - - 4,036,465 - 18,949,015 54,571,283 9,155,653 1,704,035 29,561,132 - 78,125 879,880 598,030 1,043,585 5,419,892 - 103,707 1,073,835 9,753,683 36,618,320 208,585,171 554 - 19,909,087 506 91,670 58,558,639 - 1,479,844 3,265,293 63,430 12,371,625 24,497,491 18,288 50,000 5,606,953 7,634,362 18,600,650 59,367,242 - - 724,561 - - 36,346 - 1,387 320,197 - - 281 7,717,140 32,595,176 172,286,090 2,036,543 4,023,144 36,299,081 - 4,056 798,322 575,000 - 900,234 - - 54,900 - (54,900) (54,900) 575,000 (50,844) 1,698,556 2,611,543 3,972,300 37,997,637 22,433,464 30,569,317 158,602,194 25,045,007$ 34,541,617$ 196,599,831$

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, 2023

See accompanying Notes to Basic Financial Statements.
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Net Change in Fund Balances - Total Governmental Funds37,997,637$ Amounts reported for governmental activities in the statement of activities aredifferent because:Governmental funds report capital outlay as expenditures. However, in the statementof activities, the cost of those assets is allocated over their estimated useful lives as depreciation or amortization expense. This is the amount by which capital outlays exceeded depreciation and amortization in the current period.Capital Outlay 60,766,749 Depreciation and Amortization Expense (19,936,142) Disposal of Capital Assets (1,680,126) Certain revenues in the governmental funds are unavailable if they are not collected withinthe prescribed time period after year-end. Those revenues are recognized on the accrualbasis in the government-wide statements. 79,282 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 financialresources of the governmental funds. Issuance of loans and SBITAs is an other financing source and repayment of loan and SBITA 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 on Loans 724,561 Repayment of Principal on SBITAs 320,197 Issuance of SBITAs (798,322) 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 22,884 Change in Compensated Absences (736,857) Change in Claims Payable (279,780) Change in Pollution Remediation Payable 191,630 OPEB expense reported in the governmental funds includes the insurance premiumspaid. in the statement of activities, OPEB expense includes the change in the OPEBliability, and related change in OPEB amounts for deferred outflows of resources anddeferred inflows of resources. (831,160) Pension expense reported in the governmental funds includes the annual requiredcontributions. in the statement of activities, pension expense includes the changein the net pension liability, and related change in pension amounts for deferredoutflows of resources and deferred inflows of resources. (197,038) Change in Net Position of Governmental Activities75,643,515$

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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, 2023

See accompanying Notes to Basic Financial Statements.
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ASSETSCURRENT ASSETSCash and Investments Cash with Fiscal Agent Accounts Receivable, NetInterest ReceivableDue from Other GovernmentsLeases ReceivableInventory and Other AssetsTotal Current AssetsNONCURRENT ASSETSPrepaid DepositsAdvances to Other Funds Leases ReceivableInvestment in Joint Venture Capital Assets:Not Being DepreciatedBeing Depreciated or Amortized, NetTotal Noncurrent AssetsTotal AssetsDEFERRED OUTFLOWS OF RESOURCESDeferred Outflows - OPEB RelatedDeferred Outflows - Pension RelatedDeferred Charges on RefundingTotal Deferred Outflows of Resources SouthernCaliforniaLogisticsVictorville Airport Electric Solid WasteWater District Authority Utility Fund Management78,986,581$ 37,577,125$ 18,090,907$ 10,167,261$ 836,639 24,761,205 4,549,052 - 5,176,781 390,776 1,687,762 2,469,354 248,870 136,228 - - 19,946 152,472 - 74,173 - 7,770,582 - - 866,934 13,878 - - 86,135,751 70,802,266 24,327,721 12,710,788 28,306 55,594 109,770 809 - 2,000,000 - - - 83,207,311 - 2,825,858 - - - 340,230 40,643,195 13,981,248 4,842,254 348,278 119,672,824 109,697,569 9,649,414 960,243 160,344,325 208,941,722 14,601,438 4,475,418 246,480,076 279,743,988 38,929,159 17,186,206 2,707,614 267,603 79,426 121,880 6,095,478 1,709,212 589,831 828,818 - 1,397,897 - - 8,803,092 3,374,712 669,257 950,698

CITY OF VICTORVILLE

STATEMENT OF NET POSITION (CONTINUED)

PROPRIETARY FUNDS
JUNE 30, 2023

See accompanying Notes to Basic Financial Statements.
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ASSETSCURRENT ASSETSCash and Investments Cash with Fiscal Agent Accounts Receivable, NetInterest ReceivableDue from Other GovernmentsLeases ReceivableInventory and Other AssetsTotal Current AssetsNONCURRENT ASSETSPrepaid DepositsAdvances to Other Funds Leases ReceivableInvestment in Joint Venture Capital Assets:Not Being DepreciatedBeing Depreciated or Amortized, NetTotal Noncurrent AssetsTotal AssetsDEFERRED OUTFLOWS OF RESOURCESDeferred Outflows - OPEB RelatedDeferred Outflows - Pension RelatedDeferred Charges on RefundingTotal Deferred Outflows of Resources NonmajorSanitary Gas Fund Utility Fund Totals14,517,078$ 4,869,844$ 164,208,796$ - - 30,146,896 2,457,888 195,993 12,378,554 - - 385,098 - - 246,591 - - 7,770,582 - - 880,812 16,974,966 5,065,837 216,017,329 2,903 - 197,382 - - 2,000,000 - - 86,033,169 - - 340,230 7,269,769 946,093 68,030,837 42,260,043 1,487,252 283,727,345 49,532,715 2,433,345 440,328,963 66,507,681 7,499,182 656,346,292 255,996 15,135 3,447,654 1,692,917 105,927 11,022,183 - - 1,397,897 1,948,913 121,062 15,867,734

CITY OF VICTORVILLE

STATEMENT OF NET POSITION (CONTINUED)

PROPRIETARY FUNDS
JUNE 30, 2023

See accompanying Notes to Basic Financial Statements.
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LIABILITIESCURRENT LIABILITIESAccounts PayableInterest PayablePrepaid Water Connection FeesDeposits PayableUnearned RevenueTotal OPEB Liability - Due Within One Year Long-Term Debt - Due Within One Year Total Current LiabilitiesNONCURRENT LIABILITIESAdvances from Other Funds Advances from Other Governments Total OPEB LiabilityNet Pension LiabilityLong-Term Debt - Due Beyond One Year Total Noncurrent LiabilitiesTotal LiabilitiesDEFERRED INFLOWS OF RESOURCESDeferred Inflows - OPEB RelatedDeferred Inflows - Pension RelatedDeferred Inflows - LeasesTotal Deferred Inflows of ResourcesNET POSITION (DEFICIT)Net Investment in Capital AssetsUnrestrictedTotal Net Position SouthernCaliforniaLogisticsVictorville Airport Electric Solid WasteWater District Authority Utility Fund Management4,376,617$ 445,642$ 1,586,574$ 1,799,480$ 161,029 1,228,041 357,023 - 217,489 - - - 1,700,469 720,696 162,840 10,166 - 1,063,573 912,652 - 273,537 30,446 7,762 12,738 962,094 7,002,127 1,525,000 - 7,691,235 10,490,525 4,551,851 1,822,384 - - 2,916,480 - - 11,267,089 - - 11,388,426 2,009,638 512,357 840,803 16,156,738 4,503,688 1,357,646 2,040,750 7,935,676 273,345,970 44,680,459 - 35,480,840 291,126,385 49,466,942 2,881,553 43,172,075 301,616,910 54,018,793 4,703,937 3,985,338 854,840 284,211 392,771 1,029,801 234,104 73,859 102,523 - 87,570,873 - 2,693,251 5,015,139 88,659,817 358,070 3,188,545 151,942,967 (130,315,399) (27,330,594) 1,308,521 55,152,987 23,157,372 12,552,147 8,935,901 207,095,954$ (107,158,027)$ (14,778,447)$ 10,244,422$

CITY OF VICTORVILLE

STATEMENT OF NET POSITION (CONTINUED)

PROPRIETARY FUNDS
JUNE 30, 2023

See accompanying Notes to Basic Financial Statements.
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LIABILITIESCURRENT LIABILITIESAccounts PayableInterest PayablePrepaid Water Connection FeesDeposits PayableUnearned RevenueTotal OPEB Liability - Due Within One Year Long-Term Debt - Due Within One Year Total Current LiabilitiesNONCURRENT LIABILITIESAdvances from Other Funds Advances from Other Governments Total OPEB LiabilityNet Pension LiabilityLong-Term Debt - Due Beyond One Year Total Noncurrent LiabilitiesTotal LiabilitiesDEFERRED INFLOWS OF RESOURCESDeferred Inflows - OPEB RelatedDeferred Inflows - Pension RelatedDeferred Inflows - LeasesTotal Deferred Inflows of ResourcesNET POSITION (DEFICIT)Net Investment in Capital AssetsUnrestrictedTotal Net Position NonmajorSanitary Gas Fund Utility Fund Totals1,896,376$ 229,329$ 10,334,018$ - - 1,746,093 - - 217,489 12,498 1,124 2,607,793 - - 1,976,225 21,221 1,500 347,204 441,317 - 9,930,538 2,371,412 231,953 27,159,360 - 2,000,000 4,916,480 - - 11,267,089 1,400,699 98,995 16,250,918 3,813,849 143,873 28,016,544 1,191,351 - 327,153,456 6,405,899 2,242,868 387,604,487 8,777,311 2,474,821 414,763,847 866,433 50,621 6,434,214 200,789 10,431 1,651,507 - - 90,264,124 1,067,222 61,052 98,349,845 48,855,510 2,433,345 46,894,350 9,756,551 2,651,026 112,205,984 58,612,061$ 5,084,371$ 159,100,334$

CITY OF VICTORVILLE

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

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2023

See accompanying Notes to Basic Financial Statements.
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OPERATING REVENUESCharges for ServicesPass-Thru Charges for ServicesFines and Forfeitures OtherTotal Operating RevenuesOPERATING EXPENSESPersonnel ServicesMaintenance and OperationsProduction CostsPass-Thru Production CostsDepreciation and AmortizationTotal Operating ExpensesOPERATING INCOME (LOSS)NONOPERATING REVENUES (EXPENSES)Change in Investment in Joint VenturesProperty TaxesInvestment IncomeInterest ExpenseGain on Disposal of AssetsOther Nonoperating ExpensesProceeds from Capital Asset Sold to CityCapital Asset Sold to CityTotal Nonoperating Revenues (Expenses)INCOME BEFORE TRANSFERS AND CONTRIBUTIONSCAPITAL CONTRIBUTIONSConnection FeesAlternate Water Source FeesCapital Restricted Use FeesCapital Contributions Capital Contributions to the CityCapital GrantsCapital Contribution from TenantTotal Capital ContributionsCHANGE IN NET POSITIONNet Position (Deficit) - Beginning of YearNET POSITION (DEFICIT) - END OF YEAR SouthernCaliforniaLogisticsVictorville Airport Electric Solid WasteWater District Authority Utility Fund Management40,356,202$ 13,209,066$ 20,223,493$ 22,678,778$ 1,211,013 - - - 485,824 28,873 - 411,683 242,429 438,339 - 275,132 42,295,468 13,676,278 20,223,493 23,365,593 11,648,542 3,329,516 1,253,459 1,548,831 19,228,008 7,432,535 1,337,492 20,171,043 5,434,263 - 9,506,758 - 1,211,013 - - - 6,524,962 9,744,648 1,399,881 102,151 44,046,788 20,506,699 13,497,590 21,822,025 (1,751,320) (6,830,421) 6,725,903 1,543,568 - - - (146,733) 1,335,019 22,072,684 - - 1,898,079 3,494,189 623,091 311,404 (381,764) (16,864,762) (2,069,372) - 338,923 14,236,886 480 - (220,750) (19,137) - - - 1,929,341 - - - (1,895,090) - - 2,969,507 22,954,111 (1,445,801) 164,671 1,218,187 16,123,690 5,280,102 1,708,239 3,749,915 - - - 528,412 - - - 586,681 - - - 10,000 183,723 800,531 - (73,125) - - - - 183,722 1,335,263 - - 1,814 - - 4,801,883 369,259 2,135,794 - 6,020,070 16,492,949 7,415,896 1,708,239 201,075,884 (123,650,976) (22,194,343) 8,536,183 207,095,954$ (107,158,027)$ (14,778,447)$ 10,244,422$

CITY OF VICTORVILLE

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

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2023

See accompanying Notes to Basic Financial Statements.
(43)

OPERATING REVENUESCharges for ServicesPass-Thru Charges for ServicesFines and Forfeitures OtherTotal Operating RevenuesOPERATING EXPENSESPersonnel ServicesMaintenance and OperationsProduction CostsPass-Thru Production CostsDepreciation and AmortizationTotal Operating ExpensesOPERATING INCOME (LOSS)NONOPERATING REVENUES (EXPENSES)Change in Investment in Joint VenturesProperty TaxesInvestment IncomeInterest ExpenseGain on Disposal of AssetsOther Nonoperating ExpensesProceeds from Capital Asset Sold to CityCapital Asset Sold to CityTotal Nonoperating Revenues (Expenses)INCOME BEFORE TRANSFERS AND CONTRIBUTIONSCAPITAL CONTRIBUTIONSConnection FeesAlternate Water Source FeesCapital Restricted Use FeesCapital Contributions Capital Contributions to the CityCapital GrantsCapital Contribution from TenantTotal Capital ContributionsCHANGE IN NET POSITIONNet Position (Deficit) - Beginning of YearNET POSITION (DEFICIT) - END OF YEAR NonmajorSanitary Gas Fund Utility Fund Totals21,483,084$ 4,571,742$ 122,522,365$ - - 1,211,013 452,124 - 1,378,504 17,846 - 973,746 21,953,054 4,571,742 126,085,628 3,717,095 332,863 21,830,306 15,062,995 384,642 63,616,715 - 3,534,533 18,475,554 - - 1,211,013 1,426,481 126,181 19,324,304 20,206,571 4,378,219 124,457,892 1,746,483 193,523 1,627,736 - - (146,733) - - 23,407,703 356,880 91,184 6,774,827 - - (19,315,898) - - 14,576,289 - - (239,887) - - 1,929,341 - - (1,895,090) 356,880 91,184 25,090,552 2,103,363 284,707 26,718,288 1,031,572 - 4,781,487 - - 528,412 - - 586,681 - - 994,254 (56,250) - (129,375) - 33,884 1,552,869 - - 1,814 975,322 33,884 8,316,142 3,078,685 318,591 35,034,430 55,533,376 4,765,780 124,065,904 58,612,061$ 5,084,371$ 159,100,334$

CITY OF VICTORVILLE

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2023

See accompanying Notes to Basic Financial Statements.
(44)

CASH FLOWS FROM OPERATING ACTIVITIESCash Received from CustomersCash Payments to Employees for ServicesCash Payments to Suppliers for Goods and ServicesNet Cash Provided (Used) by Operating ActivitiesCASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIESCash Received from Other GovernmentsCash Received from Other Funds for AdvancesCash Paid to Other Funds for AdvancesCash Paid to Other FundsNet Cash Provided (Used) by Noncapital Financing ActivitiesCASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIESCash Received from Sale of Capital AssetsCapital GrantsCash Received from Leases and RentCash Received from Other Funds for Purchase of Capital AssetsCash Payments to Other Funds for Acquisition of Capital AssetsCash Payments to Acquire Capital and Other AssetsSBITA Principal PaymentsPrincipal Paid on Capital-Related DebtInterest Paid on Capital-Related DebtInterest Paid on Interfund AdvanceNet Cash Provided (Used) by Capital and Related Financing ActivitiesCASH FLOWS FROM INVESTING ACTIVITIESInterest Received on InvestmentsNet Cash Provided by Investing ActivitiesNET INCREASE IN CASH AND CASH EQUIVALENTSCash and Cash Equivalents - Beginning of YearCASH AND CASH EQUIVALENTS - END OF YEARRECONCILIATION OF CASH AND CASH EQUIVALENTS TO STATEMENT OF NET POSITIONCash and InvestmentsCash with Fiscal AgentCash and Cash Equivalents SouthernCaliforniaLogisticsVictorville Airport Electric Solid WasteWater District Authority Utility Fund Management41,565,129$ 1,918,566$ 18,331,490$ 23,312,496$ (11,108,779) (3,200,698) (1,188,687) (1,462,199) (19,431,426) (8,359,154) (10,802,229) (19,902,086) 11,024,924 (9,641,286) 6,340,574 1,948,211 1,335,019 22,500,969 - - - - - - - (2,000,000) - - - (233,072) (948,486) - 1,335,019 20,267,897 (948,486) - 614,109 14,408,189 480 - - 183,722 1,335,263 - - 9,129,103 - 37,521 - 1,929,341 - - (73,125) - - - (8,983,075) (782,127) (2,676,134) (92,467) (9,888) - - - (410,000) (6,550,000) (1,715,000) - (395,388) (14,906,576) (2,101,503) - - - (66,337) - (9,257,367) 3,411,652 (5,223,231) (54,946) 1,705,536 3,457,131 623,091 253,626 1,705,536 3,457,131 623,091 253,626 4,808,112 17,495,394 791,948 2,146,891 74,178,469 44,842,936 21,848,011 8,020,370 78,986,581$ 62,338,330$ 22,639,959$ 10,167,261$ 78,986,581$ 37,577,125$ 18,090,907$ 10,167,261$ - 24,761,205 4,549,052 - 78,986,581$ 62,338,330$ 22,639,959$ 10,167,261$

CITY OF VICTORVILLE

STATEMENT OF CASH FLOWS (CONTINUED)

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2023

See accompanying Notes to Basic Financial Statements.
(45)

CASH FLOWS FROM OPERATING ACTIVITIESCash Received from CustomersCash Payments to Employees for ServicesCash Payments to Suppliers for Goods and ServicesNet Cash Provided (Used) by Operating ActivitiesCASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIESCash Received from Other GovernmentsCash Received from Other Funds for AdvancesCash Paid to Other Funds for AdvancesCash Paid to Other FundsNet Cash Provided (Used) by Noncapital Financing ActivitiesCASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIESCash Received from Sale of Capital AssetsCapital GrantsCash Received from Leases and RentCash Received from Other Funds for Purchase of Capital AssetsCash Payments to Other Funds for Acquisition of Capital AssetsCash Payments to Acquire Capital and Other AssetsSBITA Principal PaymentsPrincipal Paid on Capital-Related DebtInterest Paid on Capital-Related DebtInterest Paid on Interfund AdvanceNet Cash Provided (Used) by Capital and Related Financing ActivitiesCASH FLOWS FROM INVESTING ACTIVITIESInterest Received on InvestmentsNet Cash Provided by Investing ActivitiesNET INCREASE IN CASH AND CASH EQUIVALENTSCash and Cash Equivalents - Beginning of YearCASH AND CASH EQUIVALENTS - END OF YEARRECONCILIATION OF CASH AND CASH EQUIVALENTS TO STATEMENT OF NET POSITIONCash and InvestmentsCash with Fiscal AgentCash and Cash Equivalents NonmajorSanitary Gas Fund Utility Fund Totals21,991,455$ 4,556,710$ 111,675,846$ (3,527,665) (320,688) (20,808,716) (14,577,843) (3,935,101) (77,007,839) 3,885,947 300,921 13,859,291 - - 23,835,988 - 2,000,000 2,000,000 - - (2,000,000) - - (1,181,558) - 2,000,000 22,654,430 - - 15,022,778 - 33,884 1,552,869 - - 9,166,624 - - 1,929,341 (56,250) - (129,375) (1,852,301) (255,050) (14,641,154) (1,388) - (11,276) - - (8,675,000) - - (17,403,467) - - (66,337) (1,909,939) (221,166) (13,254,997) 356,880 91,184 6,487,448 356,880 91,184 6,487,448 2,332,888 2,170,939 29,746,172 12,184,190 2,698,905 163,772,881 14,517,078$ 4,869,844$ 193,519,053$ 14,517,078$ 4,869,844$ 164,208,796$ - - 29,310,257 14,517,078$ 4,869,844$ 193,519,053$

CITY OF VICTORVILLE

STATEMENT OF CASH FLOWS (CONTINUED)

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2023

See accompanying Notes to Basic Financial Statements.
(46)

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIESOperating Income (Loss)Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities:DepreciationOperating Rental and Lease RevenueNonoperating Miscellaneous Revenue (Expense) and Capital Contributions(Increase) Decrease in Assets:Accounts Receivable, NetDue from Other GovernmentsInventory and Other AssetsPrepaid DepositsDeferred Outflows - OPEBDeferred Outflows - PensionIncrease (Decrease) in Liabilities:Accounts PayableDeposits PayableUnearned RevenueCompensated AbsencesClaims PayableTotal OPEB LiabilityNet Pension LiabilityDeferred Inflows - OPEBDeferred Inflows - PensionTotal AdjustmentsNet Cash Provided (Used) by Operating ActivitiesNONCASH CAPITAL, FINANCING, AND INVESTING ACTIVITIESDeveloper/Tenant Contributed Capital AssetsInterest Accretion ExpensesAmortization of Bond DiscountsSBITA AcquisitionTotal SouthernCaliforniaLogisticsVictorville Airport Electric Solid WasteWater District Authority Utility Fund Management(1,751,320)$ (6,830,421)$ 6,725,903$ 1,543,568$ 6,524,962 9,744,648 1,399,881 102,151 - (10,907,800) - (44,201) 4,644,258 (19,137) - - 1,163,723 231,545 (265,043) (15,842) 14,706 - - 5,960 81,339 16,027 - - (6,783) (1,839) (5,970) 120 (600,946) 33,753 13,343 16,911 (3,218,593) (879,487) (394,923) (470,992) (216,222) (940,807) 47,991 268,837 30,498 (824,798) (1,692,638) 986 - (237,522) 65,678 - 122,244 (24,661) - - - - - - (866,269) (323,701) (134,047) (164,722) 6,893,711 1,904,161 852,391 1,025,352 1,565,151 335,660 139,734 171,115 (3,355,535) (916,907) (411,726) (491,032) 12,776,244 (2,810,865) (385,329) 404,643 11,024,924$ (9,641,286)$ 6,340,574$ 1,948,211$ 10,000$ 185,537$ 800,531$ -$ - 1,527,079 - - - 91,868 - - 30,652 - - - 40,652$ 1,804,484$ 800,531$ -$

CITY OF VICTORVILLE

STATEMENT OF CASH FLOWS (CONTINUED)

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2023

See accompanying Notes to Basic Financial Statements.
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RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIESOperating Income (Loss)Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities:DepreciationOperating Rental and Lease RevenueNonoperating Miscellaneous Revenue (Expense) and Capital Contributions(Increase) Decrease in Assets:Accounts Receivable, NetDue from Other GovernmentsInventory and Other AssetsPrepaid DepositsDeferred Outflows - OPEBDeferred Outflows - PensionIncrease (Decrease) in Liabilities:Accounts PayableDeposits PayableUnearned RevenueCompensated AbsencesClaims PayableTotal OPEB LiabilityNet Pension LiabilityDeferred Inflows - OPEBDeferred Inflows - PensionTotal AdjustmentsNet Cash Provided (Used) by Operating ActivitiesNONCASH CAPITAL, FINANCING, AND INVESTING ACTIVITIESDeveloper/Tenant Contributed Capital AssetsInterest Accretion ExpensesAmortization of Bond DiscountsSBITA AcquisitionTotal NonmajorSanitary Gas Fund Utility Fund Totals1,746,483$ 193,523$ 1,627,736$ 1,426,481 126,181 19,324,304 - - (10,952,001) 1,031,572 - 5,656,693 57,157 18,795 1,190,335 - - 20,666 - - 97,366 (910) - (15,382) 38,646 2,028 (496,265) (1,031,419) (63,199) (6,058,613) (136,764) (15,926) (992,891) 12,498 (33,827) (2,507,281) - - (171,844) - - 97,583 (440,000) - (440,000) (420,236) (21,235) (1,930,210) 2,235,993 138,234 13,049,842 441,750 22,235 2,675,645 (1,075,304) (65,888) (6,316,392) 2,139,464 107,398 12,231,555 3,885,947$ 300,921$ 13,859,291$ -$ -$ 996,068$ - - 1,527,079 - - 91,868 4,056 - 34,708 4,056$ -$ 2,649,723$

CITY OF VICTORVILLE

STATEMENT OF FIDUCIARY NET POSITION

FIDUCIARY FUNDS
JUNE 30, 2023

See accompanying Notes to Basic Financial Statements.
(48)

SuccessorCustodial Agency to theFunds Victorville RDAASSETSCash and Investments 565,629$ 2,524,290$ Restricted Assets: Cash and Investments with Fiscal Agent 603,666 1,931,403 Accounts Receivable, Net 1,694 - Land Held for Resale - 1,379,917 Total Assets 1,170,989 5,835,610 LIABILITIESCURRENT LIABILITIESAccounts Payable 552 126,374 Interest Payable - 126,751 Due to The City - 13,180,909 Current Portion of Long-Term Liabilities:Bonds Payable - 1,660,000 Total Current Liabilities 552 15,094,034 LONG-TERM LIABILITIESBonds Payable - 26,150,000 Total Liabilities 552 41,244,034 NET POSITION (DEFICIT)Restricted for:Individuals, Organizations, and Other Governments 1,170,437 (35,408,424) Total Net Position 1,170,437$ (35,408,424)$

CITY OF VICTORVILLE

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

FIDUCIARY FUNDS
YEAR ENDED JUNE 30, 2023

See accompanying Notes to Basic Financial Statements.
(49)

SuccessorCustodial Agency to theFunds Victorville RDAADDITIONSRPTTF Distributions -$ 3,502,542$ Property Assessments Collected 469,374 - Investment Income 41,082 337,402 Total Additions 510,456 3,839,944 DEDUCTIONSCommunity Development 24,303 419,844 Loss on Sale of Land Held for Resale - 1,650,000 Payments on Special Assessment Debt 435,315 - Contribution to the City - 250,000 Interest - 1,882,323 Total Deductions 459,618 4,202,167 CHANGE IN NET POSITION50,838 (362,223) Net Position (Deficit) - Beginning of Year 1,119,599 (35,046,201) NET POSITION (DEFICIT) - END OF YEAR1,170,437$ (35,408,424)$

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CITY OF VICTORVILLE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the City of Victorville, California (the 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, 2023 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, 2023, 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 Victorville 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, 2023

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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 (the 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 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 (the 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, 2023

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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, 2023

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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 degree 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 program 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. Amounts 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, acquisitions of leases and SBITAs 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 for bonds issued through 2021 and the effective interest method for bonds issued thereafter. 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, 2023

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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 government’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 leases and SBITAs 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 means 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, 2023

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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. The City has no 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. The City has no assigned fund balance.

CITY OF VICTORVILLE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

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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 leases and SBITAs 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, 2023

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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 special revenue 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.

Other State / Local Grants
This special revenue fund accounts for moneys received from the California 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.

COVID-19 Funds Special Revenue Fund
This special revenue 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.

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

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Major Funds and Fiduciary Fund Types (Continued)
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.

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.

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

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NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Major Funds and Fiduciary Fund Types (Continued)
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.

The City reports the following nonmajor fund types:

Special Revenue Funds
Nonmajor 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. Adoption of New Accounting Standards
In May 2020, the GASB issued GASB Statement No. 96, Subscription-Based Information Technology Arrangements. This standard defines a subscription-based information technology arrangement (SBITA); establishes that a SBITA results in a right- to-use subscription asset (an intangible asset) and a corresponding subscription liability; provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and requires note disclosures regarding a SBITA.

The City adopted the requirements of the guidance effective July 1, 2022 and has applied the provisions of this standard to the beginning of the period of adoption. The implementation of this standard resulted in the Government reporting a SBITA asset and a SBITA liability as disclosed in Note 4 and Note 7.

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NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

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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, 2023.

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NOTES TO BASIC FINANCIAL STATEMENTS
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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) I. Leases
When the City is a lessee, a lease liability and a lease asset is recognized at the commencement of the lease term, unless the lease is a short-term lease, or it transfers ownership of the underlying asset. The lease liability is measured at the present value of payments expected to be made during the lease term (less any lease incentives). The lease asset is measured at the amount of the initial measurement of the lease liability, plus any payments made to the lessor at or before the commencement of the lease term and certain direct costs.

When the City is a lessor, a lease receivable and a deferred inflow of resources is recognized at the commencement of the lease term, with certain exceptions for leases of assets held as investments, certain regulated leases, short-term leases, and leases that transfer ownership of the underlying asset. The lease receivable is measured at the present value of lease payments expected to be received during the lease term. The deferred inflow of resources is measured at the value of the lease receivable plus any payments received at or before the commencement of the lease term that relate to future periods.

J. Deposits and Prepaid Items
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.

K. Inventory and Other Assets
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.

L. 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.

M. 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.

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) M. Capital Assets (Continued)
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, lighting systems and intangible assets such as subscription-based information technology arrangements (SBITAs). Tangible capital assets are valued at historical cost or estimated historical cost if purchased or constructed. Donated tangible capital assets are valued at acquisition value on the date of donation. SBITA assets are initially measured as the sum of the present value of payments expected to be made during the subscription term, payments associated with the SBITA contract made to the SBITA vendor at the commencement of the subscription term, when applicable, and capitalizable implementation costs, less any SBITA vendor incentives received form the SBITA vendor at the commencement of the SBITA term.

SBITA assets are amortized in a systematic and rational manner over the shorter of the subscription term or the useful life of the underlying IT assets. 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 tangible 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 for tangible capital assets.

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

N. 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.

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) N. Compensated Absences (Continued)
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.

O. 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.

P. Deposits Payable
Deposits payable in the governmental funds primarily consist of engineering deposits that are refunded once compliance work from the depositor has been performed.

Deposits payable in the enterprise funds primarily consist of security deposits for utility accounts that are refunded to the customer when the account is closed or applied to past-due bills in certain cases of delinquency.

Q. Unearned Revenue
Unearned revenue is recorded when the City receives funds for which the goods or services have not yet been provided and, therefore, revenue has not yet been earned.

Unearned revenue in the governmental funds primarily consists of funds received in advance from the American Rescue Plan Act (ARPA) federal program and other grants that have not yet been spent for allowable expenditures. Unearned revenue in enterprise funds primarily consists of funds received in advance from tenants in which the City serves as the lessor, amounts received in advance for services not yet provided, and amounts received in advance from the California Air Resources Board that have not yet been spent for allowable expenses.

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) R. 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.

S. 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 the Council.

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) T. 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 assets that applies to future periods and so will not be recognized as an outflow of resources (expense) until that time. The category of deferred outflow of resources reported in the government-wide statement of net position and the proprietary funds financial statements and is related to a loss on refunding, pension, and other postemployment benefits. A deferred loss on refunding results from the difference in the carrying value of the refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. Deferred outflows on pension and other postemployment benefits are more fully discussed in Notes 12 and 14, respectively.

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 separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to future periods and will not be recognized as an inflow of resources (revenue) until that time.

The City’s deferred inflows of resources reported on the government-wide statement of net position and the proprietary funds financial statements relate to leases, pension and other postemployment benefits. Amounts for leases are for amounts not yet received that are deferred and recognized as an inflow of resources in the period that the amounts are available or earned. Pension and other postemployment benefits deferred inflows of resources are more fully discussed in Notes 12 and 14, respectively.

U. 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 employee 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.

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) V. 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, 2023 are classified in the accompanying financial statements as follows:

Statement of Net Position:Cash and Investments 349,796,145$ Cash with Fiscal Agents 30,146,896 Fiduciary Funds:Cash and Investments 3,089,919 Cash with Fiscal Agents 2,535,069 Total Cash and Investments 385,568,029$ Cash and investments as of June 30, 2023 consist of the following:

Cash on Hand 11,664$ Deposits with Financial Institutions 232,336,402 Investments 153,219,963 Total Cash and Investments 385,568,029$

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NOTE 2 CASH AND INVESTMENTS (CONTINUED)
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 MaximumInvestment Types Investment Maximum Percentage InvestmentAuthorized by State Law Policy Maturity* of Portfolio* in One Issuer*Local Agency Bonds Yes 5 Years 70% NoneU.S. Treasury Obligations Yes 5 Years 70% NoneU.S. Agency Securities Yes 5 Years 75%** NoneBanker’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% NoneRepurchase Agreements No 1 Year None NoneReverse Repurchase Agreements No 92 Days 20% of Base Value NoneMedium-Term Notes No 5 Years 30% NoneMutual Funds*** No 5 Years 20%* 10%*Money Market Mutual Funds*** Yes 5 Years 20%* NoneMortgage Pass-Through Securities No 5 Years 20% NoneCounty Pooled Investment Funds No N/A None NoneLocal Agency Investment Fund (LAIF) Yes N/A None $75MJPA 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 MaximumAuthorized Maximum Percentage InvestmentInvestment Type Maturity Allowed In One IssuerU.S. Treasury Obligations None None NoneU.S. Agency Securities None None NoneBanker's Acceptances 360 Days None NoneCommercial Paper 270 Days None NoneMoney Market Mutual Funds None None NoneRepurchase Agreements None None NoneInvestment Contracts None None NoneFederal Housing Admin Debentures None None NoneCertificates of Deposits None None NoneState Obligations None None NoneLocal Agency Investment Fund (LAIF) None None NonePre-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 120,537,998$ 120,537,998$ -$ -$ -$ Held by Bond Trustee:Guaranteed Investment Contract (GIC)* 816,500 - - - 816,500 Money Market Mutual Funds 31,865,465 31,865,465 - - - Total 153,219,963$ 152,403,463$ -$ -$ 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, 2023, 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.

MinimumInvestment Type Total Legal Rating AAA Not RatedLAIF 120,537,998$ N/A -$ 120,537,998$ Held by Bond Trustee:Guaranteed Investment Contract (GIC) 816,500 N/A - 816,500 Money Market Mutual Funds 31,865,465 Multiple* 31,865,465 - Total 153,219,963$ 31,865,465$ 121,354,498$ *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 registrationand 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, 2023, 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 based 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, 2023 is as follows:

Fund Reporting Receivable Fund Reporting Payable Amount General Fund Nonmajor Other Federal Grants Special Revenue Fund 5,647,588$ a)Fund Reporting Receivable Fund Reporting Payable Amount General Fund Electric Utility Enterprise Fund 2,916,480$ b)Southern California Logistics Nonmajor Gas Utility Enterprise Fund Airport Authority Enterprise Fund 2,000,000 c)Total 4,916,480$ Due To/From Other FundsAdvances To/From Other Funds Generally, the above balances result from:

a) This balance represents a short term borrowing to cover a negative cash balance due to grant funds that must be paid out before the reimbursement is received. It is anticipated these funds will come in from reimbursements received in FY 23-24.

b) 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, 2023 is $2,916,480.

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NOTE 3 INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS (CONTINUED) c) A loan agreement was signed on April 18, 2023 by the City Council that authorizes the SCLAA enterprise fund to loan $2,000,000 to the nonmajor gas utility enterprise fund for the construction of new gas infrastructure that will allow for the purchase of lower priced natural gas and future growth at SCLAA. The loan principal shall be repaid in five equal installments of $400,000 to commence in the year ending June 30, 2024 and conclude in the year ending June 30, 2028. Interest shall begin to accrue on the total principal amount commencing on July 1, 2023, and shall thereafter be calculated annually on the balance of the outstanding principal and shall be payable each year on June 30 at the annualized (averaged) LAIF rate of return. The outstanding balance of the advance as of June 30, 2023 is $2,000,000.

Transfers in/out:

Transfer In Transfer Out AmountGeneral Fund Nonmajor Governmental Funds 54,900$ The transfer of $54,900 from the Nonmajor Governmental Funds to the General Fund to support the engineering function of traffic safety.

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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, 2023:

Balance atJuly 1, 2022* Balance atas Restated Additions Deletions Transfers June 30, 2023Nondepreciable Assets:Land 55,951,074$ 1,965,090$ (1,642,350)$ -$ 56,273,814$ Right of Way 180,001,603 - - - 180,001,603 Construction in Progress 46,686,815 56,740,426 (56,612,110) - 46,815,131 Total Nondepreciable Assets 282,639,492 58,705,516 (58,254,460) - 283,090,548 Depreciable Assets:Buildings and Improvements 87,629,099 1,398,590 (34,181) - 88,993,508 Furniture and Equipment 15,410,650 2,567,398 - - 17,978,048 Computer and Communications 3,102,533 2,548,942 - - 5,651,475 Land Improvements 14,775,383 138,084 - - 14,913,467 Vehicles 7,134,784 450,872 (63,538) - 7,522,118 Infrastructure 548,496,434 50,706,200 - - 599,202,634 Intangible Assets: Computer Software 2,672,167 - (2,672,167) - - Right-of-Way Easements 10,000 - (10,000) - - Total Depreciable Assets 679,231,050 57,810,086 (2,779,886) - 734,261,250 Less Accumulated Depreciation:Buildings and Improvements (44,758,491) (2,357,147) 32,863 - (47,082,775) Furniture and Equipment (12,587,087) (773,593) - - (13,360,680) Computer and Communications (2,613,865) (213,923) - - (2,827,788) Land Improvements (10,479,456) (1,477,538) - - (11,956,994) Vehicles (3,928,104) (509,618) 63,538 - (4,374,184) Infrastructure (405,049,700) (14,286,967) - - (419,336,667) Intangible Assets: - Computer Software (2,635,709) - 2,635,709 - - Right-of-Way Easements (10,000) - 10,000 - - Total Accumulated Depreciation (482,062,412) (19,618,786) 2,742,110 - (498,939,088) Total Depreciable Assets, Net 197,168,638 38,191,300 (37,776) - 235,322,162 Subscription Based Information Technology Arrangement (SBITA) Assets Being Amortized:SBITA Assets* 468,576 863,257 - - 1,331,833 Accumulated Amortization* - (317,356) - - (317,356) Total SBITA Assets, Being Amortized, Net 468,576 545,901 - - 1,014,477 Capital Assets, Net 480,276,706$ 97,442,717$ (58,292,236)$ -$ 519,427,187$ *SBITAs were restated from $-0- as of July 1, 2022 to $468,576. This restatement was offset by the restatement in long-term liabilities for $468,576 (See Note 7). This restatement waw due to the implementation of GASB 96, Subscription-Based Information Technology Arrangements (SBITAs).

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NOTE 4 CAPITAL ASSETS (CONTINUED)
Governmental Activities (Continued)
Depreciation and amortization expense was charged in the following functions in the statement of activities:

General Government 7,415,952$ Public Safety 938,951 Community Development 5,697 Public Works 10,188,536 Parks and Recreation 1,387,006 Total 19,936,142$ The ARPA special revenue fund purchased land from the SCLAA enterprise fund at a price of $1,929,341 (the book value of $1,895,090 was appropriately recorded as a disposition of enterprise fund capital assets and an addition to governmental activities capital assets). In the fund financial statements, the ARPA special revenue fund includes the cost of the land as capital outlay.

Business-Type Activities
The water enterprise fund purchased land from the SCLAA enterprise fund at a price of $700,000 (the book value of $7,876 was appropriately recorded as a disposition of enterprise fund capital assets and an addition to enterprise fund capital assets). In the fund financial statements, the SCLAA enterprise fund has a gain on sale of $692,124 from this transaction that is included with other gains on sales of capital assets.

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NOTE 4 CAPITAL ASSETS (CONTINUED)
Business-Type Activities (Continued)
The following is a summary of capital assets for enterprise funds at June 30, 2023:

Balance at Balance atJuly 1, 2022 Additions Deletions Transfers June 30, 2023Nondepreciable Assets:Land and Easements 27,048,482$ 228,602$ (2,066,393)$ -$ 25,210,691$ Intangibles - Service Credit 3,954,891 - - - 3,954,891 Water Rights 18,162,980 646,966 (24,974) - 18,784,972 Idle Assets 3,017,958 - - - 3,017,958 Land Improvements 536,342 - - - 536,342 Construction in Progress 11,667,302 12,569,524 (7,710,843) - 16,525,983 Total Nondepreciable Assets 64,387,955 13,445,092 (9,802,210) - 68,030,837 Depreciable Assets:Buildings and Improvements 221,798,318 1,359,262 (734,495) - 222,423,085 Furniture and Equipment 50,515,727 195,401 - 88,598 50,799,726 Computer and Communication 972,541 67,337 - - 1,039,878 Vehicles 6,905,247 471,399 (142,237) (88,598) 7,145,811 Infrastructure 392,494,452 7,809,574 - - 400,304,026 Intangibles 1,589,862 - - - 1,589,862 Land Improvements 128,489 - - - 128,489 Total Depreciable Assets 674,404,636 9,902,973 (876,732) - 683,430,877 Less Accumulated Depreciation:Buildings and Improvements (132,058,560) (5,425,244) 484,283 - (136,999,521) Furniture and Equipment (40,825,086) (1,323,241) - - (42,148,327) Computer and Communication (944,542) (17,660) - - (962,202) Vehicles (4,313,883) (413,024) 142,237 - (4,584,670) Infrastructure (201,180,036) (12,142,172) - - (213,322,208) Intangibles (1,589,860) - - - (1,589,860) Land Improvements (128,489) - - - (128,489) Total Accumulated Depreciation (381,040,456) (19,321,341) 626,520 - (399,735,277) Total Depreciable Assets, Net 293,364,180 (9,418,368) (250,212) - 283,695,600 Subscription Based Information Technology Arrangement (SBITA) Assets Being Amortized:SBITA Assets - 34,708 - - 34,708 Accumulated Amortization - (2,963) - - (2,963) Total SBITA Assets, Being Amortized, Net - 31,745 - - 31,745 Total Capital Assets Being Depreciated or Amortized, Net 293,364,180 (9,386,623) (250,212) - 283,727,345 Capital Assets, Net 357,752,135$ 4,058,469$ (10,052,422)$ -$ 351,758,182$

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NOTE 4 CAPITAL ASSETS (CONTINUED)
Business-Type Activities (Continued)
Depreciation expense was charged in the following programs of the primary government:

Water 6,524,962$ Airport 9,744,648 Electric Utility 1,399,881 Solid Waste Management 102,151 Sanitary 1,426,481 Nonmajor Gas Utility 126,181 Total 19,324,304$

NOTE 5 LAND HELD FOR RESALE
As of June 30, 2023, 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 $1,379,917 and $1,549,837, 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% annually and repayments are based on earning of the housing facility. The expected payoff date is February 17, 2050. At June 30, 2023, the City Housing Asset Successor Special Revenue Fund has recorded outstanding loan receivable balance of $5,343,760.

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% annually and repayments are based on earning of the housing facility. The expected payoff date is December 20, 2041. At June 30, 2023, the City Housing Asset Successor Special Revenue Fund has recorded outstanding loan receivable balance of $1,051,869.

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NOTE 6 LONG-TERM NOTES RECEIVABLE (CONTINUED)
Affordable Housing Loans Receivable (Continued)
Southern California Housing Development Corporation (Continued) 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% annually and repayments are based on earning of the housing facility. The expected payoff date is December 15, 2045. At June 30, 2023, the City Housing Asset Successor Special Revenue Fund has recorded outstanding loan receivable balance of $6,575,177.

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, 2023, the City Housing Asset Successor Special Revenue Fund has recorded outstanding loan receivable balance of $103,345.

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, 2023, the City HUD Grants Special Revenue Fund has recorded an outstanding loan balance of $1,556,049.

Other Loans
These loans are secured by a deed of trust. Also, at June 30, 2023, the Nonmajor Governmental Funds report residential curb appeal loans, which are 100% forgiven at the time they are issued. The allowance of $580,991 offsets the receivable resulting in net $-0- in the balance sheet. Other various loans reported in the Nonmajor Governmental Funds total $14,142.

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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, 2023 is as follows:

Balance at Balance at Due WithinJuly 1, 2022, Balance at Due Withinas Restated* Additions Retirements June 30, 2023 One YearOther Long-Term Liabilities:Financed Purchase 724,561$ -$ (724,561)$ -$ -$ Compensated Absences 4,409,852 3,517,753 (2,780,896) 5,146,709 2,499,470 Claims Payable 1,646,933 1,193,497 (913,717) 1,926,713 300,000 Pollution Remediation Obligation 742,324 - (191,630) 550,694 388,725 SBITAs 468,576 798,322 (320,197) 946,701 246,517 Total 7,992,246$ 5,509,572$ (4,931,001)$ 8,570,817$ 3,434,712$ *SBITAs were restated from $-0- as of July 1, 2022 to $468,576. This restatement was offset by the restatement in capital assets for $468,576 (See Note 4). This restatement was due to the implementation of GASB 96, Subscription-Based Information Technology Arrangements (SBITAs).

Financed Purchase
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 bore interest at 3.79% and installment payments of $198,623 were due each September 6 over the next seven years with a final maturity date of September 6, 2025. The trucks are included in capital assets with a cost and accumulated depreciation of $1,390,358 and $(498,211), respectively, as of June 30, 2023. The outstanding balance on this lease was liquidated by the General Fund. The debt was paid off early with no penalty as of June 30, 2023.

Compensated Absences
The City’s policies relating to compensated absences are described in Note 1. This liability, amounting to $5,146,709 at June 30, 2023, 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 contamination 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, the City has undertaken the damages that the EPA has the right to assess for failure to comply an EPA order.

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NOTE 7 GOVERNMENTAL LONG-TERM LIABILITIES (CONTINUED)
Pollution Remediation (Continued)
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, which has since been extended to at least five years. This cost is anticipated to be covered with grant from the State Water Board in the amount of $1,457,598. The City applied in 2023 for another grant for $700,000 from the State Water Board for the upcoming three years to continue monitoring and remediation efforts as needed.

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, 2023, the City is in the third year of the PEP and has spent a total of $906,904 with a remaining Pollution Remediation liability of $550,694.

SBITAs
The City has entered into subscription-based information technology arrangements (SBITAs) for various software licenses. The SBITA arrangements expire at various dates through 2027 and do not provide for renewal options. The interest rates vary from 1.7% to

3.3% and there are no variable payments.

The future subscription payments under SBITA agreements are as follows:

Year Ending June 30,Principal Interest Total2024 246,517$ 25,793$ 272,310$ 2025 251,482 19,267 270,749 2026 261,646 12,509 274,155 2027 187,056 5,449 192,505 Total 946,701$ 63,018$ 1,009,719$ Right-to-use assets acquired through SBITAs, net of accumulated amortization, are reported in Note 4, Capital Assets.

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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, 2023 is as follows:

Balance at Balance at Due WithinJuly 1, 2022 Additions Retirements June 30, 2023 One YearOther Long-Term Liabilities:Compensated Absences 791,150$ 691,679$ (594,096)$ 888,733$ 644,793$ Claims Payable 2,070,000 - (440,000) 1,630,000 440,000 SBITAs - 33,028 (11,276) 21,752 10,745 Other Debt:Tax Allocation Bonds:2005 Tax Allocation Bonds 13,040,000 - (1,210,000) 11,830,000 1,265,000 2006 Tax Allocation Bonds (Non-Housing) 46,635,000 - (1,265,000) 45,370,000 1,315,000 2006 Tax Allocation Bonds (Housing) 12,525,000 - (340,000) 12,185,000 355,000 2006 Tax Allocation Parity Bonds 41,375,000 - (160,000) 41,215,000 180,000 2006 Tax Allocation Revenue Parity Bonds 29,045,000 - (650,000) 28,395,000 690,000 2006 Tax Allocation Revenue Bonds 52,605,000 - (1,205,000) 51,400,000 1,280,000 2007 Tax Allocation Bonds (Housing) 32,575,000 - (800,000) 31,775,000 840,000 2007 Tax Allocation Bonds (Non-Housing) 34,060,000 - (805,000) 33,255,000 850,000 2008A Tax Allocation Bonds 25,295,795 1,527,079 (115,000) 26,707,874 110,000 Unamortized Discounts/Premiums (2,092,196) - 91,868 (2,000,328) - Tax Allocation Bonds Subtotal 285,063,599 1,527,079 (6,458,132) 280,132,546 6,885,000 Revenue Refunding Bonds:Electric Revenue Bonds 2022A 35,980,000 - - 35,980,000 - Electric Revenue Bonds 2022B 10,070,000 - (1,715,000) 8,355,000 1,525,000 Unamortized Discounts/Premiums 1,994,133 - (123,674) 1,870,459 - Certificates of Participation (COP):2006 COPs 8,535,000 - (410,000) 8,125,000 425,000 Unamortized Discounts/Premiums 86,697 - (6,193) 80,504 - Total 344,590,579$ 2,251,786$ (9,758,371)$ 337,083,994$ 9,930,538$ 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 $888,733 at June 30, 2023, will be paid in future years from future resources, generally liquidated by the Victorville Water District, Victorville Municipal Utility, and the SCLAA Enterprise Funds.

2.7% and there are no variable payments.

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NOTE 8 BUSINESS-TYPE LONG-TERM LIABILITIES (CONTINUED)
SBITAs (Continued)
The future subscription payments under SBITA agreements are as follows:

Year Ending June 30,Principal Interest Total2024 10,745$ 530$ 11,275$ 2025 11,007 268 11,275 Total 21,752$ 798$ 22,550$ Right-to-use assets acquired through SBITAs, net of accumulated amortization, are reported in Note 4, Capital Assets.

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.

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, respectively, 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, 2023, 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, 2023 is $11,830,000.

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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) 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, respectively, 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, 2023, 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, 2023 is $45,370,000.

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, respectively, 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.

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NOTE 8 BUSINESS-TYPE LONG-TERM LIABILITIES (CONTINUED)
Tax Allocation Bonds (Continued)
Tax Allocation Revenue Parity Bonds, Refunding Series 2006 (Housing Set-Aside) (Continued)
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.

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, respectively, 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.

The bonds maturing on December 1, 2036 and December 1, 2043 are subject to mandatory redemption in part by pro-rata, without premium, commencing December 1, 2006 and December 1, 2037, respectively, from sinking fund payments made by SCLAA.

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 semi-annually on each June 1 and December 1, commencing June 1, 2007. The bonds are subject to optional and mandatory redemption prior to maturity.

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NOTE 8 BUSINESS-TYPE LONG-TERM LIABILITIES (CONTINUED)
Tax Allocation Bonds (Continued)
Taxable Tax Allocation Revenue Parity Bonds, Forward Series 2006 (Continued) The bonds are secured by pledged tax revenues - see Note 10. As of June 30, 2023, 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, 2023 is $28,395,000.

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, 2023, 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, 2023 is $51,400,000.

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, respectively, 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, 2023, 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, 2023 is $31,775,000.

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NOTE 8 BUSINESS-TYPE LONG-TERM LIABILITIES (CONTINUED)
Tax Allocation Bonds (Continued)
Subordinate Tax Allocation Revenue Bonds, Series 2007 (Non-Housing) 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, respectively, 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.

Subordinate Tax Allocation Revenue Bonds, Series 2008A
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, respectively, 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.

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NOTE 8 BUSINESS-TYPE LONG-TERM LIABILITIES (CONTINUED)
Tax Allocation Bonds (Continued)
Subordinate Tax Allocation Revenue Bonds, Series 2008A (Continued) 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, 2023.

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.

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, 2023, the reserve amount was $836,333. The amount of Certificates of Participation outstanding at June 30, 2023 is $8,125,000.

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NOTE 8 BUSINESS-TYPE LONG-TERM LIABILITIES (CONTINUED)
2022A&B Electric Revenue Bonds
On May 19, 2022, the City of Victorville issued $35,980,000 and $10,070,000 for a total of $46,050,000 principal of 2022A and 2022B Electric Revenue Bonds, respectively. The bonds were issued to refund the 2007A Variable Rate Lease Revenue Bonds and pay for costs of issuance ($41,050,000) and to finance the design, acquisition, construction, and equipping of certain distribution system and interconnection facility upgrades for the benefit of the Electric System ($5,000,000).

The refunding resulted in an estimated cash flow difference of $3,555,286 and an estimated economic loss (difference between the present values of the old debt and new debt service payments) of ($1,404,538). The estimated cash flow and economic loss figures are calculated based upon an assumed interest rate of 2% for the 2007A Bonds beginning in June 2022 through May 2040, plus cost estimates for an irrevocable letter of credit and remarketing agent.

The Electric Revenue Bonds have stated interest rates ranging from 4.08% to 5.00%. The annual debt service is 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 May 1 and interest only payments are due each November 1. As of June 30, 2023, required reserve for the Bonds was met with fiscal agent cash. The amount of Electric Revenue Bonds outstanding at June 30, 2023 is $44,335,000.

Rate Covenants
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 District. The City performed the calculation that demonstrated compliance with rate covenant for the fiscal year ended June 30, 2023. The calculation was prepared using revenues and the proportionate expenses applicable to the Baldy Mesa Water District and is included in Note 10.

The 2022A&B Electric Revenue Bonds require that the City generate sufficient net revenues which are at least equal to 115% of the debt service on all outstanding bonds and outstanding parity obligations coming due and payable in each fiscal year. The City performed the calculation that demonstrated compliance with rate covenant for the fiscal year ended June 30, 2023. The calculation was prepared using revenues and the proportionate expenses applicable to the Electric Enterprise Fund 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 proprietary funds debt of the City as of June 30, 2023, are as follows for each fiscal year ending June 30:

Tax Tax Revenue RevenueAllocation Allocation Certificate of Certificate of Refunding RefundingBonds Bonds Participation Participation Bonds BondsYear Ending June 30,Principal * Interest Principal Interest Principal Interest2024 6,885,000$ 14,555,859$ 425,000$ 377,226$ 1,525,000$ 2,142,137$ 2025 7,245,000 14,184,559 445,000 358,304 1,595,000 2,076,867 2026 7,630,000 13,792,810 465,000 338,511 1,665,000 2,005,411 2027 8,035,000 13,379,169 485,000 317,849 1,740,000 1,927,489 2028 8,455,000 12,942,639 505,000 295,938 1,945,000 1,841,272 2029-33 49,610,000 57,879,636 2,910,000 1,094,263 11,300,000 7,635,250 2034-38 65,345,000 40,602,179 2,890,000 297,750 14,415,000 4,514,000 2039-43 86,570,000 18,591,969 - - 3,330,000 1,615,750 2044-48 58,771,157 76,802,744 - - - 1,449,250 2049-2051 88,263,843 43,035,156 - - 6,820,000 1,159,400 Subtotal 386,810,000 305,766,720 8,125,000 3,079,840 44,335,000 26,366,826 Discounts/Premiums (2,000,328) - 80,504 - 1,870,459 - Total 384,809,672$ 305,766,720$ 8,205,504$ 3,079,840$ 46,205,459$ 26,366,826$ * This total includes capital appreciation of $104,677,126 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, 2023 is as follows:

Balance at Balance at Due WithinJuly 1, 2022 Additions Retirements June 30, 2023 One YearRedevelopment Agency Debt: Other Debt:Tax Allocation Bonds: 2002A Tax Allocation Bonds 4,955,000$ -$ (395,000)$ 4,560,000$ 410,000$ 2003A Tax Allocation Bonds 5,240,000 - (415,000) 4,825,000 440,000 2003B Tax Allocation Bonds 2,575,000 - (205,000) 2,370,000 215,000 2006A Tax Allocation Bonds 16,615,000 - (560,000) 16,055,000 595,000 Total 29,385,000$ -$ (1,575,000)$ 27,810,000$ 1,660,000$ 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.

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NOTE 9 SUCCESSOR AGENCY LONG-TERM LIABILITIES (CONTINUED) Tax Allocation Bonds (Continued)
2002 Tax Allocation Bonds, Series A (Continued)
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, 2023, 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, 2023 is $4,560,000.

2003 Tax Allocation Bonds, Series A
In September 2003, the Redevelopment Agency 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, respectively, 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, 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, 2023, 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, 2023 is $4,825,000.

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NOTES TO BASIC FINANCIAL STATEMENTS
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NOTE 9 SUCCESSOR AGENCY LONG-TERM LIABILITIES (CONTINUED) Tax Allocation Bonds (Continued)
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, respectively, 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.

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, respectively, 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.

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.

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NOTES TO BASIC FINANCIAL STATEMENTS
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NOTE 9 SUCCESSOR AGENCY LONG-TERM LIABILITIES (CONTINUED) Debt Service Requirements to Maturity
The annual requirements to amortize outstanding general long-term liabilities of the City as of June 30, 2023, are as follows for each fiscal year ending June 30:

Year Ending June 30,Principal Interest2024 1,660,000$ 1,521,006$ 2025 1,745,000 1,429,231 2026 1,840,000 1,332,556 2027 1,940,000 1,230,575 2028 2,045,000 1,123,034 2029-33 12,030,000 3,749,697 2034-37 6,550,000 485,100 Total 27,810,000$ 10,871,200$ Advances To/From the Former Victorville Redevelopment Agency The composition of advances to or from the former Victorville RDA as of June 30, 2023, is as follows:

Fund Reporting Receivable Fund Reporting Payable Amount Housing Asset Successor Special Revenue Fund RDA Successor Agency 13,057,738$ a)General Fund RDA Successor Agency 123,171 b)RDA Successor Agency SCLAA Enterprise Fund 11,267,089 c)Total 24,447,998$ 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, 2023 is $13,057,738, and the terms of each are described below:

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, 2023, is $5,605,402.

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, 2023, is $516,000.

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NOTE 9 SUCCESSOR AGENCY LONG-TERM LIABILITIES (CONTINUED) Advances To/From the Former Victorville Redevelopment Agency (Continued) 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, 2023, is $6,936,336.

b) The General Fund provided funds for the former Victorville RDA of $123,171 for fiscal year 2022-2023 administrative costs for which RPTTF was unavailable. No interest is charged on this loan and it will be repaid from future RPTTF once it is placed on a future ROPS for repayment.

c) 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, 2023, is $11,267,089. Due to the uncertainty on when sufficient tax increment will be available to make payments on this loan, the obligation has not yet been included on the ROPS to request funding for repayment. In future fiscal years, the loan will be added to the ROPS. Considering the uncertainty of the timing of repayment and the lack of prior approval by the California Department of Finance of this obligation, as of June 30, 2023, 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.

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NOTES TO BASIC FINANCIAL STATEMENTS
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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 limitation 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 and the 2022A&B Electric Revenue Bonds result in a pledge of the net revenues of the Electric Utility 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 DebtPledged Revenue Service Payment Debt Service as(Net of Expenses, (of All Debt Secured a Percentage ofDescription of Pledged Revenue Where Required) by This Revenue) Pledged Revenue CoverageProperty Tax Increment pledged by the Successor Agency of the Victorville Redevelopment Agency 3,305,842$ 3,183,159$ 96% 104%Property Tax Increment and Other Revenue Pledged by the Southern California Logistics Airport Authority 22,582,823 21,456,577 95% 105%Net Revenues Pledged by the Victorville Water District for the 2006 Certificates of Participation 1,570,863 805,388 51% 195%Net Revenues Pledged by the City of Victorville for the 2022 Electric Revenue Bonds 8,748,878 3,845,634 44% 228% 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.

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NOTE 11 FUND DISCLOSURES
The following funds had deficit fund balances/net position as of June 30, 2023:

Deficit FundBalanceMajor Special Revenue Funds:COVID-19 Funds (4,367,181)$ (a)Nonmajor Special Revenue Funds:Other Federal Grants Fund (8,379,605) (a)Enterprise Funds:SCLAA (107,158,027) (b)Electric Utility Fund (14,778,447) (c) (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) See Note 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 has refinanced the old debt and a cost-of-service study was competed to ensure sufficient revenues will be collected to cover the long-term liabilities.

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NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

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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 individual 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, 2022, 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.

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.

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NOTES TO BASIC FINANCIAL STATEMENTS
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NOTE 12 PENSION PLANS (CONTINUED)
General Information about the Pension Plans (Continued) Benefits Provided (Continued)
The Plan’s provisions and benefits in effect as of the measurement period ended June 30, 2022, are summarized as follows:

Prior to on or afterHire Date January 1, 2013 January 1, 2013Benefit Formula 2.5%@55 2.0%@62Benefit Vesting Schedule 5 Years 5 Yearsof Service of ServiceBenefit Payments Monthly for Life Monthly for LifeRetirement Age 50 to 55 52 to 67Required Employee Contribution Rates 8.00% 6.75%Required Employer Contribution Rates:Normal Cost Rate 10.34% 10.25%Payment of Unfunded Liability $4,900,766 N/APrior to on or afterHire Date January 1, 2013 January 1, 2013Benefit Formula 2.0%@50 2.7%@57Benefit Vesting Schedule 5 Years 5 Yearsof Service of ServiceBenefit Payments Monthly for Life Monthly for LifeRetirement Age 50 to 55 52 to 57Required Employee Contribution Rates 9.00% 13.75%Required Employer Contribution Rates:Normal Cost Rate 20.97% 13.66%Payment of Unfunded Liability $1,139,072 $3,154 MiscellaneousSafety

Employees Covered
As of the June 30, 2022 measurement date, the following employees were covered by the benefit terms for the Miscellaneous Plan:

MiscellaneousActive Employees 340 Inactive Employees or Beneficiaries Currently Receiving Benefits 404 Inactive Employees Entitled to, But Not Yet Receiving Benefits 313 Total 1,057

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NOTE 12 PENSION PLANS (CONTINUED)
General Information about the Pension Plans (Continued) 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. Payments 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, 2023, the City contributed $8,144,580 and $2,154,542 to the miscellaneous and safety plans, respectively, which results in total contributions of $10,299,122.

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, 2022 measurement period was determined by an actuarial valuation as of June 30, 2021, with update procedures used to roll forward the total pension liability to June 30, 2022. The total pension liability for both the Miscellaneous and Safety Plans was based on the following assumptions:

Valuation Date June 30, 2021Measurement Date June 30, 2022Actuarial Cost Method Entry Age NormalAsset Valuation Method Market Value of AssetsActuarial Assumptions:Discount Rate 6.90%Inflation 2.30%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 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement and Post-retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 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 November 2021 that can be found on the CalPERS website.(3) The lesser of contract COLA up to 2.30% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.30% thereafter.

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NOTES TO BASIC FINANCIAL STATEMENTS
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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
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. Using historical returns all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points. The expected real rates of return by asset class are as follows:

AssumedAsset Real ReturnAsset Class (a) Allocation (a) (b)Global Equity - Cap-weighted 30.00 % 4.54 %Global Equity - Non-Cap-weighted 12.00 3.84Private Equity 13.00 7.28Treasury 5.00 0.27Mortgage-backed Securities 5.00 0.50Investment Grade Corporates 10.00 1.56High Yield 5.00 2.27Emerging Market Debt 5.00 2.48Private Debt 5.00 3.57Real Assets 15.00 3.21Leverage (5.00) (0.59)Total 100.00 %(a) An expected inflation of 2.30% used for this period(b) Figures are based on the 2021 Asset Liability Management study.

Discount Rate
The discount rate used to measure the total pension liability was 6.90%. 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.

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NOTES TO BASIC FINANCIAL STATEMENTS
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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 PensionLiability Net Position Liability(a) (b) (c) = (a) - (b)Balance at June 30, 2021 (MD)227,174,475$ 190,947,409$ 36,227,066$ Changes Recognized for the Measurement Period:Service Cost4,702,701 - 4,702,701 Interest on Total Pension Liability15,892,288 - 15,892,288 Change in Assumptions8,923,031 - 8,923,031 Differences between Expected and Actual Experience(3,062,363) - (3,062,363) Contributions from the Employer- 6,751,004 (6,751,004) Contributions from the Employees- 2,011,858 (2,011,858) Net Investment Income- (14,410,875) 14,410,875 Benefit Payments, including Refunds of Employee Contributions(10,126,951) (10,126,951) - Administrative Expenses- (118,949) 118,949 Balance at June 30, 2022 (MD) 243,503,181$ 175,053,496$ 68,449,685$ Increase (Decrease) Proportionate Share of Net Pension Liability – Safety Cost-Sharing Plan As of June 30, 2023, the City reported a net pension liability for its proportionate share of the collective net pension liability of the Safety Plan as follows:

ProportionateShare ofNet PensionLiabilitySafety 13,813,980$ 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.

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NOTES TO BASIC FINANCIAL STATEMENTS
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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, 2021 and 2022, was as follows:

SafetyProportion - June 30, 2021 0.21104%Proportion - June 30, 2022 0.20103%Change - Increase (Decrease) -0.01001% Pension Expense and Deferred Outflows and Inflows of Resources Miscellaneous Agent Multiple-Employer Plan
For the year ended June 30, 2023, the City recognized pension expense of $10,175,938 for the Miscellaneous agent multiple-employer Plan. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources for the Miscellaneous Plan:

Deferred DeferredOutflows of Inflows ofResources ResourcesPension Contributions Subsequent to the Measurement Date 8,144,580$ -$ Changes in Assumptions 6,444,411 - Differences Between Expected and Actual Experience 1,646,592 (2,211,707) Net Difference Between Projected and Actual Earnings on Pension Plan Investments 8,823,095 - Total 25,058,678$ (2,211,707)$ $8,144,580 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, 2024. 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:

DeferredMeasurement Period Inflows ofEnding June 30,Resources2024 4,185,953$ 2025 3,407,656 2026 1,606,094 2027 5,502,688 2028 - Thereafter -

CITY OF VICTORVILLE

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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, 2023, the City recognized pension expense of $997,551 for the Safety cost-sharing Plan. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources for the Safety Plan:

Deferred DeferredOutflows of Inflows ofResources ResourcesPension Contributions Subsequent to the Measurement Date 2,154,542$ -$ Differences Between Expected and Actual Experiences 571,711 (150,009) Changes in Assumptions 1,392,867 - Net Difference Between Projected and Actual Earnings on Pension Plan Investments 2,181,421 - Changes in Proportion and Differences Between Employer Contributions and Employer's Proportionate Share of Contributions 65,265 (129,880) Total 6,365,806$ (279,889)$ $2,154,542 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, 2024. 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:

DeferredMeasurement Period Inflows ofEnded June 30,Resources2024 1,152,361$ 2025 914,344 2026 533,974 2027 1,330,696 2028 - Thereafter -

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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(5.90%) (6.90%) (7.90%)Miscellaneous Agent Multiple-Employer Plan 103,684,058$ 68,449,685$ 39,636,212$ Safety Cost-Sharing Plan 20,575,925 13,813,980 8,287,617 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, 2023, 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, 2023.

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 DeferredLiability Outflows InflowsMiscellaneous Agent Multiple-Employer Plan (68,449,685)$ 25,058,678$ (2,211,707)$ Safety Cost-Sharing Plan (13,813,980) 6,365,806 (279,889) Total (82,263,665)$ 31,424,484$ (2,491,596)$

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NOTE 13 DEFERRED COMPENSATION
As of January 1, 2021, employees shall be eligible to transfer up to $20,500 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 their 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, and Firefighter Paramedic $150. In accordance with the Memorandum of Understanding adopted May 17, 2022, “…the existing deferred compensation structure for all represented classifications will be phased out and will not apply to recruitments started after July 1, 2022. Thos represented employees as of July 1, 2022, will be “grandfathered” into the existing deferred compensation structure.” For the fiscal year ended June 30, 2023, the City contributed $226,425 for covered payroll totaling $8,735,716.

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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, 2022Measurement Date June 30, 2022Measurement Period July 1, 2021 to June 30, 2022 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 eight 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, 2022 measurement date, the following current and former employees were covered by the benefit terms under the Plan:

Active Employees 329 Inactive Employees or Beneficiaries Currently Receiving Benefits 64 Inactive Employees Entitled to, But Not Yet Receiving Benefits 159 Total 552 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, 2023, the City’s cash contributions were $326,948 for current premiums, administrative costs of $1,935, and the estimated implied subsidy was $166,000 resulting in total payments of $494,883.

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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 measured as of June 30, 2022 and was determined by an actuarial valuation as of June 30, 2022.

Actuarial Cost Method Entry Age NormalActuarial Assumptions:Discount Rate 3.54%Inflation 2.50%Salary Increases 2.75% per annum, in aggregateInvestment Rate of Return N/AMortality, Retirement, Disability, and Termination 2000-2019 Experience StudyMortality Improvement Postretirement mortality projected fully generationalwith Scale MP-2021Healthcare Trend Rate Non-Medicare: 8.5% for 2024, decreasing to an ultimaterate of 3.45% in 2076 Medicare (Non-Kaiser) - 7.5% for 2024, decreasing to an ultimate rate of 3.45% in 2076 Medicare (Kaiser) - 6.25% for 2024, decreasing to an ultimate rate of 3.45% in 2076 Discount Rate
The discount rate used to measure the total OPEB liability was 3.54%. The discount rate is determined based on the Bond Buyer 20-bond index since the City has not established a trust.

Changes in Actuarial Assumptions
The following actuarial assumption changes occurred form the measurement periods ended June 30, 2021 to 2022:

 The discount rate changed from 2.16% to 3.54% based on changes in the index.  Inflation was lowered from 2.75% to 2.50%.
 The healthcare trend rate was updated as follows: Non-Medicare increased from

7.0% to 8.5%; Medicare (Non-Kaiser) increased from 6.1% to 7.5%; and Medicare (Kaiser) increased from 7.0% to 6.25%.
 Demographic assumptions were updated from the CalPERS 1997-2015 Experience Study to the CalPERS 2000-2019 Experience Study.
 Mortality improvement was updated from Scale MP-2020 to Scale MP-2021.

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NOTE 14 OTHER POSTEMPLOYMENT BENEFIT (OPEB) PLANS (CONTINUED) Other Postemployment Benefits Plan – City Plan (Continued) Changes in the Total OPEB Liability
The changes in the total OPEB liability for the City Plan are as follows:

Total OPEBLiabilityTotal OPEB Liability at June 30, 2021 (MD) 30,495,802$ Service Cost 2,334,220 Interest 704,405 Differences Between Expected and Actual Experience (3,673,118) Changes of Assumptions (5,816,473) Benefit Payments (437,336) Net Changes (6,888,302) Total OPEB Liability at June 30, 2022 (MD) 23,607,500$ 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(2.54%) (3.54%) (4.54%)Total OPEB Liability 27,940,679$ 23,607,500$ 20,152,933$ 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: 7.5% for 2024 decreasing to 2.45% in 2076; Medicare (Non-Kaiser): 6.5% for 2024, decreasing to an ultimate rate of 2.45% in 2076; Medicare (Kaiser): 5.25% for 2024, decreasing to an ultimate rate of 2.45% in 2076) or one percentage point higher (Non-Medicare: 9.5% for 2024 decreasing to 4.45% in 2076; Medicare (Non-Kaiser): 8.5% for 2024, decreasing to an ultimate rate of 4.45% in 2076; Medicare (Kaiser): 7.25% for 2024, decreasing to an ultimate rate of 4.45% in 2076) than the current rate:

1% Decrease Current Rate 1% IncreaseTotal OPEB Liability 19,465,512$ 23,607,500$ 29,055,712$ 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 are 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.

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NOTE 14 OTHER POSTEMPLOYMENT BENEFIT (OPEB) PLANS (CONTINUED) Other Postemployment Benefits Plan – City Plan (Continued) Recognition of Deferred Outflows and Deferred Inflows of Resources (Continued) 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 YearsAll Other Amounts Expected average remaining servicelifetime (EARSL) (9.8 Years atJune 30, 2022 measurement date)

OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2023, the City recognized OPEB expense of $1,477,277.

As of the fiscal year ended June 30, 2023, the City reported deferred outflows/inflows of resources related to OPEB from the following sources:

Deferred DeferredOutflows of Inflows ofResources ResourcesEmployer Contributions Subsequent to the Measurement Date 494,883$ -$ Differences Between Expected and Actual Experience - (7,431,258) Changes of Assumptions 4,106,616 (6,947,590) Total 4,601,499$ (14,378,848)$ $494,883 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, 2024. Other amounts reported as deferred outflows/inflows of resources related to OPEB will be recognized as expense as follow:

DeferredOutflows/(Inflows) ofYear Ending June 30,Resources2024 (1,562,708)$ 2025 (1,562,708) 2026 (1,562,704) 2027 (1,173,488) 2028 (815,704) Thereafter (3,594,920) Payable to the OPEB Plan
At June 30, 2023, the City had no outstanding amount of contributions to the OPEB plan required for the year ended June 30, 2023.

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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, 2022 measurement date, the following current and former employees were covered by the benefit terms under the Plan:

Active Employees 85 Inactive Employees or Beneficiaries Currently Receiving Benefits 38 Inactive Employees Entitled to, But Not Yet Receiving Benefits 6 Total 129 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, 2023, the District’s cash contributions were $247,663 for current premiums, administrative costs of $965, and the estimated implied subsidy was $66,000 resulting in total payments of $314,628.

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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, 2022 and was determined by an actuarial valuation as of June 30, 2022.

Changes in Actuarial Assumptions
The following actuarial assumption changes occurred form the measurement periods ended June 30, 2021 to 2022:

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NOTE 14 OTHER POSTEMPLOYMENT BENEFIT (OPEB) PLANS (CONTINUED) Other Postemployment Benefits Plan – Water District Plan (Continued) Changes in the Total OPEB Liability
The changes in the total OPEB liability for the District Plan are as follows:

Total OPEBLiabilityTotal OPEB Liability at June 30, 2021 (MD) 12,528,232$ Service Cost 626,941 Interest 281,198 Differences Between Expected and Actual Experience 987,796 Changes of Assumptions (2,488,667) Benefit Payments (273,537) Net Changes (866,269) Total OPEB Liability at June 30, 2022 (MD) 11,661,963$ 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(2.54%) (3.54%) (4.54%)Total OPEB Liability 13,625,698$ 11,661,963$ 10,082,917$ Discount Rate

1% Decrease Current Rate 1% IncreaseTotal OPEB Liability 9,896,799$ 11,661,963$ 13,927,124$ Healthcare Trend Rate

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NOTE 14 OTHER POSTEMPLOYMENT BENEFIT (OPEB) PLANS (CONTINUED) Other Postemployment Benefits Plan – Water District Plan (Continued) Recognition of Deferred Outflows and Deferred Inflows of Resources (Continued) 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 YearsAll Other Amounts Expected average remaining servicelifetime (EARSL) (8.1 Years atJune 30, 2022 measurement date) OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2023, the District recognized OPEB expense of $412,564. As of the fiscal year ended June 30, 2023, the District reported deferred outflows/inflows of resources related to OPEB from the following sources:

Deferred DeferredOutflows of Inflows ofResources ResourcesEmployer Contributions Subsequent to the Measurement Date 314,628$ -$ Differences Between Expected and Actual Experience 865,846 (1,285,944) Changes of Assumptions 1,527,140 (2,699,394) Total 2,707,614$ (3,985,338)$ The $314,628 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, 2024. Other amounts reported as deferred outflows/inflows of resources related to OPEB will be recognized as expense as follows:

DeferredOutflows/(Inflows) ofYear Ending June 30,Resources2024 (496,247)$ 2025 (458,997) 2026 (246,056) 2027 9,782 2028 (48,948) Thereafter (351,886) Payable to the OPEB Plan
At June 30, 2023, the District had no outstanding amount of contributions to the OPEB plan required for the year ended June 30, 2023.

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NOTE 14 OTHER POSTEMPLOYMENT BENEFIT (OPEB) PLANS (CONTINUED) Summary of OPEB Amounts for Government-Wide Financial Statements

Total OPEB Deferred DeferredLiability Outflows InflowsCity OPEB Plan (23,607,500)$ 4,601,499$ (14,378,848)$ Water District OPEB Plan (11,661,963) 2,707,614 (3,985,338) Total (35,269,463)$ 7,309,113$ (18,364,186)$

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:

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, Twentynine 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. Contribution 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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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, 2023 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, 2023:

City’s Share ofJoint VenturePercentage Total Joint City’s Equity Net IncomeOwnership Venture Equity Interest (Loss)50% 680,460$ 340,230$ (146,733)$ 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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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 $12,864,849 to VVWRA for the year ended June 30, 2023. 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 written request to Victor Valley Wastewater Reclamation Authority, 20111 Shay Road, Victorville, CA 92394.

Consolidated Fire Agencies JPA (CONFIRE)
In 2022, the City joined Consolidated Fire Agencies (CONFIRE), a Joint Powers Authority (JPA), located in San Bernardino County established to provide communications, dispatch, computer information systems support, and geographic information systems to CONFIRE members and contract agencies.

The CONFIRE Communications Center's (Comm Center) primary function is to provide 24-hour/365-day direct fire, EMS, and rescue dispatch services to CONFIRE’s member and contract agencies. Beyond the direct fire dispatch role, Comm Center also functions as the San Bernardino County Operational Area dispatch, which provides large incident coordination for fire, local government, and emergency medical resources on a countywide basis. Comm Center also provides after-hours dispatch services for local government, i.e.

County Public Health and Road Departments, and the City of Loma Linda.

Each member agency has one elected official that is appointed to the CONFIRE Board of Directors by the legislative body of each party. The Board of Directors is responsible for adopting the CONFIRE budget, for establishing assessments to member agencies, and for establishing overall fiscal policy. The Board also establishes the overall policy direction or CONFIRE and its operation and assures that the well-being and interests of each of the agencies or entities are maintained. Each Board member has one vote.

CONFIRE bills each member agency quarterly for the required fiscal contributions determined by the Board. In the fiscal year ended June 30, 2023, the City contributed $1,324,313.

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NOTE 15 JOINTLY GOVERNED ORGANIZATIONS (CONTINUED)
Consolidated Fire Agencies JPA (CONFIRE) (Continued)
In fiscal year 2022-2023, CONFIRE joined the San Bernardino County Employees’ Retirement Association (SBCERA). Each member agency is jointly and severably liable for the entire retirement obligation and liability to SBCERA (San Bernadino County Employees’ Retirement Association). With regard to other CONFIRE liabilities, each party is responsible for its pro-rata share of any obligation which was incurred at a time when that entity was a party.

In the case of a member withdrawal, notice of intent to withdraw must be presented in writing to the Chairperson of the Board of Directors of CONFIRE with proof of certified mail.

No party may withdraw until they have either paid in full their pro-rata share of all outstanding debts and obligations that were incurred while they were a Party. This includes long-term debt, pension obligations and multi-fiscal-year debt. Or executed a contract with CONFIRE to pay for all outstanding debts and obligations incurred while they were a party.

CONFIRE can be dissolved and terminated by a Board vote of not less than 90% of the total parties at that time. No assets may be distributed until all outstanding debts and obligations have been resolved. Resolved means that each Party has (a) either paid their pro-rata share of all outstanding debts and obligations that were incurred while they were a Party; or (b) executed a contract with CONFIRE to pay for all outstanding debts and obligations incurred while they were a Party; and (c) all assets of CONFIRE will be distributed in proportion to the contributions of the Parties during the fiscal year of distribution.

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 31 participating member agencies, 21 cities with populations ranging from 2,300 to 198,000, 3 transit agencies, and 6 special districts. The City participates in the liability, workers’ 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 officials’ 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 protection 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 andBeginning Changes in Claim Ending Due WithinYear Balance Estimates Payments Balance One Year2021-22 5,461,890$ 427,311$ (2,172,268)$ 3,716,933$ 1,490,000$ 2022-23 3,716,933 1,193,497 (1,353,717) 3,556,713 740,000

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, 2023, for the 2002 Series A and 2005 Series A was $510,000 and $1,950,000, 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 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, 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, 2023 was $2,525,000.

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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. A commitment was executed on November 1, 2021 for the purchase of future electricity with Shell between January 1, 2023 through December 31, 2024. 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 4% 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 projected “Commercial Operation Date” is May 2024, 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)
B. Commitments for the Purchase of Electricity (Continued) The City also entered into a Renewable Power Purchase and Sale Agreement with Gaskell West 2 LLC (Gaskell West 2), effective October 27, 2021 (the Gaskell West 2 PPA), for the purchase of renewable energy and battery storage from a 29 MW solar photovoltaic electric generating facility combined with a 20 MW/80 MWh lithium-ion battery storage facility, to be located in Kern County, California. The Gaskell West 2 solar project is under development by Recurrent Energy. Pursuant to the Gaskell West 2 PPA, the City has agreed to purchase a 10 MW share of the output of the project (as delivered), including all energy, environmental attributes and capacity attributes associated therewith, and an 8 MW interest in the battery energy storage system. The term of the Gaskell West 2 PPA is for 25 years from the commercial operation date for the power purchase and 20 years for the battery storage product.

C. Southern California Logistics Airport Authority and Stirling Enterprise LLC In the early 1990s 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.

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NOTE 18 COMMITMENTS AND CONTINGENCIES (CONTINUED)
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.

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 the Authority.

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JUNE 30, 2023

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NOTE 18 COMMITMENTS AND CONTINGENCIES (CONTINUED)
F. Construction Commitments
The following material construction commitments existed at June 30, 2023:

Project Title CommitmentCC21-102 BV Overhead Bridge at BNSF Railroad 3,025,922$ CC23-020 Village Tawney Ridge Traffic Signal 360,752 CC23-024 Guard Rail (Fed fund) 10,553 CC23-033 Civic Area Pavement Rehabilitation 360,730 CC23-067 Sewer Main Lining for 2023 1,232,074 Wellness Center Phase 1 200,663

NOTE 19 SALES TAX ABATEMENTS
On September 7, 2012, the City Council approved 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, 2023 the City did remit payments totaling $408,960 to Macerich for sales tax revenue earned from January 2022 to December 2022.

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.

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 fiscal year 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 fiscal year 12/13.

The decrease was largely the result of the Great Recession. Since fiscal year 12/13, assessed values have increased steadily. For fiscal year 20/21, the assessed value for the Project Area was approximately $9.99 billion. 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.

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JUNE 30, 2023

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NOTE 20 SCLAA’S FINANCIAL CONDITION, SIGNIFICANT FINANCIAL OBLIGATIONS, AND

MANAGEMENT PLANS (CONTINUED)
During fiscal year 19/20 and 20/21, SCLAA had results that were not as favorable as fiscal year 18/19 with a net loss of $3.5 million and $2.5 million, respectively. However, in fiscal years 21/22 and 22/23, SCLAA had a positive net income of $782,286 and $15,894,051, respectively. A summary of the financial condition of the SCLAA enterprise fund is as follows:

SCLAA DeficitBalanceBeginning Net Position (123,650,976)$ Net Income (Loss) 16,492,949 Ending Net Position (107,158,027)$ 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. In October 2022, the outstanding balance of the loan was repaid.

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.

CITY OF VICTORVILLE

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

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NOTE 21 SUCCESSOR AGENCY TRUST FOR ASSETS OF THE FORMER REDEVELOPMENT

AGENCY (CONTINUED)
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
General Fund
The General Fund, acting as lessor, leases buildings and land under long-term, noncancelable lease agreements. The leases expire at various dates through 2123 and provide for renewal options ranging from 1 year to 55 years. Certain leases provide for increases in future minimum annual rental payments based on a defined percent in the contract or increases in the Consumer Price Index, subject to certain minimum increases.

During the year ended June 30, 2023, the General Fund recognized $143,464 and $80,142 in lease revenue and interest revenue, respectively, pursuant to these contracts.

SCLAA Enterprise Fund
The SCLAA, acting as lessor, leases buildings and land under long-term, non-cancelable lease agreements. The leases expire at various dates through 2056 and provide for renewal options ranging from 1 year to 55 years. During the year ended June 30, 2023, the SCLAA recognized $8,159,454 and $1,624,219 in lease revenue and interest revenue, respectively, pursuant to these contracts.

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JUNE 30, 2023

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NOTE 22 LEASES (CONTINUED)
Certain leases provide for increases in future minimum annual rental payments based on a defined percent in the contract or increases in the Consumer Price Index, subject to certain minimum increases. Lease revenue comprises a majority of the SCLAA’s operating revenues, therefore, this activity is considered to be the principal operation of the SCLAA.

Total future minimum lease payments to be received under lease agreements are as follows:

Year Ending June 30, Principal Interest Total2024 7,770,582$ 1,784,891$ 9,555,473$ 2025 7,020,478 1,700,945 8,721,423 2026 6,996,082 1,644,500 8,640,582 2027 7,201,850 1,521,580 8,723,430 2028 7,553,445 1,312,066 8,865,511 2029-2033 30,788,077 4,412,609 35,200,686 2034 -2038 11,193,728 1,722,627 12,916,355 2039-2043 3,962,741 1,079,111 5,041,852 2044-2048 4,144,818 638,687 4,783,505 2049-2053 3,279,898 254,237 3,534,135 2054-2056 1,066,194 27,697 1,093,891 Total 90,977,893$ 16,098,950$ 107,076,843$ Sanitary Enterprise Fund
The Sanitary Enterprise Fund, acting as lessor, leases a land under a long-term, noncancelable lease agreement. The lease expires in 2069 and provides for increases in future minimum annual rental payments based on increases in the Consumer Price Index, subject to certain minimum increases. During the year ended June 30, 2023, the Sanitary Enterprise Fund recognized $-0- and $51,447 in lease revenue and interest revenue, respectively, pursuant to this contract.

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REQUIRED SUPPLEMENTARY INFORMATION

CITY OF VICTORVILLE

SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS

DURING THE MEASUREMENT PERIOD (AGENT PLAN)
LAST TEN FISCAL YEARS*

See accompanying Note to Required Supplementary Information. (126)
Reporting Fiscal Year(Measurement Date)Total Pension Liability:Service CostInterestChanges of AssumptionsDifference Between Expected and Actual ExperienceBenefit Payments, Including Refunds of Employee Contributions Net Change in Total Pension LiabilityTotal Pension Liability – BeginningTotal Pension Liability – Ending (a)Plan Fiduciary Net Position:Plan to Plan Resource MovementContributions – EmployerContributions – EmployeeNet Investment Income Benefit Payments, Including Refunds of Employee ContributionsAdministrative Expense Other Miscellaneous Inc (Exp)Net Change in Fiduciary Net PositionPlan Fiduciary Net Position – BeginningPlan Fiduciary Net Position – Ending (b)Plan Net Pension Liability – Ending (a) - (b)Plan Fiduciary Net Position as a Percentage of the Total Pension LiabilityCovered PayrollPlan Net Pension Liability as a Percentage of Covered Payroll 2023 2022 2021 2020 2019(2022) (2021) (2020) (2019) (2018)4,702,701$ 4,361,938$ 3,917,361$ 3,878,156$ 3,925,313$ 15,892,288 15,327,363 14,388,003 13,664,664 12,780,111 8,923,031 - - - (1,453,429) (3,062,363) 3,594,527 901,693 3,533,778 1,426,643 (10,126,951) (9,405,164) (8,563,342) (8,131,659) (7,556,833) 16,328,706 13,878,664 10,643,715 12,944,939 9,121,805 227,174,475 213,295,811 202,652,096 189,707,157 180,585,352 243,503,181 227,174,475 213,295,811 202,652,096 189,707,157 - - - - (332) 6,751,004 5,963,725 5,479,864 4,590,346 4,017,440 2,011,858 1,889,577 1,928,672 1,749,709 1,942,720 (14,410,875) 35,514,329 7,528,774 9,361,466 11,287,052 (10,126,951) (9,405,164) (8,563,342) (8,131,659) (7,556,833) (118,949) (156,975) (212,846) (102,414) (209,479) - - - 332 (397,805) (15,893,913) 33,805,492 6,161,122 7,467,780 9,082,763 190,947,409 157,141,917 150,980,795 143,513,015 134,430,252 175,053,496$ 190,947,409$ 157,141,917$ 150,980,795$ 143,513,015$ 68,449,685$ 36,227,066$ 56,153,894$ 51,671,301$ 46,194,142$ 71.89% 84.05% 73.67% 74.50% 75.65%26,035,500$ 24,525,949$ 24,562,823$ 22,226,999$ 22,506,989 262.91% 147.71% 228.61% 232.47% 205.24% 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, 2022:There were no significant changes in assumptions.From fiscal year June 30, 2022 to June 30, 2023:The discount rate and long-term rate of return decreased from 7.15% to 6.90% and the inflation rate decreased from 2.50% to 2.30%.*Fiscal year 2015 was the first year of implementation, therefore, only nine 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. (127)
Reporting Fiscal Year(Measurement Date)Total Pension Liability:Service CostInterestChanges of AssumptionsDifference Between Expected and Actual ExperienceBenefit Payments, Including Refunds of Employee Contributions Net Change in Total Pension LiabilityTotal Pension Liability – BeginningTotal Pension Liability – Ending (a)Plan Fiduciary Net Position:Plan to Plan Resource MovementContributions – EmployerContributions – EmployeeNet Investment Income Benefit Payments, Including Refunds of Employee ContributionsAdministrative Expense Other Miscellaneous Inc (Exp)Net Change in Fiduciary Net PositionPlan Fiduciary Net Position – BeginningPlan Fiduciary Net Position – Ending (b)Plan Net Pension Liability – Ending (a) - (b)Plan Fiduciary Net Position as a Percentage of the Total Pension LiabilityCovered PayrollPlan Net Pension Liability as a Percentage of Covered Payroll 2018 2017 2016 2015(2017) (2016) (2015) (2014)3,913,955$ 3,391,116$ 3,399,557$ 3,479,263$ 12,143,449 11,593,629 10,950,745 10,425,889 10,784,766 - (2,900,838) - (1,294,528) (114,587) (1,452,436) - (6,707,043) (6,190,255) (5,465,312) (5,288,466) 18,840,599 8,679,903 4,531,716 8,616,686 161,744,753 153,064,850 148,533,134 139,916,448 180,585,352 161,744,753 153,064,850 148,533,134 - - 29,796 - 3,945,743 3,406,692 3,132,116 2,729,427 1,762,125 1,615,618 1,655,311 1,675,275 13,554,180 663,966 2,712,238 18,040,044 (6,707,043) (6,190,255) (5,465,312) (5,288,466) (180,207) (74,739) (138,171) (138,890) - - - - 12,374,798 (578,718) 1,925,978 17,017,390 122,055,454 122,634,172 120,708,194 103,690,804 134,430,252$ 122,055,454$ 122,634,172$ 120,708,194$ 46,155,100$ 39,689,299$ 30,430,678$ 27,824,940$ 74.44% 75.46% 80.12% 81.27%22,354,507 19,918,813 19,872,318 19,389,560 206.47% 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. (128)
Fiscal YearContractually Required Contribution (Actuarially Determined)Contributions in Relation to the Actuarially Determined ContributionsContribution Deficiency (Excess)Covered PayrollContributions as a Percentage of Covered PayrollNotes to Schedule:Valuation DateMethods and Assumptions Used to Determine Contribution Rates:Actuarial Cost MethodAmortization MethodAsset Valuation MethodInflationSalary IncreasesInvestment Rate of ReturnRetirement AgeMortality 2022-2023 2021-2022 2020-2021 2019-2020 2018-20198,144,580$ 6,748,512$ 5,961,400$ 5,477,574$ 4,622,469$ (8,144,580) (6,748,512) (5,961,400) (5,477,574) (4,622,469) -$ -$ -$ -$ -$ 31,453,365$ 26,035,500$ 24,525,949$ 24,562,823$ 22,226,999$ 25.89% 25.92% 24.31% 22.30% 20.80%6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016Entry Age Entry Age Entry Age Entry Age Entry Age(1) (1) (1) (1) (1)Fair Value Fair Value Fair Value Fair Value Fair Value2.300% 2.50% 2.50% 2.63% 2.75%(2) (2) (2) (2) (2)6.90% (3) 7.00% (3) 7.00% (3) 7.25% (3) 7.375% (3)(4) (4) (4) (4) (4)(5) (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 nine years are shown.

CITY OF VICTORVILLE

SCHEDULE OF PLAN CONTRIBUTIONS (AGENT PLAN) (CONTINUED) LAST TEN FISCAL YEARS*

See accompanying Note to Required Supplementary Information. (129)
Fiscal YearContractually Required Contribution (Actuarially Determined)Contributions in Relation to the Actuarially Determined ContributionsContribution Deficiency (Excess)Covered PayrollContributions as a Percentage of Covered PayrollNotes to Schedule:Valuation DateMethods and Assumptions Used to Determine Contribution Rates:Actuarial Cost MethodAmortization MethodAsset Valuation MethodInflationSalary IncreasesInvestment Rate of ReturnRetirement AgeMortality 2017-2018 2016-2017 2015-2016 2014-20154,014,719$ 3,787,877$ 3,504,788$ 3,132,116$ (4,014,719) (3,787,877) (3,504,788) (2,923,805) -$ -$ -$ 208,311$ 22,506,989$ 22,354,507$ 19,918,813$ 19,872,318$ 17.84% 16.94% 17.60% 15.76%6/30/2015 6/30/2014 6/30/2013 6/30/2012Entry Age Entry Age Entry Age Entry Age(1) (1) (1) (1)Fair Value Fair Value Fair Value 15-YearSmoothedMarket Method2.75% 2.75% 2.75% 2.75%(2) (2) (2) (2)7.50% (3) 7.50% (3) 7.50% (3) 7.50% (3)(4) (4) (4) (4)(5) (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. (130)
Reporting Fiscal Year(Measurement Date)Plan’s Proportion of the Net Pension LiabilityPlan’s Proportionate Share of the Net Pension LiabilityPlan’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 Liability2023 2022 2021 2020 2019(2022) (2021) (2020) (2019) (2018)20.10300% 0.21104% 0.18786% 0.19301% 0.19843%13,813,980$ 7,406,301$ 12,515,992$ 12,048,837$ 11,643,274$ 5,534,300$ 5,123,885$ 4,931,300$ 2,530,529$ N/A249.61% 144.54% 253.81% 476.14% N/A0.12520% 0.14623% 0.12039% 0.12227% 0.12558% 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 planinvestment 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, 2021:There were no changes in assumptions.From fiscal year June 30, 2022 to June 30, 2023:The discount rate and long-term rate of return decreased from 7.15% to 6.90% and the inflation rate decreased from 2.50% to 2.30%.*Fiscal year 2015 was the first year of implementation, therefore, only nine years are shown.**The plan has no active members until fiscal year ended June 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. (131)
Reporting Fiscal Year(Measurement Date)Plan’s Proportion of the Net Pension LiabilityPlan’s Proportionate Share of the Net Pension LiabilityPlan’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 Liability2018 2017 2016 2015(2017) (2016) (2015) (2014)0.19780% 0.20676% 0.21750% 0.20657%11,818,679$ 10,708,540$ 8,961,994$ 7,748,626$ N/A N/A N/A N/AN/A N/A N/A N/A0.12223% 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. (132)
Fiscal YearContractually Required Contribution (Actuarially Determined)Contributions in Relation to the Actuarially Determined ContributionContribution Deficiency (Excess)Covered Payroll **Contributions as a Percentage of Covered Payroll **Notes to Schedule:Valuation DateMethods and Assumptions Used to Determine Contribution Rates:Actuarial Cost MethodAmortization MethodAsset Valuation MethodInflationSalary IncreasesInvestment Rate of ReturnMortality 2022-2023 2021-2022 2020-2021 2019-2020 2018-20192,154,542$ 1,910,223$ 1,820,085$ 1,737,805$ 1,406,021$ (2,154,542) (1,910,223) (1,820,085) (1,737,805) (1,406,021) -$ -$ -$ -$ -$ 6,864,378 5,534,300 5,123,885 4,931,300 2,530,529 31.39% 34.52% 35.52% 35.24% 55.56%6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016Entry Age Entry Age Entry Age Entry Age Entry Age(1) (1) (1) (1) (1)Fair Value Fair Value Fair Value Fair Value Fair Value2.300% 2.50% 2.50% 2.63% 2.75%(2) (2) (2) (2) (2)6.90% (3) 7.00% (3) 7.00% (3) 7.25% (3) 7.375% (3)(4) (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 nine 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. (133)
Fiscal YearContractually Required Contribution (Actuarially Determined)Contributions in Relation to the Actuarially Determined ContributionContribution Deficiency (Excess)Covered Payroll **Contributions as a Percentage of Covered Payroll **Notes to Schedule:Valuation DateMethods and Assumptions Used to Determine Contribution Rates:Actuarial Cost MethodAmortization MethodAsset Valuation MethodInflationSalary IncreasesInvestment Rate of ReturnMortality 2017-2018 2016-2017 2015-2016 2014-2015862,264$ 700,198$ 650,960$ 585,811$ (862,264) (700,198) (650,960) (585,811) -$ -$ -$ -$ N/A N/A N/A N/AN/A N/A N/A N/A6/30/2015 6/30/2014 6/30/2013 6/30/2012Entry Age Entry Age Entry Age Entry Age(1) (1) (1) (1)Fair Value Fair Value Fair Value 15-YearSmoothedMarket Method2.75% 2.75% 2.75% 2.75%(2) (2) (2) (2)7.50% (3) 7.50% (3) 7.50% (3) 7.50% (3)(4) (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. (134)
Reporting Fiscal Year(Measurement Date)Total OPEB Liability:Service CostInterest on the Total OPEB LiabilityChanges of AssumptionsDifferences Between Expected and Actual ExperienceChanges of Benefit TermsBenefit Payments, Including Refunds and the Implied Subsidy Benefit PaymentsNet Change in Total OPEB LiabilityTotal OPEB Liability - BeginningTotal OPEB Liability - EndingPlan Fiduciary Net Position as a Percentage of the Total OPEB LiabilityCovered-Employee PayrollTotal OPEB Liability as a Percentage of Covered-Employee PayrollCity Water City Water2,334,220$ 626,941$ 2,235,761$ 600,360$ 704,405 281,198 657,508 271,338 (5,816,473) (2,488,667) 278,410 105,768 (3,673,118) 987,796 - - - - - - (437,336) (273,537) (383,313) (253,227) (6,888,302) (866,269) 2,788,366 724,239 30,495,802 12,528,232 27,707,436 11,803,993 23,607,500$ 11,661,963$ 30,495,802$ 12,528,232$ 0.00% 0.00% 0.00% 0.00%32,718,185$ 7,778,497$ 30,916,888$ 7,710,052$ 72.15% 149.93% 98.64% 162.49%June 30, 2022(June 30, 2021)June 30, 2023(June 30, 2022)

Notes to Schedule:Changes in assumptions: Discount rate 3.54% 3.54% 2.16% 2.16%Mortality improvement rates Scale MP-2021 Scale MP-2021 Scale MP-2020 Scale MP-2020The 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%. In the June 30, 2022 measurement period, the following medical trend rates changed: Non-Medicare increased from 7.0% to 8.5%; Medicare increased from 6.1% to 7.5%; and Kaiser increased from 7.0% to 6.25%.*Fiscal year 2018 was the first year of implementation, therefore, only six 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. (135)
Reporting Fiscal Year(Measurement Date)Total OPEB Liability:Service CostInterest on the Total OPEB LiabilityChanges of AssumptionsDifferences Between Expected and Actual ExperienceChanges of Benefit TermsBenefit Payments, Including Refunds and the Implied Subsidy Benefit PaymentsNet Change in Total OPEB LiabilityTotal OPEB Liability - BeginningTotal OPEB Liability - EndingPlan Fiduciary Net Position as a Percentage of the Total OPEB LiabilityCovered-Employee PayrollTotal OPEB Liability as a Percentage of Covered-Employee PayrollCity Water City Water1,486,270$ 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$ 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, 2021(June 30, 2019)June 30, 2020 Notes to Schedule:Changes in assumptions: Discount rateMortality improvement rates2.21% 2.21% 3.50% 3.50%Scale MP-2020 Scale MP-2020 Scale MP-2018 Scale MP-2018

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. (136)
Reporting Fiscal Year(Measurement Date)Total OPEB Liability:Service CostInterest on the Total OPEB LiabilityChanges of AssumptionsDifferences Between Expected and Actual ExperienceChanges of Benefit TermsBenefit Payments, Including Refunds and the Implied Subsidy Benefit PaymentsNet Change in Total OPEB LiabilityTotal OPEB Liability - BeginningTotal OPEB Liability - EndingPlan Fiduciary Net Position as a Percentage of the Total OPEB LiabilityCovered-Employee PayrollTotal OPEB Liability as a Percentage of Covered-Employee PayrollCity Water City Water1,467,025$ 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$ 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 Notes to Schedule:Changes in assumptions: Discount rateMortality improvement rates3.87% 3.87% 3.58% 3.58%Scale MP-2018 Scale MP-2018 Scale MP-2016 Scale MP-2016

CITY OF VICTORVILLE

BUDGETARY COMPARISON SCHEDULE

GENERAL FUND
YEAR ENDED JUNE 30, 2023

See accompanying Note to Required Supplementary Information. (137)

Variance withFinal BudgetPositiveOriginal Final Actual (Negative)REVENUESTaxes and Assessments 93,316,416$ 94,948,730$ 98,302,831$ 3,354,101$ Licenses and Permits 6,246,500 3,222,000 4,036,465 814,465 Intergovernmental 100,000 100,000 141,144 41,144 Charges for Services 17,903,305 16,744,854 18,701,444 1,956,590 Fines and Forfeitures 602,177 717,177 801,755 84,578 Investment Income 12,000 12,000 2,846,097 2,834,097 Other 446,520 581,520 943,353 361,833 Total Revenues 118,626,918 116,326,281 125,773,089 9,446,808 EXPENDITURESCurrent:General Government 23,879,114 24,154,495 19,598,588 4,555,907 Public Safety 62,881,515 65,828,203 58,240,319 7,587,884 Community Development 510,813 510,813 19,168 491,645 Public Works 19,825,189 20,134,006 11,585,105 8,548,901 Parks and Recreation 7,824,281 7,789,412 5,538,665 2,250,747 Capital Outlay 6,384,481 8,240,415 3,388,060 4,852,355 Debt Service:Principal 724,561 724,561 724,561 - Interest on Advances 27,461 36,346 36,346 - Principal - SBITA - - 318,810 (318,810) Interest - SBITA - - 281 (281) Total Expenditures 122,057,415 127,418,251 99,449,903 27,968,348 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES(3,430,497) (11,091,970) 26,323,186 37,415,156 OTHER FINANCING SOURCESSBITA Financing - - 794,266 794,266 Proceeds from Sale of Assets - - 325,234 325,234 Transfers In 14,000 14,000 54,900 40,900 Total Other Financing Sources 14,000 14,000 1,174,400 1,160,400 NET CHANGE IN FUND BALANCES(3,416,497) (11,077,970) 27,497,586 38,575,556 Fund Balances - Beginning of Year 79,658,682 79,658,682 79,658,682 - FUND BALANCES - END OF YEAR76,242,185$ 68,580,712$ 107,156,268$ 38,575,556$ Budgeted Amounts

CITY OF VICTORVILLE

BUDGETARY COMPARISON SCHEDULE

CITY HOUSING ASSET SUCCESSOR SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2023

See accompanying Note to Required Supplementary Information. (138)

Variance withFinal BudgetPositiveOriginal Final Actual (Negative)REVENUESIntergovernmental -$ -$ 250,000$ 250,000$ Gain (Loss) on Sale of Property Held for Resale - - - - Investment Income 322,500 322,500 648,595 326,095 Other - - 26,775 26,775 Total Revenues 322,500 322,500 925,370 602,870 EXPENDITURESCurrent:General Government 10,000 40,000 39,560 440 Community Development 38,949 109,949 511,590 (401,641) Total Expenditures 48,949 149,949 551,150 (401,201) EXCESS OF REVENUES OVER EXPENDITURES273,551 172,551 374,220 201,669 Fund Balances - Beginning of Year 29,390,139 29,390,139 29,390,139 - FUND BALANCES - END OF YEAR29,663,690$ 29,562,690$ 29,764,359$ 201,669$ Budgeted Amounts

CITY OF VICTORVILLE

BUDGETARY COMPARISON SCHEDULE

OTHER STATE / LOCAL GRANTS SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2023

See accompanying Note to Required Supplementary Information. (139)

Variance withFinal BudgetPositiveOriginal Final Actual (Negative)REVENUESIntergovernmental 25,625,416$ 58,391,979$ 21,295,865$ (37,096,114)$ Investment Income - - 283,585 283,585 Total Revenues 25,625,416 58,391,979 21,579,450 (36,812,529) EXPENDITURESCurrent:Public Safety 797,365 1,791,235 226,144 1,565,091 Community Development 3,071,468 3,379,350 1,254,691 2,124,659 Public Works 11,468,362 11,931,117 477,331 11,453,786 Capital Outlay 16,187,802 43,031,866 18,114,413 24,917,453 Total Expenditures 31,524,997 60,133,568 20,072,579 40,060,989 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES(5,899,581) (1,741,589) 1,506,871 3,248,460 OTHER FINANCING SOURCES Proceeds from Sale of Assets 61,253 61,253 - (61,253) NET CHANGE IN FUND BALANCE(5,838,328) (1,680,336) 1,506,871 3,187,207 Fund Balance (Deficit) - Beginning of Year (1,261,999) (1,261,999) (1,261,999) - FUND BALANCE (DEFICIT) - END OF YEAR(7,100,327)$ (2,942,335)$ 244,872$ 3,187,207$ Budgeted Amounts

CITY OF VICTORVILLE

BUDGETARY COMPARISON SCHEDULE
COVID-19 FUNDS SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2023

See accompanying Note to Required Supplementary Information. (140)

Variance withFinal BudgetPositiveOriginal Final Actual (Negative)REVENUESIntergovernmental 35,066,369$ 35,056,463$ 13,935,259$ (21,121,204)$ EXPENDITURESCurrent:General Government 16,174,177 10,053,232 270,385 9,782,847 Public Safety 227,912 100,108 - 100,108 Community Development - 1,470,000 - 1,470,000 Capital Outlay 29,600,246 23,309,386 11,629,757 11,679,629 Total Expenditures 46,002,335 34,932,726 11,900,142 23,032,584 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES(10,935,966) 123,737 2,035,117 1,911,380 Fund Balance (Deficit) - Beginning of Year (2,187,409) (2,187,409) (2,187,409) - FUND BALANCE (DEFICIT) - END OF YEAR(13,123,375)$ (2,063,672)$ (152,292)$ 1,911,380$ Budgeted Amounts

CITY OF VICTORVILLE

NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2023

(141)

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 City Housing Asset Successor Major Special Revenue Fund had total appropriations of $149,949 and actual expenditures of $551,150, which resulted in excess expenditures over appropriations of $401,201 for the year ended June 30, 2023.

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SUPPLEMENTARY INFORMATION

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CITY OF VICTORVILLE

DESCRIPTION OF GENERAL FUNDS
YEAR ENDED JUNE 30, 2023

(145)

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.

Victor Valley Transportation Center
This fund accounts for rental income and corresponding lease and maintenance expenditures for leasing the Victor Valley Transportation Center to the Victor Valley Transit Authority.

Sidewalk Assessment District
This fund accounts for assessment collected on the property tax and is to be used on the maintenance and installation of sidewalks in the City.

CITY OF VICTORVILLE

COMBINING BALANCE SHEET

GENERAL FUND
JUNE 30, 2023

(146)

ASSETSCash and Investments Accounts ReceivableInterest ReceivableDue from Other Funds Advances to Other FundsDue from Other GovernmentsDue from the Successor AgencyLeases ReceivableInventoriesPrepaid ItemsTotal AssetsLIABILITIES, DEFERRED INFLOWS OFRESOURCES, AND FUND BALANCESLIABILITIESAccounts PayableAccrued LiabilitiesDeposits PayableUnearned RevenueTotal LiabilitiesDEFERRED INFLOWS OF RESOURCESLeasesTotal Deferred Inflows of ResourcesFUND BALANCESNonspendable:Advances to Other FundsPrepaid ItemsInventoriesUnassignedTotal Fund BalancesTotal Liabilities, Deferred Inflows of Resources, and Fund Balances FuelingGeneral Measure P Technology Stations45,258,325$ 39,800,812$ 533,085$ 2,436,294$ 1,488,767 36 - 107,828 1,718,546 - - - 5,647,588 - - - 2,916,480 - - - 5,619,874 4,997,330 - - 123,171 - - - 5,961,695 - - - 179,895 - - - 94,853 95,368 - - 69,009,194$ 44,893,546$ 533,085$ 2,544,122$ 2,278,671$ 121,361$ 297$ 92,635$ 1,295,967 - - - 538,203 - - - 1,207 - - - 4,114,048 121,361 297 92,635 5,701,086 - - - 5,701,086 - - - 2,916,480 - - - 94,853 95,368 - - 179,895 - - - 56,002,832 44,676,817 532,788 2,451,487 59,194,060 44,772,185 532,788 2,451,487 69,009,194$ 44,893,546$ 533,085$ 2,544,122$

CITY OF VICTORVILLE

COMBINING BALANCE SHEET

GENERAL FUND (CONTINUED)
JUNE 30, 2023

(147)

ASSETSCash and Investments Accounts ReceivableInterest ReceivableDue from Other Funds Advances to Other FundsDue from Other GovernmentsDue from the Successor AgencyLeases ReceivableInventoriesPrepaid ItemsTotal AssetsLIABILITIES, DEFERRED INFLOWS OFRESOURCES, AND FUND BALANCESLIABILITIESAccounts PayableAccrued LiabilitiesDeposits PayableUnearned RevenueTotal LiabilitiesDEFERRED INFLOWS OF RESOURCESLeasesTotal Deferred Inflows of ResourcesFUND BALANCESNonspendable:Advances to Other FundsPrepaid ItemsInventoriesUnassignedTotal Fund BalancesTotal Liabilities, Deferred Inflows of Resources, and Fund Balances Victor Valley SidewalkTransportation AssessmentCenter District Totals38,931$ 154,703$ 88,222,150$ - - 1,596,631 582 - 1,719,128 - - 5,647,588 - - 2,916,480 - - 10,617,204 - - 123,171 323,159 - 6,284,854 - - 179,895 - - 190,221 362,672$ 154,703$ 117,497,322$ 1,641$ -$ 2,494,605$ - - 1,295,967 - - 538,203 - - 1,207 1,641 - 4,329,982 309,986 - 6,011,072 309,986 - 6,011,072 - - 2,916,480 - - 190,221 - - 179,895 51,045 154,703 103,869,672 51,045 154,703 107,156,268 362,672$ 154,703$ 117,497,322$

CITY OF VICTORVILLE

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES

GENERAL FUND
YEAR ENDED JUNE 30, 2023

(148)

REVENUESTaxes and AssessmentsLicenses and PermitsIntergovernmentalCharges for ServicesFines and ForfeituresInvestment Income OtherTotal RevenuesEXPENDITURESCurrent:General GovernmentPublic SafetyCommunity DevelopmentPublic WorksParks and RecreationCapital OutlayDebt Service:PrincipalInterest and Loan FeesPrincipal - SBITAInterest - SBITATotal ExpendituresEXCESS OF REVENUES OVER (UNDER) EXPENDITURESOTHER FINANCING SOURCES (USES)SBITA FinancingProceeds from Sale of AssetsTransfers InTransfers Out Total Other Financing Sources (Uses)NET CHANGE IN FUND BALANCESFund Balances - Beginning of YearFUND BALANCES - END OF YEAR FuelingGeneral Measure P Technology Stations69,042,576$ 29,260,255$ -$ -$ 4,036,465 - - - 141,144 - - - 15,886,232 1,090,289 272,730 1,456,687 801,755 - - - 1,859,863 974,147 - - 904,225 - - - 92,672,260 31,324,691 272,730 1,456,687 18,609,075 699,338 290,175 - 53,105,401 5,134,918 - - - 19,168 - - 7,800,485 2,503,746 - 1,265,506 5,502,549 36,116 - - 2,176,934 1,126,313 84,813 - - 724,561 - - - 36,346 - - 318,810 - - - 281 - - - 87,513,535 10,280,506 374,988 1,265,506 5,158,725 21,044,185 (102,258) 191,181 794,266 - - - 325,234 - - - 4,892,289 - - - - (4,837,389) - - 6,011,789 (4,837,389) - - 11,170,514 16,206,796 (102,258) 191,181 48,023,546 28,565,389 635,046 2,260,306 59,194,060$ 44,772,185$ 532,788$ 2,451,487$

CITY OF VICTORVILLE

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES

GENERAL FUND (CONTINUED)
YEAR ENDED JUNE 30, 2023

(149)

REVENUESTaxes and AssessmentsLicenses and PermitsIntergovernmentalCharges for ServicesFines and ForfeituresInvestment Income OtherTotal RevenuesEXPENDITURESCurrent:General GovernmentPublic SafetyCommunity DevelopmentPublic WorksParks and RecreationCapital OutlayDebt Service:PrincipalInterest and Loan FeesPrincipal - SBITAInterest - SBITATotal ExpendituresEXCESS OF REVENUES OVER (UNDER) EXPENDITURESOTHER FINANCING SOURCES (USES)SBITA FinancingProceeds from Sale of AssetsTransfers InTransfers Out Total Other Financing Sources (Uses)NET CHANGE IN FUND BALANCESFund Balances - Beginning of YearFUND BALANCES - END OF YEAR Victor Valley SidewalkTransportation AssessmentCenter District Eliminations Totals-$ -$ -$ 98,302,831$ - - - 4,036,465 - - - 141,144 (4,494) - - 18,701,444 - - - 801,755 8,157 3,930 - 2,846,097 39,128 - - 943,353 42,791 3,930 - 125,773,089 - - - 19,598,588 - - - 58,240,319 - - - 19,168 15,368 - - 11,585,105 - - - 5,538,665 - - - 3,388,060 - - - 724,561 - - - 36,346 - - - 318,810 - - - 281 15,368 - - 99,449,903 27,423 3,930 - 26,323,186 - - - 794,266 - - - 325,234 - - (4,837,389) 54,900 - - 4,837,389 - - - - 1,174,400 27,423 3,930 - 27,497,586 23,622 150,773 - 79,658,682 51,045$ 154,703$ -$ 107,156,268$

CITY OF VICTORVILLE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE –

BUDGET AND ACTUAL
CAPITAL IMPACT FACILITIES – MAJOR FUND
YEAR ENDED JUNE 30, 2023

(150)

Variance withFinal BudgetPositiveOriginal Final Actual (Negative)REVENUESCharges for Services 13,472,445$ 13,472,445$ 9,155,653$ (4,316,792)$ Investment Income 24,250 24,250 598,030 573,780 Other 1,500 1,500 - (1,500) Total Revenues 13,498,195 13,498,195 9,753,683 (3,744,512) EXPENDITURESCurrent:General Government 554 554 554 - Public Safety 506 506 506 - Public Works 71,877 71,877 63,430 8,447 Parks and Recreation 18,288 18,288 18,288 - Capital Outlay 12,429,278 15,319,489 7,634,362 7,685,127 Debt Service:Interest on Advances 25,750 25,750 - 25,750 Total Expenditures 12,546,253 15,436,464 7,717,140 7,719,324 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES951,942 (1,938,269) 2,036,543 3,974,812 OTHER FINANCING SOURCES Proceeds from Sale of Assets - - 575,000 575,000 NET CHANGE IN FUND BALANCES951,942 (1,938,269) 2,611,543 4,549,812 Fund Balance - Beginning of Year 22,433,464 22,433,464 22,433,464 - FUND BALANCE - END OF YEAR23,385,406$ 20,495,195$ 25,045,007$ 4,549,812$ Budgeted Amounts

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NONMAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS

Special revenue funds are used to account for revenue 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 that have significant inter-jurisdictional or regional traffic.

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.

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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 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.

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 environments, and expanding economic opportunities for persons of low and moderate incomes.

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.

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CITY OF VICTORVILLE

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2023

(154)

ASSETSCash and InvestmentsAccounts ReceivableNotes ReceivableDue from Other GovernmentsPrepaid ItemsTotal AssetsLIABILITIES, DEFERRED INFLOWS OFRESOURCES, AND FUND BALANCESLIABILITIESAccounts PayableDeposits PayableDue to Other FundsUnearned RevenueTotal LiabilitiesDEFERRED INFLOWS OF RESOURCESUnavailable RevenueTotal Deferred Inflows of ResourcesFUND BALANCES (DEFICIT)Nonspendable:Prepaid ItemsSpendable:Restricted:Public SafetyHighways and Street ProjectsCommunity DevelopmentUnassignedTotal Fund Balances (Deficit)Total Liabilities, Deferred Inflows of Resources, and Fund Balances LandscapeStreetTraffic AssetMeasure IMaintenanceLightingSafetySeizure15,597,051$ 11,109,728$ 2,410,417$ -$ 57,035$ 1,870,507 7,950 984 7,038 - 10,753 - - - - - 16,629 35,452 - - 1,133 1,198 719 - - 17,479,444$ 11,135,505$ 2,447,572$ 7,038$ 57,035$ 136,704$ 136,077$ 239,871$ -$ -$ - - - - - - - - - - - - - - - 136,704 136,077 239,871 - - 613,144 - - - - 613,144 - - - - 1,133 1,198 719 - - - - - - 57,035 16,728,463 10,998,230 2,206,982 7,038 - - - - - - - - - - - 16,729,596 10,999,428 2,207,701 7,038 57,035 17,479,444$ 11,135,505$ 2,447,572$ 7,038$ 57,035$

CITY OF VICTORVILLE

COMBINING BALANCE SHEET (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2023

(155)

ASSETSCash and InvestmentsAccounts ReceivableNotes ReceivableDue from Other GovernmentsPrepaid ItemsTotal AssetsLIABILITIES, DEFERRED INFLOWS OFRESOURCES, AND FUND BALANCESLIABILITIESAccounts PayableDeposits PayableDue to Other FundsUnearned RevenueTotal LiabilitiesDEFERRED INFLOWS OF RESOURCESUnavailable RevenueTotal Deferred Inflows of ResourcesFUND BALANCES (DEFICIT)Nonspendable:Prepaid ItemsSpendable:Restricted:Public SafetyHighways and Street ProjectsCommunity DevelopmentUnassignedTotal Fund Balances (Deficit)Total Liabilities, Deferred Inflows of Resources, and Fund Balances Storm DrainGasTransportation Other Federal HUDUtilityTax Tax GrantsGrants4,140,250$ 4,979,724$ 599,074$ -$ 52,793$ 1,463 1,713 1,000 - - - - 3,389 - 1,556,049 - 1,157,270 244,000 8,443,979 767,462 1,049 2,107 - - - 4,142,762$ 6,140,814$ 847,463$ 8,443,979$ 2,376,304$ 61,280$ 19,551$ 29,640$ 2,643,248$ 153,325$ - 105 7,529 - - - - - 5,647,588 - - - - 88,769 - 61,280 19,656 37,169 8,379,605 153,325 - - 244,000 8,443,979 571,292 - - 244,000 8,443,979 571,292 1,049 2,107 - - - - - - - - 4,080,433 6,119,051 566,294 - - - - - - 1,651,687 - - - (8,379,605) - 4,081,482 6,121,158 566,294 (8,379,605) 1,651,687 4,142,762$ 6,140,814$ 847,463$ 8,443,979$ 2,376,304$

CITY OF VICTORVILLE

COMBINING BALANCE SHEET (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2023

(156)

ASSETSCash and InvestmentsAccounts ReceivableNotes ReceivableDue from Other GovernmentsPrepaid ItemsTotal AssetsLIABILITIES, DEFERRED INFLOWS OFRESOURCES, AND FUND BALANCESLIABILITIESAccounts PayableDeposits PayableDue to Other FundsUnearned RevenueTotal LiabilitiesDEFERRED INFLOWS OF RESOURCESUnavailable RevenueTotal Deferred Inflows of ResourcesFUND BALANCES (DEFICIT)Nonspendable:Prepaid ItemsSpendable:Restricted:Public SafetyHighways and Street ProjectsCommunity DevelopmentUnassignedTotal Fund Balances (Deficit)Total Liabilities, Deferred Inflows of Resources, and Fund Balances EngineeringFoxboroughSecurityRailTotals2,821,576$ 515,759$ 42,283,407$ - - 1,890,655 - - 1,570,191 - - 10,664,792 - - 6,206 2,821,576$ 515,759$ 56,415,251$ 61,275$ 16,074$ 3,497,045$ 2,760,183 - 2,767,817 - - 5,647,588 - - 88,769 2,821,458 16,074 12,001,219 - - 9,872,415 - - 9,872,415 - - 6,206 - - 57,035 118 499,685 41,206,294 - - 1,651,687 - - (8,379,605) 118 499,685 34,541,617 2,821,576$ 515,759$ 56,415,251$

CITY OF VICTORVILLE

COMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2023

(157)

REVENUESTaxes and AssessmentsIntergovernmentalCharges for ServicesFines and ForfeituresInvestment IncomeOtherTotal RevenuesEXPENDITURESCurrent:Public SafetyCommunity DevelopmentPublic WorksParks and RecreationCapital OutlayDebt Service:Principal - SBITATotal ExpendituresEXCESS OF REVENUES OVER (UNDER) EXPENDITURESOTHER FINANCING SOURCES (USES)SBITA FinancingTransfers OutTotal Other Financing Sources (Uses)NET CHANGE IN FUND BALANCESFund Balances (Deficit) - Beginning of Year, as RestatedFUND BALANCES (DEFICIT) - END OF YEAR Landscape Street Traffic AssetMeasure I Maintenance Lighting Safety Seizure7,145,011$ 2,515,987$ 1,913,341$ -$ -$ - - 918,707 - 12,088 46,545 - - - - - - - 49,373 - 394,377 275,916 59,536 - 1,457 - 7,952 - - - 7,585,933 2,799,855 2,891,584 49,373 13,545 - - - - 7,336 - - - - - 2,359,980 2,225,152 2,503,722 - - - - - - - 1,788,839 25,057 395,702 - - - - - - - 4,148,819 2,250,209 2,899,424 - 7,336 3,437,114 549,646 (7,840) 49,373 6,209 - - - - - - - - (54,900) - - - - (54,900) - 3,437,114 549,646 (7,840) (5,527) 6,209 13,292,482 10,449,782 2,215,541 12,565 50,826 16,729,596$ 10,999,428$ 2,207,701$ 7,038$ 57,035$

CITY OF VICTORVILLE

COMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCE (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2023

(158)

REVENUESTaxes and AssessmentsIntergovernmentalCharges for ServicesFines and ForfeituresInvestment IncomeOtherTotal RevenuesEXPENDITURESCurrent:Public SafetyCommunity DevelopmentPublic WorksParks and RecreationCapital OutlayDebt Service:Principal - SBITATotal ExpendituresEXCESS OF REVENUES OVER (UNDER) EXPENDITURESOTHER FINANCING SOURCES (USES)SBITA FinancingTransfers OutTotal Other Financing Sources (Uses)NET CHANGE IN FUND BALANCESFund Balances (Deficit) - Beginning of Year, as RestatedFUND BALANCES (DEFICIT) - END OF YEAR Storm Drain Gas Transportation Other Federal HUDUtility Tax Tax Grants Grants-$ 3,047,702$ -$ -$ -$ - 3,462,402 1,384,702 11,590,644 1,580,472 1,640,383 6,905 - - - 28,752 - - - - 102,063 109,563 37,631 173 50,646 3,692 3,682 88,381 - - 1,774,890 6,630,254 1,510,714 11,590,817 1,631,118 - - - 84,334 - - - - - 1,479,844 1,017,039 3,055,784 669,022 - 483,694 - - - - 50,000 - 1,344,402 244,000 14,784,570 18,080 - 1,387 - - - 1,017,039 4,401,573 913,022 14,868,904 2,031,618 757,851 2,228,681 597,692 (3,278,087) (400,500) - 4,056 - - - - - - - - - 4,056 - - - 757,851 2,232,737 597,692 (3,278,087) (400,500) 3,323,631 3,888,421 (31,398) (5,101,518) 2,052,187 4,081,482$ 6,121,158$ 566,294$ (8,379,605)$ 1,651,687$

CITY OF VICTORVILLE

COMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCE (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2023

(159)

REVENUESTaxes and AssessmentsIntergovernmentalCharges for ServicesFines and ForfeituresInvestment IncomeOtherTotal RevenuesEXPENDITURESCurrent:Public SafetyCommunity DevelopmentPublic WorksParks and RecreationCapital OutlayDebt Service:Principal - SBITATotal ExpendituresEXCESS OF REVENUES OVER (UNDER) EXPENDITURESOTHER FINANCING SOURCES (USES)SBITA FinancingTransfers OutTotal Other Financing Sources (Uses)NET CHANGE IN FUND BALANCESFund Balances (Deficit) - Beginning of Year, as RestatedFUND BALANCES (DEFICIT) - END OF YEAR Engineering FoxboroughSecurity Rail Totals-$ 117,812$ 14,739,853$ - - 18,949,015 - 10,202 1,704,035 - - 78,125 - 12,223 1,043,585 - - 103,707 - 140,237 36,618,320 - - 91,670 - - 1,479,844 - 57,232 12,371,625 - - 50,000 - - 18,600,650 - - 1,387 - 57,232 32,595,176 - 83,005 4,023,144 - - 4,056 - - (54,900) - - (50,844) - 83,005 3,972,300 118 416,680 30,569,317 118$ 499,685$ 34,541,617$

CITY OF VICTORVILLE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE –

BUDGET AND ACTUAL

MEASURE I FUND
YEAR ENDED JUNE 30, 2023

(160)
Variance withFinal BudgetPositiveOriginalFinalActual(Negative)REVENUESTaxes and Assessments6,794,032$ 6,794,032$ 7,145,011$ 350,979$ Charges for Services57,500 57,500 46,545 (10,955) Investment Income- - 394,377 394,377 Total Revenues6,851,532 6,851,532 7,585,933 734,401 EXPENDITURESCurrent:Public Works2,651,559 2,651,559 2,359,980 291,579 Capital Outlay1,560,400 7,942,785 1,788,839 6,153,946 Total Expenditures4,211,959 10,594,344 4,148,819 6,445,525 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES2,639,573 (3,742,812) 3,437,114 7,179,926 NET CHANGE IN FUND BALANCE2,639,573 (3,742,812) 3,437,114 7,179,926 Fund Balance - Beginning of Year, as Restated 13,292,482 13,292,482 13,292,482 - FUND BALANCE - END OF YEAR15,932,055$ 9,549,670$ 16,729,596$ 7,179,926$ 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, 2023

(161)

Variance withFinal BudgetPositiveOriginal Final Actual (Negative)REVENUESTaxes and Assessments 2,449,086$ 2,449,086$ 2,515,987$ 66,901$ Investment Income - - 275,916 275,916 Other - - 7,952 7,952 Total Revenues 2,449,086 2,449,086 2,799,855 350,769 EXPENDITURESCurrent:Public Works 2,875,168 2,924,228 2,225,152 699,076 Capital Outlay 181,700 433,511 25,057 408,454 Total Expenditures 3,056,868 3,357,739 2,250,209 1,107,530 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES(607,782) (908,653) 549,646 1,458,299 NET CHANGE IN FUND BALANCE(607,782) (908,653) 549,646 1,458,299 Fund Balance - Beginning of Year 10,449,782 10,449,782 10,449,782 - FUND BALANCE - END OF YEAR9,842,000$ 9,541,129$ 10,999,428$ 1,458,299$ Budgeted Amounts

CITY OF VICTORVILLE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE –

BUDGET AND ACTUAL

STREET LIGHTING FUND
YEAR ENDED JUNE 30, 2023

(162)

Variance withFinal BudgetPositiveOriginal Final Actual (Negative)REVENUESTaxes and Assessments 1,735,000$ 1,735,000$ 1,913,341$ 178,341$ Intergovernmental 745,000 745,000 918,707 173,707 Investment Income 5,000 5,000 59,536 54,536 Total Revenues 2,485,000 2,485,000 2,891,584 406,584 EXPENDITURESCurrent:Public Works 2,623,005 2,623,005 2,503,722 119,283 Capital Outlay 648,750 963,205 395,702 567,503 Total Expenditures 3,271,755 3,586,210 2,899,424 686,786 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES(786,755) (1,101,210) (7,840) 1,093,370 NET CHANGE IN FUND BALANCE(786,755) (1,101,210) (7,840) 1,093,370 Fund Balance - Beginning of Year 2,215,541 2,215,541 2,215,541 - FUND BALANCE - END OF YEAR1,428,786$ 1,114,331$ 2,207,701$ 1,093,370$ Budgeted Amounts

CITY OF VICTORVILLE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE –

BUDGET AND ACTUAL

TRAFFIC SAFETY FUND
YEAR ENDED JUNE 30, 2023

(163)

Variance withFinal BudgetPositiveOriginal Final Actual (Negative)REVENUESFines and Forfeitures 41,000$ 41,000$ 49,373$ 8,373$ EXPENDITURESCurrent:Public Safety 27,000 27,000 - 27,000 EXCESS OF REVENUES OVER EXPENDITURES14,000 14,000 49,373 35,373 OTHER FINANCING USESTransfers Out (14,000) (14,000) (54,900) (40,900) NET CHANGE IN FUND BALANCE- - (5,527) (5,527) Fund Balance - Beginning of Year 12,565 12,565 12,565 - FUND BALANCE - END OF YEAR12,565$ 12,565$ 7,038$ (5,527)$ Budgeted Amounts

CITY OF VICTORVILLE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE –

BUDGET AND ACTUAL

ASSET SEIZURE FUND
YEAR ENDED JUNE 30, 2023

(164)

Variance withFinal BudgetPositiveOriginal Final Actual (Negative)REVENUESIntergovernmental -$ 12,088$ 12,088$ -$ Investment Income - - 1,457 1,457 Total Revenues - 12,088 13,545 1,457 EXPENDITURESCurrent:Public Safety 29,337 29,337 7,336 22,001 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES(29,337) (17,249) 6,209 23,458 NET CHANGE IN FUND BALANCE(29,337) (17,249) 6,209 23,458 Fund Balance - Beginning of Year 50,826 50,826 50,826 - FUND BALANCE - END OF YEAR21,489$ 33,577$ 57,035$ 23,458$ 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, 2023

(165)

Variance withFinal BudgetPositiveOriginal Final Actual (Negative)REVENUESCharges for Services 1,687,380$ 1,687,380$ 1,640,383$ (46,997)$ Fines and Forfeitures 22,000 22,000 28,752 6,752 Investment Income - - 102,063 102,063 Other - - 3,692 3,692 Total Revenues 1,709,380 1,709,380 1,774,890 65,510 EXPENDITURESCurrent:Public Works 1,515,059 1,515,059 1,017,039 498,020 Capital Outlay 125,000 125,000 - 125,000 Total Expenditures 1,640,059 1,640,059 1,017,039 623,020 EXCESS OF REVENUES OVER EXPENDITURES69,321 69,321 757,851 688,530 NET CHANGE IN FUND BALANCE69,321 69,321 757,851 688,530 Fund Balance - Beginning of Year 3,323,631 3,323,631 3,323,631 - FUND BALANCE - END OF YEAR3,392,952$ 3,392,952$ 4,081,482$ 688,530$ Budgeted Amounts

CITY OF VICTORVILLE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE –

BUDGET AND ACTUAL

GAS TAX FUND
YEAR ENDED JUNE 30, 2023

(166)

Variance withFinal BudgetPositiveOriginal Final Actual (Negative)REVENUESTaxes and Assessments 2,898,797$ 2,898,797$ 3,047,702$ 148,905$ Intergovernmental 3,507,716 3,507,716 3,462,402 (45,314) Charges for Services - 6,700 6,905 205 Investment Income - - 109,563 109,563 Other - - 3,682 3,682 Total Revenues 6,406,513 6,413,213 6,630,254 217,041 EXPENDITURESCurrent:Public Works 3,521,515 3,567,389 3,055,784 511,605 Capital Outlay 2,985,797 4,671,504 1,344,402 3,327,102 Debt Service:Principal - SBITA - - 1,387 (1,387) Total Expenditures 6,507,312 8,238,893 4,401,573 3,837,320 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES(100,799) (1,825,680) 2,228,681 4,054,361 OTHER FINANCING SOURCESSBITA Financing - - 4,056 4,056 NET CHANGE IN FUND BALANCE(100,799) (1,825,680) 2,232,737 4,058,417 Fund Balance - Beginning of Year 3,888,421 3,888,421 3,888,421 - FUND BALANCE - END OF YEAR3,787,622$ 2,062,741$ 6,121,158$ 4,058,417$ Budgeted Amounts

CITY OF VICTORVILLE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE –

BUDGET AND ACTUAL

TRANSPORTATION TAX FUND
YEAR ENDED JUNE 30, 2023

(167)

Variance withFinal BudgetPositiveOriginal Final Actual (Negative)REVENUESIntergovernmental 493,640$ 1,628,742$ 1,384,702$ (244,040)$ Investment Income - - 37,631 37,631 Other 24,995 24,995 88,381 63,386 Total Revenues 518,635 1,653,737 1,510,714 (143,023) EXPENDITURESCurrent:Public Works 979,271 1,006,226 669,022 337,204 Capital Outlay 249,640 493,640 244,000 249,640 Total Expenditures 1,228,911 1,499,866 913,022 586,844 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES(710,276) 153,871 597,692 443,821 NET CHANGE IN FUND BALANCE(710,276) 153,871 597,692 443,821 Fund Balance - Beginning of Year,as Restated (31,398) (31,398) (31,398) - FUND BALANCE (DEFICIT) - END OF YEAR(741,674)$ 122,473$ 566,294$ 443,821$ 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, 2023

(168)

Variance withFinal BudgetPositiveOriginal Final Actual (Negative)REVENUESIntergovernmental 40,335,149$ 100,657,026$ 11,590,644$ (89,066,382)$ Investment Income - - 173 173 Total Revenues 40,335,149 100,657,026 11,590,817 (89,066,209) EXPENDITURESCurrent:Public Safety 421,732 421,732 84,334 337,398 Capital Outlay 61,551,924 112,828,517 14,784,570 98,043,947 Total Expenditures 61,973,656 113,250,249 14,868,904 98,381,345 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES(21,638,507) (12,593,223) (3,278,087) 9,315,136 OTHER FINANCING SOURCESTransfers In 30,948 30,985 - (30,985) NET CHANGE IN FUND BALANCE(21,607,559) (12,562,238) (3,278,087) 9,284,151 Fund Balance (Deficit) - Beginning of Year (5,101,518) (5,101,518) (5,101,518) - FUND BALANCE (DEFICIT) - END OF YEAR(26,709,077)$ (17,663,756)$ (8,379,605)$ 9,284,151$ Budgeted Amounts

CITY OF VICTORVILLE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE –

BUDGET AND ACTUAL

HUD GRANTS FUND
YEAR ENDED JUNE 30, 2023

(169)

Variance withFinal BudgetPositiveOriginal Final Actual (Negative)REVENUESIntergovernmental 32,578,009$ 30,691,664$ 1,580,472$ (29,111,192)$ Investment Income 57,595 717,094 50,646 (666,448) Total Revenues 32,635,604 31,408,758 1,631,118 (29,777,640) EXPENDITURESCurrent:Public Safety 2,082,591 2,012,741 - 2,012,741 Community Development 23,821,662 25,881,417 1,479,844 24,401,573 Public Works 4,648,122 4,616,058 483,694 4,132,364 Parks and Recreation 120,000 116,580 50,000 66,580 Capital Outlay 270,944 227,907 18,080 209,827 Total Expenditures 30,943,319 32,854,703 2,031,618 30,823,085 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES1,692,285 (1,445,945) (400,500) 1,045,445 OTHER FINANCING SOURCESTransfers In 630,347 - - - NET CHANGE IN FUND BALANCE2,322,632 (1,445,945) (400,500) 1,045,445 Fund Balance - Beginning of Year 2,052,187 2,052,187 2,052,187 - FUND BALANCE - END OF YEAR4,374,819$ 606,242$ 1,651,687$ 1,045,445$ Budgeted Amounts

CITY OF VICTORVILLE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE –

BUDGET AND ACTUAL

FOXBOROUGH RAIL FUND
YEAR ENDED JUNE 30, 2023

(170)

Variance withFinal BudgetPositiveOriginal Final Actual (Negative)REVENUESTaxes and Assessments 117,815$ 117,815$ 117,812$ (3)$ Charges for Services - - 10,202 10,202 Investment Income - - 12,223 12,223 Total Revenues 117,815 117,815 140,237 22,422 EXPENDITURESCurrent:Public Works 121,500 171,500 57,232 114,268 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES(3,685) (53,685) 83,005 136,690 Fund Balance - Beginning of Year 416,680 416,680 416,680 - FUND BALANCE - END OF YEAR412,995$ 362,995$ 499,685$ 136,690$ Budgeted Amounts

(171)

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.

CITY OF VICTORVILLE

COMBINING SCHEDULE OF FIDUCIARY NET POSITION

CUSTODIAL FUNDS
JUNE 30, 2023

(172)
Community Community Community Community FacilitiesFacilities Facilities Facilities DistrictDistrict 90-01 District 07-01 District 01-01 Cahuenga TotalsASSETSCash and Investments 80,088$ 203,126$ 246,152$ 36,263$ 565,629$ Restricted Assets: Investments With Fiscal Agent - 280,555 323,111 - 603,666 Accounts Receivable - 432 1,262 - 1,694 Total Assets 80,088 484,113 570,525 36,263 1,170,989 LIABILITIESAccounts Payable - 93 459 - 552 NET POSITIONRestricted for:Individuals, Organizations, and Other Governments 80,088$ 484,020$ 570,066$ 36,263$ 1,170,437$

CITY OF VICTORVILLE

COMBINING SCHEDULE OF CHANGES IN FIDUCIARY NET POSITION

CUSTODIAL FUNDS
YEAR ENDED JUNE 30, 2023

(173)
Community Community Community Community FacilitiesFacilities Facilities Facilities DistrictDistrict 90-01 District 07-01 District 01-01 Cahuenga TotalsADDITIONSProperty Assessments Collected -$ 180,429$ 288,945$ -$ 469,374$ Investment Income 2,035 13,656 24,469 922 41,082 Total Additions 2,035 194,085 313,414 922 510,456 DEDUCTIONSCommunity Development - 7,526 16,777 - 24,303 Payments on Special Assessment Debt - 172,285 263,030 - 435,315 Total Deductions - 179,811 279,807 - 459,618 CHANGE IN NET POSITION2,035 14,274 33,607 922 50,838 Net Position - Beginning of Year 78,053 469,746 536,459 35,341 1,119,599 NET POSITION - END OF YEAR80,088$ 484,020$ 570,066$ 36,263$ 1,170,437$

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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 the services the City provides and the activities it performs.

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CITY OF VICTORVILLE

NET POSITION BY COMPONENT

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(IN THOUSANDS)

(177)

2014201520162017201820192020202120222023Governmental activities Invested in capital assets, net of related debt 462,432$ 484,943$ 479,306$ 473,590$ 462,796$ 480,006$ 466,516$ 453,555$ 471,522$ 510,418$ Restricted45,594 44,922 56,682 58,111 58,571 63,733 77,665 86,627 90,462 100,773 Unrestricted(11,484) (46,227) (47,079) (47,596) (50,734) (43,759) (44,619) (23,215) 19,767 46,204 Total governmental activities net position496,542 483,638 488,909 484,105 470,633 499,980 499,563 516,967 581,752 657,395 Business-type activities Invested in capital assets, net of related debt 188,425 150,794 66,591 59,439 64,164 49,262 42,900 39,962 47,471 46,894 Restricted8,604 8,911 9,600 11,981 13,937 0 0 0 0 0 Unrestricted(26,466) (35,217) 54,098 48,212 24,147 33,883 42,640 56,629 76,595 112,206 Total business-type activities net position170,563 124,488 130,290 119,632 102,248 83,145 85,541 96,591 124,066 159,100 Primary government Invested in capital assets, net of related debt 650,857 635,737 545,897 533,029 526,960 529,267 509,416 493,517 518,993 557,313 Restricted 54,198 53,833 66,282 70,092 72,508 63,733 77,665 86,627 90,462 100,773 Unrestricted(37,951) (81,444) 7,020 616 (26,587) (9,876) (1,978) 33,414 96,362 158,410 Total primary government net position667,104$ 608,125$ 619,199$ 603,738$ 572,881$ 583,124$ 585,104$ 613,558$ 705,818$ 816,496$ Fiscal Year

CITY OF VICTORVILLE

CHANGES IN NET POSITION BY COMPONENT

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(IN THOUSANDS)

(178)

2014201520162017201820192020*202120222023ExpensesGovernmental activities:General government $14,342 $12,188 $12,121 $8,982 $21,271 $19,256 $20,924 $19,440 $21,653 $27,941Public safety 35,679 36,066 35,624 37,719 37,294 45,498 42,413 45,868 49,006 59,556 Community Development 2,931 1,780 1,646 5,375 1,696 1,552 1,314 9,231 2,477 3,586 Public works 33,472 28,856 31,972 33,835 29,076 28,971 31,103 32,425 29,054 34,794 Park and recreation 4,395 3,188 4,911 5,245 5,113 6,090 6,826 7,035 5,562 7,226 Interest on long-term debt 61 63 102 177 44 112 104 51 33 14 Total governmental activities expenses90,880 82,141 86,376 91,332 94,493 101,481 102,685 114,051 107,784 133,116 Business-type activitiesSanitary Sewer 12,415 13,523 11,960 12,651 17,019 14,994 17,314 16,552 17,630 20,207 Golf course 2,231 1,716 1,566 1,507 1,544 439 - - - - Airport 32,528 35,453 31,597 32,742 37,406 32,756 34,860 40,578 36,659 37,391 Water 28,419 30,298 33,851 40,185 35,431 41,110 39,439 42,734 44,121 44,649 Rail 269 - - - - - - - - - Solid Waste 13,011 13,144 14,197 15,467 16,614 16,516 17,850 18,616 19,640 21,969 Municipal Utilities*10,747 11,603 11,016 10,479 12,967 13,569 - -$ -$ -$ Municipal Utilies - Gas- - - - - - 2,353 2,064 2,844 4,378 Municipal Utilities - Electric------11,717 12,156 15,801 15,567 Total business-type activities expensess99,621 105,736 104,186 113,031 120,982 119,383 123,533 132,701 136,695 144,160 Total primary government expenses 190,501 187,877 190,563 204,363 215,475 220,864 226,217 246,752 244,480 277,276 Program RevenuesGovernmental activities: Charges for services:General government 4,351 4,203 3,136 3,221 5,493 9,144 10,240 10,159 10,274 11,800 Public safety 2,451 1,570 874 720 575 571 887 1,466 1,679 5,587 Community development 3,896 960 1,950 3,163 2,874 5,163 5,800 8,066 9,804 6,802 Public works 15,236 3,519 4,142 4,745 4,560 4,591 4,905 8,310 9,938 7,557 Parks and recreation 917 935 930 956 876 856 569 834 746 892 Operating grants and contributions 5,859 5,191 15,165 10,654 3,964 6,947 4,555 11,719 6,050 22,926 Capital contributions and grants9,251 7,745 10,626 8,076 4,702 10,312 11,916 7,992 29,326 39,917 Total governmental activities program revenues41,962 24,123 36,822 31,537 23,044 37,584 38,873 48,548 67,817 95,481 Business-type activities:Charges for services:Sanitary Sewer 14,729 15,560 13,381 11,374 11,694 13,196 14,663 17,292 19,786 21,953 Golf course 849 395 583 432 470 - - - - - Airport 8,184 8,110 8,027 6,949 7,531 9,315 11,198 11,056 13,028 13,676 Water 27,470 25,978 27,704 31,146 30,907 31,820 35,607 42,167 46,259 42,295 Solid Waste 12,004 12,342 12,716 13,965 14,336 17,546 18,867 19,776 21,987 23,366 Municipal Utilities* 12,464 13,638 13,899 14,483 13,885 14,882 - - - - Municipal Utilities - Gas - - - - - - 2,616 2,657 3,216 4,572 Municipal Utilities - Electric - - - - - - 13,131 15,830 17,421 20,223 Operating grants and contributions - - - - - - - - 1,273 Capital contributions and grants2,657 54 6,263 2,297 5,178 12,688 6,393 13,777 9,731 8,446 Total business-type activities program revenues78,356 76,076 82,573 80,647 84,002 99,446 102,474 122,556 132,701 134,531 Total primary government program revenues 120,318$ 100,199$ 119,395$ 112,184$ 107,046$ 137,031$ 141,347$ 171,104$ 200,518$ 230,012$ * Started reporting G as 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)

(179)

2014201520162017201820192020202120222023Net (expense) revenueGovernmental activities (48,918)$ (58,018)$ (49,554)$ (59,796)$ (71,449)$ (63,897)$ (63,812)$ (65,503)$ (39,967)$ (37,635)$ Business-type activities(21,265) (29,660) (21,614) (32,384) (36,980) (19,937) (21,058) (10,144) (3,995) (9,629) Total primary government net expense(70,183) (87,678) (71,168) (92,180) (108,429) (83,834) (84,870) (75,648) (43,962) (47,264) General Revenues and Other Changes in Net PositionGovernmental activities:Taxes: Property taxes 21,522 22,138 23,752 24,097 25,662 27,202 28,211 31,980 32,795 36,458 Sales taxes 22,329 24,085 28,212 26,802 26,653 30,629 28,566 35,227 36,865 37,382 Transactions and Use Tax* - - - - - - - 7,103 29,587 29,260 Transient occupancy tax 881 1,064 1,074 1,138 1,305 1,487 1,539 1,899 2,026 2,013 Other taxes 2,892 3,000 3,039 2,840 3,737 3,816 3,988 4,112 4,442 4,764 Investment income 138 68 158 478 726 1,148 574 (391) (1,274) 2,787 Motor vehicle in lieu - - - - - - - - - - Gain on sale of assets 31 55 - - - - - - 19 Miscellaneous revenues 190 314 201 192 377 384 515 818 211 519 SERAF Obligation - - - - - - - - - - Transfers 992- 24,090 (779) (554) (521) 26,795 - 1,685 82 95 Extraordinary Gain - - - - - - - - - - Legal Settlement34 - - - - - - - - - Total governmental activities47,024 74,815 55,657 54,992 57,940 91,461 63,394 82,432 104,752 113,278 Business-type activities:Taxes 18,418 19,781 24,879 25,918 29,070 24,659 20,772 22,405 22,862 23,408 Other Taxes - 177 - - - - - - - - Investment income 192 - 1,002 726 1,828 2,374 1,918 216 1,266 6,775 Gain on sale of assets - - 125 17 290 - - 110 17 14,576 Miscellaneous revenues 1,902 2,003 1,432 1,779 1,099 190 630 149 867 Impairment loss on Capital assets - (24,090) - - - - - - - - Legal Settlement - - - - - - - - - - Transfers992 - 779 554 521 (26,795) - (1,685) (82) (95) Total business-type activities 21,505 (2,129) 28,217 28,993 32,808 429 23,320 21,196 24,930 44,664 Total primary government 68,529 72,686 83,874 83,985 90,748 91,890 86,714 103,628 129,682 157,942 Change in Net PositionGovernmental activities (1,894) 16,797 6,103 (4,803) (13,510) 27,564 (418) 16,929 64,785 75,644 Business-type activities240 (31,789) 6,604 (3,392) (4,171) (19,509) 2,262 11,051 20,936 35,034 Total primary government(1,654)$ (14,992)$ 12,706$ (8,195)$ (17,681)$ 8,056$ 1,844$ 27,980$ 85,721$ 110,678$ * 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)

(180)

2014201520162017201820192020202120222023General fund Reserved -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Unreserved- - - - - - - - - - Nonspendable 179 195 192 172 472 7,236 6,225 5,149 4,192 3,287 Restricted 30 - - - - - - - - - Unassigned 4,595 3,238 4,630 5,181 6,179 12,812 18,110 41,107 75,466 103,870 Total general fund 4,804 3,433 4,822 5,353 6,651 20,049 24,335 46,256 79,659 107,156 All other governmental funds Reserved, reported in: Special revenue funds -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Capital project funds- - - - - - - - - - Debt service funds- - - - - - - - - - Unreserved, reported in: Special revenue funds- - - - - - - - - - Capital project funds- - - - - - - - - - Debt service funds- - - - - - - - - - Nonspendable 180 195 194 174 474 04 11 05 4,221 4,249 Restricted 43,869 44,922 56,305 58,108 60,819 62,198 75,962 83,555 76,510 97,941 Assigned 1,911 - - - - - - - Unassigned (1,543) (3,111) (2,587) (882) (2,487) (7,599) (4,120) (2,946) (1,788) (12,747) Total all other governmental funds 44,417 42,006 53,912 57,400 58,807 54,602 71,853 80,614 78,944 89,444 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)

(181)

2014201520162017201820192020202120222023RevenueTaxes 47,624$ 50,287$ 55,966$ 54,877$ 57,357$ 65,402$ 64,092$ 83,170$ 108,455$ 113,043$ Licenses and permits 1,230 1,533 1,387 1,463 1,863 2,633 2,786 4,244 5,393 4,036 Intergovernmental 17,249 13,833 25,947 19,293 8,404 8,920 14,651 9,150 27,339 54,571 Charges for services 10,480 9,587 11,627 13,247 15,016 17,236 23,306 23,927 24,982 29,561 Fines and forefitures 1,142 1,308 737 793 514 473 418 704 829 880 Investment income 138 68 158 478 726 966 1,437 276 (357) 5,420 Sale of assets - - - (3,544) - - - 109 Legal Settlement 34 - - - - - - Other190 314 201 192 464 532 849 3,942 582 1,074 Total revenues78,086$ 76,930$ 96,022$ 86,798$ 84,345$ 96,164$ 107,539$ 125,523$ 167,222$ 208,585$ ExpendituresGeneral government 9,751 11,171 9,676 9,272 11,105 10,625 11,650 11,978 16,722 19,909 Public safety 34,272 35,674 35,875 37,855 39,185 45,004 41,731 45,039 48,066 58,559 Community development 2,788 1,769 1,438 1,899 1,629 1,118 1,128 8,734 2,476 3,265 Public works 23,697 28,349 31,956 29,412 26,185 17,781 18,926 19,299 22,660 24,497 Park and recreation 2,866 2,956 3,363 3,746 3,739 4,047 4,238 4,308 4,267 5,607 Capital Outlay* - - - - - 21,593 8,068 7,428 43,072 59,367 Debt services: Principal 6,082 - - - - - 153 159 165 725 Interest & Fiscal agent charges61 63 102 177 44 74 109 57 38 36 Principal-SBITA 320 Interest-SBITA 00 SERAF Obligation- - - - - - - - - - Total expenditures79,516$ 79,982$ 82,411$ 82,362$ 81,887$ 100,243$ 86,003$ 97,001$ 137,466$ 172,286$ Excess of revenues over (under) expenditures(1,430) (3,052) 13,611 4,437 2,458 (4,080) 21,536 28,521 29,755 36,299 Other financing sources (uses):SBITA Financing - - - - - - - - - 798 Capital lease proceeds - - - - - 1,201 - - - 900 Transfer in 365 1,289 218 246 80 18,424 41 1,757 4,325 55 Transfer out (1,327) (2,200) (997) (800) (601) (6,649) (41) (73) (2,348) (55) Gain (loss) on sale of assets31 55 1,058 156 28 - - - - - Total other financing sources(uses)(931) (856) 280 (398) (494) 12,977 -$ 1,685 1,977 1,699 Extraordinary gain(loss) - - - - - - - - - - Net change in fund balances(2,361) (3,908) 13,890 4,039 1,964 8,897 21,536 30,206 31,732 37,998 Debt service as a percentage of noncapital expenditures7.7% 0.1% 0.1% 0.2% 0.1% 0.1% 0.3% 0.2% 0.1% 0.4%*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

(182)

Fiscal YearSecured PropertyUnsecured PropertySBE Nonunitary Total AssessedTotal Direct Tax Rate20043,141,841,715 222,573,199 477,500,712 3,841,915,626 8.10%20053,828,701,477 219,700,978 492,977,851 4,541,380,306 16.75%20064,973,962,731 234,285,388 487,511,504 5,695,759,623 3.79%20076,671,588,958 254,201,465 475,654,862 7,401,445,285 10.22%20088,445,139,241 528,505,928 483,739,950 9,457,385,119 7.70%20098,482,819,863 446,754,325 469,192,873 9,398,767,061 10.61%20106,876,396,453 475,171,025 446,393,003 7,797,960,481 13.73%20116,152,107,952 531,098,592 349,464,067 7,032,670,611 20.40%20126,015,259,937 486,592,953 324,863,210 6,826,716,100 20.63%20135,983,453,352 502,968,659 279,763,216 6,766,185,227 21.62%20146,079,669,684 578,809,444 232,263,205 6,890,742,333 18.33%20156,523,751,292 563,911,351 180,492,248 7,268,154,891 18.25%20166,961,515,866 598,447,036 177,480,228 7,737,443,130 18.24%20177,358,274,302 548,314,490 225,429,163 8,132,017,955 18.23%20187,751,404,680 507,854,639 106,929,139 8,366,188,458 18.22%20198,173,462,255 553,108,056 104,329,108 8,830,899,419 18.21%20208,697,654,376 549,306,339 98,788,971 9,345,749,686 18.20%20219,212,471,887 608,604,365 100,188,971 9,921,265,223 18.19%20229,722,567,162 570,333,790 116,988,971 10,409,889,923 20.26%202310,674,814,139 725,356,217 153,988,971 11,554,159,327 20.25%Source: County of San Bernardino Assessor and HdL, Coren & Coneassessed 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 anew owner. At that point, the property is reassessed based upon the added value of the construction or at the purchase price (marketvalue) or economic value of the property sold. The assessed valuation data shown above represents the only data currently availablewith respect to the actual market value of taxable property and is subject to the limitation described above.In1978,thevotersoftheStateofCaliforniapassedProposition13whichlimitedtaxestoatotalMaximumrateof1%baseduponthe $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,0002014 2015 2016 2017 2018 2019 2020 2021 2022 2023MillionsSecured PropertyUnsecured PropertySBE Nonunitary

CITY OF VICTORVILLE

DIRECT AND OVERLAPPING PROPERTY TAX RATES
(RATE PER $100 OF TAXABLE VALUE)

LAST TEN FISCAL YEARS

(183)

2014201520162017201820192020202120222023 Basic Levy* 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000Adelanto Elementary Bond 0.0746 0.0810 0.0797 0.0830 0.0871 0.0970 0.0835 0.0916 0.0912 0.0000Mojave Water Agency 0.1675 0.1675 0.1675 0.1675 0.1675 0.1675 0.1675 0.1675 0.1675 0.1675Oro Grande Elementary Bond 0.0377 0.0379 0.0378 0.0898 (0.0102) 0.0000 0.0000 0.0000 0.0000 0.0000Victor Elementary Bond 0.1086 0.1022 0.1124 0.1162 0.1216 0.1204 0.0406 0.0611 0.0591 0.0574Victor High School Bond 0.0792 0.0770 0.0716 0.0986 0.0915 0.0958 0.0703 0.0445 0.0532 0.0537Victor Valley Community College Bond 0.0264 0.0262 0.0197 0.0174 0.0198 0.0181 0.0181 0.0198 0.0218 0.0206Total Direct and Overlapping Tax Rates1.4940 1.4918 1.4887 1.5725 1.4773 1.4988 1.3800 1.3845 1.3928 1.2992City's basic rate**0.1605 0.1605 0.1605 0.1605 0.1605 0.1605 0.1605 0.1605 0.1605 0.1605Total Direct Rate^ 0.1833 0.1825 0.1824 0.1823 0.1822 0.1821 0.1820 0.1819 0.2026 0.2025Notes: 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

(184)

2023 2014TaxpayerTaxable Assessed ValuePercentage of Total City Taxable Assessed ValueTaxable Assessed ValuePercentage of Total City Taxable Assessed ValueHigh Desert Power Trust 153,200,000$ 1.33% 231,100,000$ 3.35%Macerich Victor Valley147,530,936 1.28%Higcov SCLC 145,377,317 1.26%The American Bottling Company107,356,540 0.93% 119,782,014$ 1.74% CF Frieighter Holdings103,450,260 0.90%Cemex Construction Materials Pacific96,387,183 0.83% 49,950,177$ 0.72%Desert Valley Hospital Inc,70,577,326 0.61%Veyron KDP 1 Partners67,296,038 0.58%Walmart Stores Inc.66,717,752 0.58% 53,246,522$ 0.77%Federal Express Corporation65,091,310 0.56%Nutro Products Inc94,446,418$ 1.37%Striling Capital Investments79,051,977$ 1.15%Prime Investments69,173,184$ 1.00%Church and Dwight Company35,469,376$ 0.51%Plastipak Packaging Inc 30,957,430$ 0.45% General Electric Company 27,392,132$ 0.40%1,022,984,662$ 8.86% 790,569,230$ 11.46%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

(185)

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 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%2022- - 0.00%2022- - 0.00%2023- - 0.00%2023- - 100.00%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 2014- - 0.00%2014718,124 713,835 99.40%2015- - 0.00%2015751,196 737,646 98.20%2016- - 0.00%2016814,455 764,955 93.92%2017- - 0.00%2017725,345 723,720 99.78%2018- - 0.00%2018706,459 704,679 99.75%2019- - 0.00%2019735,987 734,996 99.87%2020- - 0.00%2020756,545 754,972 99.79%2021- - 0.00%2021765,513 764,053 99.81%2022- - 0.00%2022804,802 803,156 99.80%2023- - 0.00%2023788,274 786,490 99.77% 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 data 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

(186)

Fiscal YearCertificate of ParticipationTax Allocation Bonds*Capital Lease AgreementOther**Total Governmental Activities2014-$ -$ -$ 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$ 2022-$ -$ -$ 60,686$ 60,686$ 2023-$ -$ -$ 81,489$ 81,489$ 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-

CITY OF VICTORVILLE

RATIOS OF OUTSTANDING DEBT BY TYPE (CONTINUED)

LAST TEN FISCAL YEARS
(IN THOUSANDS)

(187)

Fiscal YearLease Purchase AgreementTax Allocation BondsLease Revenue BondsRevenue Bonds^Certificate of ParticipationOtherTotal Business-Type ActivitiesTotal Primary GovernmentDebt Per Capita*% of Personal Income*2014748$ 321,508$ 53,070$ 1,353$ 12,875$ 16,418$ 405,972$ 451,072$ 3,741 229.372015347$ 318,564$ 53,070$ 1,155$ 12,465$ 13,651$ 399,252$ 443,330$ 3,680 228.882016-$ 314,936$ 53,070$ 945$ 12,035$ 13,866$ 394,851$ 427,962$ 3,465 225.422017-$ 311,741$ 51,925$ 725$ 10,360$ 21,160$ 395,910$ 455,413$ 3,686 238.402018-$ 308,400$ 50,720$ 495$ 10,025$ 35,661$ 405,301$ 470,327$ 3,806 234.982019-$ 300,964$ 49,450$ 253$ 9,675$ 20,481$ 380,822$ 444,618$ 3,514 208.772020-$ 294,282$ 48,214$ -$ 9,310$ 40,902$ 392,709$ 463,058$ 3,663 200.582021-$ 289,776$ 46,710$ -$ 8,930$ 44,403$ 389,819$ 466,042$ 3,665 192.452022-$ 285,064$ -$ 48,044$ 8,622$ 36,356$ 378,086$ 438,772$ 3,213 165.432023-$ 280,133$ -$ 46,205$ 8,206$ 47,155$ 381,699$ 463,188$ 3,376 151.09^ 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 Business-Type Activities

CITY OF VICTORVILLE

RATIO OF GENERAL BONDED DEBT OUTSTANDING

LAST TEN FISCAL YEARS

(188)

Fiscal YearCertificate of ParticipationRevenue BondsTax Allocation Bonds¤TotalPercentage Assessed Value*2014- - - - 0.00%2015- - - - 0.00%2016- - - - 0.00%2017- - - - 0.00%2018- - - - 0.00%2019- - - - 0.00%2020- - - - 0.00%2021- - - - 0.00%2022- - - - 0.00%2023- - - - 0.00%Source: City of Victorville Annual Comprehensive Financial Reports FY23* Assessed value has been used because the actual value of taxable property is not readily available in the State of California.

CITY OF VICTORVILLE

LEGAL DEBT MARGIN

LAST TEN FISCAL YEARS
(IN THOUSANDS

(189)
Fiscal Year2014201520162017201820192020202120222023Debt Limit 1,033,611$ 1,090,223$ 1,160,616$ 1,219,803$ 1,254,928$ 1,324,635$ 1,401,862$ 1,488,190$ 1,561,483$ 1,733,124$ Total net debt applicable to limit- - - - - - - - - - Legal debt margin 1,033,611 1,090,223 1,160,616 1,219,803 1,254,928 1,324,635 1,401,862 1,488,190 1,561,483 1,733,124 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 2023Assessed value 10,409,889,923$ Debt Limit (15% of total assessed value) 1,561,483 Debt applicable to limit:General obligation bond - - Total net debt applicable to limit - Legal debt margin 1,561,483$ 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 CompaniesLess: Amount set aside for repayment of general obligation debt

CITY OF VICTORVILLE

DIRECT AND OVERLAPPING DEBT

(190)

2022-23 Assessed Valuation: $11,444,656,207Total Debt City’s Share ofOVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2023% Applicable (1)Debt 6/30/23Victor Valley Joint Community College District $150,661,664 28.67% $43,190,179Victor Valley Joint Union High School District 119,825,428 61.857 74,120,415Victor School District 45,714,944 84.048 38,422,496Adelanto School District Community Facilities District No. 1, I.A. A 12,440,000 100 12,440,000Adelanto School District Community Facilities District No. 2 3,640,000 100 3,640,000Hesperia Unified School District Community Facilities Districts 7,565,000 100 7,565,000Snowline Joint Unified School District Community Facilities Districts 8,540,000 100 8,540,000Victor School District Community Facilities Districts 28,625,100 100 28,625,100Victor Valley Joint Union High School District Community Facilities Districts 4,920,000 100 4,920,000City of Victorville Community Facilities Districts 4,985,000 100 4,985,000California Statewide Community Development Authority Assessment District No. 22-02760,000 100 760,000 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $227,208,190DIRECT AND OVERLAPPING GENERAL FUND DEBT:San Bernardino County General Fund Obligations $160,860,000 3.94% $6,336,275San Bernardino Pension Obligation Bonds 62,960,000 3.939 2,479,994San Bernardino County Flood Control District General Fund Obligations 41,065,000 3.939 1,617,550Hesperia Unified School District General Fund Obligations 117,110,000 7.679 8,992,877Snowline Joint Unified School District General Fund Obligations 59,400,000 16.719 9,931,086Victor Valley Joint Union High School District Certificates of Participation 17,600,000 61.857 10,886,832Adelanto School District Certificates of Participation 5,750,000 42.885 2,465,888Oro Grande School District Certificates of Participation 28,995,000 2.218 643,109City of Victorville General Fund Obligations 0 100 0 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $43,353,611OVERLAPPING TAX INCREMENT DEBT (Successor Agencies):$302,164,92568.019 - 100. %$214,423,476 TOTAL DIRECT DEBT $0 TOTAL OVERLAPPING DEBT $484,985,277 COMBINED TOTAL DEBT $484,985,277 TOTAL DIRECT DEBT $0 TOTAL OVERLAPPING DEBT $491,034,788 COMBINED TOTAL DEBT $491,034,788 (2)Ratios to 2022-23 Assessed Valuation: Total Overlapping Tax and Assessment Debt 1.99% Total Direct Debt ($0) 0.00% Combined Total Debt 4.24%Ratios to Redevelopment Successor Agencies Incremental Valuation ($6,796,777,187) Total Overlapping Tax Increment Debt 3.15%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)

(191)

Pledged Fiscal Year RevenuePrincipalInterest Coverage20144,927 2,010 2,190 117%20155,600 1,060 2,139 175%20165,343 1,110 2,085 167%20175,689 1,165 2,029 178%20183,955 1,225 1,965 124%20193,569 1,285 1,907 112%20202,797 1,350 1,840 88%2021641 1,420 1,767 20%20221,850 1,495 1,690 58%20233,306 1,575 1,608 104%PledgedFiscal YearRevenuePrincipalInterest Coverage201417,562 4,195 17,321 82%201518,554 4,410 17,150 86%201625,176 4,635 16,950 117%201724,649 4,865 16,746 114%201828,983 4,405 17,580 132%201923,801 5,365 16,208 110%202020,407 5,635 15,845 95%202123,021 5,920 15,551 107%202222,410 6,225 15,238 104%202322,583 6,550 14,907 105%PledgedFiscal YearRevenuePrincipalInterest Coverage20141,321 395 602 132%20151,157 415 583 116%20161,183 430 564 119%20171,244 320 485 155%20181,244 335 471 154%20191,285 350 457 159%20201,330 365 443 165%20211,294 380 428 160%20221,312 395 412 163%20231,571 410 395 195%PledgedFiscal YearRevenuePrincipalInterest Coverage20224,131 1,480 108 260%20238,749 1,715 2,130 228%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 ServiceBusiness Type Activities Debt - SCLAA Tax Allocation Bond Debt ServiceBusiness Type Activities Debt - Water District Certificates of ParticipationDebt ServiceBusiness Type Activities Debt - Electric Debt Service

CITY OF VICTORVILLE

DEMOGRAPHIC AND ECONOMIC STATISTICS

LAST TEN FISCAL YEARS

(192)

Fiscal YearCity of Victorville Population Personal Income (in thousands) Unemployment Rate* Per Capital Personal Income2013120,5901,966,582$ 10.1%16,308$ 2014120,4851,936,917$ 8.6%16,076$ 2015123,5101,898,511$ 6.9%15,371$ 2016123,5651,910,290$ 6.1%15,459$ 2017123,5652,001,567$ 7.1%16,198$ 2018126,5432,129,706$ 5.7%16,829$ 2019126,4322,308,617$ 5.5%18,259$ 2020127,1702,421,637$ 12.4%19,042$ 2021136,5612,652,278$ 10.9%19,421$ 2022137,1933,065,677$ 6.2%22,345$ Source: HdL Coren & Cone; Decennial Census Data, CA State Department of Finance, CA EDD 100,000105,000110,000115,000120,000125,000130,0002013 2014 2015 2016 2017 2018 2019 2020 2021 2022City of Victorville Population5.0%7.0%9.0%11.0%13.0%15.0%17.0%2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Unemployment Rate*… $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,5002013 2014 2015 2016 2017 2018 2019 2020 2021 2022Thousands Personal Income (in thousands) $- $3,000 $6,000 $9,000 $12,000 $15,000 $18,000 $21,000 $24,0002013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Per Capital Personal Income

CITY OF VICTORVILLE

FULL-TIME AND PART-TIME CITY EMPLOYEES BY FUNCTION

LAST TEN FISCAL YEARS

(193)

2014201520162017201820192020202120222023FunctionGeneral government 72 71 72 73 77 77 75 76 86 95Public Safety* 1 0 0 0 1 60 59 60 76 70Public Works 114 108 110 113 116 113 118 116 138 120Community Development 4 4 4 4 4 4 3 3 3 5Community Services 104 112 75 75 82 78 86 85 86 79Airport 24 26 25 26 26 26 24 24 23 27Water 50 53 57 63 66 66 59 56 56 57Total 369 374 343 354 372 424 424 420 468 453Source: City of Victorville Finance Department.

Fiscal Year* Only includes Fire Services. In fiscal year 2018, fire staff were added for start up of new City fire department.

CITY OF VICTORVILLE

OPERATION INDICATORS BY FUNCTION

LAST TEN FISCAL YEARS

(194)

Function2013201520162017201820192020202120222023Public Safety Police Physical arrests 4,096 5,389 5,194 5,716 5,733 3,531 2,793 2,860 2,761 1531 Traffic Violations 9,404 6,759 4,070 5,561 3,635 * * * * 4049Public worksStreet Maintenance Potholes repaired (number) 3,124 3,832 4,138 5,667 7,427 7,713 11,444 8,653 9,455 15,524 Graffiti removal (locations) 14,708 5,687 4,708 2,824 3,116 2,592 2,966 3,240 2,793 3,808 Streets sweeping (tons) 1,907 1,782 1,687 1,627 1,544 1,712 1,878 1,877 1,824 Sanitation Refuse collected (tons/day) 166 182 202 206 210 220 228 236 240 233 Recyclables collected (tons/day) 28 32 33 32 32 33 35 39 40 40 Community ServicesPark and Recreation Athletic field permits issued 6,788 5,970 5,905 6,310 5,785 5,020 162 41*** 45*** 105 Community center enrollments 30,915 31,384 29,958 25,343 19,518 14,503 1,973 882** 1,667 6,382 Facilities rental used 2,062 2,036 2,388 2,469 2,252 1,803 62 9** 177** 74 Water Residential 6,198,485 5,991,545 5,191,845 5,505,636 5,722,934 4,961,977 5,135,298 5,522,763 5,371,857 4,888,059 Multi Residential 483,968 467,812 405,373 444,737 490,302 752,766 781,018 840,414 844,824 786,059 Commercial 1,535,667 1,484,402 1,286,280 1,357,027 1,587,468 1,325,873 1,551,122 1,628,740 1,486,743 1,179,747 Institutional 465,354 449,819 389,782 437,698 470,500 773,125 857,134 852,178 944,442 870,590 Irrigation 623,574 602,757 522,308 491,157 471,954 460,627 486,095 541,868 592,475 523,424 Fire service 22 43 50 94 148 2,963 3,919 3,112 3,844 4,250 Recycled- 407,194 274,824 127,752 205,354 316,953 275,268 344,982 380,617 413,966 Total 9,307,070 9,403,572 8,070,462 8,364,101 8,948,660 8,594,284 9,089,854 9,734,057 9,624,802 8,666,095 Water Sold (in acre feet) 21,366 20,653 17,896 19,201 20,543 19,730 20,868 22,346 22,096 20,079 Number of Customer Connections Residential 32,145 32,841 32,884 32,650 32,386 32,680 33,047 33,709 34,501 34,889 Multi Residential 195 195 198 197 776 768 759 762 762 763 Commercial 1,059 1,064 1,066 1,074 1,099 1,333 1,325 1,358 1,363 1,285 Institutional 204 205 206 207 169 256 225 226 226 226 Irrigation 235 236 236 239 266 331 371 386 396 410 Fire service 554 555 555 564 580 598 608 616 625 638 Recycled- 2 2 2 4 4 5 7 5 8 Total 34,392 35,098 35,147 34,933 35,280 35,970 36,340 37,064 37,878 38,219 19,074 19,272 16,540 17,142 16,917 17,614 18,629 19,950 19,726 17,925 Estimated Population 119,658 122,233 121,419 121,608 122,699 123,758 125,085 127,543 130,788 137,193 159 158 136 141 138 142 149 156 151 140 Rainfall in inches 1.90 2.75 0.92 5.69 4.92 0.69 4.16 4.95 1.63 2.00 Source: City of Victorville departmentsNote: 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

(195)

201420152016*2017201820192020202120222023Consumption (per hundred cubic feet)Standard Domestic 1.53$ 1.53$ 1.75$ 1.75$ 1.88$ 2.03$ 2.18$ 2.35$ 2.61$ 2.57$ Construction Flow 2.47 2.47 2.77 2.77 2.94 3.12 3.32 3.51$ 3.56$ 3.67$ Untreated Well 0.52 0.52 0.60 0.60 0.64 0.69 0.74 0.80$ 0.89$ 0.87$ Recycled 0.92 0.92 1.05 1.05 1.13 1.22 1.31 1.41$ 1.57$ 1.54$ Public Benefit 0.61 0.61 - - - - - - - - Monthly Service FeeMonthly per average daily use 0.00-0.2617.25$ 17.25$ -$ -$ -$ -$ -$ -$ -$ -$ Monthly per average daily use 0.27-1.17 18.25 18.25 - - - - - - - - Monthly per average daily use 1.18-6.60 36.50 36.50 - - - - - - - - Monthly per average daily use > 6.60130.50 130.50 - - - - - - - - 3/4 inch meter -$ -$ 11.78$ 11.78$ 12.23$ 12.68$ 13.15$ 13.36$ 15.24$ 17.68$ 1 inch meter - - 18.59 18.59 19.30 20.02 20.75 21.09 23.31 27.04 1 1/2 inch meter - - 35.62 35.62 36.99 38.37 39.76 40.41 43.49 50.45 2 inch meter - - 56.06 56.06 58.21 60.39 62.58 63.60 67.71 78.54 3 inch meter - - 110.56 110.56 114.80 119.09 123.42 125.44 132.28 153.44 4 inch meter - - 171.88 171.88 179.47 185.14 191.87 195.01 204.93 237.71 6 inch meter - - 342.19 342.19 355.32 368.60 382.00 388.25 406.72 471.78 8 inch meter - - 955.34 955.34 991.99 1,029.07 1,066.48 1,083.92 1,133.18 1,314.45 > 8 inch meter - - 1,432.23 1,432.23 1,487.17 1,542.77 1,598.85 1,624.99 1,698.21 1,969.86 Fire Service Fee1 inch meter 10.00$ 10.00$ 2.69$ 2.69$ 2.82$ 2.96$ 3.10$ 3.20 4.14 4.67 2 inch meter 10.00 10.00 5.19 5.19 5.48 5.78 6.09 4.64 5.15 5.71 2 1/2 inch meter 10.00 10.00 5.19 5.19 5.48 10.65 6.09 6.37 6.36 6.96 3 inch meter 9.50 9.50 10.06 19.62 11.27 11.83 10.19 10.92 4 inch meter 10.00 10.00 17.45 17.45 18.50 42.68 20.80 21.90 17.26 18.20 6 inch meter 10.00 10.00 37.88 37.88 40.21 73.44 45.31 47.78 35.42 36.94 8 inch meter 10.00 10.00 65.13 65.13 69.16 114.45 77.99 82.30 59.63 61.91 > 8 inch meter 10.00 10.00 101.45 101.45 107.75 114.45 121.56 128.31 91.91 95.22 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

CITY OF VICTORVILLE

CAPITAL ASSET STATISTICS BY FUNCTION

LAST TEN FISCAL YEARS

(196)

Function2014201520162017201820192020202120222023Public SafetyPolice:Stations 1 1 1 1 1 1 1 1 1 1 Patrol Units 52 52 52 55 54 54 54 70 70 86 Fire Stations 6 6 5 5 5 5 5 5 5 5 Public WorksHighways and streets:Streets (miles) 448 448 449 449 449 449 449 449 449 451Streetlights 392 392 396 404 408 418 418 428 428 428Traffic Signals 87 87 88 90 91 94 94 97 97 97Sewer:Sanitary sewers (miles) 419 419 440 440 443 443 449 455 455 467Storm sewers (miles) 473 473 473 473 473 473 473 473 473 474Number of treatment plants 2 2 2 2 2 2 2 2 2 2Number of service connections 40,152 40,029 40,092 40,551 41,232 41,723 36,616 36,222 36,764 31,286 Community ServicesParks acreage 263 263 263 180 180 180 180 180 180 182 Park 18 18 18 19 19 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 7 7 7 7 7 7 7 AirportRunway length (miles) 5 5 5 5 5 5 5 5 4* 4*Sewer pipeline 30 30 30 30 30 30 30 30 30 30 Number of hangars 26 26 26 26 26 26 26 26 26 26 Number of buildings 52 52 52 52 52 52 52 52 52 52 WaterWater Production in Acre feet 23,830 22,030 20,905 22,476 24,383 21,755 22,017 23,487 22,468 20,627 Domestic Water Tanks (Reservoirs) 26 26 26 26 26 26 26 2626 26Domestic Storage in Millions of Gallons 74 74 74 74 74 74 74 7474 74Recycled Water Tanks (Reservoirs) 1 1 1 1 1 1 1 11 1Recycled Storage in Millions of Gallons 1 1 1 1 1 2 2 22 1.6Wells 32 32 32 32 32 34 34 3434 34Pipeline - Linear Feet (in thousands) 3,666 3,666 3,666 3,666 3,666 3,666 3,666 36664087 4087Pipeline - Miles 694 694 694 694 694 694 709 709774 774Booster Pumping Stations 4 4 4 4 4 4 4 44 4Pressure Regulating Stations 24 24 24 25 25 25 25 2525 33*Per request by FAA, Runway 17/35 was shortened resulting in a combined total of 4 miles.Source: City of Victorville departmentsNote: Indicators are not available for the general government function.

Fiscal Year

(197)
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AƩachment B

CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. SeeCLAglobal.com/disclaimer.

CliftonLarsonAllen LLPCLAconnect.comINDEPENDENT AUDITORS REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS City Council and Management City of Victorville Victorville, California We have audited, in accordance with the 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, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Victorville (City), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City of Victorvilles basic financial statements, and have issued our report thereon dated June 10, 2024. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Citys internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Citys internal control. Accordingly, we do not express an opinion on the effectiveness of the Citys internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entitys financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. We identified certain deficiencies in internal control, described in the accompanying schedule of findings and responses as items 2023-001 through 2023-006, that we consider to be material weaknesses.

City Council and Management City of Victorville Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the City of Victorvilles financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Citys Response to Findings Government Auditing Standards requires the auditor to perform limited procedures on the Citys response to the findings identified in our audit and described in the accompanying schedule of findings and responses. The Citys response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response. Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entitys internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entitys internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Irvine, California June 10, 2024

City of Victorville Schedule of Findings and Responses Year Ended June 30, 2023 2023-001 Material Weakness Capital Assets Condition: During our review of capital assets, we noted that some detail schedules did not agree to the capital asset rollforward, which also did not agree to the general ledger balances. The discrepancies were material and required us to request the City to re-perform the capital asset year-end close process with an emphasis on a review and approval process over the employee performing the work. In addition, during our review of capital assets, we noted an asset that was sold from the Southern California Logistics Airport Authority (SCLA) to the Water District that was capitalized at the price paid instead of the book value. Also, the Victorville Water District enterprise fund expensed $4.985 million of capital project expenses that should have been capitalized as construction in progress. Criteria or specific requirement: An important part of the reporting function is maintaining accurate and current detail schedules for account balances. In addition, general ledger amounts should be updated to reflect the current year balances for accurate financial reports. Year-end close processes should include a review and approval aspect where material differences and errors are identified and corrected prior to providing such information for the audit. Assets sold within the City funds must be capitalized at the assets book value as recorded in the fund from which it is sold. Expenses that meet the Citys capitalization policy should be capitalized in the year incurred. Effect: The adjustments made after the City re-performed the year-end close had the following impact: Business-type activities had a decrease in construction in progress of $105 thousand, increase in buildings and improvements of $7 thousand, increase in accumulated depreciation of $359 thousand, increase in depreciation expense of $352 thousand, and increase in expenses of $105 thousand. Specifically, Victorville Water District had a decrease in construction in progress of $105 thousand, increase in buildings and improvements of $7 thousand, increase in accumulated depreciation of $25 thousand, increase in depreciation expense of $18 thousand, and increase in expenses of $105 thousand. Specifically, Southern California Logistics Airport Authority had an increase in accumulated depreciation and depreciation expense of $857 thousand. The governmental activities had a decrease in construction in progress of $8.6 million, increase in depreciation expense and accumulated depreciation of $400 thousand, and increases in capital asset categories of buildings and improvements, computers and communications, furniture and equipment, infrastructure, and land of $50 thousand, $2.5 million, $911 thousand, $3.5 million, and $70 thousand, respectively.

City Council and Management City of Victorville The Water Districts capital assets were reduced, and expenses increased by $692,124, which is the excess paid by the Water District to SCLA above the book value of the asset previously recorded in the SLCA. The Water Districts expenses were reduced and construction in progress capital asset category increased by $4.985 million. Cause: The City did not sufficiently follow the year-end closing procedures to identify the above errors. The City was not aware that accounting standards require intra-entity sales to be capitalized at the book value recorded in the previous fund. The City did not appropriately identify all capital expenses when performing year-end close for capital assets in the Water District Repeat Finding: This particular finding was not noted in the immediately prior year; however, findings related to audit adjustments for capital assets were noted in the immediately prior year. Recommendation: We recommend the City implement policies and procedures to review capital assets at year-end for appropriate classification and ensure the work is reviewed in detail and approved by management who did not perform the work. In addition, we recommend the City implement policies and procedures to review intra-entity asset sales to ensure the amounts are capitalized at book value. Also, we recommend that the City implement policies and procedures to ensure the completeness of capital asset additions. Views of responsible officials and planned corrective actions: (1) City personnel reconciling capital assets will be coordinating with departments at a minimumtwice a year as well as reviewing budget to actual for projects and notices of completion in citycouncil agenda items to catch all completed projects. Additionally, staff will questiondepartments regarding all projects residing in the Construction in Progress coding with noactivity for at least four months to ensure that project is still continuing forward or if it needs tomove to Idle Assets to be completed in the future or expensed if project has been discontinuedand/or did not result in an asset.(2) City personnel will be reviewing and updating as needed City Policy E-6: Fixed Asset Policy toensure that proper capitalization and safeguarding of all assets are performed in a timelymanner. The updated policy will help ensure the City is operating in a way that is consistent withcurrent accounting principles. The policy will be reviewed annually and updated as needed.Additionally, City personnel will conduct trainings for staff that are responsible for tracking,approving, and acquiring assets at the department level.(3) City personnel reconciling capital assets will be attending additional trainings to help ensurethey stay appraised of new requirements and / or are well equipped to handle non re-occurringtransactions such as assets sold within City funds. Additional training on the Citys ERP systemwill also be performed to ensure staff is aware of the any new upgrades that can impact themethodology of how the system depreciates assets.

City Council and Management City of Victorville 2023-002 Material Weakness Grants Receivable, Revenues, Expenditures/Expenses and Unavailable Revenue Condition: The City has various projects that are grant funded on a reimbursement basis, which means that the City incurs the cost and then requests for reimbursement from the funding source. During our audit, we reviewed these projects and had numerous inquiries when grant receivables did not equal the unreimbursed eligible expenditures. This led to numerous adjustments to correct the balances. In addition, the City had a restatement to correct the funding source for capital expenditures that reverses a restatement the City recorded in the prior year. The original restatement provided by the City for fiscal year 2022-2023 required an audit adjustment to correct the restatement. Criteria or specific requirement: Grant receivables should be equal to the eligible project expenditures less any amounts previously reimbursed by the grantor. For governmental funds, deferred inflows of resources, unavailable revenues, should be recorded instead of revenue when those amounts are received after the Citys availability period, which is 60 days. In addition, in the cases when revenues must be returned if not utilized, cash received should be offset by unearned revenue. Grant expenditures should be carefully matched to grant revenues to record amounts in the correct fund originally. Should corrections in subsequent years be required, the history of all journal entries for grant revenues and expenditures should be performed to determine where transactions have been recorded before recording restatements. Effect: Approximate changes in the general ledger balances due to the adjustments are as follows: other aggregate governmental funds had a net increase in receivables of $267 thousand, increase in revenue of $340 thousand, and an decrease in deferred inflows of resources, unavailable revenues of $73 thousand; other state and local grants major special revenue fund had a decrease in receivables of $186 thousand, decrease in deferred inflows of resources, unavailable revenues, of $372 thousand and an increase in revenues of $186 thousand; other federal grants major special revenue had a decrease in both receivables and deferred inflows of resources, unavailable revenues of $109 thousand. The restatement to correct the funding source for capital expenditures was $494 thousand that impacted the measure I special revenue fund (decrease) and the transportation tax special revenue fund (increase). This restatement is appropriately not disclosed in the notes to the financial statements in accordance with generally accepted accounting principles since both funds are included in the other aggregate governmental funds, which nets the restatement to zero for the financial statement presentation of other aggregate governmental funds. Cause: The City did not perform an analysis on each project to verify the balances in these accounts prior to commencement of the audit procedures. Regarding the restatement, the City did not perform adequate research to identify the impact of all previously recorded journal entries since the funds were originally recorded in 2020. Repeat Finding: This finding is a repeat of a finding in the immediately prior year.

City Council and Management City of Victorville

Recommendation: We recommend that the City implement policies and procedures to review all project activity and verify the amounts recorded for grants receivable and deferred inflows of resources, unavailable revenues, are accurate prior to the commencement of the audit. In addition, we recommend that the City implement policies and procedures to ensure all grant revenues and expenditures are recorded in the appropriate fund that contains the funding source at the time the original receipt occurs. Should corrections be required in subsequent years, we recommend that the City perform an analysis that will show all activity of the grant before recording restatements. Views of responsible officials and planned corrective actions: (1) City personnel will be reviewing and updating as needed City Policy E-8: Grant Management Policy and Procedures and City Policy E-7: Infrastructure Policy to ensure that proper verification and recording of all activity is completed in the period it was incurred. (2) The City has procedures set up to review and ensure that each project and org is reconciled at the end of the year. Unfortunately, due to the large amount of grants, there were some that had activity posted to them after personnel had reconciled and these did not get reviewed again prior to audit. Staff is working on a schedule and posting access to ensure unauthorized or unreviewed entries are not allowed to back date into the prior fiscal year while staff works on reconciliation for audit. (3) City personnel will be conducting quarterly meetings with departments to ensure that proper grant management at the department level is in place. This will help City personnel identify and correct any issues with amounts recorded and provide any additional assistance to ensure that adequate controls are in place to improve the accountability of funds received. (4) City personnel will monitor the volume of grants received by the City and will seek a grant monitoring software solution if it is determined to be needed.

City Council and Management City of Victorville 2023-003 Material Weakness Cash Condition: The City provided a bank reconciliation as of June 30, 2023 that had an unidentified variance of $27 thousand. In addition, the bank reconciliation contained reconciling items for May 2023 bank activity that were not posted to the general ledger until fiscal year 2023-2024 instead of recorded when the transactions occurred in fiscal year 2022-2023. The bank reconciliation also contained reconciling items for July 2023 bank activity that were recorded as cash activity in June 2023 instead of fiscal year 2023-2024. Criteria or specific requirement: Bank reconciliations should not contain unidentified variances. Also, cash transactions should be recorded in the correct fiscal year. May 2023 cash activity should be recorded in fiscal year 2022-2023 and July 2023 cash activity should be recorded in fiscal year 2023-2024. Effect: The unreconciled variance of $27 thousand required an audit adjustment to increase cash by this amount in order to match the general ledger to the bank reconciliation. Audit adjustments were also required to decrease cash by $193 thousand for May 2023 bank activity and increase cash by $346 thousand to remove July 2023 bank activity. Cause: The City did not complete the bank reconciliation process by identifying all reconciling items and ensuring transactions were recorded in the appropriate fiscal year. Repeat Finding: This finding is not a repeat of a finding in the immediately prior year. Recommendation: We recommend that the City implement policies and procedures to ensure that all reconciling items are identified and recorded in the appropriate fiscal year. Views of responsible officials and planned corrective actions: (1) City personnel will be establishing a Bank Reconciliation policy to ensure bank reconciliationsare completed in a timely manner, have proper internal controls, and workflow approvals inplace.(2) A standard operating procedure will be developed and updated as needed. Management willalso implement cross-training to ensure that all items are recorded in a timely manner and helpidentify roll forward transactions. The policy and standard operating procedure will further helpidentify accounting and bank errors and further strengthen the Citys ability in preventing andidentifying potential for fraud.

City Council and Management City of Victorville 2023-004 Material Weakness Prepaid Water Connection Fees Condition: Due to our audit inquiry, the City identified homes or units that were connected to the Citys water system during the fiscal year for which connection fees had been collected in advance. These amounts were not recognized as revenue and remained a liability on the water enterprise funds statement of net position. Criteria or specific requirement: The City collects connection fees in advance for large capital projects that will result in connections to the Citys water lines. As the individual homes or units are connected to the Citys system, the amounts collected should be recognized as revenue. Effect: The liability was decreased, and revenues were increased by approximately $0.2 million. Cause: The City did not perform the analysis on the connections for the prepaid water connection fees account until after audit inquiry occurred. Repeat Finding: This finding is not a repeat of a finding in the immediately prior year but is a repeat finding from the fiscal year 2020-2021 audit. Recommendation: We recommend the City perform the analysis required on this account prior to the commencement of the audit. Views of responsible officials and planned corrective actions: (1) Due to personnel turnover at the department level, current staff were unfamiliar with the processrequired to reconcile prepaid water connection fees. The departments management and staffhad to familiarize themselves with how these prepaids are established, how theyre tracked, andsubsequently how to reconcile them. As such, a standard operating procedure will beestablished by the department to document the various prepaid connection fees paid bydevelopers, how to track them in the existing software solution, and institute a re-occurringreconciliation throughout the fiscal year.(2)Reconciling will be completed at a minimum on a semi-annual basis or more regularly if needed.

City Council and Management City of Victorville 2023-005 Material Weakness Land Held for Resale Condition: During our review of land held for resale, we noted that the general ledger did not agree to the Citys detail schedule, which provided an analysis of lower of cost or market. Criteria or specific requirement: Land held for resale is required to be recorded at the lower of cost or market value. Effect: An audit adjustment was required to reduce land held for resale and increase expenditures by approximately $454 thousand. Cause: The City performed the analysis over land held for resale but did not ensure that the general ledge reflected the required value. Repeat Finding: This finding is not a repeat of a finding in the immediately prior year. Recommendation: We recommend that the City develop policies and procedures to ensure that land held for resale is recorded at the lower of cost or market value. Views of responsible officials and planned corrective actions: (1) As stated in item 2023-001, City personnel will be reviewing and updating as needed City PolicyE-6: Fixed Asset Policy to ensure that proper capitalization and safeguarding of all assets areperformed in a timely manner. The updated policy will help ensure the City is operating in a waythat is consistent with current accounting principles, including the recordation of land held forresale. The policy will be reviewed annually and updated as needed.(2) City personnel recording land held for resale will be attending additional trainings to help ensurethey stay appraised of new requirements and / or are well equipped to handle non re-occurringtransactions.

City Council and Management City of Victorville 2023-006 Material Weakness Preparation of the Schedule of Expenditures of Federal Awards (SEFA) Condition: During our testing of the Schedule of Expenditures of Federal Awards (SEFA), we noted that the following federal expenditures should have been included in the fiscal year 2021-2022 SEFA, but were excluded: $6,355,730 under Assistance Listing Number 21.027, Coronavirus State and Local Fiscal Recovery Funds, and $199,999 under 14.231, Emergency Solutions Grant Program. These amounts were instead included in the fiscal year 2022-2023 SEFA even though the federal expenditures were incurred in fiscal year 2021-2022. Criteria or specific requirement: The SEFA should include all federal expenditures in the appropriate fiscal year, which is the year in which the expenditures were incurred. Effect: The SEFA was materially misstated for fiscal year 2021-2022 by excluding these amounts and the SEFA is materially misstated for fiscal year 2022-2023 by including these amounts in the incorrect fiscal year. Cause: The City did not verify that grants provided by non-federal entities did not originate from federal funding when preparing the fiscal year 2021-2022 SEFA. Repeat Finding: This finding is not a repeat of a finding in the immediately prior year. Recommendation: We recommend that the City implement policies and procedures to investigate the source of funding for all grants to identify federal expenditures. In addition, to ensure the ease of identification of federal funding in the general ledger, we recommend that the City include the federal program assistance listing number and name in the general ledger account name to ensure the ease of identification of federal funds and the completeness of the SEFA. Views of responsible officials and planned corrective actions: (1) As this relates to item 2023-002; City personnel will be reviewing and updating as needed CityPolicy E-8: Grant Management Policy and Procedures and City Policy E-7: Infrastructure Policyto ensure that proper verification and recording of all activity is completed in the period it wasincurred.(2)The City has procedures set up to review and ensure that each project and org is reconciled atthe end of the year. Unfortunately, due to the large amount of grants, there were some that hadactivity posted to them after personnel had reconciled and these did not get reviewed againprior to audit. Staff is working on a schedule and posting access to ensure unauthorized orunreviewed entries are not allowed to back date into the prior fiscal year while staff works onreconciliation for audit.(3) City personnel will be conducting quarterly meetings with departments to ensure that propergrant management at the department level is in place. This will help City personnel identify andcorrect any issues with amounts recorded and provide any additional assistance to ensure thatadequate controls are in place to improve the accountability of funds received.(4)City personnel will monitor the volume of grants received by the City and will seek a grantmonitoring software solution if it is determined to be needed.

CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. SeeCLAglobal.com/disclaimer.

CliftonLarsonAllen LLPCLAconnect.comINDEPENDENT AUDITORS REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS City Council and Management City of Victorville Victorville, California We have audited, in accordance with the 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, the financial statements of the Victorville Water District (the District), a component unit of the City of Victorville, California, as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the Districts basic financial statements, and have issued our report thereon dated June 10, 2024. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Districts internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Districts internal control. Accordingly, we do not express an opinion on the effectiveness of the Districts internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entitys financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. We identified certain deficiencies in internal control, described in the accompanying schedule of findings and responses as items 2023-001 and 2023-002, that we consider to be material weaknesses.

City Council and Management Victorville Water District Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the Districts financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Districts Response to Findings Government Auditing Standards requires the auditor to perform limited procedures on the Districts response to the findings identified in our audit and described in the accompanying schedule of findings and responses. The Districts response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response. Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entitys internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entitys internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Irvine, California June 10, 2024

Victorville Water District Schedule of Findings and Responses June 30, 2023 2023-001 Material Weakness Capital Assets Condition: During our review of capital assets, we noted that some detail schedules did not agree to the capital asset rollforward, which also did not agree to the general ledger balances. The discrepancies were material and required us to request the District to re-perform the capital asset year-end close process with an emphasis on a review and approval process over the employee performing the work. In addition, during our review of capital assets, we noted an asset that was sold from the Southern California Logistics Airport Authority (SCLA) to the District was capitalized at the price paid instead of the book value. Also, the District expensed $4.985 million of capital project expenses that should have been capitalized as construction in progress. Criteria or specific requirement: An important part of the reporting function is maintaining accurate and current detail schedules for account balances. In addition, general ledger amounts should be updated to reflect the current year balances for accurate financial reports. Year-end close processes should include a review and approval aspect where material differences and errors are identified and corrected prior to providing such information for the audit. Assets sold within the City funds must be capitalized at the assets book value as recorded in the fund from which it is sold. Expenses that meet the Citys capitalization policy should be capitalized in the year incurred. Effect: The adjustments made after the District re-performed the year-end close had the following impact: The District had a decrease in construction in progress of $105 thousand, increase in buildings and improvements of $7 thousand, increase in accumulated depreciation of $25 thousand, increase in depreciation expense of $18 thousand, and increase in expenses of $105 thousand. The Districts capital assets were reduced, and expenses increased, by $692,124, which is the excess paid by the District to SCLA above the book value of the asset previously recorded in the SLCA. The Districts expenses were reduced and construction in progress capital asset category increased by $4.985 million. Cause: The District did not sufficiently follow the year-end closing procedures to identify the above errors. The District was not aware that accounting standards require intra-entity sales to be capitalized at the book value recorded in the previous fund.

City Council and Management Victorville Water District The City did not appropriately identify all capital expenses when performing year-end close for capital assets in the Water District. Repeat Finding: This particular finding was not noted in the immediately prior year; however, findings related to audit adjustments for capital assets were noted in the immediately prior year. Recommendation: We recommend the District implement policies and procedures to review capital assets at year-end for appropriate classification and ensure the work is reviewed in detail and approved by management who did not perform the work. In addition, we recommend the District implement policies and procedures to review intra-entity asset sales to ensure the amounts are capitalized at book value. Also, we recommend that the District implement policies and procedures to ensure the completeness of capital asset additions. Views of responsible officials and planned corrective actions: (1) City personnel reconciling capital assets will be coordinating with departments at a minimumtwice a year as well as reviewing budget to actual for projects and notices of completion in citycouncil agenda items to catch all completed projects. Additionally, staff will questiondepartments regarding all projects residing in the Construction in Progress coding with noactivity for at least four months to ensure that project is still continuing forward or if it needs tomove to Idle Assets to be completed in the future or expensed if project has been discontinuedand/or did not result in an asset.(2) City personnel will be reviewing and updating as needed City Policy E-6: Fixed Asset Policy toensure that proper capitalization and safeguarding of all assets are performed in a timelymanner. The updated policy will help ensure the City is operating in a way that is consistent withcurrent accounting principles. The policy will be reviewed annually and updated as needed.Additionally, City personnel will conduct trainings for staff that are responsible for tracking,approving, and acquiring assets at the department level.(3) City personnel reconciling capital assets will be attending additional trainings to help ensurethey stay appraised of new requirements and / or are well equipped to handle non re-occurringtransactions such as assets sold within City funds. Additional training on the Citys ERP systemwill also be performed to ensure staff is aware of the any new upgrades that can impact themethodology of how the system depreciates assets.

City Council and Management Victorville Water District 2023-002 Material Weakness Prepaid Water Connection Fees Condition: Due to our audit inquiry, the District identified homes or units that were connected to the Districts water system during the fiscal year for which connection fees had been collected in advance. These amounts were not recognized as revenue and remained a liability on the water enterprise funds statement of net position. Criteria or specific requirement: The District collects connection fees in advance for large capital projects that will result in connections to the Districts water lines. As the individual homes or units are connected to the Districts system, the amounts collected should be recognized as revenue. Effect: The liability was decreased, and revenues were increased, by approximately $0.2 million. Cause: The District did not perform the analysis on the connections for the prepaid water connection fees account until after audit inquiry occurred. Repeat Finding: This finding is not a repeat of a finding in the immediately prior year but is a repeat finding from the fiscal year 2020-2021 audit. Recommendation: We recommend the District perform the analysis required on this account prior to the commencement of the audit. Views of responsible officials and planned corrective actions: (1) Due to personnel turnover at the department level, current staff were unfamiliar with the processrequired to reconcile prepaid water connection fees. The departments management and staffhad to familiarize themselves with how these prepaids are established, how theyre tracked, andsubsequently how to reconcile them. As such, a standard operating procedure will beestablished by the department to document the various prepaid connection fees paid bydevelopers, how to track them in the existing software solution, and institute a re-occurringreconciliation throughout the fiscal year.(2)Reconciling will be completed at a minimum on a semi-annual basis or more regularly if needed.

CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. SeeCLAglobal.com/disclaimer.

CliftonLarsonAllen LLPCLAconnect.comINDEPENDENT AUDITORS REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS City Council and Management City of Victorville Victorville, California We have audited, in accordance with the 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, the financial statements of the Southern California Logistics Airport Authority (SCLAA), a component unit of the City of Victorville, California, as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the SCLAAs basic financial statements, and have issued our report thereon dated June 10, 2024. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the SCLAAs internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the SCLAAs internal control. Accordingly, we do not express an opinion on the effectiveness of the SCLAAs internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entitys financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. We identified a certain deficiency in internal control, described in the accompanying schedule of finding and response as item 2023-001 that we consider to be a material weakness.

City Council and Management SCLAA Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the SCLAAs financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. SCLAAs Response to Finding Government Auditing Standards requires the auditor to perform limited procedures on the SCLAAs response to the finding identified in our audit and described in the accompanying schedule of finding and response. The SCLAAs response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response. Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entitys internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entitys internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Irvine, California June 10, 2024

SCLAA Schedule of Finding and Response Year Ended June 30, 2023 2023-001 Material Weakness Capital Assets Condition: During our review of capital assets, we noted that some detail schedules did not agree to the capital asset rollforward, which also did not agree to the general ledger balances. The discrepancies were material and required us to request the SCLAA to re-perform the capital asset year-end close process with an emphasis on a review and approval process over the employee performing the work. Criteria or specific requirement: An important part of the reporting function is maintaining accurate and current detail schedules for account balances. In addition, general ledger amounts should be updated to reflect the current year balances for accurate financial reports. Year-end close processes should include a review and approval aspect where material differences and errors are identified and corrected prior to providing such information for the audit. Effect: The adjustments made after the SCLAA re-performed the year-end close had the following impact: SCLAA had an increase in accumulated depreciation and depreciation expense of $857 thousand. Cause: The SCLAA did not sufficiently follow the year-end closing procedures to identify the above errors. Repeat Finding: This particular finding was not noted in the immediately prior year; however, findings related to audit adjustments for capital assets were noted in the immediately prior year. Recommendation: We recommend the SCLAA implement policies and procedures to review capital assets at year-end for appropriate classification and ensure the work is reviewed in detail and approved by management who did not perform the work. Views of responsible officials and planned corrective actions: (1) City personnel reconciling capital assets will be coordinating with departments at a minimum twice a year as well as reviewing budget to actual for projects and notices of completion in city council agenda items to catch all completed projects. Additionally, staff will question departments regarding all projects residing in the Construction in Progress coding with no activity for at least four months to ensure that project is still continuing forward or if it needs to move to Idle Assets to be completed in the future or expensed if project has been discontinued and/or did not result in an asset. (2) City personnel will be reviewing and updating as needed City Policy E-6: Fixed Asset Policy to ensure that proper capitalization and safeguarding of all assets are performed in a timely manner. The updated policy will help ensure the City is operating in a way that is consistent with current accounting principles. The policy will be reviewed annually and updated as needed. Additionally, City personnel will conduct trainings for staff that are responsible for tracking, approving, and acquiring assets at the department level.

City Council and Management SCLAA

(3) City personnel reconciling capital assets will be attending additional trainings to help ensure they stay appraised of new requirements and / or are well equipped to handle non re-occurring transactions such as assets sold within City funds. Additional training on the Citys ERP system will also be performed to ensure staff is aware of the any new upgrades that can impact the methodology of how the system depreciates assets.

Aꢀachment C

VICTORVILLE WATER DISTRICT
(A COMPONENT UNIT OF THE CITY OF VICTORVILLE,

CALIFORNIA)

FINANCIAL STATEMENTS AND

SUPPLEMENTARY INFORMATION
YEAR ENDED JUNE 30, 2023

VICTORVILLE WATER DISTRICT
(A COMPONENT UNIT OF THE CITY OF VICTORVILLE, CALIFORNIA)

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2023
INDEPENDENT AUDITORS’ REPORT 1

BASIC FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 5
7STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION STATEMENT OF CASH FLOWS 8
NOTES TO FINANCIAL STATEMENTS 10

REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF PLAN’S PROPORTIONATE SHARE OF NET PENSION LIABILITY

SCHEDULE OF PLAN CONTRIBUTIONS
34 35
36SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS

SUPPLEMENTARY INFORMATION
COMBINING SCHEDULE OF NET POSITION 39
40 COMBINING SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET

POSITION

CliftonLarsonAllen LLP
CLAconnect.com
INDEPENDENT AUDITORS’ REPORT
Honorable Mayor and City Council
Victorville Water District
Victorville, California
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of the Victorville Water District (the District), a component unit of the City of Victorville, California, as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the Victorville Water District’s basic financial statements as listed in the table of contents.

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, 2023, and the changes in financial position, and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the District and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit.

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

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for 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.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Victorville Water District’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. (1)

Honorable Mayor and City Council
Victorville Water District
Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and, therefore, is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:


Exercise professional judgment and maintain professional skepticism throughout the audit.

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit 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 District’s internal control. Accordingly, no such opinion is expressed.


Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
(2)

Honorable Mayor and City Council
Victorville Water District
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, be presented to supplement the basic financial statements. Such information is the responsibility of management and, 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 required supplementary information in accordance with GAAS, 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 analysis 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.

Supplementary Information
Our audit for the year ended June 30, 2023 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) for the year ended June 30, 2023 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 basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements for the year ended June 30, 2023 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 GAAS. 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, 2023. (3)

Honorable Mayor and City Council
Victorville Water District
We also previously audited, in accordance with GAAS, the basic financial statements of the District as of and for the year ended June 30, 2022 (not presented herein), and have issued our report thereon dated April 11, 2023, 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, 2022, 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, 2022 financial statements. The supplementary information has been subjected to the auditing procedures applied in the audit of the June 30, 2022 basic financial statements and certain additional procedures, 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, 2022.

Report on Summarized Comparative Information
We have previously audited the District’s 2022 financial statements, and we expressed an unmodified opinion on the financial statements in our report dated April 11, 2023. In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2022, is consistent, in all material respects, with the audited financial statements from which it has been derived.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 10, 2024, 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 of 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 Victorville Water District’s internal control over financial reporting and compliance.

CliftonLarsonAllen LLP
Irvine, California
June 10, 2024
(4)

VICTORVILLE WATER DISTRICT

STATEMENT OF NET POSITION
JUNE 30, 2023
(WITH COMPARATIVE DATA FOR JUNE 30, 2022)
2023 2022
ASSETS

CURRENT ASSETS
Cash and Investments
Cash and Investments with Fiscal Agent
Accounts Receivable, Net
Interest Receivable
$ 78,986,581
836,639
5,176,781
248,870
$ 74,178,469
836,313
6,340,504
58,333
Due from Other Governments
Inventory
19,946
866,934
86,135,751
34,652
948,273
82,396,544Total Current Assets

NONCURRENT ASSETS
Prepaid Deposits
Nondepreciable Capital Assets
Depreciable Capital Assets, Net
Total Noncurrent Assets
28,306
40,643,195
119,672,824
160,344,325
21,523
35,176,126
122,916,314
158,113,963
Total Assets 246,480,076 240,510,507

DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows - OPEB Related
Deferred Outflows - Pension Related
Total Deferred Outflows of Resources
2,707,614
6,095,478
8,803,092
2,106,668
2,876,885
4,983,553
See accompanying Notes to Financial Statements.
(5)

VICTORVILLE WATER DISTRICT

STATEMENT OF NET POSITION (CONTINUED)
JUNE 30, 2023
(WITH COMPARATIVE DATA FOR JUNE 30, 2022)
2023 2022

LIABILITIES

CURRENT LIABILITIES
Accounts Payable
Interest Payable
Prepaid Water Connection Fees
Deposits Payable
Total OPEB Liability - Due Within One Year
Long-Term Liabilities, Due Within One Year
Total Current Liabilities
$ 4,376,617
161,029
217,489
1,700,469
273,537
962,094
7,691,235
$ 4,592,839
168,460
217,489
1,669,971
253,227
841,847
7,743,833

NONCURRENT LIABILITIES
Total OPEB Liability
Net Pension Liability
Long-Term Liabilities, Due in More Than One Year
Total Noncurrent Liabilities
11,388,426
16,156,738
7,935,676
35,480,840
12,275,005
9,263,027
8,330,788
29,868,820
Total Liabilities 43,172,075 37,612,653

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows - OPEB Related
Deferred Inflows - Pension Related
Total Deferred Inflows of Resources
3,985,338
1,029,801
5,015,139
2,420,187
4,385,336
6,805,523

NET POSITION
Net Investment in Capital Assets
Unrestricted
151,942,967
55,152,987
150,031,812
51,044,072
Total Net Position $ 207,095,954 $ 201,075,884
See accompanying Notes to Financial Statements.
(6)

VICTORVILLE WATER DISTRICT

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION YEAR ENDED JUNE 30, 2023
(WITH COMPARATIVE DATA FOR THE YEAR ENDED JUNE 30, 2022) 2023 2022

OPERATING REVENUES
Utility Sales $ 30,269,489
9,801,678
1,211,013
485,824
$ 36,135,804
8,306,160
991,164
Meter and Service Fees
Pass-Thru Charges
Fines and Forfeitures
Arsenic Surcharge
Other
145,832
275,274
405,018
285,035
242,429
Total Operating Revenues 42,295,468 46,259,252

OPERATING EXPENSES
Personnel Services
Maintenance and Operations
Production Costs
Pass-Thru Production Costs
Depreciation and Amortization
Total Operating Expenses
11,648,542
19,228,008
5,434,263
1,211,013
6,524,962
44,046,788
9,681,920
13,118,928
11,026,983
2,698,831
7,194,999
43,721,661
OPERATING INCOME (LOSS) (1,751,320) 2,537,591

NONOPERATING REVENUES (EXPENSES)
Taxes
Intergovernmental
Investment Income
Interest Expense
Gain on Disposition of Assets
Other Nonoperating Revenues
Settlement Proceeds
1,335,019
-
1,130,682
634,939
(243,999)
(399,462)
16,201
(8,427)
843,920
1,973,854
1,898,079
(381,764)
338,923
(220,750)
-
Total Nonoperating Revenues (Expenses) 2,969,507
INCOME BEFORE CAPITAL CONTRIBUTIONS 1,218,187 4,511,445

CAPITAL CONTRIBUTIONS
Capital Restricted Use Fees
Alternate Water Source Fees
Contributions from the City of Victorville
Contributions to the City of Victorville
Capital Contributions
3,749,915
528,412
586,681
(73,125)
10,000
6,053,629
1,110,296
813,860
-
198,457
8,176,242Total Capital Contributions 4,801,883

CHANGE IN NET POSITION
Net Position - Beginning of Year

NET POSITION - END OF YEAR
6,020,070 12,687,687
201,075,884 188,388,197
$ 207,095,954 $ 201,075,884
See accompanying Notes to Financial Statements.
(7)

VICTORVILLE WATER DISTRICT

STATEMENT OF CASH FLOWS
YEAR ENDED JUNE 30, 2023
(WITH COMPARATIVE DATA FOR THE YEAR ENDED JUNE 30, 2022) 2023 2022

CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers $ 41,565,129
(11,108,779)
(19,431,426)
11,024,924
$ 43,403,105
(10,179,711)
(14,339,984)
18,883,410
Cash Payments to Employees for Services
Cash Payments to Suppliers for Goods and Services
Net Cash Provided by Operating Activities

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Cash Received from Other Governments
Cash Received from Settlements
1,335,019
-
1,765,621
843,920
Net Cash Provided by Noncapital Financing Activities 1,335,019 2,609,541

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Cash Received from the Sale of Capital Assets
Cash Payments to the City of Victorville for Acquisition of Capital Assets
Cash Payments to Acquire Capital Assets and Other Assets SBITA Principal Payments
614,109 16,252
(73,125)
(8,983,075)
(9,888)
-
(7,591,359)
-
Principal Paid on Capital-Related Debt
Interest Paid on Capital-Related Debt
(410,000)
(395,388)
(9,257,367)
(395,000)
(412,403)
(8,382,510)Net Cash Used by Capital and Related Financing Activities

CASH FLOWS FROM INVESTING ACTIVITIES
Investment Purchases
Interest Received on Investments
-
1,705,536
1,705,536
(276,964)
-
(276,964)Net Cash Provided (Used) by Investing Activities

NET INCREASE IN CASH AND CASH EQUIVALENTS
Cash and Cash Equivalents - Beginning of Year

CASH AND CASH EQUIVALENTS - END OF YEAR
4,808,112
74,178,469
78,986,581
12,833,477
61,344,992
74,178,469$
$
$
$

RECONCILIATION OF CASH AND CASH EQUIVALENTS TO
STATEMENT OF NET POSITION:

Cash and Investments 78,986,581 74,178,469
See accompanying Notes to Financial Statements.
(8)

VICTORVILLE WATER DISTRICT

STATEMENT OF CASH FLOWS (CONTINUED)
YEAR ENDED JUNE 30, 2023
(WITH COMPARATIVE DATA FOR THE YEAR ENDED JUNE 30, 2022) 2023 2022

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH

PROVIDED BY OPERATING ACTIVITIES
Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided by Operating Activities:

Depreciation
$ (1,751,320) $ 2,537,591
6,524,962
4,644,258
7,194,999
8,167,815
Nonoperating Miscellaneous Revenue (Expense) and
Capital Contributions
(Increase) Decrease in Assets:

Accounts Receivable, Net
Due from Other Governments
Inventory
1,163,723
14,706
(1,525,785)
(19,941)
299,40581,339
Prepaid Deposits (6,783) 182,365
Deferred Outflows - OPEB
Deferred Outflows - Pension
Increase (Decrease) in Liabilities:

Accounts Payable
Prepaid Water Connection Fees
Deposits Payable
Compensated Absences
Total OPEB Liability
Net Pension Liability
Deferred Inflows - OPEB
(600,946)
(3,218,593)
179,130
(153,563)
(216,222)
-
30,498
2,313,159
-
231,593
57,541
724,239
(4,813,818)
(616,273)
4,124,953
18,883,410
122,244
(866,269)
6,893,711
1,565,151
(3,355,535)
11,024,924
Deferred Inflows - Pension
Net Cash Provided by Operating Activities $ $

NONCASH CAPITAL, FINANCING, AND

INVESTING ACTIVITIES
Developer/Tenant Contributed Capital Assets
SBITA Acquisition
$
$
10,000
30,652
40,652
$
$
-
-
-Total
See accompanying Notes to Financial Statements.
(9)

VICTORVILLE WATER DISTRICT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
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 (the City), known as the Victorville Water District (the 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 (the City Council), each holding staggered four-year terms.

The District is an integral part of the reporting entity of the City of Victorville (the 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.

VICTORVILLE WATER DISTRICT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
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 leases and SBITAs 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 and amortization 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.
(11)

VICTORVILLE WATER DISTRICT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
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
Tangible capital assets are valued at cost where historical records are available and at an estimated historical cost where no historical records exist. Donated tangible capital assets are recorded at estimated acquisition value at the date of donation. SBITA assets are initially measured as the sum of the present value of payments expected to be made during the subscription term, payments associated with the SBITA contract made to the SBITA vendor at the commencement of the subscription term, when applicable, and capitalizable implementation costs, less any SBITA vendor incentives received form the SBITA vendor at the commencement of the SBITA term. SBITA assets are amortized in a systematic and rational manner over the shorter of the subscription term or the useful life of the underlying IT assets. 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.
(12)

VICTORVILLE WATER DISTRICT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) I. Capital Assets (Continued)
Depreciation is computed utilizing the straight-line method over the following useful lives:

Buildings and Improvements
Computer and Communications
Furniture and Equipment
Infrastructure:
10 to 50 Years
5 Years
3 to 7 Years
Transmission and Distribution Systems
Source of Supply – Wells
Water Treatment Systems
Intangibles
40 Years
10 to 40 Years
5 to 10 Years
5 to 25 Years
8 to 15 YearsVehicles
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 is 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 payment, as well as those who are expected to become eligible to receive termination benefits as a result of continuing their employment with the District. 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 District and the employee.

The balance of unpaid vacation and vested sick leave at year-end is recorded as a long- term liability in the financial statements.
(13)

VICTORVILLE WATER DISTRICT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) L. Deferred Outflows and Deferred Inflows of Resources
In addition to assets, the statement of net position reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to future periods and so will not be recognized as an outflow of resources (expense) until that time. The category of deferred outflow of resources reported in the statement of net position is related to pension and other postemployment benefits, which are more fully discussed in Notes 6 and 5, respectively.

In addition to liabilities, the statement of net position reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to future periods and will not be recognized as an inflow of resources (revenue) until that time.

The District’s deferred inflows of resources reported on the statement of net position relate to pension and other postemployment benefits, which are more fully discussed in Notes 6 and 5, respectively.

M. Prepaid Water Connection Fees
Prepaid connection fees were received before year-end but will not be earned until the properties are developed and connected to the District’s system.

N. Capital Contributions
Capital contributions represent cash and capital asset additions contributed to the District through the collection of AB-1600 connection fees, by property owners, granting agencies, or real estate developers desiring services that require capital expenditures or capacity commitment.

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

Net Investment in Capital Assets – This amount consists or capital assets net of accumulated depreciation and reduced by outstanding debt (including premiums and discounts) 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, laws, or regulations of other governments).

Unrestricted Net Position – This amount is all of the net position that does not meet the definition of “net investment in capital assets” or “restricted net position.” (14)

VICTORVILLE WATER DISTRICT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) O. Net Position (Continued)
Sometimes the District 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 District’s practice to consider restricted net position to have been depleted before unrestricted net position is applied, unless otherwise directed by Council.

P. 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 District’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 employee 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.

Q. Prior Year Data
Selected information regarding the prior year had been included in the accompanying financial statements. This information has been included for comparison purposes only and does not represent a complete presentation in accordance with accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with the District’s prior year financial statements, from which this selected financial data was derived.

R. Estimates
The presentation of basic financial statements in conformity with accounting principles generally accepted in the United States of America 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 expenses during the reporting period. Actual results could differ from those estimates.
(15)

VICTORVILLE WATER DISTRICT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 2 CASH AND INVESTMENTS
Cash and investments as of June 30, 2023, are classified in the accompanying financial statements as follows:

Statement of Net Position:

Cash and Investments
Cash and Investments with Fiscal Agent
Total Cash and Investments
$
$
78,986,581
836,639
79,823,220
Cash and investments as of June 30, 2023, consist of the following:

Deposits with Financial institutions
Deposits Held in City Pool
Investments
$
$
99,910
47,670,086
32,053,224
79,823,220Total Cash and Investments
Investments Pool of the City of Victorville
The District’s equity in the cash and investment City pool is managed by the City of Victorville. The District is a voluntary participant in that pool. This pool is governed by and under the regulatory oversight of the Investment Policy adopted by the City Council of the City of Victorville. The District has not adopted an investment policy separate from that of the City of Victorville. The fair value of the District’s investment in this pool is reported in the accompanying financial statements at amounts based upon the District’s pro-rata share of the fair value calculated by the City for the entire City portfolio. The balance available for withdrawal is based on the accounting records maintained by the City, which are recorded on an original cost basis.

Investments Authorized by the California Government Code and the City’s Investment Policy
The City adopts the investment policy for the District. The table on the following page identifies the investment types that are authorized for the District 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. (16)

VICTORVILLE WATER DISTRICT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Investments Authorized by the California Government Code and the City’s Investment Policy (Continued)
Authorized by Maximum
Percentage
of Portfolio*
70%
70%
75%**
Maximum
Investment
in One Issuer*
None
Investment Types
Authorized by State Law
Local Agency Bonds
U.S. Treasury Obligations
U.S. Agency Securities
Banker’s Acceptances
Commercial Paper - Nonpooled Funds
Commercial Paper - Pooled Funds
Negotiable Certificates of Deposit
Repurchase Agreements
Investment
Policy
Yes
Yes
Yes
No
Maximum
Maturity*
5 Years
5 Years
5 Years
180 Days
270 Days
270 Days
2 Years
1 Year
None
None
30%
10%
10%
None
None
40%
25%
40%
30%
No
No
Yes
No None
Reverse Repurchase Agreements
Medium-Term Notes
Mutual Funds***
Money Market Mutual Funds***
Mortgage Pass-Through Securities
County Pooled Investment Funds
Local Agency Investment Fund (LAIF)
JPA Pools (Other Investment Pools)
No
No
Yes
Yes
No
No
Yes
No
92 Days
5 Years
5 Years
5 Years
5 Years
N/A
20% of Base Value
30%
None
None
10%
None
None
None
$75M
None
20%*
20%*
20%
None
None
None
N/A
N/A
* 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 U.S. Treasury money fund.

Investments Authorized by Debt Agreements
Investments 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 District’s investment policy. The following table 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 and concentration of credit risk.

Maximum
Authorized
Investment Type
U.S. Treasury Obligations
Maximum
Maturity
None
Percentage
Allowed
None
Investment
in One Issuer
None
U.S. Agency Securities None None None
Banker's Acceptances
Commercial Paper
Money Market Mutual Funds
Repurchase Agreements
Investment Contracts
360 Days
270 Days
None
None
None
None
None
None
None
None
None
None
None
None None
Certificate of Deposit None None None
Local Agency Investment Fund (LAIF)
California Common Law Trust Shares
None
None
None
None
None
None
(17)

VICTORVILLE WATER DISTRICT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
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 District 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 District’s investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of these investments by maturity:

Remaining
Maturities
(in Months)
Investment Type Total Within 12 60+
LAIF $
$
31,216,585 $
$
31,216,585 $ -
Held by Bond Trustee:

Guaranteed Investment
Contract (GIC)*
Money Market Mutual Funds
Total
816,500
20,139
32,053,224
-
20,139
31,236,724
816,500
-
816,500
* The District'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, 2023, FSA was not in default and the value of the collateral met the requirements.

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 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
Legal Rating
N/A
Ratings as of Year-End
Investment Type Total AAA Not Rated
LAIF $ 31,216,585 $
$
- $ 31,216,585
Held by Bond Trustee:

Guaranteed Investment
Contract (GIC)
Money Market Mutual Funds
Total
816,500
20,139
$ 32,053,224
N/A
AAA
- 816,500
-20,139
20,139 $ 32,033,085
(18)

VICTORVILLE WATER DISTRICT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Concentration of Credit Risk
The investment policy of the District contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. The District 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.

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 District deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. At June 30, 2023, the District’s deposits (bank balances) were insured by the federal depository insurance limits or collateralized as required under California Law.

Investment in State Investment Pool
The District 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 District’s investment in this pool is reported in the accompanying financial statements at amounts based upon the District’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.
(19)

VICTORVILLE WATER DISTRICT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Fair Value Measurements
The District categorizes its fair value measurement within the fair value hierarchy established by accounting principles generally accepted in the United States of America.

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.

Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurements. These unobservable inputs reflect the District’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 District’s own data.

The District’s investments in LAIF and money market mutual funds (held by bond trustee) are not subject to the fair value measurement hierarchy. The District’s investment in the GIC are included in Level 3 since they are not actively traded. To value the GIC, the District verified the collateral required was held at a minimum of 100% of the value reported above and recorded the investment at that amount.
(20)

VICTORVILLE WATER DISTRICT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 3 CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2023, is as follows:

Balance Balance
July 1, 2022 Additions
17,876
Deletions June 30, 2023
Nondepreciable Assets:

Land $ 8,884,171
18,337,872
3,017,958
536,342
$ $ - $ 8,902,047
18,959,864
3,017,958
536,342
Intangibles
Idle Assets
646,966 (24,974)
-
-
-
-Land Improvements
Construction in Progress
Total Nondepreciable Assets
4,399,783
35,176,126
7,678,850
8,343,692
(2,851,649)
(2,876,623)
9,226,984
40,643,195
Depreciable Assets:

Buildings and Improvements
Computer and Communication
Furniture and Equipment
Infrastructure
Intangibles
Vehicles
Total Depreciable Assets
28,358,403
672,671
130,561
67,337
58,078
2,831,156
-
(734,495) 27,754,469
740,008-
-
-
-
37,900,013
202,968,269
1,542,724
3,992,529
275,434,609
37,958,091
205,799,425
1,542,724
4,303,882
278,098,599
413,900
3,501,032
(102,547)
(837,042)
Less Accumulated Depreciation:

Buildings and Improvements
Computer and Communication
Furniture and Equipment
Infrastructure
(11,457,140)
(649,958)
(685,265)
(14,903)
(753,226)
(4,810,549)
-
(258,454)
(6,522,397)
(3,021,365)
484,283 (11,658,122)
(664,861)-
-
-
(31,267,784)
(105,059,887)
(1,542,725)
(2,540,801)
(152,518,295)
122,916,314
(32,021,010)
(109,870,436)
(1,542,725)
(2,696,708)
(158,453,862)
119,644,737
Intangibles
Vehicles
Total Accumulated Depreciation
Total Depreciable Assets, Net
-
102,547
586,830
(250,212)
Subscription Based Information
Technology Arrangement (SBITA)
Assets Being Amortized:

SBITA Assets -
-
30,652
(2,565)
-
-
30,652
(2,565)Accumulated Amortization
Total SBITA Assets,
Being Amortized, Net - 28,087 - 28,087
Total Capital Assets Being
Depreciated or Amortized, Net 122,916,314
158,092,440
(2,993,278)
5,350,414
(250,212) 119,672,824
$ 160,316,019Capital Assets, Net $ $ $ (3,126,835)
Depreciation and amortization expense for the District was $6,524,962 for the year ended June 30, 2023.
(21)

VICTORVILLE WATER DISTRICT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 4 LONG-TERM LIABILITIES
A summary of changes in long-term liabilities for the year ended June 30, 2023, is noted below:

Balance
July 1, 2022
Balance
June 30, 2023
Due Within
One YearAdditions
506,823
Retirements
Other Long-Term Liabilities:

Compensated Absences
SBITAs
$
$
550,938
-
$
$
$ (384,579)
(9,888)
$ 673,182
19,084
$
$
527,666
9,42828,972
Other Debt:
2006 Certificate of Participation
Unamortized Discounts/Premiums
Total
8,535,000
86,697
9,172,635
-
-
(410,000)
(6,193)
8,125,000
80,504
8,897,770
425,000
-
962,094535,795 $ (810,660) $
SBITAs
The District has entered into subscription based-information technology arrangements (SBITAs) for various software licenses. The SBITA arrangements expire at various dates through 2027 and do not provide for renewal options. The interest rates vary from 2.4% to

2.7% and there are no variable payments.

The future subscription payments under SBITA agreements are as follows:

SBITAs
Year Ending June 30, Principal
9,428
Interest
4652024
2025
Total
$
$
$
$
9,656
19,084
235
700
Right-to-use assets acquired through SBITAs, net of accumulated amortization, are reported in Note 3, Capital Assets.
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 end of note.

Principal and interest payments are due each August 1 and interest only payments are due each February 1. The amount of Certificates of Participation outstanding at June 30, 2023 is $8,125,000.
(22)

VICTORVILLE WATER DISTRICT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 4 LONG-TERM LIABILITIES (CONTINUED)
The annual requirements to amortize outstanding debt of the District as of June 30, 2023, are as follows for each fiscal year ending June 30:

Certificates of Participation
Year Ending June 30,
2024
Principal
425,000
Interest
377,226$ $
2025
2026
2027
2028
2029-33
2034-37
Subtotal
Premium
Total
445,000
465,000
485,000
358,304
338,511
317,849
295,938
1,094,263
297,750
3,079,840
505,000
2,910,000
2,890,000
8,125,000
80,504
$
$ 8,205,504
Rate Covenant
The 2006 Certificates 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 Certificates of Participation were issued before Baldy Mesa and Victor Valley Water District were consolidated into Victorville Water District. The City performed the calculation that demonstrated compliance with rate covenant for the fiscal year ended June 30, 2023. The calculation was prepared using revenues and the proportionate expenses applicable to the Baldy Mesa Water District.

Pledged Revenues
The District has a debt issuance outstanding that is collateralized by the pledging of certain revenues. The amount and term of the remainder of this commitment is indicated in the debt service to maturity table presented previously. The purpose for which the proceeds of the related debt issuance was utilized are disclosed in the debt description noted previously.

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

Annual Amount
of Pledged
Revenue (Net
of Expenses,
Where Required)
Annual Debt
Service Payment
(of All Debt
Secured by
This Revenue)
Pledged
Revenue as
a Percentage
of Debt ServiceDescription of Pledged Revenue
Net Revenues Pledged by the
District for the 2006
Certificates of Participation $ 1,570,863 $ 805,388 195% (23)

VICTORVILLE WATER DISTRICT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 5 OTHER POSTEMPLOYMENT BENEFITS PLAN
Plan Description
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.

Employees Covered
As of the June 30, 2022 measurement date, the following current and former employees were covered by the benefit terms under the Plan:

Active Employees
Inactive Employees or Beneficiaries Currently
Receiving Benefits
85 38
Inactive Employees Entitled to, But Not Yet
Receiving Benefits 6
Total 129
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.

VICTORVILLE WATER DISTRICT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 5 OTHER POSTEMPLOYMENT BENEFITS PLAN (CONTINUED)
OPEB Liability
The District’s total OPEB liability was measured as of June 30, 2022 and was determined by an actuarial valuation dated June 30, 2022.

Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Entry Age Normal

3.54%
Inflation 2.50%
Salary Increases 2.75% per annum, in aggregate
N/AInvestment Rate of Return
Mortality, Retirement, Disability,
and Termination 2000-2019 Experience Study
Mortality Improvement Postretirement mortality projected fully generational with Scale MP-2021
Healthcare Trend Rate Non-Medicare: 8.5% for 2024, decreasing to an ultimate rate of 3.45% in 2076
Medicare (Non-Kaiser) - 7.5% for 2024, decreasing to an ultimate rate of 3.45% in 2076
Medicare (Kaiser) - 6.25% for 2024, decreasing to an
ultimate rate of 3.45% in 2076
Discount Rate
The discount rate used to measure the total OPEB liability was 3.54%. The discount rate is determined based on the Bond Buyer 20-Bond Index since the District has not established a trust.

Change in Actuarial Assumptions
The following actuarial assumption changes occurred form the measurement periods ended June 30, 2021 to 2022:



The discount rate changed from 2.16% to 3.54% based on changes in the index.

Inflation was lowered from 2.75% to 2.50%.

The healthcare trend rate was updated as follows: Non-Medicare increased from

7.0% to 8.5%; Medicare (Non-Kaiser) increased from 6.1% to 7.5%; and Medicare (Kaiser) increased from 7.0% to 6.25%.


Demographic assumptions were updated from the CalPERS 1997-2015 Experience Study to the CalPERS 2000-2019 Experience Study.

Mortality improvement was updated from Scale MP-2020 to Scale MP-2021. (25)

VICTORVILLE WATER DISTRICT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 5 OTHER POSTEMPLOYMENT BENEFITS PLAN (CONTINUED)
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 at June 30, 2021 (MD)
Service Cost
$ 12,528,232
626,941
Interest 281,198
Differences Between Expected and Actual Experience
Changes of Assumptions
Benefit Payments
987,796
(2,488,667)
(273,537)
(866,269)
11,661,963
Net Changes During 2021-2022
Total OPEB Liability at June 30, 2022 (MD) $
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:

Discount Rate
1% Decrease
(2.54%)
Current Rate
(3.54%)
1% Increase
(4.54%)
Total OPEB Liability $ 13,625,698 $ 11,661,963 $ 10,082,917 Sensitivity of the Total OPEB Liability to Changes in Health Care Cost Trend Rates The following presents the total OPEB liability of the District if it were calculated using health care cost trend rates that are one percentage point lower (Non-Medicare: 7.5% for 2024 decreasing to 2.45% in 2076; Medicare (Non-Kaiser): 6.5% for 2024, decreasing to an ultimate rate of 2.45% in 2076; Medicare (Kaiser): 5.25% for 2024, decreasing to an ultimate rate of 2.45% in 2076) or one percentage point higher (Non-Medicare: 9.5% for 2024 decreasing to 4.45% in 2076; Medicare (Non-Kaiser): 8.5% for 2024, decreasing to an ultimate rate of 4.45% in 2076; Medicare (Kaiser): 7.25% for 2024, decreasing to an ultimate rate of 4.45% in 2076) than the current rate:

Healthcare Trend Rate
1% Decrease
$ 9,896,799
Current Rate
$ 11,661,963
1% Increase
$ 13,927,124Total OPEB Liability
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 are 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.
(26)

VICTORVILLE WATER DISTRICT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 5 OTHER POSTEMPLOYMENT BENEFITS PLAN (CONTINUED)
Recognition of Deferred Outflows and Deferred Inflows of Resources (Continued) The recognition period differs depending on the source of the gain or loss:

Net Difference Between Projected and Actual
Earnings on OPEB Plan Investments
Plan Investments 5 Years
All Other Amounts Expected average remaining
service lifetime (EARSL) (8.1
Years at June 30, 2022
measurement date)
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2023, the District recognized OPEB expense of $412,564. As of the fiscal year ended June 30, 2023, the District reported deferred outflows/inflows of resources related to OPEB from the following sources:

Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Employer Contributions Subsequent to the
Measurement Date
Differences Between Expected and Actual Experience
Changes of Assumptions
$
$
314,628
865,846
1,527,140
2,707,614
$
$
-
(1,285,944)
(2,699,394)
(3,985,338)Total
The $314,628 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, 2024. Other amounts reported as deferred outflows/inflows of resources related to OPEB will be recognized as expense as follows:

Deferred
Measurement Period
Ended June 30,
2024
Inflows of
Resources
$ (496,247)
2025
2026
2027
(458,997)
(246,056)
9,782
2028
Thereafter
(48,948)
(351,886)
Payable to the Pension Plan
At June 30, 2023, the District had no outstanding amount of contributions to the OPEB plan required for the year ended June 30, 2023.
(27)

VICTORVILLE WATER DISTRICT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 6 PENSION PLAN
General Information about the Pension Plans
Plan Description
All qualified permanent and probationary employees are eligible to participate in the City’s Miscellaneous Plan, agent multiple-employer defined benefit pension plans administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. The District’s share of the net pension liability is reported as a cost-sharing plan in these financial statements. 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.

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. 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, 2022, are summarized as follows:

Miscellaneous
Prior to
January 1, 2013

2.5%@55
5 Years
On or After
January 1, 2013

2.0%@62
5 Years
Hire Date
Benefit Formula
Benefit Vesting Schedule
of Service
Monthly for Life
50 to 55
of Service
Monthly for Life
52 to 67
Benefit Payments
Retirement Age
Required Employee Contribution Rates
Required Employer Contribution Rates:

Normal Cost Rate

8.00% 6.75%

10.34%
$1,067,050

10.25%
N/APayment of Unfunded Liability
(28)

VICTORVILLE WATER DISTRICT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 6 PENSION PLAN (CONTINUED)
General Information about the Pension Plans (Continued) 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 Authority is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Authority contribution rates may change if plan contracts are amended. Payments 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, 2023, the District made contributions of $1,773,330 to the plan.

Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions
Actuarial Assumptions
The total pension liability for the Miscellaneous Plan for the June 30, 2022 measurement period was determined by an actuarial valuation as of June 30, 2021, with standard update procedures used to roll forward the total pension liability to June 30, 2022. The total pension liability for the Miscellaneous Plan was based on the following assumptions:

Valuation Date June 30, 2021
Measurement Date
Actuarial Cost Method
June 30, 2022
Entry-Age Normal
Cost Method
Asset Valuation Method
Actuarial Assumptions:

Discount Rate
Inflation
Salary Increases
Market Value of Assets

6.90%

2.30%
(1)
Mortality Rate Table
Post Retirement Benefit Income
(2)
(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 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement and Post-retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 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 November 2021 that can be found on the CalPERS website.
(3) The lesser of contract COLA up to 2.30% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.30% thereafter.
(29)

VICTORVILLE WATER DISTRICT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 6 PENSION PLAN (CONTINUED)
Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
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.

Assumed
Asset Real Return
(a) (b)Asset Class (a)
Global Equity - Cap-weighted
Global Equity - Non-Cap-weighted
Private Equity
Allocation

30.00 % 4.54 %

12.00 13.00

5.00 3.84

7.28 0.27

0.50 1.56

2.27 2.48

3.57 3.21
(0.59)
Treasury
Mortgage-backed Securities
Investment Grade Corporates
High Yield

5.00 10.00

5.00 Emerging Market Debt
Private Debt

5.00 5.00
Real Assets 15.00
(5.00)
100.00 %
Leverage
Total
(a) An expected inflation of 2.30% used for this period (b) Figures are based on the 2021 Asset Liability Management study.

VICTORVILLE WATER DISTRICT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 6 PENSION PLAN (CONTINUED)
Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Proportionate Share of Net Pension Liability – City’s Miscellaneous Agent Multiple-Employer Plan Allocation to the District
The District’s net pension liability for the Plan is measured as the proportionate share of the net pension liability. The District’s proportionate share of the net pension liability was based on a projection of the District’s long-term share of contributions to the Miscellaneous Plan relative to the projected contributions of the City, actuarially determined.

The District’s proportionate share of the net pension liability for the Miscellaneous Plan as of the measurement date ended June 30, 2021 and 2022, was as follows:

Increase (Decrease)
Total Pension
Liability
Plan Fiduciary
Net Position
(b)
Net Pension
Liability Proportionate
Share(a) (c) = (a) - (b)
Balance at June 30, 2021 (MD)
Balance at June 30, 2022 (MD)
Net Changes During 2021-22
$ 58,087,047
57,476,037
$ 48,824,020
41,319,299
$ 9,263,027
16,156,738
$ 6,893,711

25.57%

23.60%
-1.97%$ (611,010) $ (7,504,721)
Pension Expense and Deferred Outflows and Inflows of Resources For the year ended June 30, 2023, the District recognized pension expense of $2,401,909 for the Miscellaneous Plan. At June 30, 2023, the District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources for the Miscellaneous Plan:

Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Pension Contributions Subsequent to the
Measurement Date
Changes of Assumptions
Differences Between Expected and Actual Experience
Net Difference Between Projected and Actual
Earnings on Pension Plan Investments
Total
$
$
1,773,330
1,646,774
420,763
$
$
-
-
(1,029,801)
2,254,611
6,095,478
-
(1,029,801)
$1,773,330 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, 2024. 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. (31)

VICTORVILLE WATER DISTRICT

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 6 PENSION PLAN (CONTINUED)
Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Pension Expense and Deferred Outflows and Inflows of Resources (Continued) 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
Ended June 30,
2024
Inflows of
Resources
937,371
763,085
359,657
1,232,234
-
$
2025
2026
2027
2028
Thereafter -
Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the District’s proportionate share of the net pension liability for the Miscellaneous Plan, calculated using the discount rate for the Plan, as well as what the District’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:

Discount Rate
1% Decrease
(5.90%)
Current Rate
(6.90%)
1% Increase
(7.90%)
Net Pension Liability $ 24,473,392 $ 16,156,738 $ 9,355,658 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, 2023, the District had no outstanding amount of contributions to the Miscellaneous Plan required for the year ended June 30, 2023. (32)

REQUIRED SUPPLEMENTARY INFORMATION
(33)

VICTORVILLE WATER DISTRICT
SCHEDULE OF PLAN’S PROPORTIONATE SHARE OF NET PENSION LIABILITY (COST SHARING PLAN)
LAST TEN FISCAL YEARS*
Reporting Fiscal Year
(Measurement Date)
2023 2022 2021 2020 2019 2018 2017 2016 2015
(2022) (2021) (2020) (2019) (2018) (2017) (2016) (2015) (2014) Plan’s Proportion of the
Net Pension Liability 23.60% 25.57% 25.07% 25.15% 24.95% 24.87% 24.63% 24.40% 24.28% Plan’s Proportionate
Share of the
Net Pension Liability $ 16,156,738 $
$
9,263,027
6,148,247
$ 14,076,845 $ 12,996,097 $ 11,526,434 $ 11,480,941 $
$
9,777,304
4,860,190
$
$
7,425,085
4,824,221
$
$
6,754,806
4,707,026Plan’s Covered Payroll $ 6,657,109 $ 6,177,914 $ 5,546,115 $ 5,598,545 $ 5,506,946 Plan’s Proportionate Share
of the Net Pension Liability
as a Percentage of
Covered Payroll 242.70% 150.66%

21.49%
227.86% 234.33% 205.88% 208.48% 201.17%

18.59%
153.91%

19.55%
143.50%

19.73%
Plan’s Proportionate Share
of the Fiduciary Net
Position as a Percentage
of the Plan’s Total
Pension Liability 16.97% 18.47% 18.74% 18.88% 18.52%
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, 2022:

There were no significant changes in assumptions.

From fiscal year June 30, 2022 to June 30, 2023:

The discount rate and long-term rate of return decreased from 7.15% to 6.90% and the inflation rate decreased from 2.50% to 2.30%. *Fiscal year 2015 was the first year of implementation, therefore, only nine years are shown. (34)

VICTORVILLE WATER DISTRICT

SCHEDULE OF PLAN CONTRIBUTIONS
(COST SHARING PLAN)
LAST TEN FISCAL YEARS*
Fiscal Year
2022-2023
1,773,330
2021-2022
1,591,527
2020-2021
1,520,299
2019-2020
1,459,333
2018-2019 2017-2018
1,026,643
2016-2017
916,742
2015-2016
827,951
2014-2015
709,786
Actuarially Determined
Contribution $ $ $ $ $ 1,221,074 $ $ $ $
Contributions in Relation to
the Actuarially Determined
Contribution (1,773,330) (1,591,527) (1,520,299) (1,459,333) (1,221,074) (1,026,643) (916,742) (827,951) (709,786) Contribution Deficiency
(Excess) $
$
- $
$
- $
$
- $
$
- $
$
- $
$
- $
$
- $
$
- $
$
-
Covered Payroll 7,424,195 6,657,109 6,148,247 6,177,914 5,546,115 5,598,545 5,506,946 4,860,190 4,824,221 Contributions as a Percentage
of Covered Payroll 23.89% 23.91% 24.73% 23.62% 22.02% 18.34% 16.65% 17.04% 14.71% Notes to Schedule:

Valuation Date 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012 Methods and Assumptions
Used to Determine
Contribution Rates:

Actuarial Cost Method
Amortization Method
Entry Age
(1)
Entry Age
(1)
Entry Age
(1)
Entry Age
(1)
Entry Age
(1)
Entry Age
(1)
Entry Age
(1)
Entry Age
(1)
Entry Age
(1)
Asset Valuation Method Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value 15-Year Smoothed
Market Method
Inflation 2.30%
(2)

6.90% (3)
(4)

2.50%
(2)

7.00% (3)
(4)

2.50%
(2)

7.00% (3)
(4)

2.63%
(2)

7.25% (3)
(4)

2.75%
(2)

7.375% (3)
(4)

2.75%
(2)

7.50% (3)
(4)

2.75%
(2)

7.50% (3)
(4)

2.75%
(2)

7.50% (3)
(4)

2.75%
(2)

7.50% (3)
(4)
Salary Increases
Investment Rate of Return
Retirement Age
Mortality (5) (5) (5) (5) (5) (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 nine years are shown. (35)

VICTORVILLE WATER DISTRICT

SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS LAST TEN FISCAL YEARS*
Fiscal Year Ended
(Measurement Date)
2023
(2022)
Total OPEB Liability:

Service Cost $ 626,941
Interest on the Total OPEB Liability
Changes of Assumptions
281,198
(2,488,667)
Differences Between Expected and Actual
Experience 987,796
Benefit Payments, Including Refunds and the
Implied Subsidy Benefit Payments
Net Change in Total OPEB Liability
(273,537)
(866,269)
Total OPEB Liability - Beginning
Total OPEB Liability - Ending
Covered-Employee Payroll
12,528,232
$ 11,661,963
$ 7,778,497
149.93%
Total OPEB Liability as a Percentage of
Covered-Employee Payroll
Notes to Schedule:

Changes in Assumptions:

Discount Rate 3.54%
Mortality Improvement Rates Scale MP-2021
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%.

In the June 30, 2022 measurement period, the following medical trend rates changed: Non-Medicare increased from

7.0% to 8.5%; Medicare increased from 6.1% to 7.5%; and Kaiser increased from 7.0% to 6.25%. *Fiscal year 2018 was the first year of implementation, therefore, only six years are shown. (36)

VICTORVILLE WATER DISTRICT

SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS (CONTINUED) LAST TEN FISCAL YEARS*
Fiscal Year Ended
(Measurement Date)
2022 2021 2020 2019 2018
(2021) (2020) (2019) (2018) (2017)
Total OPEB Liability:

Service Cost $ 600,360 $ 474,890 $ 417,399 $ 494,095 $ 583,831 Interest on the Total OPEB Liability
Changes of Assumptions
271,338
105,768
372,802
1,795,864
364,950
601,978
404,923
(509,085)
345,325
(1,452,630)
Differences Between Expected and Actual
Experience - (904,000) - (1,985,311) -
Benefit Payments, Including Refunds and the
Implied Subsidy Benefit Payments
Net Change in Total OPEB Liability
(253,227)
724,239
(224,298)
1,515,258
(216,889)
1,167,438
(199,802)
(1,795,180)
(185,817)
(709,291)
Total OPEB Liability - Beginning
Total OPEB Liability - Ending
Covered-Employee Payroll
11,803,993 10,288,735 9,121,297 10,916,477
9,121,297
6,818,328
11,625,768
$ 12,528,232 $ 11,803,993 $ 10,288,735 $
$
$ 10,916,477
$ 7,710,052
162.49%
$ 7,618,996
154.93%
$ 7,078,295
145.36%
$ 4,577,527
238.48%
Total OPEB Liability as a Percentage of
Covered-Employee Payroll 133.78%
Notes to Schedule:

Changes in Assumptions:

Discount Rate 2.16% 2.21% 3.50% 3.87% 3.58%
Mortality Improvement Rates Scale MP-2020 Scale MP-2020 Scale MP-2018 Scale MP-2018 Scale MP-2016 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%.

In the June 30, 2022 measurement period, the following medical trend rates changed: Non-Medicare increased from

7.0% to 8.5%; Medicare increased from 6.1% to 7.5%; and Kaiser increased from 7.0% to 6.25%. *Fiscal year 2018 was the first year of implementation, therefore, only six years are shown. (37)

SUPPLEMENTARY INFORMATION
(38)

VICTORVILLE WATER DISTRICT

COMBINING SCHEDULE OF NET POSITION
JUNE 30, 2023
(WITH SUMMARIZED DATA FOR JUNE 30, 2022)
Victorville
Wastewater
Reclamation
Facility
Reclaimed
Water
Totals
Water Eliminations 2023 2022
ASSETS

CURRENT ASSETS
Cash and Investments
Cash and Investments with Fiscal Agent
Accounts Receivable, Net
Interest Receivable
Due from Other Governments
Inventory
$ 64,452,883
836,639
3,600,079
248,870
19,946
866,934
$ 11,043,533 $ 3,490,165 $ -
-
-
-
-
-
-
$ 78,986,581
836,639
5,176,781
248,870
19,946
866,934
$ 74,178,469
836,313
6,340,504
58,333
34,652
948,273
82,396,544
- -
1,568,597 8,105
-
-
-
-
-
-
Total Current Assets 70,025,351 12,612,130 3,498,270 86,135,751

NONCURRENT ASSETS
Prepaid Deposits
Advances to Other Funds
Capital Assets:
28,306
24,916,324
-
-
-
-
- 28,306
-
21,523
-(24,916,324)
Not Being Depreciated
Being Depreciated or Amortized, Net
Total Noncurrent Assets
39,494,260
104,708,882
169,147,772
942,051
10,755,049
11,697,100
206,884
4,208,893
4,415,777
-
-
40,643,195
119,672,824
160,344,325
35,176,126
122,916,314
158,113,963(24,916,324)
Total Assets 239,173,123 24,309,230 7,914,047 (24,916,324) 246,480,076 240,510,507

DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows - OPEB Related
Deferred Outflow - Pension Related
Total Deferred Outflows of
2,630,254
5,954,022
77,360
141,456
-
-
-
-
2,707,614
6,095,478
2,106,668
2,876,885
Resources 8,584,276 218,816 - - 8,803,092 4,983,553

LIABILITIES

CURRENT LIABILITIES
Accounts Payable
Interest Payable
3,745,256
161,029
217,489
1,700,469
268,006
962,094
7,054,343
621,282 10,079 -
-
-
-
-
-
-
4,376,617
161,029
217,489
1,700,469
273,537
962,094
7,691,235
4,592,839
168,460
217,489
1,669,971
253,227
841,847
7,743,833
-
-
-
-
-
-
-
Prepaid Water Connection Fees
Deposits Payable
Total OPEB Liability - Due Within One Year
Long-Term Liabilities, Due Within One Year
Total Current Liabilities
-
5,531
-
626,813 10,079

NONCURRENT LIABILITIES
Advances from Other Funds
Total OPEB Liability
-
11,158,150
15,909,758
24,916,324
230,276
246,980
-
-
-
(24,916,324) -
11,388,426
16,156,738
-
12,275,005
9,263,027
-
-Net Pension Liability
Long-Term Liabilities, Due in More
Than One Year 7,935,676
35,003,584
- -
-
- 7,935,676
35,480,840
8,330,788
29,868,820Total Noncurrent Liabilities 25,393,580 (24,916,324) Total Liabilities 42,057,927 26,020,393 10,079 (24,916,324) 43,172,075 37,612,653

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows - OPEB Related
Deferred Inflows - Pension Related
Total Deferred Inflows of Resources
3,895,885
979,410
4,875,295
89,453
50,391
139,844
-
-
-
-
-
-
3,985,338
1,029,801
5,015,139
2,420,187
4,385,336
6,805,523

NET POSITION
Net Investment in Capital Assets
Unrestricted
135,830,090
64,994,087
11,697,100
(13,329,291)
4,415,777
3,488,191
-
-
151,942,967
55,152,987
150,031,812
51,044,072
Total Net Position $ 200,824,177 $ (1,632,191) $ 7,903,968 $ - $ 207,095,954 $ 201,075,884 (39)

VICTORVILLE WATER DISTRICT

COMBINING SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION YEAR ENDED JUNE 30, 2023
(WITH SUMMARIZED DATA FOR YEAR ENDED JUNE 30, 2022)
Victorville
Wastewater
Reclamation
Facility
Reclaimed
Water
Totals
Water Eliminations 2023 2022

OPERATING REVENUES
Utility Sales $ 20,797,930
9,801,678
1,211,013
485,824
285,035
239,663
$ 8,801,887 $ 669,672 $ -
-
-
-
-
-
-
$ 30,269,489
9,801,678
1,211,013
485,824
285,035
242,429
$ 36,135,804
8,306,160
991,164
145,832
275,274
Meter and Service Fees
Pass-Thru Charges
Fines and Forfeitures
Arsenic Surcharge
Other
-
-
-
-
-
-
-
-
-2,766
8,804,653
405,018
46,259,252Total Operating Revenues 32,821,143 669,672 42,295,468

OPERATING EXPENSES
Personnel Services
Maintenance and Operations
Production Costs
Pass-Thru Production Costs
Depreciation
11,286,592
11,873,031
5,417,279
1,211,013
5,880,674
35,668,589
207,643
7,303,475
-
154,307
51,502
16,984
-
164,607
387,400
-
-
-
-
-
-
11,648,542
19,228,008
5,434,263
1,211,013
6,524,962
44,046,788
9,681,920
13,118,928
11,026,983
2,698,831
7,194,999
43,721,661
-
479,681
7,990,799Total Operating Expenses
OPERATING INCOME (LOSS) (2,847,446) 813,854 282,272 - (1,751,320) 2,537,591

NONOPERATING REVENUES (EXPENSES)
Taxes
Intergovernmental
Investment Income
Interest Expense
Gain on Disposal of Assets
Other Nonoperating Revenues
Settlement Proceeds
Total Nonoperating Revenues
(Expenses)
1,335,019
-
- -
-
-
-
1,335,019
-
1,130,682
634,939
(243,999)
(399,462)
16,201
-
302,264
(632,740)
-
(175,799)
-
2,141,955
(381,764)
338,923
(44,951)
-
86,600 (632,740)
632,740
1,898,079
(381,764)
338,923
(220,750)
-
-
-
-
-
-
-
-
(8,427)
843,920
3,389,182
541,736
(506,275)
307,579
86,600 -
-
2,969,507
1,218,187
1,973,854
4,511,445

INCOME (LOSS) BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS 368,872

CAPITAL CONTRIBUTIONS
Connection Fees
Alternate Water Source Fees
Capital Restricted Use Fees
Capital Contributions
Transfer In
Transfers Out
Contributions to The City of Victorville
Total Capital Contributions
1,652,715
528,412
-
10,000
3,809,669
-
2,097,200 -
-
-
-
-
-
-
-
3,749,915
528,412
586,681
10,000
-
6,053,629
1,110,296
813,860
198,457
-
586,681
-
-
-
-
-
(3,809,669)
-
(3,809,669)
3,809,669
-
-
-
-
(73,125)
5,927,671
-
-
(73,125)
4,801,8832,683,881 (3,809,669) 8,176,242

CHANGE IN NET POSITION
Net Position - Beginning of Year

NET POSITION - END OF YEAR
6,469,407
194,354,770
200,824,177
2,991,460
(4,623,651)
(1,632,191)
(3,440,797)
11,344,765
7,903,968
-
-
-
6,020,070
201,075,884
207,095,954
12,687,687
188,388,197
201,075,884$ $ $ $ $ $
(40)

Aꢀachment D

SOUTHERN CALIFORNIA

LOGISTICS AIRPORT AUTHORITY
(A COMPONENT UNIT OF THE

CITY OF VICTORVILLE, CALIFORNIA)

FINANCIAL STATEMENTS AND

SUPPLEMENTARY INFORMATION
YEAR ENDED JUNE 30, 2023

SOUTHERN CALIFORNIA LOGISTICS AIRPORT AUTHORITY
(A COMPONENT UNIT OF THE CITY OF VICTORVILLE, CALIFORNIA)

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2023
INDEPENDENT AUDITORS’ REPORT 1

BASIC FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 5
7STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION STATEMENT OF CASH FLOWS 8
NOTES TO FINANCIAL STATEMENTS 10

REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF PLAN’S PROPORTIONATE SHARE OF NET PENSION
LIABILITY 44
45SCHEDULE OF PLAN CONTRIBUTIONS
SCHEDULE OF PLAN’S PROPORTIONATE SHARE OF TOTAL OPEB
LIABILITY 46

SUPPLEMENTARY INFORMATION
COMBINING SCHEDULE OF NET POSITION 49
50 COMBINING SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET

POSITION

CliftonLarsonAllen LLP
CLAconnect.com
INDEPENDENT AUDITORS’ REPORT
Board of Directors
Southern California Logistics Airport Authority
Victorville, California
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of the Southern California Logistics Airport Authority (SCLAA), a component unit of the City of Victorville, California, as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the SCLAA’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the SCLAA as of June 30, 2023, and the changes in financial position, and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the SCLAA and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit.

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

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the SCLAA’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. (1)

Board of Directors
Southern California Logistics Airport Authority
Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and, therefore, is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:


Exercise professional judgment and maintain professional skepticism throughout the audit.

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit 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 SCLAA’s internal control. Accordingly, no such opinion is expressed.


Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the SCLAA’s ability to continue as a going concern for a reasonable period of time.

Board of Directors
Southern California Logistics Airport Authority
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 be presented to supplement the basic financial statements. Such information is the responsibility of management and, 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 required supplementary information in accordance with GAAS, 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.

Supplementary Information
Our audit for the year ended June 30, 2023 was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the SCLAA’s basic financial statements. 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, 2023 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 basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements for the year ended June 30, 2023 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 GAAS. 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, 2023. (3)

Board of Directors
Southern California Logistics Airport Authority
We also previously audited, in accordance with GAAS, the basic financial statements of the SCLAA as of and for the year ended June 30, 2022 (not presented herein), and have issued our report thereon dated April 11, 2023, which contained an unmodified opinion on the financial statements of the SCLAA.

Report on Summarized Comparative Information
We have previously audited the SCLAA’s 2022 financial statements, and we expressed an unmodified opinion on the financial statements in our report dated April 11, 2023. In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2022, is consistent, in all material respects, with the audited financial statements from which it has been derived.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 10, 2024, on our consideration of the SCLAA’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 SCLAA’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 SCLAA’s internal control over financial reporting and compliance.

CliftonLarsonAllen LLP
Irvine, California
June 10, 2024
(4)

SOUTHERN CALIFORNIA LOGISTICS AIRPORT AUTHORITY

STATEMENT OF NET POSITION
JUNE 30, 2023
(WITH COMPARATIVE DATA FOR JUNE 30, 2022)
2023 2022
ASSETS

CURRENT ASSETS
Cash and Investments
Cash and Investments with Fiscal Agent
Accounts Receivable, Net
Interest Receivable
$ 37,577,125
24,761,205
390,776
$ 20,904,681
23,938,255
622,321
136,228 99,170
Due from Other Governments
Leases
Inventory
152,472
7,770,582
13,878
347,685
7,662,011
29,905
Total Current Assets 70,802,266 53,604,028

NONCURRENT ASSETS
Prepaid Items
Advances to City of Victorville
Leases
Nondepreciable Capital Assets
Depreciable Capital Assets, Net
Total Noncurrent Assets
55,594
2,000,000
83,207,311
13,981,248
109,697,569
208,941,722
53,755
-
76,850,912
16,542,239
117,979,955
211,426,861
Total Assets 279,743,988 265,030,889

DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows - OPEB Related
Deferred Outflows - Pension Related
Deferred Charge on Refunding
267,603
1,709,212
1,397,897
3,374,712
301,356
829,725
1,532,412
2,663,493Total Deferred Outflows of Resources
See accompanying Notes to Financial Statements.
(5)

SOUTHERN CALIFORNIA LOGISTICS AIRPORT AUTHORITY

STATEMENT OF NET POSITION (CONTINUED)
JUNE 30, 2023
(WITH COMPARATIVE DATA FOR JUNE 30, 2022)
2023 2022

LIABILITIES

CURRENT LIABILITIES
Accounts Payable
Interest Payable
Deposits Payable
Unearned Revenue
Total OPEB Liability - Due Within One Year
Long-Term Liabilities, Due Within One Year
Total Current Liabilities
$ 445,642
1,228,041
720,696
1,063,573
30,446
$ 1,386,449
1,256,389
1,545,494
1,301,095
27,309
7,002,127
10,490,525
6,680,528
12,197,264

NONCURRENT LIABILITIES
Advances from Other Governments
Total OPEB Liability
11,267,089
2,009,638
11,034,017
2,336,476
Net Pension Liability 4,503,688 2,599,527
Long-Term Liabilities, Due in More Than One Year
Total Noncurrent Liabilities
273,345,970
291,126,385
278,623,283
294,593,303
Total Liabilities 301,616,910 306,790,567

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows - OPEB Related
Deferred Inflows - Pension Related
Deferred Inflows - Leases
854,840
234,104
87,570,873
88,659,817
519,180
1,151,011
82,884,600
84,554,791Total Deferred Inflows of Resources

NET POSITION (DEFICIT)
Net Investment in Capital Assets
Unrestricted
(130,315,399)
23,157,372
(125,452,052)
1,801,076
Total Net Position (Deficit) $ (107,158,027) $ (123,650,976) See accompanying Notes to Financial Statements.
(6)

SOUTHERN CALIFORNIA LOGISTICS AIRPORT AUTHORITY

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION YEAR ENDED JUNE 30, 2023
(WITH COMPARATIVE DATA FOR THE YEAR ENDED JUNE 30, 2022) 2023 2022

OPERATING REVENUES
Charges for Services:

Landing Fees
Fuel Flowage Fees
Rent and Lease Revenue
Total Charges for Services
Fines and Forfeitures
Other
$ 1,992,027
309,239
10,907,800
13,209,066
28,873
$ 1,712,503
284,213
9,913,634
11,910,350
22,003
438,339
13,676,278
1,095,384
13,027,737Total Operating Revenues

OPERATING EXPENSES
Personnel Services
Maintenance and Operations
Depreciation
3,329,516
7,432,535
9,744,648
20,506,699
2,646,192
7,506,153
9,610,772
19,763,117Total Operating Expenses
OPERATING LOSS (6,830,421) (6,735,380)

NONOPERATING REVENUES (EXPENSES)
Intergovernmental
Taxes
Investment Income
Interest Expense
Gain on Sale of Capital Assets
Other Nonoperating Expenses
Proceeds from Capital Asset Sold to City
Capital Asset Sold to City
Total Nonoperating Revenues (Expenses)
-
22,072,684
3,494,189
(16,864,762)
14,236,886
(19,137)
1,929,341
(1,895,090)
22,954,111
59,000
21,731,579
1,448,371
(16,895,928)
1,125
(19,087)
-
-
6,325,060
GAIN (LOSS) BEFORE CAPITAL CONTRIBUTIONS 16,123,690 (410,320)

CAPITAL CONTRIBUTIONS
Capital Contributions
Capital Grants
Capital Contributions from the City of Victorville
Capital Contributions to the City of Victorville
Capital Contribution from Tenant
Total Capital Contributions
183,723
183,722
-
607,812
633,633
1,895,090
(1,943,929)
-
-
1,814
369,259 1,192,606
CHANGE IN NET POSITION 16,492,949 782,286
Net Position (Deficit) - Beginning of Year

NET POSITION (DEFICIT) - END OF YEAR
(123,650,976) (124,433,262)
$ (107,158,027) $ (123,650,976)
See accompanying Notes to Financial Statements.
(7)

SOUTHERN CALIFORNIA LOGISTICS AIRPORT AUTHORITY

STATEMENT OF CASH FLOWS
YEAR ENDED JUNE 30, 2023
(WITH COMPARATIVE DATA FOR THE YEAR ENDED JUNE 30, 2022) 2023 2022

CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers $ 1,918,566
(3,200,698)
(8,359,154)
(9,641,286)
$ 4,292,588
(2,740,404)
(7,450,069)
(5,897,885)
Cash Payments to Employees for Services
Cash Payments to Suppliers for Goods and Services
Net Cash Used by Operating Activities

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Cash Received from Other Governments
Cash Received from City of Victorville
22,500,969
-
23,722,863
1,940,931
Cash Paid to City of Victorville (2,233,072)
20,267,897
(3,847,361)
21,816,433Net Cash Provided by Noncapital Financing Activities

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Cash Received from the Sale of Capital Assets
Capital Grants
14,408,189
183,722
1,125
633,633
Cash Received from Leases and Rent
Cash Received from City for Acquisition of Capital Assets Cash Payments to Acquire Capital Assets
Principal Paid on Capital-Related Debt
Interest Paid on Capital-Related Debt
9,129,103
1,929,341
(782,127)
(6,550,000)
(14,906,576)
3,411,652
8,285,311
-
(1,288,044)
(6,225,000)
(15,238,105)
(13,831,080)Net Cash Provided (Used) by Capital and Related Financing Activit

CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received on Investments 3,457,131
3,457,131
1,349,201
1,349,201Net Cash Provided by Investing Activities

NET INCREASE IN CASH AND CASH EQUIVALENTS
Cash and Cash Equivalents - Beginning of Year

CASH AND CASH EQUIVALENTS - END OF YEAR
17,495,394
44,842,936
62,338,330
3,436,669
41,406,267
44,842,936$ $

RECONCILIATION OF CASH AND CASH EQUIVALENTS TO
STATEMENT OF NET POSITION:

Cash and Investments
Cash and Investments with Fiscal Agent
Cash and Cash Equivalents
$
$
37,577,125
24,761,205
62,338,330
$
$
20,904,681
23,938,255
44,842,936
See accompanying Notes to Financial Statements.
(8)

SOUTHERN CALIFORNIA LOGISTICS AIRPORT AUTHORITY

STATEMENT OF CASH FLOWS (CONTINUED)
YEAR ENDED JUNE 30, 2023
(WITH COMPARATIVE DATA FOR THE YEAR ENDED JUNE 30, 2022) 2023 2022

RECONCILIATION OF OPERATING LOSS TO NET CASH

PROVIDED (USED) BY OPERATING ACTIVITIES
Operating Loss $ (6,830,421) $ (6,735,380)
Adjustments to Reconcile Operating Loss to Net Cash
Provided (Used) By Operating Activities:

Depreciation
Operating Rental and Lease Revenue
Nonoperating Miscellaneous Expense
(Increase) Decrease in Assets:

Accounts Receivable, Net
Inventory
9,744,648
(10,907,800)
(19,137)
9,610,772
(9,913,634)
(19,087)
231,545
16,027
(1,839)
33,753
(879,487)
(247,475)
(13,585)
(50,996)
21,614
Prepaid Items
Deferred Outflows - OPEB
Deferred Outflows - Pension
Increase (Decrease) in Liabilities:

Accounts Payable
Deposits Payable
Unearned Revenue
Accrued Compensated Absences
Total OPEB Liability
Net Pension Liability
(39,989)
(940,807)
(824,798)
(237,522)
(24,661)
(323,701)
1,904,161
335,660
120,665
188,018
1,257,029
10,560
148,804
(1,239,054)
(70,319)Deferred Inflows - OPEB
Deferred Inflows - Pension
Net Cash Used by Operating Activities
(916,907)
(9,641,286)
1,074,172
(5,897,885)$ $

SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING

AND FINANCING ACTIVITY
Developer/Tenant Contributed Capital Assets
Interest Accretion Expenses
Amortization of Bond Discounts and Premiums
Total
$
$
185,537
1,527,079
91,868
$
$
2,505,902
1,420,680
91,868
1,804,484 4,018,450
See accompanying Notes to Financial Statements.
(9)

SOUTHERN CALIFORNIA LOGISTICS AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Description of the Reporting Entity
The Southern California Logistics Airport Authority (SCLAA), a component unit of the City of Victorville, was formed in June of 1997 by the City of Victorville and the former Victorville Redevelopment Agency. Prior to the dissolution of the Victorville Redevelopment Agency in 2012, the Victorville Water District was added as a member of the JPA. The purpose of SCLAA is to provide for the coordination of long-range planning of the territory of George Air Force Base (now Southern California Logistics Airport, or the Airport). The Victor Valley Economic Development Authority (VVEDA), a Joint Powers Authority of the City of Victorville and other entities, was authorized to exclusively exercise the powers of a redevelopment agency in the area including and surrounding the Airport. VVEDA subsequently delegated to the SCLAA all of its redevelopment authority over the portion of the VVEDA project area comprised of the Airport.

B. Relationship to the City of Victorville
The SCLAA is an integral part of the reporting entity of the City of Victorville (the City) and is reflected as a blended component unit within the City of Victorville. The SCLAA fund has been included within the scope of the basic financial statements of the City because, although it is a legally separate organization, the City Council is the governing board and has financial accountability over the operations of the SCLAA. Only the SCLAA 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.

C. 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.

D. Basis of Accounting, Measurement Focus, and Financial Statement Presentation The SCLAA is accounted for as an enterprise fund (proprietary fund type). A fund is an accounting entity with a self-balancing set of accounts established to record the financial position and results of operations of a specific governmental activity. The activities of enterprise funds closely resemble those ongoing businesses in which the purpose is to conserve and add to basic resources while meeting operating expenses from current revenues. Enterprise funds account for operations that provide services on a continuous basis and are substantially financed by revenues derived from user charges.

SOUTHERN CALIFORNIA LOGISTICS AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. 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 for bonds issued through 2021 and the effective interest method for bonds issued thereafter. 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 SCLAA distinguishes operating revenues and expenses from nonoperating items.

Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with airport and rental operations. The principal operating revenues of the SCLAA are charges to customers for services, which includes landing fees, fuel flowage fees, and rent and lease revenue, fines and forfeitures, and other reimbursements. Operating expenses include personnel services, maintenance and operational costs, and depreciation of capital assets. All revenues and expenses not meeting this definition, such as taxes, investment income, and interest expense, are reported as nonoperating revenues and expenses.

E. 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.

F. Cash Equivalents
For purposes of the statement of cash flows, cash equivalents are defined as short-term, highly liquid investments 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.
(11)

SOUTHERN CALIFORNIA LOGISTICS AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) G. Accounts Receivable
The SCLAA specifically identifies accounts that are deemed uncollectable and offsets the receivable by an allowance for doubtful accounts. The amounts recorded as accounts receivable include various reimbursements and fees due to the SCLAA, net of an allowance for doubtful accounts totaling $21,654 as of June 30, 2023.

H. Due from Other Governments
The amounts recorded as a receivable due from other governments includes grant revenues collected or provided by Federal, State, County, and City Governments and unremitted to the City as of June 30, 2023.

I. Inventory and Prepaid Items
The SCLAA uses the consumption method of accounting for inventories. Inventory consists primarily of supplies for construction and repair that 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 utilizing the consumption method.

J. Leases
When the SCLAA is a lessee, a lease liability and a lease asset is recognized at the commencement of the lease term, unless the lease is a short-term lease, or it transfers ownership of the underlying asset. The lease liability is measured at the present value of payments expected to be made during the lease term (less any lease incentives). The lease asset is measured at the amount of the initial measurement of the lease liability, plus any payments made to the lessor at or before the commencement of the lease term and certain direct costs.

When the SCLAA is a lessor, a lease receivable and a deferred inflow of resources is recognized at the commencement of the lease term, with certain exceptions for leases of assets held as investments, certain regulated leases, short-term leases, and leases that transfer ownership of the underlying asset. The lease receivable is measured at the present value of lease payments expected to be received during the lease term. The deferred inflow of resources is measured at the value of the lease receivable plus any payments received at or before the commencement of the lease term that relate to future periods.
(12)

SOUTHERN CALIFORNIA LOGISTICS AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) K. Capital Assets
Tangible capital assets (including infrastructure) are valued at cost where historical records are available and at an estimated historical cost where no historical records exist. Donated tangible capital assets are valued at acquisition value on the date of donation. SBITA assets are initially measured as the sum of the present value of payments expected to be made during the subscription term, payments associated with the SBITA contract made to the SBITA vendor at the commencement of the subscription term, when applicable, and capitalizable implementation costs, less any SBITA vendor incentives received form the SBITA vendor at the commencement of the SBITA term.

SBITA assets are amortized in a systematic and rational manner over the shorter of the subscription term or the useful life of the underlying IT assets. SCLAA 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 for tangible capital assets:

Buildings and Improvements
Computer and Communications
Furniture and Equipment
Infrastructure
Land Improvements
Vehicles
10 to 50 Years
5 Years
3 to 7 Years
20 to 40 Years
10 to 50 Years
8 to 15 Years
L. Compensated Absences
A liability is recorded for unused vacation and similar compensatory leave balances since the employees’ entitlement to these balances is 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 payment, 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.

The balance of unpaid vacation and vested sick leave at year-end is recorded as a long- term liability in the financial statements.
(13)

SOUTHERN CALIFORNIA LOGISTICS AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) M. Unearned Revenue
Unearned revenue is recorded when the SCLAA receives funds for which the goods or services have not yet been provided and, therefore, revenue has not yet been earned.

The balance in unearned revenue for the SCLAA primarily consists of funds received in advance from tenants in which the City serves as the lessor.

N. Deferred Outflows and Deferred Inflows of Resources
In addition to assets, the statement of net position reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to future periods and so will not be recognized as an outflow of resources (expense) until that time. The category of deferred outflow of resources reported in the statement of net position is related to a loss on refunding, pension, and other postemployment benefits. A deferred loss on refunding results from the difference in the carrying value of the refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. Deferred outflows on pension and other postemployment benefits are more fully discussed in Notes 6 and 7, respectively.

The SCLAAs deferred inflows of resources reported on the statement of net position relate to leases, pension and other postemployment benefits. Amounts for leases are for amounts not yet received that are deferred and recognized as an inflow of resources in the period that the amounts are available or earned. Pension and other postemployment benefits deferred inflows of resources are more fully discussed in Notes 9 and 10, respectively.

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 capital related payables that are 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, laws or regulations of other governments).

Unrestricted Net Position – This amount is the remaining net position that does not meet the definition of “invested in capital assets” or “restricted net position.” (14)

SOUTHERN CALIFORNIA LOGISTICS AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) O. Net Position (Continued)
Sometimes the SCLAA 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 SCLAA’s practice to consider restricted net position to have been depleted before unrestricted net position is applied, unless otherwise directed by Council.

P. 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 SCLAA’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 employee 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.

Q. Prior Year Data
Selected information regarding the prior year has been included in the accompanying financial statements. This information has been included for comparison purposes only and does not represent a complete presentation in accordance with accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with the SCLAA’s prior year financial statements, from which this selected financial data was derived.

SOUTHERN CALIFORNIA LOGISTICS AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 2 CASH AND INVESTMENTS
Cash and investments as of June 30, 2023, are classified in the accompanying financial statements as follows:

Statement of Net Position:

Cash and Investments
Cash and Investments with Fiscal Agent
Total Cash and Investments
$
$
37,577,125
24,761,205
62,338,330
Cash and investments as of June 30, 2023, consist of the following:

Equity in City of Victorville Pool
Investments
$
$
20,163,194
42,175,136
62,338,330Total Cash and Investments
Investments Pool of the City of Victorville
The SCLAA has no separate bank accounts or investments other than investments held by bond trustee, and their investment in LAIF. The SCLAA’s equity in the cash and investment pool is managed by the City of Victorville. The SCLAA is a voluntary participant in that pool.

This pool is governed by and under the regulatory oversight of the Investment Policy adopted by the City Council of the City of Victorville. The SCLAA has not adopted an investment policy separate from that of the City of Victorville. The fair value of the Authority’s investment in this pool is reported in the accompanying financial statements at amounts based upon the SCLAA’s pro-rata share of the fair value calculated by the City for the entire City portfolio. The balance available for withdrawal is based on the accounting records maintained by the City, which are recorded on an original cost basis. (16)

SOUTHERN CALIFORNIA LOGISTICS AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Investments Authorized by the California Government Code and the City’s Investment Policy
The City adopts the investment policy for the SCLAA. The table below identifies the investment types that are authorized for the SCLAA 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
Percentage
of Portfolio*
70%
70%
75%**
Maximum
Investment
in One Issuer*
None
Investment Types
Authorized by State Law
Local Agency Bonds
U.S. Treasury Obligations
U.S. Agency Securities
Banker’s Acceptances
Commercial Paper - Nonpooled Funds
Commercial Paper - Pooled Funds
Negotiable Certificates of Deposit
Repurchase Agreements
Investment
Policy
Yes
Yes
Yes
No
Maximum
Maturity*
5 Years
5 Years
5 Years
180 Days
270 Days
270 Days
2 Years
1 Year
None
None
30%
10%
10%
None
None
40%
25%
40%
30%
No
No
Yes
No None
Reverse Repurchase Agreements
Medium-Term Notes
Mutual Funds***
Money Market Mutual Funds***
Mortgage Pass-Through Securities
County Pooled Investment Funds
Local Agency Investment Fund (LAIF)
JPA Pools (Other Investment Pools)
No
No
No
Yes
No
No
Yes
No
92 Days
5 Years
5 Years
5 Years
5 Years
N/A
20% of Base Value
30%
None
None
10%*
None
None
None
$75M
None
20%*
20%*
20%
None
None
None
N/A
N/A
* 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 U.S. Treasury money fund. (17)

SOUTHERN CALIFORNIA LOGISTICS AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
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 SCLAA’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 and concentration of credit risk.

Maximum
Authorized
Investment Type
U.S. Treasury Obligations
U.S. Agency Securities
Banker’s Acceptances
Commercial Paper
Money Market Mutual Funds
Repurchase Agreements
Investment Contracts
Maximum
Maturity
None
Percentage
Allowed
None
Investment
in One Issuer
None
None None
None
None
None
None
None
None
None
None
None
None
None
360 Days
270 Days
None
None
None
Certificate of Deposit None None None
Local Agency Investment Fund (LAIF) 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 Authority 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 Authority’s investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of these investments by maturity.

Remaining
Maturities
(in Months)
Investment Type Total Within 12
LAIF $
$
17,413,931 $
$
17,413,931
Held by Bond Trustee:

Money Market Mutual Funds
Total
24,761,205
42,175,136
24,761,205
42,175,136
(18)

SOUTHERN CALIFORNIA LOGISTICS AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
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 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
Legal Rating
N/A
Ratings as of Year End
Investment Type Total AAA Not Rated
LAIF $
$
17,413,931 $
$
- $
$
17,413,931
Held by Bond Trustee:

Money Market Mutual Funds
Total
24,761,205
42,175,136
AAA 24,761,205
24,761,205
-
17,413,931
Concentration of Credit Risk
The investment policy of the SCLAA contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. The SCLAA 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.

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 SCLAA deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. At June 30, 2023, the SCLAA’s deposits (bank balances) were equity in the City of Victorville’s pool, which was insured by the federal depository insurance limits or collateralized as required under California Law.

SOUTHERN CALIFORNIA LOGISTICS AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Investment in State Investment Pool
The SCLAA 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 SCLAA’s investment in this pool is reported in the accompanying financial statements at amounts based upon the SCLAA’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 SCLAA categorizes its fair value measurement within the fair value hierarchy established by accounting principles generally accepted in the United States of America.

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.

Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurements. These unobservable inputs reflect the SCLAA’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 SCLAA’s own data.

The SCLAA’s investments in LAIF and money market mutual funds (held by bond trustee) are not subject to the fair value measurement hierarchy. (20)

SOUTHERN CALIFORNIA LOGISTICS AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 3 CAPITAL ASSETS
The following is a summary of changes in capital assets for SCLAA at June 30, 2023:

Balance
July 1, 2022
Balance
June 30, 2023Additions
210,726
Transfers Deletions
Nondepreciable Assets:

Land $ 15,743,779
798,460
16,542,239
$ $ -
-
-
$ (2,066,393)
(798,292)
(2,864,685)
$ 13,888,112
93,136Construction in Progress
Total Nondepreciable Assets
92,968
303,694 13,981,248
Depreciable Assets:

Buildings and Improvements
Computer and Communication
Furniture and Equipment
Infrastructure
Land Improvements
Vehicles
Total Depreciable Assets
183,261,905
254,165
8,035,223
104,270,490
128,489
1,228,701 -
-
-
-
-
-
-
184,490,606
254,165
8,208,603
104,419,269
128,489
-
84,782
148,779
-
88,598
-
-
(88,598)
-
916,741
296,867,013
- (39,690)
(39,690)
788,453
298,289,5851,462,262
Less Accumulated Depreciation:

Buildings and Improvements
Computer and Communication
Furniture and Equipment
Infrastructure
Land Improvements
Vehicles
Total Accumulated Depreciation
Total Depreciable Assets, Net
(113,199,426)
(248,881)
(5,800,058)
(58,748,153)
(128,489)
(762,051)
(178,887,058)
117,979,955
(4,360,610)
(2,757)
(357,039)
(5,012,267)
-
(11,975)
(9,744,648)
(8,282,386)
-
-
-
-
-
-
-
-
-
-
-
-
(117,560,036)
(251,638)
(6,157,097)
(63,760,420)
(128,489)
(734,336)
(188,592,016)
109,697,569
-
39,690
39,690
-
Capital Assets, Net $ 134,522,194 $ (7,978,692) $ - $ (2,864,685) $ 123,678,817 Depreciation expense for the SCLAA was $9,744,648 for the year ended June 30, 2023.

The City of Victorville’s ARPA special revenue fund purchased land from the SCLAA at a price of $1,929,341 (the book value of $1,895,090) that was appropriately recorded as a disposition of SCLAA capital assets.
(21)

SOUTHERN CALIFORNIA LOGISTICS AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 4 LONG-TERM LIABILITIES
A summary of changes in long-term liabilities for the year ended June 30, 2023 is noted below:

Balance
June 30, 2022
Balance
June 30, 2023
Due Within
One YearAdditions
184,856
Retirements
Other Long-Term Liabilities:

Compensated Absences $ 240,212 $ $ (209,517) $ 215,551 $ 117,127 Other Debt:

Tax Allocation Bonds:
2005 Tax Allocation Parity Bonds
2006 Tax Allocation Bonds (Non-Housing)
2006 Tax Allocation Bonds (Housing)
2006 Allocation Parity Bonds
2006 Tax Allocation Revenue Parity Bonds
2006 Tax Allocation Revenue Bonds
2007 Tax Allocation Bonds
2007 Tax Allocation Bonds (Non-Housing)*
2008A Tax Allocation Bonds*
Tax Allocation Bonds Subtotal
13,040,000
46,635,000
12,525,000
41,375,000
29,045,000
52,605,000
32,575,000
34,060,000
25,295,795
287,155,795
-
-
-
-
-
-
-
-
(1,210,000)
(1,265,000)
(340,000)
(160,000)
(650,000)
(1,205,000)
(800,000)
(805,000)
(115,000)
(6,550,000)
11,830,000
45,370,000
12,185,000
41,215,000
28,395,000
51,400,000
31,775,000
33,255,000
26,707,874
282,132,874
1,265,000
1,315,000
355,000
180,000
690,000
1,280,000
840,000
850,000
110,000
6,885,000
1,527,079
1,527,079
Unamortized Discounts/Premiums
Total
(2,092,196)
$ 285,303,811
- 91,868 (2,000,328) -
$ 1,711,935 $ (6,667,649) $ 280,348,097 $ 7,002,127
See pledged revenue information at the end of this note.

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.

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.
(22)

SOUTHERN CALIFORNIA LOGISTICS AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 4 LONG-TERM LIABILITIES (CONTINUED)
Tax Allocation Parity Bonds, Series 2005A (Continued)
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, 2023, the 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, 2023 is $11,830,000.

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.

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.

As of June 30, 2023, the 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, 2023 is $45,370,000. (23)

SOUTHERN CALIFORNIA LOGISTICS AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 4 LONG-TERM LIABILITIES (CONTINUED)
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.

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.

Bonds maturing on December 1, 2036 and December 1, 2043 in the amounts of $20,080,000, and $24,940,000, respectively, 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.

SOUTHERN CALIFORNIA LOGISTICS AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 4 LONG-TERM LIABILITIES (CONTINUED)
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 semi-annually 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 mature from December 1, 2007 to December 1, 2043 in varying amounts.

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

SOUTHERN CALIFORNIA LOGISTICS AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 4 LONG-TERM LIABILITIES (CONTINUED)
Taxable Housing Set-Aside Revenue Parity Bonds, Series 2007 (Continued) The bonds are subject to optional redemption in whole or in part by lot, without premium.

As of June 30, 2023, the 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, 2023 is $31,775,000.

Subordinate Tax Allocation Revenue Bonds, Series 2007 (Non-Housing) 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, respectively, 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.

SOUTHERN CALIFORNIA LOGISTICS AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 4 LONG-TERM LIABILITIES (CONTINUED)
Subordinate Tax Allocation Revenue Bonds, Series 2008A (Continued) 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, respectively, 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, 2023.

Debt Service Requirements to Maturity
The annual requirements to amortize outstanding SCLAA debt as of June 30, 2023, are as follows for each fiscal year ending June 30:

Tax Allocation Bonds
Year Ending June 30,
2024
Principal*
6,885,000
7,245,000
7,630,000
8,035,000
8,455,000
49,610,000
65,345,000
86,570,000
58,771,157
88,263,843
386,810,000
(2,000,328)
Interest
$ $ 14,555,859
14,184,559
13,792,810
13,379,169
12,942,639
57,879,636
40,602,179
18,591,969
76,802,744
43,035,156
2025
2026
2027
2028
2029-33
2034-38
2039-43
2044-48
2049-51
Subtotal
Discounts/Premiums
Total
$ 305,766,720
$ 384,809,672
* This total includes capital appreciation of $104,677,126 for tax allocation bonds that will be accrued in the future years.
(27)

SOUTHERN CALIFORNIA LOGISTICS AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 4 LONG-TERM LIABILITIES (CONTINUED)
Pledged Revenue
All of the above Tax Allocation Bonds 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.

The SCLAA contains a portion of the Victor Valley Economic Development Authority (VVEDA) Successor Agency (see Note 8 for additional information). The RPTTF (tax increment distributions) from VVEDA represent the primary revenue of the SCLAA.

As a result of the state’s action to dissolve all redevelopment agencies in the state of California, the VVEDA Successor Agency 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 VVEDA 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.

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

Annual Amount
of Pledged
Revenue (Net of
of Expenses,
Annual Debt
Service Payment
(of All Debt
Secured by
This Revenue)
Pledged
Revenue as
a Percentage
of Debt ServiceDescription of Pledged Revenue
Property Tax Increment Pledged by
the Southern California Logistics
Airport Authority
Where Required)
$ 22,582,823 $ 21,456,577 105%
NOTE 5 ADVANCES TO/FROM
Advances to/from the City
Fund Reporting
PayableFund Reporting Receivable Amount
Successor Agency*
SCLAA
SCLAA
City of Victorville
$ 11,267,089 a)
2,000,000 b)
*Advances from the Successor Agency have been classified as Advances from Other Governments in the statement of net position.
(28)

SOUTHERN CALIFORNIA LOGISTICS AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 5 ADVANCES TO/FROM (CONTINUED)
Advances to/from the City (Continued)
a) 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, 2023, is $11,267,089.
b) A loan agreement was signed on April 18, 2023 by the City Council that authorizes the SCLAA to loan $2,000,000 to the City’s nonmajor gas utility enterprise fund for the construction of new gas infrastructure that will allow for the purchase of lower priced natural gas and future growth at SCLAA. The loan principal shall be repaid in five equal installments of $400,000 to commence in the year ending June 30, 2024 and conclude in the year ending June 30, 2028. Interest shall begin to accrue on the total principal amount commencing on July 1, 2023, and shall thereafter be calculated annually on the balance of the outstanding principal and shall be payable each year on June 30 at the annualized (averaged) LAIF rate of return. The outstanding balance of the advance as of June 30, 2023 is $2,000,000.

Due to the uncertainty on when sufficient tax increment will be available to make payments on this loan, the obligation has not yet been included on the ROPS to request funding for repayment. In future fiscal years, the loan will be added to the ROPS.

NOTE 6 PENSION PLAN
General Information about the Pension Plan
Plan Description
All qualified permanent and probationary employees are eligible to participate in the City’s Miscellaneous Plan, agent multiple-employer defined benefit pension plans administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. The SCLAA’s share of the net pension liability is reported as a cost-sharing plan in these financial statements. 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.
(29)

SOUTHERN CALIFORNIA LOGISTICS AIRPORT AUTHORITY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 6 PENSION PLAN (CONTINUED)
General Information about the Pension Plan (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. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

Victorville City CouncilJune 18, 2024

Victorville City Council
June 18, 2024