Victorville City Council
April 15, 2025

Attachment A
City of Victorville ACFR
for Fiscal Year ended June 30, 2024

Victorville, California
Annual Comprehensive Financial Report
For the year ended June 30, 2024
City of Victorville
Annual Comprehensive Financial Report
For the year ended June 30, 2024
Table of Contents
Page

INTRODUCTORY SECTION
Table of Contents ............................................................................................................................................................ i Letter of Transmittal ...................................................................................................................................................... v Organizational Chart .................................................................................................................................................... xi List of Elected and Appointed Officials .................................................................................................................... xii Leadership Team ........................................................................................................................................................ xiv

FINANCIAL SECTION
Independent Auditor’s Report ................................................................................................................................... 1 Management’s Discussion and Analysis .................................................................................................................. 5 Basic Financial Statements:

Government-Wide Financial Statements:

Government-Wide Statement of Net Position ................................................................................................... 24 Government-Wide Statement of Activities ..................................................................................... ................... 26 Fund Financial Statements:

Governmental Fund Financial Statements:

Balance Sheet ...................................................................................................................................................... 32 Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position .......................................................................... ....... 33 Statement of Revenues, Expenditures and Changes in Fund Balances ...................................................... 34 Reconciliation of the Government al Funds Statement of Revenues, E x p e n d i t u r e s , a n d C h a n g e s i n F und Balances to the Government-Wide Statement of Activities ................................................................................................... ................................ 36 Proprietary Fund Financial Statements:

Statement of Net Position .................................................................................................. ............................... 40 Statement of Revenues, Expenses and Changes in Fund Net Position ...................................................... 42 Statement of Cash Flows .................................................................................................... ............................... 44 Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position......................................................................................... ....................... 49 Statement of Changes in Fiduciary Net Position .... ....................................................................................... 50 Notes to Basic Financial Statements ....................................................................................................................... 53 i
City of Victorville
Annual Comprehensive Financial Report
For the year ended June 30, 2024
Table of Contents, Continued
Page
FINANCIAL SECTION, Continued
Required Supplementary Information (Unaudited):

Defined Benefit Pension Plans:

Schedule of Changes in the Net Pension Liability and
Related Ratios (Agent Plan) – Last 10 Years ................................................................................................. 122 Schedule of Plan Contributions (Agent Plan) – Last 10 Years ...................................................................... 124 Schedule of Plan’s Proportionate Share of the Net Pension Liability (Cost Sharing Plan) – Last 10 Years ........................................................................................ ....................... 126 Schedule of Plan Contributions (Cost Sharing Plan) – Last 10 Years .......................................................... 128 Other Post Employment Benefits (OPEB) Plan:

Schedule of Changes in the Total OPEB Liability and Related Ratios – Last 10 Years ............................. 130 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget to Actual:

General Fund ................................................................................................................ ....................................... 133 Notes to Required Supplementary Information ................................................................................................ 134 Supplementary Information:

General Fund:

Combining Balance Sheet ..................................................................................................... .............................. 140 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance ................................... 142 Non-Major Governmental Funds:

Combining Balance Sheet ..................................................................................................... .............................. 148 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .................................. 152 Schedules of Revenues, Expenditures, and Changes in Fund Balance – Budget to Actual:

Housing Asset Successor .................................................................................................... ............................ 156 Other State/Local Grants ................................................................................................... ............................. 157 COVID-19 Funds ............................................................................................................. ................................. 158 Measure I .................................................................................................................. ......................................... 159 Landscape Maintenance ...................................................................................................... ............................ 160 Street Lighting ............................................................................................................ ...................................... 161 Traffic Safety ............................................................................................................. ........................................ 162 Asset Seizure .............................................................................................................. ....................................... 163 Storm Drain Utility .............. ............................................................................................................................ 164 Gas Tax .................................................................................................................... .......................................... 165 Transportation Tax ......................................................................................................... .................................. 166 ii
City of Victorville
Annual Comprehensive Financial Report
For the year ended June 30, 2024
Table of Contents, Continued
Page
FINANCIAL SECTION, Continued
Other Federal Grants ....................................................................................................................................... 167 HUD Grants ................................................................................................................. ..................................... 168 Sidewalk Assessment District ............................................................................................... ......................... 169 Foxborough Rail ............................................................................................................ ................................... 170 Capital Impact Facilities .................................................................................................. ................................ 171 Custodial Funds:

Combining Statement of Fiduciary Net Position .... ..................................................................................... 176 Combining Statement of Changes in Fiduciary Net Positi on .................................................................... 178 STATISTICAL SECTION (Unaudited)
Financial Trends:

Net Position by Component .................................................................................................................................. 183 Changes in Net Position ........................................................................................................................................ 184 Fund Balances of Governmental Funds .............................................................................................................. 186 Changes in Fund Balances of Governmental Funds .......................................................................................... 187 Revenue Capacity:

Assessed Value of Taxable Property .................................................................................................................... 188 Direct and Overlapping Property Tax Rates ...................................................................................................... 189 Principal Property Taxpayers ................................................................................................. .............................. 190 Property Tax Levies and Collections by District ................................................................................................ 191 Debt Capacity:

Ratios of Outstanding Debt by Type ................................................................................................................... 192 Ratio of General Bonded Debt Outstanding ....................................................................................................... 194 Legal Debt Margin Information ............................................................................................................................ 195 Direct and Overlapping Debt ............................................................................................................................... 196 Pledge Revenue Coverage ..................................................................................................................................... 197 Demographic and Economic Information:

Demographic and Economic Statistics ................................................................................................................ 198 Operating Information:

Full-Time and Part-Time Employees by Function ............................................................................................. 199 Operating Indicators by Function ........................................................................................................................ 200 Capital Asset Statistics by Function ..................................................................................................................... 202 iii
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v
760.955.5000
FAX 760.269.0013
[email protected]
http://victorvilleca.gov

14343 Civic Drive
P.O. Box 5001
Victorville, California 92393-5001

CITY OF

VICTORVILLE

March 31, 2025

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

In accordance with California state law, please accept the submission of the Annual Comprehensive Financial Report (ACFR) for the fiscal year ending June 30. 2024. Responsibility for the accuracy of the data, completeness, and fairness of the presentation, including all disclosures, rests with the City. Consequently, management assumes full responsibility for the completeness and reliability of the information cont ained in this report, based upon a comprehensive framework of internal controls it has establi shed for this purpose. We believe the data included is accurate in all material aspects and is presented in a manner designed to fairly set forth the financial position and operational achievements of the City, as measured by the financial activity of its various funds. In addition, all disclosures necessary to enable the reader to gain a maximum understanding of the City’s financial activities have been included.

The City requires an annual audit of the City’s financial statements by an independent Certified Public Accountant. Accordingly, this year’s audit was completed by Badawi & Associates in conformance with generally accepted auditing standards (GAAS). The ACFR was prepared in conformance with generally accepted accounting principles (GAAP) as promulgated by the Governmental Accounting Standards Board (GASB). An independent audit involves examining on a test basis, evidence supporting the amounts and disclosur es in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The auditor’s unmodified opinion on the basic financial statement is included in the Financial Section of this report.

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

City of Victorville Profile
The City of Victorville is in the High Desert along Interstate 15, about 40 miles north of the City of San Bernardino, and serves an area of 74.09 square miles with a population of approximately 138,202. The City of Victorville was incorporated as a general law city on September 21, 1962.

On July 26, 2008, the City of Victorville became a charter city that operates under a Council - Manager form of government. The City Manager is responsible for the effici ent implementation of Council policy and the effective administration of all City government affairs. There are five elected council members. On September 27, 2021, the Victorville City Council declared its vi

intention to transition from at- large to district-based elections. After gathering community input through three community meetings and six public hearings, the City Council adopted Ordinance 2422, which includes the final district election map and corresponding sequencing. Additional information on terms can be found on the Council page or on the city website.

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

The City maintains extensive budgetary controls.

The objective of these controls is to ensure
compliance with legal provisions embodied in the annual appropriated budget approved by the Council. Activities of the general fund and special revenue funds are included in the annual appropriated budget. Project-length budgets are prepared for the capital project funds. The level of budgetary control (i.e., the level at which an expenditure cannot legally exceed the appropriated amount) is at the departmental level within each fund. The government also maintains an encumbrance accounting system as one method of maintaining budgetary control. Ongoing capital budgets and grants roll forward to the following year. Other encumbered amounts lapse at year - end. However, outstanding operating encumbrances generally are reappropriated as part of the following year’s budget.

City Accomplishments
The City of Victorville continues to be in strong fiscal health thanks to conservative fiscal management and the cultivation of new revenue streams, including federal dollars, Measure P, and grant funding. Last year, the City added just under $27.5 million to its General Fund Reserves.

Reserves now stand at 121%, far exceeding the City’s General Fund Reserve Target of 17 %. With the approval of its Measure P Oversight Committee, the City also established a similar reserve target for its Measure P fund to ensure the long-term sustainability of this fund.

In 2024, the City secured approximately $30.4 million in grant funding to assist community members and address strategic priorities. One of the key priorities is the revitalization of Old Town Victorville. When the state stopped funding local redevelopment with the dissolution of the California Redevelopment Act of 1945 in 2012, the City struggled to find a way to invest in Old Town. In 2024, the City continued its effort to establish a Community Revitalization Investment Authority (CRIA) for Old Town Victorville. The CRIA is an economic and affordable housing tool authorized by Assembly Bill 2 in 2015. Increased revenue is not generate d from a new tax ; instead, the revenue comes from increased property values as developers and businesses improve and build on properties in the investment area. The increased revenue can be used by the CRIA to improve infrastructure, develop affordable housing, rehabilitate property, and assist businesses.

To further incentivize new development, the City Council authorized the waiver of development vii

impact fees within the Old Town CRIA Area. The CRIA Board, comprised of three Council Members and two community members, was established and successfully adopted the Community Revitalization Investment Area Plan in November of 2023.

The City continues to expand public safety services due to new funding sources, including Measure P. The City has added police personnel, code compliance officers, and expanded fire and medical services. Victorville’s Fire Department receive d approximately 25,600 calls for service in 2024, making it the busiest non-contract fire department in San Bernardino County and one of the busiest departments in the nation. Approximately 85 percent of Victorville Fire’s calls are for medical purposes. The large call volume is straining the staff and equipment relied upon to respond to community needs, so the City is actively considering ways to further expand fire and medical services to effectively manage growing call volume. The City is committed to further expanding public safety services for our growing community.

Staff launched plans for a new police station to accommodate a larger police force. The current Victorville Police Station is at capacity, and further additions to the police force require more space for personnel and vehicles. In 2024, the County of San Bernardino contributed $3.7 million to the City for the new police station’s land acquisition and conceptual design. This funding helped secure a land acquisition located at the northwest corner of Civic Drive and Seneca Road. With the property being just over nine acres in size, this will allow more than ample space for the construction of a 43,000 square foot Police Station and Civic Plaza. This new building is expected to increase the space available for personnel by 60 percent while accommodating additional police vehicles.

The City of Victorville’s economy continues to grow. In 2024, several businesses had their grand openings and/or completed expansions . Among the new businesses that had inaugurations are Sprouts Farmers Market, McDonalds, CarMax , Superior Grocers , Jamba Juice, and Arby’s.

Additionally, the Planning Commission approved over six million square feet of planned industrial development located at Foxborough Industrial Park, Southern California Logistics Airport, and an industrial zoned area east of U.S. Hwy 395.

The City of Victorville continues to be an attractive place for r esidential housing developments.

Victorville welcomed over 14 active single -family housing developments to the community and issued over 450 residential permits. Additionally, seven new housing tracts were finalized, creating more homes for the residents of Victorville.

The City of Victorville’s most anticipated infrastructure project of 2024 was the widening of the Bear Valley Road Bridge over the BNSF Tracks. This $12 million dollar project was completed in January, and it widened both sides of the bridge on Bear Valley providing additional turn pockets into Ridgecrest Road. The project also replaced traffic signal poles to accommodate the widened road, constructed sidewalk and adequate pavement width for future bike lanes to cross over the bridge.

The City also moved forward with its plan for a new Victorville City Library. In June of 2023, the City Council approved a conceptual design of the new Victorville City Library. The new library will be moved to the former c lubhouse located at the Green Tree Golf Course. Repurposing the viii

existing clubhouse offers the City an affordable way to modernize and expand the library as outlined in the Library Master Plan. Construction on the new location broke ground in fiscal year 2024 and is expected to be completed in December of 2025. The new design will provide up to 5,000 feet of increased space including an expanded children’s area. The Green Tree Library is supported by funding provided by the State of California and administered by the California State Library. The Victorville City Library is at the heart of our community, and we are excited to provide our constituents with a larger, modern facility that enables us to expand programming for the benefit of our Victorville residents.

The cornerstone of Victorville’s strategy to reduce homelessness is our Wellness Center. In December 2023, a ribbon cutting ceremony was conducted and within days, the Wellness Center began serving its first clients. The center offers 110 separate modular units with a minimum 170- bed capacity increasing the number of shelter beds in Victorville by 56%. Construction was funded primarily through a $28 million Homekey Grant from the California Department of Housing and Community Development. It is the first facility of its kind in the state to combine a low -barrier emergency shelter, recuperative care, medical clinic, interim housing, and wraparound support services.

In the first six months of servicing clients, the Wellness Center provided programs such as, but not limited to: Job Readiness, Relapse Prevention, Financial Literacy, Case Management, and Housing Navigation. Additionally, the staff conducted 2,745 housing and case management appointments, 5,603 medical appointments, and had an average of 40 recuperative beds in use. Moreover, t he Wellness Center has already received multiple awards , such as: (1) The American Planning Association, State of California, Opportunity and Empowerment Award of Merit, (2) The American Planning Association, Inland Empire, Opportunity and Empowerment Award, (3) Architecture & Design Community Platinum Winner for Sports, Recreation, and Wellness Facilities, and (4) Architecture & Design Community Platinum Winner for Mobile Homes & Prefabricated Structures. The Wellness Center continues to enhance services to further assist the unhoused and is pleased to announce that later this summer they will begin accepting families.

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

Infrastructure improvements are considered capital improvement projects when the expected life is more than five years and expenditures are at least $50,000. In contrast, scheduled purchases of vehicles, computer hardware and equipment are capitalized when the individual cost is $5,000 or more, with an estimated useful life of at least five years. These routine purchases are generally accounted for out of special funds or enterprise funds.

Additional Water rights valued at $2,621,972 were purchased to ensure available water for future years. Various other Street, Runways, Sewer, Storm Drain , Water, and Building improvements were completed by the City or through developer projects in the amount of $24.7 million. There were 143 pieces of equipment and vehicle capital purchases budgeted for FY 2024, totaling $20.4 million dollars of which $9.4 were completed and the rest were carried forward into FY 2025.

Pension costs are expected to continue to rise annually. This increase will affect pension costs for all employees and the remaining unfunded liability that exists for the former Victorville fire ix

employees. Other Post-Employment Benefits (OPEB) also continue to grow as a liability, mostly resulting from increasing medical insurance costs. Despite the economic challenges the City has faced, the City of Victorville continues to maintain the following goals and objectives in alignment with the C ity Council’s three-year strategic plan from August 2023: provide and uphold fiscal accountability and sustainability; dedicate necessary resources for public safety; assist the local economy’s growth and progre ssion; reduce homelessness, excel in maintaining, enhancing, and improving the City’s public facilities and infrastructure; and build strong connections with the community; and provide high- quality services through a commitment to local government, best practices, and employee development.

Cash Management Policies and Practices
Cash, which is temporarily idle during the year, was invested in the Local Agency Investment Fund. The City’s investment policy is to minimize credit and market risks while maintaining a competitive yield on its portfolio. Nearly all investments held by the City as of June 30, 2024, are classified in the category of lowest custodial credit risk as defined by the Government Accounting Standards Board. This Investment Policy is reviewed annually to ensure consistency with respect to the overall objectives of safety, liquidity and yield, and relevance to current laws and financial trends. There are no amendments being proposed to the policy for FY 2025. Proposed amendments to the Policy would be prepared by Finance staff and reviewed and approved by the City Manager and the City Council.

Risk Management
The City participates in the Public Entity Risk Management Authority (PERMA), a joint powers insurance authority formed under Section 990 of the California Government Code for the purpose of jointly funding programs of insurance coverage for its members. PERMA provides $50 million of general liability coverage per occurrence and is responsible for paying claims in excess of the City’s $ 75,000 deductible. The City also participates in PERMA’s worker’s compensation coverage program. In addition, various risk control techniques, including a safety committee, have been implemented to minimize losses.

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

Respectfully submitted,

Carmen Cun
Director of Finance / City Treasurer

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Citizens

CITY OF VICTORVILLE

ORGANIZATIONAL CHART
JUNE 30,2024
City Attorney
Suppression
Emergency Services
Prevention
Arson Investigation
Police PIO Division of City
Managers Dept.

Fire Department
Jenele Davidson
Deputy City Manager
City Council
Keith C. Metzler
City Manager
Operations
Administration
Facilities
ARFF
Airport Department
Electric
Natural Gas
Municipal Utilities
Department
Street Lighting
TraƯic Control
Maintenance
Signals
Recreation
Library
Facilities
Parks
CDBG
Homelessness
Solutions
Fire Prevention
Business License
Community
Services Dept.

Planning
Department
Building
Department
Water Conservation
Solid Waste/Recycling
Storm Drain/Sanitary
Street Maintenance
Field / Meter Services
Fleet
Production/Quality
Street Sweeping
Animal Care &
Control Division
Code
Compliance
Engineering
Department
Public Works &
Water Dept.

Human
Resources
Department
Risk Mngmt.

Division of City
Managers Dept.

GIS Division Records
Sophie L. Smith
Deputy City Manager
City Clerk
Division of City
Managers Dept.

Accounting
Payroll
Purchasing
Utility Billing
Customer Service
Business Development
Housing Successor Agency
Successor Agency
Real Estate
Finance
Department
Economic
Development
Department
Information
Technology
Department
xi
xii

CITY OF VICTORVILLE

ELECTED AND APPOINTED OFFICIALS
JUNE 30, 2024

Elizabeth Becerra
Mayor
Elected 2020 to 4-Year Term
Bob Harriman
Mayor Pro Tem
Elected 2022 to 4-Year Term

Debra Jones
Council Member
Elected 2022 to 4-Year Term
Leslie Irving
Council Member
Elected 2020 to 4-Year Term
Blanca Gomez
Council Member
Elected 2020 to 4-Year Term

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

Legal Counsel
City Attorney …………………………………………………………………………………………Andre de Bortnowsky

xiii

CITY OF VICTORVILLE

ELECTED AND APPOINTED OFFICIALS (CONTINUED)
JUNE 30, 2024

Appointed Officials

PLANNING COMMISSION
Commissionaire Appointed By Term Expires
Rob Kurth Elizabeth Becerra December 2024
Kenneth Cook-Askins Jr. Leslie Irving December 2024
Paul Marsh Bob Harriman December 2026
Kimberly Mesen Debra Jones December 2026
Bill Thomas Blanca Gomez December 2024

COMMUNITY SERVICES ADVISORY COMMITTEE
Member Appointed By Term Expires
Michael Smith Debra Jones December 2026
Terrance Stone Leslie Irving December 2024
Lina Amaral Bob Harriman December 2026
Adrian Belcher Blanca Gomez December 2024
Alyson Mehrhof Elizabeth Becerra April 2024

MEASURE P OVERSIGHT COMMITTEE
Member Category Date Appointed
Cynthia Coello Major Retail Industry October 2023
Mark Creffield Chamber of Commerce April 2021
Jeremy Taylor Youth / Recreation May 2022
Joel Counts Clergy October 2023
Vince Onken Non-Profit Social Services Provider October 2023 Michael Krause Education April 2021
Margaret Cooker Senior Community April 2021

xiv

CITY OF VICTORVILLE

LEADERSHIP TEAM
JUNE 30, 2024

Airport Director……………………………………………………………………………………………………. C. Eric Ray Building Official …………………………………………………………………………………...………. Joseph Slegers City Clerk ……………………………………………………………………………………….….……Jennifer Thompson City Engineer ……………………………………………………………………………………………………Fredy Bonilla City Planner ………………………………………………………………………………………..……………. Scott Webb Code Enforcement Officer ……………………………………………………………………..…………….Jorge Duran Director of Community Services ……………………………………………………………………… Donna Meester Director of Electric Utility Services …………………………………………………………………Brenda Hampton Director of Finance ……………………………………………………………………………………………Carmen Cun Director of Public Works and Water …………………………………………….……………………. Doug Mathews Fire Chief …………………………………………………………………………………………………… Robert Clemmer Human Resources Officer …………………………………………………………………………………..Josie Trevino Police Captain (Sheriff) ……………………………………………………………………………………Randy German Public Information Officer …………………………………………………..………………………………….Sue Jones Technology Officer …………………………………………………………………………………….…..Mazharul Islam INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of the City Council
of the City of Victorville
Victorville, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the govern mental 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, 2024, and the related notes to th e financial statements, which collectively comprise City’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements pr esent fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2024, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing st andards 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 Un ited States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethica l 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 opinions.

Responsibilities of Management for the Financial Statements The City’s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally ac cepted 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 substa ntial doubt about the City’s ability to continue as a going concern for twelve months beyond the financ ial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

To the Honorable Mayor and Members of the City Council
of the City of Victorville
Victorville, California

Auditor’s 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 auditor’s report that includes our opinions. 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 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 in volve 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 aggr egate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:
x Exercise professional judgment and maintain professional skepticism throughout the audit. x 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 rega rding the amounts and disclosures in the financial statements.
x 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 City’s internal control. Accordingly, no such opinion is expressed. x 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.
x Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’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.

Required Supplementary Information
Accounting principles generally accepted in the Unit ed States of America require that the management’s discussion and analysis, and the required pension and OPEB schedules on pages 5-17 and 122-133 be presented to supplement the basic financial stat ements. 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 supplem entary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information an d comparing the information for consistency with 2 To the Honorable Mayor and Members of the City Council of the City of Victorville
Victorville, California

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 was conducted for the purpose of forming opin ions on the financial statements that collectively comprise the City’s basic financial statements. The General Fund combining statements, nonmajor fund combining statements, and nonmajor governmental fund budgetary comparison schedules, are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The General Fund combining statements, nonmajor fund combining statements, and nonmajor governmental fund budgetary comparison schedules are the responsibility of management and were derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlyi ng accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the Unit ed States of America. In our opinion, General Fund combining statements, nonmajor fund combining statements, and nonmajor governmental fund budgetary comparison schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual comprehensive financial report. The other information comprises the informatio n included in the annual comprehensive financial report but does not include the financial statements an d our auditor's report thereon. Our opinions on the financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherw ise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrec ted material misstatement of the other information exists, we are required to describe it in our report.
3 To the Honorable Mayor and Members of the City Council of the City of Victorville
Victorville, California

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 31, 2025 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, cont racts, and grant agreements and other matters. The p u r p o s e o f t h a t r e p o r t i s s o l e l y t o d e s c r i b e t h e s cope 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 o f i n t e r n a l c o n t r o l o v e r f i n a n c i a l r e p o r t i n g o r o n c o m p l i a n c e . T h a t r e p o r t i s a n i n t e g r a l p a r t o f a n a u d i t performed in accordance with Government Auditing St andards in considering the City’s internal control over financial reporting and compliance.

Badawi & Associates, CPAs
Berkeley, California
March 31, 2025
4 City of Victorville
Management’s Discussion and Analysis
For the year ended June 30, 2024

5 MANAGEMENT’S DISCUSSION AND ANALYSIS

As management of the City of Victorville, we offer readers of Victorville’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2024.

We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in the transmittal letter along with the accompanying table of contents.

Using the Accompanying Financial Statements

This annual report consists of a series of financial statements. The Statement of Net Position and the Statement of Activities provide information about the activities by the City as a whole and present a longer- term view of the City’s finances. Also included in the accompanying report are fund financial statements.

For governmental activities, the fund financial statements tell how these services were financed in the short term, as well as what remains for future spending. For proprietary funds, the statements offer short and long-term financial information on the activities operating like businesses. Fund financial statements also report the City’s operations in more detail than the government-wide statements by providing information about the City’s most significant funds. The remaining statements provide financial information about activities for which the City acts solely as trustee or agent for the benefit of those outside of the government.

OVERVIEW OF THE FINANCIAL STATEMENTS

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

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

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

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

City of Victorville
Management’s Discussion and Analysis
For the year ended June 30, 2024

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

Fund Statements
Government-wide
Statements
Governmental Funds
Proprietary Funds
Fiduciary Funds
Scope
Entire City
government (except
fiduciary funds)
and the City’s
component units

The activities of the City
that are not proprietary or
fiduciary

Activities the City
operates similar to
private businesses

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

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

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

Type of asset/
liability
information
All assets,
liabilities, and
deferred outflows
and inflows of
resources, both
financial and
capital, and short-
term and long-term
Only assets expected to
be used up and liabilities
that come due during the
year or soon thereafter;
no capital assets or long-
term debt included
All assets, liabilities,
and deferred
outflows and inflows
of resources, both
financial and capital,
and short-term and
long-term
All assets and
liabilities, both
short-term and
long-term; the
City’s fiduciary
funds do not
currently contain
capital assets,
although they can

Type of inflow/
outflow
information
All revenues and
expenses during the
year, regardless of
when cash is
received or paid
Revenues for which cash
is received during or
soon after the end of the
year; expenditures when
goods or services have
been received, and
payment is due during
the year or soon
thereafter
All revenues and
expenses during the
year, regardless of
when cash is
received or paid
All revenues and
expenses during
the year,
regardless of when
cash is received or
paid.

City of Victorville
Management’s Discussion and Analysis
For the year ended June 30, 2024

7 Reporting the City as a Whole

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

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

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

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

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

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

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

Reporting the City’s Major Funds

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

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

Governmental funds – Most of the City’s basic services are reported in governmental funds, which focus on how money flows into and out of those funds as well as the balances that are left at year end which are available for spending. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other current financial assets that can be readily converted to cash.

The governmental fund statements provide a detailed short-term view of the City’s general government operations and the basic services it provides. Governmental fund information helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. We describe the relationship or differences between governmental activities (reported in the City of Victorville
Management’s Discussion and Analysis
For the year ended June 30, 2024

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

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

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

Reporting the City’s Fiduciary Responsibilities

The City is an agent for certain assets held for, and under the control of, other organizations and individuals.

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

City of Victorville
Management’s Discussion and Analysis
For the year ended June 30, 2024

9 GOVERNMENT-WIDE FINANCIAL ANALYSIS

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

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

202420232024202320242023Cash and Investments221,590$ 185,587$ 215,401$ 194,356$ 436,992$ 379,943$ Other Assets61,537 71,138 105,830 108,232 167,367 179,371 Interfund Balances1,926 2,916 (1,926) (2,916) - - Capital Assets542,137 519,427 343,272 351,758 885,409 871,185 Total assets827,190 779,069 662,577 651,430 1,489,767 1,430,499 Deferred outflows - pension 21,620 20,402 11,426 11,022 33,047 31,424 Deferred outflows - OPEB3,320 3,861 2,928 3,448 6,248 7,309 Deferred charge on refunding- - 1,263 1,398 1,263 1,398 Total deferred outflows of resources24,940 24,264 15,618 15,868 40,558 40,131 Short-Term Liabilities40,031 45,667 27,333 16,882 67,364 62,549 Total OPEB Liability19,708 18,671 16,799 16,598 36,507 35,269 Net Pension Liability59,576 54,247 30,889 28,017 90,465 82,264 Other Long-Term Liabilities6,068 8,571 330,716 348,351 336,783 356,922 Total Liabilities125,383 127,156 405,737 409,847 531,120 537,004 Deferred inflows - pension477 840 1,309 1,652 1,785 2,492 Deferred inflows - OPEB10,357 11,930 5,391 6,434 15,747 18,364 Deferred inflows - Leases5,762 6,011 82,769 90,264 88,532 96,275 Total deferred inflows of resources16,595 18,781 89,469 98,350 106,064 117,131 Net Position:Invested in Capital Assets, Net of Related Debt541,240 510,418 48,758 46,897 589,999 557,316 Restricted117,572 100,773 - - 117,572 100,773 Unrestricted51,340 46,204 134,231 112,206 185,571 158,410 Total Net Position710,152 657,395 182,989 159,103 893,141 816,499 Governmental ActivitiesBusiness-Type ActivitiesTotal
City of Victorville
Management’s Discussion and Analysis
For the year ended June 30, 2024

10 Net Position serves as a useful indicator of a government’s financial position. In the case of the City of Victorville, the total net position increased by $76.6 million primarily due to the increase in cash and investments. Cash and investments increased by $57 million and capital assets increased by $14.2 million.

The restricted portion of the net position represents resources that are subject to external restrictions on how they may be used.

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

Total Assets:

 Total Governmental assets increased by $48.1 million primarily due to an increase in cash and investments of $36 million and an increase in capital assets totaling $22.7 million.  Interfund loan balance decrease of $1 million was for the annual repayment by Victorville Municipal Utilities.
 Business-type total assets increased by $11.1 million. This was due primarily to an increase in cash and investments in the amount of $21 million and a reduction in interfund balances owed in the amount of $1 million. These gains were offset by a decrease in capital assets in the amount of $8.5 million and a decrease in other assets in the amount of $2.4 million.

Total Liabilities:

 Governmental total liabilities decreased by $1.8 million primarily due to a decrease in short-term liabilities of $5.6 million and a decrease of $2.5 million in other long-term liabilities. This was offset by an increase in OPEB liability and net pension liability totaling $6.4 million.  Business-type total liabilities decreased by $4.1 million due to a decrease in other long-term liabilities by $17.6 million. This was primarily due to a reduction of bonds payable resulting from the annual principal debt service payments. The decrease in these liabilities was offset primarily by the increase in accounts payable of $10.5 million, and an increase of $2.9 million in net pension liability.

GOVERNMENTAL ACTIVITIES

During the year ended June 30, 2024, the City’s governmental activities had an increase of $52.8 million in the total net position as compared to fiscal year 2023. Significant changes in the revenue and expenses within the City’s governmental activities are as follows:

 Total revenue decreased by $7.5 million for governmental activities. This decrease is primarily due to a decrease in capital contributions and grants of $26.7 million over the prior year. This was expected as one of the City’s major grant funded projects, the Wellness Center, was completed.

This decrease in revenues was offset by an increase in property tax of just under $5 million, sales tax of $5.5 million, charges for services also rose by $3 million, and investment income also reflected an increase of $3.9 million. Further offsets in the amount of $1.7 million were also seen among various other revenue categories.
 Total governmental expenses increased by $9.1 million as compared to fiscal year 2023. This increase is primarily due to the increase in public works of $10.3 million and an increase in public safety of $4.4 million. In 2024, the public works department repaired close to ten thousand potholes, covered 179 thousand square feet of graffiti, and street sweeping swept over twenty thousand miles.

City of Victorville
Management’s Discussion and Analysis
For the year ended June 30, 2024

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

202420232024202320242023Revenues:Program Revenues:Charges for Services35,720$ 32,638$ 132,234$ 126,086$ 167,954$ 158,724$ Operating Contributions and Grants24,721 22,926 - - 24,721 22,926 Capital Contributions and Grants13,193 39,917 10,573 8,446 23,766 48,363 General Revenues: Property Taxes41,398 36,458 23,275 23,408 64,673 59,866 Sales Taxes72,173 66,642 - - 72,173 66,642 Transient Occupancy Tax1,640 2,013 - - 1,640 2,013 Franchise Taxes5,034 4,764 - - 5,034 4,764 Investment Income6,718 2,787 12,867 6,775 19,585 9,562 Miscellaneous Revenues536 519 - - 536 15,095 Total Revenues201,133 208,664 178,949 164,714 380,082 387,954 Expenses:General Government$24,389$27,941- - $24,389$27,941Public Safety63,933 59,556 - - 63,933 59,556 Community Development1,283 3,586 - - 1,283 3,586 Public Works45,128 34,794 - - 45,128 34,794 Park and Recreation7,379 7,226 - - 7,379 7,226 Sanitary- - 22,969 20,207 22,969 20,207 Airport- - 36,662 37,391 36,662 37,391 Solid Waste Management- - 25,949 21,969 25,949 21,969 Water- - 49,838 44,649 49,838 44,649 Municipal Utility - Gas- - 3,657 4,378 3,657 4,378 Municipal Utility - Electric- - 16,028 15,567 16,028 15,567 Interest on Long-Term Debt121 14 - - 121 14 Total Expenses142,233 133,116 155,103 144,160 297,336 277,276 Change in Net Assets before Transfers58,900 75,548 23,846 20,553 82,746 110,678 Transfers- 95 - (95) - - Change in net position58,900 75,644 23,846 20,458 82,746 110,678 Net Position657,395 581,752 159,100 138,645 816,496 705,818 Net Position - End of Year716,295 657,395 182,947 159,103 899,242 816,496 Governmental ActivitiesBusiness-Type ActivitiesTotal
City of Victorville
Management’s Discussion and Analysis
For the year ended June 30, 2024

12 Revenues by Source - Governmental Activities

Expenses by Function - Governmental Activities

Property Taxes 20.58%Sales Taxes 20.07%Transaction & Use Taxes 15.81%Transient Occupancy Tax 0.82%Franchise Taxes 2.50%Miscellaneous Revenues 0.27%Charges for Services 17.76%Investment Income 3.34%Operating Contributions & Grants 12.29%Capital Contributions & Grants 6.56 % General Government 17.15%Public Safety 44.95%Community Development 0.90%Public Works 31.73%Interest on Long-Term Debt 0.08%Parks and Recreation 5.19% City of Victorville
Management’s Discussion and Analysis
For the year ended June 30, 2024

13 Revenue by Source - Business-Type Activities

Expenses by Function – Business-Type Activities

Charges for Services 73.89%Capital Grants & Contributions 5.91%Taxes & Assessments 13.01%Investment Income 7.19% Sanitary 14.81%Airport 23.64%Solid Waste Management 16.73%Water 32.13%Gas Utility 2.36%Electric Utility 10.33% City of Victorville
Management’s Discussion and Analysis
For the year ended June 30, 2024

14 BUSINESS TYPE ACTIVITIES

During the year ended June 30, 2024, the City’s business-type activities had an increase of $23.8 million in the total net position as compared to fiscal year 2023.

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

 Overall revenues improved by $14.2 million from the prior year.  Charges for services increased by $6.1 million in all of the proprietary funds. This increase is due to increased rates per their respective rate study plans and an increase in connections.  Overall expenditures for business-type activities increased by $10.9 million. All business-type activities increased with the exception of the Municipal Utilities – Gas and Airport which had a decrease in expenditures in the amount of $729 thousand and $721 thousand respectively. Much of this increase was due to an increase personnel and the increase costs of water production along with operations and maintenance for all proprietary funds due to inflation.

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

MAJOR GOVERNMENTAL FUNDS

General Fund

The General Fund (GF) is the chief operating fund of the City of Victorville. For the purposes of the financial statements, the General Fund is comprised of General Fund, Measure P Fund, Technology Fund Fueling Stations Fund, Victor Valley Transportation Center, and Street Lighting Assessments. Details on revenues and expenditures on each of these funds are found in the supplemental information section of these financial reports. At the end of the current fiscal year, the unassigned fund balance of the General Fund was $132.1 million, while the total fund balance was $134.7 million. This is an increase of $27.5 million in total fund balance from fiscal year 2023. The General Fund Policy requires that the unassigned fund balance represents 17% of the total GF expenditures, at the end of the current fiscal year, the reserve was at 121%.

General Fund revenue increased by $15.7 million during this fiscal year over the last fiscal year, mainly due to the $9.8 million increase in taxes and assessments, and $5.9 million in fines and forfeitures. On the other hand, general fund expenditures increased by $9.1 million as compared to last fiscal year. Major changes were public safety with a $4.4 million increase in expenditures, public works had a $1.7 million expenditure increase, and parks and recreation had an increase of $930 thousand.

Measure P

Measure P is a 1% Transactions and Use Tax adopted by the voters of Victorville in November 2020. The tax went into effect April 1, 2021. Revenue received for this transactions tax in Fiscal Year 2024 was $29.2 million. Per the Public Safety Plan presented to Council in May 2020 and the oversight committee formed to review and comment on revenue and expenditures in this fund, expenditures for the year included public safety staffing of additional police, code enforcement, animal control, and fire departments, as well as several parks’ improvements.

City of Victorville
Management’s Discussion and Analysis
For the year ended June 30, 2024

15 Budget vs. Actual – The General Fund revenue original budget was $119.1 million, and the final budget was adjusted throughout the year to $120.4 million. Actual revenue at the end of the year totaled $141.5 million, which was $21.1 million over the revised budgeted amount. This variance was primarily related to the investment income, taxes and assessments, franchise fees, and miscellaneous revenue coming in higher than anticipated.

The General Fund’s original budget for expenditures was $125.5 million and was adjusted throughout the year to $141 million. This increase was primarily for public safety. Actual expenditures were only $108.9 million with most of the cost savings realized in public safety, public works, and general government.

Capital expenditure actual expenditures were $5.7 million with the balance rolled forward to the Fiscal Year 2024-2025 budget for projects that were not completed in the current fiscal year.

MAJOR ENTERPRISE FUNDS

The major enterprise funds of the City of Victorville are the Victorville Water District (VWD), Southern California Logistic Airport Authority (SCLAA), Municipal Electric Utility, Solid Waste Management, and Sanitary. The Municipal Gas Utility is reported as a non-major enterprise fund. All enterprise funds reported an increase in net position for fiscal year 2024. Other factors concerning the finances of these funds have already been addressed in the discussion of the City’s business-type activities.

The Victorville Water District fund is primarily supported by user charges and other fees. In FY 2024, revenues increased by just under $1 million when compared to the prior year. VWD experienced an increase of $1.1 million in service charges and a slight decrease of $100 thousand in fines and forfeitures.

Expenses increased by $2.4 million from the prior year. While the cost of maintenance and operations rose in large part due to inflation, the major contributing factors were an increase in production costs of $1 million and $1.1 million in personnel.

The Southern California Logistics Airport remained flat in both its revenues and expenditures in FY 2024 as compared to the prior year. Revenues decreased by $500 thousand and expenditures also decreased by $327 thousand. The primary decrease in expenditures was due to a drop in operations and maintenance costs.

The Victorville Municipal Utility Services (VMUS) electric fund experienced a $900 thousand increase in revenues in FY 2024 as compared to FY 2023. This is primarily due to an increase in consumption by VMUS’ industrial customers. The expenses for this fund increased $412 thousand from the prior year.

This is due to a $1.5 million increase in maintenance and operations and offset by a $1 million decrease in production costs and savings.

The City’s Solid Waste fund experienced an increase in revenues of $4.1 million from the prior fiscal year.

This increase is due to the rate schedule and implementing higher rates for FY 2024, ensuring revenue stabilization for the fund. Expenses increased $3.7 million primarily due to higher costs in maintenance and operations as a result of inflation and rate studies completed.

Fiscal Year 2024 implemented a new rate schedule for the Sanitary fund effective December of 2023. The fund saw an increase in revenues in the amount of $1.3 million. This is attributed to the higher rates from the prior year. The increase in revenue was offset by an increase in expenditures in the amount of $2.8 million. This increase can be attributed to an increase in personnel costs due to the cost-of-living adjustment, increased benefits, and a rise in operations and maintenance costs that is primarily the result of inflation.

City of Victorville
Management’s Discussion and Analysis
For the year ended June 30, 2024

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

Capital assets: The City of Victorville’s investment in capital assets for its governmental and business-type activities as of June 30, 2024 amounted to $885.4 million (net of accumulated depreciation and amortization). This investment in capital assets includes land, buildings and improvements, furniture and equipment, computers and communications, vehicles, roads, streets, storm drain, sewer, water and gas lines, intangible assets, SBITAs, and construction in progress. The total increase in the City of Victorville’s investment in capital assets for the current fiscal year is $14.2 million. This is mainly due to an increase of $38.4 million in builiding and improviements, $5.5 million increase in infrastructure, $3.6 million in furniture and equipment, $2.5 million in land, and $1.4 million in vehicles. This was primarily offset by a $39.2 million decrease in Construction in Progress.

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

202420232024202320242023Land 58,777$ 56,274$ 25,211$ 25,211$ 83,988$ 81,485$ Land Right of Way 180,100 180,002 - - 180,100 180,002 Buildings and Improvements 85,912 41,911 79,785 85,424 165,697 127,334 Furniture and Equipment 8,451 4,617 8,455 8,651 16,906 13,269 Computers and Communications3,647 2,824 162 78 3,809 2,901 Vehicles 3,909 3,148 3,166 2,561 7,075 5,709 Infrastructure 187,261 179,866 185,046 186,982 372,307 366,848 Land Improvement 1,479 2,956 536 536 2,015 3,493 Water Rights - - 21,407 18,785 21,407 18,785 SBITAs 739 1,014 20 32 759 1,046 Leases 197 - - - 197 - Intangible Assets - - 3,955 3,955 3,955 3,955 Idle Assets - - 3,018 3,018 3,018 3,018 Construction in Progress 11,667 46,815 12,510 16,526 24,177 63,341 Total 542,137$ 519,427$ 343,272$ 351,758$ 885,409$ 871,185$ Governmental ActivitiesBusiness-Type ActivitiesTotal City of Victorville
Management’s Discussion and Analysis
For the year ended June 30, 2024

17 City of Victorville’s Outstanding Debt
(In Thousands)

Long-term debt: At the end of the current fiscal year, the City of Victorville had a total outstanding debt of $422 million, an increase of $3.2 million as compared to the prior fiscal year. This increase is primarily due to the increase in the City’s Net Pension liability and offset by claim payable and tax bond allocations.

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

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

2024 2023 2024 2023 2024 2023
Compensated Absences 5,638$ 5,147$ 962 $ 889$ 6,600$ 6,035$ SBITAs 700 947 11 -$ 711 947 OPEB Liability 19,708 18,671 16,799 16,598 36,507 35,269 Net Pension Liability 59,576 54,247 30,889 28,017 90,465 82,264 Claim Payable 2,865 1,927 190 1,630 3,055 3,557 Pollution Remediation Obligation 169 551 - - 169 551 Tax Allocation Bond - - 276,889 282,133 276,889 282,133 Certificate of Participation - - 7,700 8,125 7,700 8,125 Refunding Charges & Unamortized
Discount/Premiums - - (94) (49) (94) (49) Total 88,655 81,489 333,347 337,342 422,002 418,831 Governmental
Activities
Business-Type
Activities Total
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18 BASIC

FINANCIAL STATEMENTS
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20 GOVERNMENT-WIDE

FINANCIAL STATEMENTS
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22 This page intentionally left blank
23 City of Victorville
Statement of Net Position
June 30, 2024
Governmental Business-type
Activities Activities Total
ASSETS
Current assets:

Cash and investments 221,590,089 $ 185,080,143 $ 406,670,232 $ Cash with fiscal agent - 30,321,287 30,321,287 Receivables:

Accounts 9,626,767 14,224,786 23,851,553 Interest 2,301,108 664,007 2,965,115 Notes and loans 15,064,651 - 15,064,651 Leases receivable 160,817 7,246,566 7,407,383 Internal balances 1,926,184 (1,926,184) - Due from other governments 10,672,497 985,930 11,658,427 Due from successor agency 13,329,238 - 13,329,238 Inventories 229,448 1,608,222 1,837,670 Prepaid items 2,593,722 - 2,593,722 Land held for resale 1,549,837 - 1,549,837 Total current assets 279,044,358 238,204,757 517,249,115 Noncurrent assets:

Prepaid deposits - 298,205 298,205 Leases receivable 6,008,934 80,781,846 86,790,780 Investment in joint venture - 20,133 20,133 Capital assets:

Nondepreciable 250,543,870 66,637,193 317,181,063 Depreciable 810,271,226 690,246,913 1,500,518,139 Less accumulated depreciation (518,678,354) (413,612,125) (932,290,479) Total capital assets 542,136,742 343,271,981 885,408,723 Total noncurrent assets 548,145,676 424,372,165 972,517,841 Total assets 827,190,034 662,576,922 1,489,766,956

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows - OPEB related 3,319,626 2,928,124 6,247,750 Deferred outflows - pension related 21,620,390 11,426,184 33,046,574 Deferred charges on refunding - 1,263,381 1,263,381 Total deferred outflows of resources 24,940,016 15,617,689 40,557,705 Primary Government
See accompanying Notes to Basic Financial Statements
24 City of Victorville
Statement of Net Position (Continued)
June 30, 2024
Governmental Business-type
Activities Activities Total

LIABILITIES
Current liabilities:

Accounts payable 17,926,732 10,125,905 28,052,637 Accrued liabilities 1,336,085 - 1,336,085 Interest payable - 1,733,562 1,733,562 Deposits payable 3,299,187 2,850,062 6,149,249 Unearned revenue 13,599,803 1,763,012 15,362,815 Compensated absences - due within one year 2,737,892 695,135 3,433,027 Total OPEB liability - due within one year 369,520 429,787 799,307 Long-term debt - due within one year 761,803 9,736,007 10,497,810 Total current liabilities 40,031,022 27,333,470 67,364,492 Noncurrent liabilities:

Advances from other governments - 11,678,089 11,678,089 Compensated absences 2,899,757 267,255 3,167,012 Total OPEB liability 19,708,402 16,798,859 36,507,261 Net pension liability 59,575,666 30,888,981 90,464,647 Long-term debt 3,167,885 318,770,446 321,938,331 Total noncurrent liabilities 85,351,710 378,403,630 463,755,340 Total liabilities 125,382,732 405,737,100 531,119,832

DEFERRED INFLOWS OF RESOURCES
Deferred inflows - OPEB related 10,356,500 5,390,870 15,747,370 Deferred inflows - pension related 476,568 1,308,583 1,785,151 Deferred inflows - leases 5,762,153 82,769,371 88,531,524 Total deferred inflows of resources 16,595,221 89,468,824 106,064,045

NET POSITION
Net investment in capital assets 541,240,445 48,758,116 589,998,561 Restricted for:

Public safety 66,856 - 66,856 Community development 31,984,639 - 31,984,639 Public works 85,520,111 - 85,520,111 Total restricted 117,571,606 - 117,571,606 Unrestricted 51,340,046 134,230,571 185,570,617 Total net position 710,152,097$ 182,988,687 $ 893,140,784 $ Primary Government
25 City of Victorville
Statement of Activities
For the year ended June 30, 2024
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Total Governmental activities:

General government 24,483,496 $ 12,992,486 $ 14,097,951 $ - $ 27,090,437$ Public safety 63,932,595 5,613,161 1,022,779 395,626 7,031,566 Community development 1,283,355 8,522,797 2,164,539 964,536 11,651,872 Public works 45,059,175 7,625,296 5,805,247 11,142,077 24,572,620 Parks and recreation 7,341,312 959,930 1,630,924 - 2,590,854 Interest expense 29,445 - - - - Total governmental activities 142,129,378 35,713,670 24,721,440 12,502,239 72,937,349 Business-type Activities:

Water 49,842,565 43,278,742 - 5,314,156 48,592,898 Airport 36,661,844 13,175,442 - 1,723,221 14,898,663 Gas utility 3,657,037 3,973,921 - - 3,973,921 Electric utility 16,027,823 21,121,732 - 1,568,125 22,689,857 Solid waste management 25,949,459 27,464,999 - - 27,464,999 Sanitary 22,968,793 23,218,862 - 1,967,507 25,186,369 Total business-type activities 155,107,521 132,233,698 - 10,573,009 142,806,707 Total primary government 297,236,899$ 167,947,368 $ 24,721,440 $ 23,075,248 $ 215,744,056 $ General Revenues:

Taxes:

Property taxes
Sales taxes
Transactions and use tax
Transient occupancy tax
Franchise taxes
Total taxes
Investment income
Miscellaneous revenues
Gain on disposal of assets
Total general revenues and transfers
Change in net position
Net position - beginning of year
Net position - end of year
Program Revenues
See accompanying Notes to Basic Financial Statements.
26 Governmental Business-Type
Activities Activities Total
2,606,941$ -$ 2,606,941$ (56,901,029) - (56,901,029) 10,368,517 - 10,368,517 (20,486,555) - (20,486,555) (4,750,458) - (4,750,458) (29,445) - (29,445) (69,192,029) - (69,192,029) - (1,249,667) (1,249,667) - (21,763,181) (21,763,181) - 316,884 316,884 - 6,662,034 6,662,034 - 1,515,540 1,515,540 - 2,217,576 2,217,576 - (12,300,814) (12,300,814) (69,192,029) (12,300,814) (81,492,843)
41,397,815 23,442,965 64,840,780
37,483,692 - 37,483,692 29,224,226 - 29,224,226 1,640,447 - 1,640,447 5,033,608 - 5,033,608 114,779,788 23,442,965 138,222,753
6,633,348 12,746,202 19,379,550
525,551 - 525,551 9,978 - 9,978 121,948,665 36,189,167 158,137,832
52,756,636 23,888,353 76,644,989
657,395,461 159,100,334 816,495,795
710,152,097$ 182,988,687$ 893,140,784$
and Changes in Net Position
Net (Expense) Revenue
27 This page intentionally left blank
28 FUND

FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Fund Financial Statements
29 This page intentionally left blank
30 This page intentionally left blank
31 City of Victorville
Balance Sheet
Governmental Funds
June 30, 2024
Nonmajor Total
Governmental Governmental
Funds Funds
ASSETS
Cash and investments 124,885,478 $ 96,704,611 $ 221,590,089 $ Accounts receivable 6,733,378 2,893,389 9,626,767 Interest receivable 2,301,108 - 2,301,108 Notes receivable - 15,064,651 15,064,651 Due from other funds 1,247,570 - 1,247,570 Advances to other funds 1,926,184 - 1,926,184 Due from other governments 5,123,751 5,548,746 10,672,497 Leases receivable 6,169,751 - 6,169,751 Due from successor agency - 13,329,238 13,329,238 Inventories 229,448 - 229,448 Prepaid items 455,762 2,137,960 2,593,722 Land held for resale - 1,549,837 1,549,837 Total assets 149,072,430$ 137,228,432 $ 286,300,862 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable 4,013,818 $ 13,912,914 $ 17,926,732 $ Accrued liabilities 1,336,085 - 1,336,085 Deposits payable 3,277,504 21,683 3,299,187 Due to other funds - 1,247,570 1,247,570 Unearned revenue 1,304 13,598,499 13,599,803 Total liabilities 8,628,711 28,780,666 37,409,377 Deferred Inflows of Resources
Deferred inflows - leases 5,762,153 - 5,762,153 Deferred inflow - unavailable revenue - 4,225,411 4,225,411 Total deferred inflows of resources 5,762,153 4,225,411 9,987,564 Fund Balances:

Nonspendable:

Advances to other funds 1,926,184 - 1,926,184 Prepaid items 455,762 2,137,960 2,593,722 Inventories 229,448 - 229,448 Restricted:

Public safety - 66,856 66,856 Highways and street projects - 74,156,088 74,156,088 Community development - 31,984,639 31,984,639 Unassigned 132,070,172 (4,123,188) 127,946,984 Total fund balances 134,681 ,566 104,222,355 238,903,921 Total liabilities, deferred inflows of
resources and fund balances 149,072,430$ 137,228,432$ 286,300,862$ General Fund
See accompanying Notes to Basic Financial Statements.
32 Total Fund Balances - Total Governmental Funds 238,903,921$ Capital assets used in governmental activities were not current financial resources. Therefore, they were not reported in the Governmental Funds Balance Sheet. The capital assets were adjusted as follows:

Nondepreciable 250,543,870
Depreciable, net 291,592,872
Unavailable revenues recorded in the fund financial statements resulting from activitie s in which revenues were earned but were not available are reclassified as revenues in the Government-Wide Financial Statements. 4,225,411
In the Government-Wide Financial Statements, deferred employer contributions for OPEB and pension, certain differences between actuarial estimates and actual results, and other adjustments resulting from chan
ges in assumptions and benefits are deferred in the current year.

Deferred outflows of resources related to OPEB 3,319,626 Deferred inflows of resources related to OPEB (10,356,500) Deferred outflows of resources related to pension 21,620,390 Deferred inflows of resources related to pension (476,568) Long-term liabilities were not due and payable in the current period. Therefore, they were not reported in the Governmental Funds Balance Sheet.

Accrued compensated absences - current (2,737,892)
Accrued compensated absences - noncurrent (2,899,757)
Claims payable - current -
Claims payable - noncurrent -
Long-term debt - due within one year (761,803)
Long-term debt - due in more than one year (3,167,885)
Total OPEB liability - current (369,520)
Total OPEB liability - noncurrent (19,708,402)
Net pension liability (59,575,666)
Net Position of Governmental Activities 710,152,097$
City of Victorville
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2024
Amounts reported for governmental activities in the statement of net position are different because:

See accompanying Notes to Basic Financial Statements.
33 City of Victorville
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the year ended June 30, 2024
REVENUES:

Taxes and assessments 102,621,091 $ - $ - $ - $ Licenses and permits 3,880,185 - - -
Intergovernmental 171,736 - - -
Charges for services 20,247,580 - - -
Fines and forfeitures 1,428,089 - - -
Investment income (loss) 6,778,680 - - -
Other 875,671 ---
Total revenues 136,003,032 - - - EXPENDITURES:

Current:

General government 20,615,557 - - -
Public safety 62,547,882 - - -
Community development 7,817 - - -
Public works 13,234,860 - - -
Parks and recreation 6,438,44
1 ---
Capital outlay 5,711,290 - - -
Debt service:

Principal 24,348 - - -
Interest and loan fees 3,652 - - -
Principal - SBITA 245,201 ---
Interest - SBITA 25,722 - - -
Total expenditures 108,854,770 - - -

REVENUES OVER (UNDER)
EXPENDITURES 27,148,262 - - - OTHER FINANCING SOURCES (USES):

Transfers in 311,095 - - -
Transfers out ----
Lease financing 220,464 - - -
Proceeds from sale of property 62 - - -
Total other financing sources (uses) 531,621 - - - Net change in fund balances 27,679,883 - - - FUND BALANCES:

Beginning of year 107,156,268 29,764,359 244,872 (152,292 )
Restatement - error corrections (154,585) ---
Restatement - change in reporting entity - (29,764,359 ) (244,872) 152,292 Beginning of year, as restated 107,001,683 - - -
End of year 134,681,566$ - $ - $ - $ Special Revenue Funds
General Fund
Housing Asset
Successor
Other State /
Local Grants
COVID-19
Funds
See accompanying Notes to Basic Financial Statements.
34 Capital Project Fund
Nonmajor Total
Governmental Governmental
Funds Funds
-$ 15,815,474$ 118,436,565 $ - - 3,880,185
- 35,170,107 35,341,843
- 10,284,349 30,531,929
- 66,198 1,494,287
- 4,636,015 11,414,695
- 39,473 915,144
- 66,011,616 202,014,648 - 532,038 21,147,595
- 386,57
1 62,934,453
- 1,250,240 1,258,057
- 17,291,922 30,526,782
- 28,654 6,467,095
- 31,595,417 37,306,707
- - 24,348
- - 3,652
- 1,317 246,518
-7 1 25,793
- 51,086,230 159,941,000 - 14,925,386 42,073,648 - - 311,095
- (311,095
) (311,095)
- - 220,464
- 9,916 9,978
- (301,179) 230,442 - 14,624,207 42,304,090 25,045,007 34,541,617 196,599,83 1
- 154,585 -
(25,045,007) 54,901,946 -
- 89,598,148 196,599,83 1
-$ 104,222,355$ 238,903,92 1$ Capital Impact
Facilities
See accompanying Notes to Basic Financial Statements.
35 City of Victorville
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities For the year ended June 30, 2024
Net Change in Fund Balances - Total Governmental Funds 42,304,090$ Governmental fund s reported capital outla y as expenditures. However, in th e Government-Wide Statement of Activities, the cost of those assets was allocated over their estimated lives as depreciation expense. 43,438,163 Depreciation an d amortization expens e on cap ital assets was reported int he Government-Wide Statement o f Activities, but did not require the use of current financial resources. Therefore, depreciation expense was not reported as expenditures in the governmental funds. (20,728,608) Accrued compensated leave payments were reported as expenditures in the governmental funds, however expense is recognized in the Government-Wide Statement of Activities based on earned leave accruals. (490,940) liabilities int he Government-Wide Statement of Net Position. Repayment o f debtw a s an expenditure in governmental funds, but the repayment reduced long-term liabilities in the Government-Wide Statement of Net Position.

Long-term debt repayments 270,866
Issuance of long-term debt (220,464)
Pollution remediation 382,156
Claims payable did not require current financial resources. Therefore, claims payable were not reported as a liability in the governmental funds.
(938,138)
Unavailable revenues recorded int he fund financial statements resulting from act ivities inw hich revenues were earned but were not available are reclassified as revenues in the Government-Wide Financial Statements. (7,138,612) Current year employer OPEB contributions are recorded as expenditures int he governmental funds, however, these amounts are reported as a deferred outflow of resources in the Government-Wide Statement of Net Position. 478,364 OPEB expens e is reported in t he Government-Wide Statement o f Activities does not requir e the use of current financial resources, and therefore is not reported as expenditures in governmental funds. (853,310) Current yea r employer pension contr ibutions are recorded as expenditures int he governmental funds, however, these amounts are reported as a deferred outflow of resources in the Government-Wide Statement of Net Position. 7,470,411 Pension expens e is reported int he Government-Wide Statement o f Activities does not requ ire the use of current financial resources, and therefore is not reported as expenditures in governmental funds. (11,217,342) Change in Net Position of Governmental Activities 52,756,636$ Amounts reported for governmental activities in the Government-Wide Statement of Activities were different because:

See accompanying Notes to Basic Financial Statements.
36 City of Victorville
Proprietary Funds
For the Year Ended June 30, 2024
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 Lo
gistics 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 Age ncy. 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 t h eo p e r a t i o n ,m a i n t e n a n c e ,a n dc a p i t a la s s e ts of the Cit y’s electric utilit y,w h i ch is funded b y user charges, other fees, and loans.

Solid Waste Mana
gement 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 provide s 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 operatio n and maintenance, and capital asset s of the Cit y’s gas utility,w h i ch is funded b y user charges, other fees, and loans.
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39 City of Victorville
Statement of Net Position
Proprietary Funds
June 30, 2024
ASSETS
Current Assets:

Cash and investments 85,120,29 9$ 41,290,155$ 24,836,627$ 12,662,771$ Cash with fiscal agent 836,588 26,097,008 3,387,691 -
Accounts receivable 5,640,186 401,630 1,833,486 3,302,787 Interest receivable 371,279 287,912 - 4,816
Due from other governments 28,707 864,253 - 92,970
Leases receivable - 7,246,566 --
Inventory and other assets 1,604,610 3,612 - -
Total current assets 93,601,669 76,191,136 30,057,804 16,063,344 Noncurrent:

Prepaid deposits 51,763 4,149 234,150 908
Advances to other funds - 1,600,000 --
Leases receivable - 77,962,659 - 2,819,187
Investment in joint venture --- 2 0,133
Capital assets:

Nondepreciable capital assets 37,054,907 15,760,072 4,913,547 518,565 Depreciable capital assets 285,159,860 299,509,331 23,298,671 5,761,125 Accumulated depreciation (165,021,497) (197,913,004) (14,825,274) (4,357,837) Net capital assets 157,193,270 117,356,399 13,386,944 1,921,853 Total noncurrent assets 157,245,033 196,923,207 13,621,09 4 4,762,081 Total assets 250,846,702 273,114,343 43,678,898 20,825,425

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows - OPEB related 2,287,14 9 237,333 67,093 106,482 Deferred outflow - pension related 6,305,417 1,768,477 615,287 861,359 Deferred charge on refunding - 1,263,381 --
Total deferred outflows of resources 8,592,566 3,269,191 682,380 967,841

LIABILITIES
Current liabilities:

Accounts payable 2,857,836 594,660 799,200 3,227,769
Interest payable 153,385 1,197,937 382,229 -
Prepaid water connection fees ----
Deposits payable 1,748,554 742,742 289,984 3,139
Unearned revenue - 850,360 912,652 -
Compensated absences - due within one year 561,302 133,833 - - Total OPEB liability - due within one year 338,738 8,504 580 22,936 Long-term debt - due within one year 454,620 7,245,000 1,595,000 - Total current liabilities 6,114,435 10,773,03 6 3,979,645 3,253,844 Noncurrent liabilities:

Advances from other funds - - 1,926,18 4 -
Advances from other governments - 11,678,089 --
Compensated absences - noncurrent 154,792 112,463 - -
Net pension liability 17,610,716 4,930,171 1,531,378 2,281,486 Total OPEB liability 11,690,747 2,115,912 550,666 873,100 Long-term debt 7,329,311 267,735,859 42,955,276 -
Total noncurrent liabilities 36,785,56 6 286,572,494 46,963,504 3,154,586 Total liabilities 42,900,001 297,345,530 50,943,149 6,408,430

DEFERRED INFLOWS OF RESOURCES
Deferred inflows - OPEB related 3,234,388 762,29 1 249,114 346,018 Deferred inflows - pension related 851,599 183,799 52,252 74,902 Deferred inflows - leases - 80,139,808 - 2,629,563
Total deferred inflows of resources 4,085,987 81,085,898 301,366 3,050,483

NET POSITION
Net investment in capital assets 149,171,073 (130,492,014) (25,123,724) 1,921,853 Unrestricted 63,282,207 28,444,12 0 18,240,487 10,412,500 Total net position 212,453,280$ (102,047,894) $ (6,883,237) $ 12,334,353 $ Victorville Water
District
Southern California
Logistics Airport
Authority
Electric
Utility Fund
Solid Waste
Management
See accompanying Notes to Basic Financial Statements.
40 Totals
17,385,160$ 3,785,131$ 185,080,143$ - - 30,321,287
2,904,889 141,808 14,224,786
- - 664,007
- - 985,930
- - 7,246,566
- - 1,608,222
20,290,049 3,926,939 240,130,941
3,242 3,993 298,205
- - 1,600,000
- - 80,781,846
- - 20,133
7,050,988 1,339,114 66,637,193
72,584,065 3,933,86 1 690,246,913
(29,898,622) (1,595,891) (413,612,125)
49,736,431 3,677,084 343,271,981
49,739,673 3,681,077 425,972,165
70,029,722 7,608,016 666,103,106 216,899 13,168 2,928,124
1,765,597 110,047 11,426,184
- - 1,263,381
1,982,496 123,215 15,617,689 2,482,446 163,994 10,125,905
11 - 1,733,562
---
11,188 54,455 2,850,062
- - 1,763,012
- - 695,135
59,029 - 429,787
441,387 - 9,736,007
2,994,061 218,449 27,333,470
- 1,600,000 3,526,184
- - 11,678,089
- - 267,255
4,362,847 172,383 30,888,981
1,462,912 105,522 16,798,859
750,000 - 318,770,446
6,575,759 1,877,905 381,929,814
9,569,820 2,096,354 409,263,284 754,086 44,973 5,390,870
139,097 6,934 1,308,583
- - 82,769,37 1
893,183 51,907 89,468,824 49,603,844 3,677,084 48,758,116
11,945,371 1,905,886 134,230,571
61,549,215$ 5,582,970 $ 182,988,687 $ Sanitary
Fund
Nonmajor
Gas
Utility Fund
See accompanying Notes to Basic Financial Statements.
41 City of Victorville
Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds
For the year ended June 30, 2024
OPERATING REVENUES:

Charges for services 41,499,751$ 12,298,608$ 20,830,093$ 26,850,902$ Pass-Thru charges for services 1,149,312 - - -
Fines and forfeitures 386,446 25,274 - 339,755
Other 243,233 851,560 291,639 274,342
Total operating revenues 43,278,742 13,175,442 21,121,732 27,464,999 OPERATING EXPENSES:

Personnel services 12,737,893 3,664,583 1,427,366 1,870,220 Maintenance and operations 19,532,107 7,034,343 2,825,644 23,646,782 Production costs 6,411,631 - 8,527,535 -
Pass-Thru production costs 1,178,512 - - -
Depreciation 6,570,505 9,480,389 1,128,608 113,195 Total operating expenses 46,430,648 20,179,315 13,909,153 25,630,197 Operating income (loss) (3,151,906) (7,003,873) 7,212,579 1,834,802 NONOPERATING REVENUES (EXPENSES):

Change in investment in joint ventures - - - (320,097)
Property taxes 1,567,817 21,875,148 - -
Investment income 5,013,463 4,998,166 1,233,176 574,391 Interest expense (1,387,860) (16,804,585) (2,118,670) - Other nonoperating revenues (expenses) (2,024,057) 322,056 - 835 Total nonoperating revenues (expenses) 3,169,363 10,390,785 (885,494) 255,129 Income before contributions and transfers 17,457 3,386,912 6,327,085 2,089,931 CONTRIBUTIONS AND TRANSFERS:

Transfers in 25,713 - - -
Transfers out ----
Connection fees 4,242,660 - - -
Alternate water source fees 484,220 - - -
Capital restricted use fees 587,276 - - -
Capital contributions - - 1,568,125 -
Capital grants - 1,723,221 --
Total contributions and transfers 5,339,869 1,723,221 1,568,125 - Change in net position 5,357,326 5,110,133 7,895,210 2,089,931 NET POSITION:

Beginning of year 207,095,954 (107,158,027 ) (14,778,447) 10,244,422 End of year 212,453,280$ (102,047,894 )$ (6,883,237)$ 12,334,353$ Victorville Water
District
Southern California
Logistics Airport
Authority
Electric
Utility Fund
Solid Waste
Management
See accompanying Notes to Basic Financial Statements.
42 Totals
22,821,100$ 3,973,915 $ 128,274,369 $
- - 1,149,312
345,859 - 1,097,334
51,903 6 1,712,683
23,218,862 3,973,921 132,233,698
4,229,848 374,026 24,303,936
17,251,802 319,176 70,609,854
- 2,753,415 17,692,581
- - 1,178,512
1,487,062 128,220 18,907,979
22,968,712 3,574,837 132,692,862
250,150 399,084 (459,164)
- - (320,097)
- - 23,442,965
745,291 181,715 12,746,202
(81) (82,200) (20,393,396)
-- (1,701,166)
745,210 99,515 13,774,508
995,360 498,599 13,315,344
- - 25,713
(25,713) -( 25,713)
1,902,441 - 6,145,101
- - 484,220
- - 587,276
65,066 - 1,633,191
- - 1,723,221
1,941,794 - 10,573,009
2,937,154 498,599 23,888,353
58,612,061 5,084,371 159,100,334
61,549,215$ 5,582,970 $ 182,988,687 $
Nonmajor
Gas
Utility Fund
Sanitary
Fund
See accompanying Notes to Basic Financial Statements.
43 City of Victorville
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2024
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers 45,927,271$ 5,152,631$ 22,671,277$ 26,542,889$ Cash payments to employees for services (11,592,107) (3,294,872) (1,292,334) (1,678,506) Cash payments to suppliers for goods and services (29,402,164) (6,823,614) (12,264,933) (22,218,592) Net cash provided (used) by operating activities 4,933,000 (4,965,855) 9,114,010 2,645,791 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Cash received from other governments 1,567,817 22,286,148 - - Cash received from other funds for advances - 400,000 - - Cash paid to other funds for advances - - (990,296) - Cash received from other funds 25,713 - - - Cash paid to other funds - - - -
Net Cash Provided (Used) by
Noncapital Financing Activities 1,593,530 22,686,148 (990,296) - CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Capital grant
s - 1,723,221 - -
Cash received from leases and rent - 5,768,668 - 6,671
Cash payments to acquire capital and other assets (3,447,756) (3,157,971) (23,884) (726,527) SBITA principal payments (9,464) - - -
Principal paid on capital-related debt (431,193) (6,885,000) (1,655,183) - Interest paid on capital-related debt (1,395,504) (14,966,860) (2,093,464) - Interest paid on interfund advance - - -
Net Cash Used by Capital and Related
Financing Activities (5,283,917) (17,517,942) (3,772,531) (719,856) CASH FLOWS FROM INVESTING ACTIVITIES:

Interest Received on Investment
s 4,891,054 4,846,482 1,233,176 569,575 Net cash provided by (used) by investing activities 4,891,054 4,846,482 1,233,176 569,575 NET INCREASE IN CASH AND CASH EQUIVALENTS 6,133,667 5,048,833 5,584,359 2,495,510 CASH AND CASH EQUIVALENTS - Beginning of year 79,823,220 62,338,330 22,639,959 10,167,261 CASH AND CASH EQUIVALENTS - End of year 85,956,887$ 67,387,163$ 28,224,318$ 12,662,771$ Victorville Water
District
Southern California
Logistics Airport
Authority
Electric
Utility Fund
Solid Waste
Management
See accompanying Notes to Basic Financial Statements.
44 Totals
24,738,058$ 4,081,437$ 129,113,563$
(5,418,451) (351,787) (23,628,057)
(16,666,071) (3,141,919) (90,517,293)
2,653,536 587,731 14,968,213
-
-
23,853,965
-
-
400,000
-
(400,000)
(1,390,296)
-
- 25,713
(25,713) -
(25,713)
(25,713) (400,000) 22,863,669
-
-
1,723,221
-
-
5,775,339
(1,693,681) (1,371,959) (10,421,778)
(1,281) -
(10,745)
1,190,000 -
(7,781,376)
(70)
-
(18,455,898)
(82,200) (82,200)
(505,032) (1,454,159) (29,253,437)
745,291 181,715 12,467,293
745,291 181,715 12,467,293
2,868,082 (1,084,713) 21,045,738
14,517,078 4,869,844 194,355,692
17,385,160$ 3,785,131$ 215,401,430$
Nonmajor
Gas
Utility Fund
Sanitary
Fund
45 City of Victorville
Statement of Cash Flows (Continued)
Proprietary Funds
For the year ended June 30, 2024

RECONCILIATION OF CASH AND CASH

EQUIVALENTS TO STATEMENT OF NET POSITION
Operating income (loss) (3,151,906) $ (7,003,873)$ 7,212,579$ 1,834,802$ Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:

Depreciation 6,570,505 9,480,389 1,128,608 113,195 Operating rental and lease revenue -
(7,431,065)
-
(63,688)
Nonoperating miscellaneous revenue (expense)
and capital contributions 3,290,099 322,056
1,568,125 835
(Increase) decrease in assets:

Accounts receivable, net (463,405) (10,854) (145,724) (833,433) Due from other governments (8,761) (711,781) - (18,797)
Inventory and other assets (737,676) 10,266 - -
Prepaid deposits (23,457) 51,445 (124,380) (99) Deferred outflows - OPEB 420,465 30,270 12,333 15,398 Deferred outflows - pension (209,939) (59,265) (25,456) (32,541) Increase (decrease) in liabilities:

Accounts payable (1,518,781) 149,018 (787,374) 1,428,289 Deposits payable (169,404) 22,046 127,144 (7,027) Unearned revenue -
(213,213)
-
-
Compensated absences 42,912 30,745
-
-
Claims payable -
-
-
-
Total OPEB liability 367,522 84,332 31,127 42,495 Net pension liability 1,453,978 426,483 173,732 240,736 Deferred inflows - OPEB (750,950) (92,549) (35,097) (46,753) Deferred inflows - pension (178,202) (50,305) (21,607) (27,621) Net cash provided by (used in) operating activities 4,933,000$ (4,965,855)$ 9,114,010$ 2,645,791$ NONCASH TRANSACTIONS:

Interest accretion expenses -$

1,641,446$ -$
-$
A
mortization of bond discounts -
91,867
-
-
Victorville Water
District
Southern California
Logistics Airport
Authority
Electric
Utility Fund
Solid Waste
Management
See accompanying Notes to Basic Financial Statements.
46 Totals
250,150$ 399,084$ (459,164)$
1,487,062 128,220 18,907,979
-
-
(7,494,753)
1,967,507 -
7,148,622
(447,001) 54,185 (1,846,232)
-
-
(739,339)
-
-
(727,410)
(339)
(3,993)
(100,823)
39,097 1,967
519,530
(72,680) (4,120)
(404,001)
586,070 (65,335)
(208,113)
(1,310) 53,331
24,780
-
-
(213,213)
-
-
73,657
(1,630,000) -
(1,630,000)
100,021 5,027 630,524
548,998 28,510 2,872,437
(112,347) (5,648) (1,043,344)
(61,692) (3,497) (342,924)
2,653,536$ 587,731$ 14,968,213$
-$
-$
-$
-
-
-
Nonmajor
Gas
Utility Fund
Sanitary
Fund
47 This page intentionally left blank
48 City of Victorville
Statement of Fiduciary Net Position
Fiduciary Funds
For the year ended June 30, 2024
Private Purpose
Trust Fund
Successor
Custodial Agency of th e
Funds Former RDA
ASSETS
Cash and investments 591,146$ 3,812,536 $ Restricted assets:

Cash with fiscal agent 635,654 2,035,827
Accounts receivable 2,793 -
Land held for resale - 1,379,917
Total assets 1,229,593 7,228,280

LIABILITIES
Accounts payable 829 5,790
Interest payable - 119,103
Due to The City - 13,329,238
Bonds payable:

Due within one year - 1,745,000
Due in more than one year - 24,405,000
Total liabilities 829 39,604,131

NET POSITION
Restricted for:

Individuals, organizations, and other governments 1,228,764 - Held in trust for private purposes - (32,375,851 )
Total Net Position 1,228,764$ (32,375,851)$ See accompanying Notes to Basic Financial Statements.
49 City of Victorville
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the year ended June 30, 2024
Private Purpose
Trust Fund
Successor
Custodial Agency of th e
Funds Former RDA
ADDITIONS:

RPTTF distributions -$ 4,874,799$ Property assessments collected 471,650 -
Investment income 52,392 637,335
Total additions 524,042 5,512,134
DEDUCTIONS:

Community development 24,386 684,884
Payments on special assessment debt 441,329 -
Interest - 1,794,677
Total deductions 465,715 2,479,561
Change in net position 58,327 3,032,573 NET POSITION:

Beginning of year 1,170,437 (35,408,424 )
End of year 1,228,764$ (32,375,851)$
See accompanying Notes to Basic Financial Statements.
50 NOTES TO BASIC

FINANCIAL STATEMENTS
51 This page intentionally left blank
52 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the City of Victorville, Calif ornia (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 princi ples. The more significant of the City’s accounting policies are described below.

A. Financial Reporting Entity
The City of Victorville is situated approximatel y 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, 2024 of 138,869. 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, 2024, the City’s staff comprised of 461 full- and 76 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 organizat ion’s governing body and the City is able to impose its will on that organization or there is a potentia l for that organization to provide specific financial benefits to or impose specific financial burdens on th e 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.
53 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued A. Financial 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 an d from profits, income, sales proceeds, interest earnings from leases and land sales, and tax increm ent revenues passed through from the Victor Valley Economic Development Authority (VVEDA).

Victorville Water District
On August 15, 2007, the Victor Vall ey 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. 54 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus
The basic financial statements of the City are composed of the following:
x Government-wide financial statements
x Fund financial statements
x 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 governme ntal 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 allo cated). However, general government expenses have not been allocated as indirect expenses to the various functions of the City.

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:
x Charges for services,
x Operating grants and contributions, and
x Capital grants and contributions.
55 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued 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 operationa l 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 expe nditure. 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 eq uity, 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.

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 inform ation 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.
56 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued Governmental Funds
In the fund financial statements, governmental fund s 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 tran sactions 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 report ed 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.

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). 57 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued Spendable Fund Balance
¾ 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.
¾ 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. ¾ 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.
¾ Unassigned Fund Balance – This includes the remaining spendable amounts which are not included in one of the other classifications. In ot her 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, defe rred outflows of resources, liabilities, and deferred inflows of resources (whether current or noncurrent) associated with th eir activity are included on their balance sheets.

Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in total net position.
58 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued Proprietary fund operating revenues, such as charge s 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 part y 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 capitali zed 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 propriet ary 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.

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.

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 mainte nance 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 Treatm ent Plant asset within the scope of the Victorville Water District Fund because of its importance in pr oviding 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.
59 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

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

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

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

Solid Waste Management
Accounts for activities in the following progra ms: Solid Waste Management, Source Reduction and Recycling, Landfill Mitigation, Household Hazard ous 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 fo r maintenance of infrastructure and payment of contractors for disposal. Revenue received is comprised of sewer user fees and connection fees.

Additionally, the City reports the following fiduciary fund types:

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

Private-Purpose Trust Fiduciary Funds
Used to account for the activities of the Redevelopment Obligation Retirement Funds, and other Successor Agency funds, which accumulates resources for obligations previously incurred by the former Victorville Redevelopment Agency.
60 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued C. Major Funds and Fiduciary Fund Types, Continued
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.

Capital Project Funds
Nonmajor capital project funds accounts for the acquisition or construction of major capital assets and facilities.

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
The City adopted GASB Statement No. 100, Accoun ting Changes and Error Corrections-an Amendment of GASB Statement No. 62 – The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. The City adopted this statement for the year ending June 30, 2024.

E. Cash and Investments
Cash includes demand deposits. The California Go vernment 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 transf er 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 financ ial 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.
61 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued G. Loans Receivable
The accompanying financial statements reflect the re cording 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 othe r 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, 2024.

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 tr ansfer 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 an d 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, wh ich 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. 62 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued 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.

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 subs cription-based information technology arrangements (SBITAs). Tangible capital assets are valued at historic al 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 applic able, and capitalizable impl ementation 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:

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. 63 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

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 receiv e termination payments, as well as those who are expected to become eligible to re ceive termination benefits as a result of continuing their employment with the City. Other amounts of unused sick leave ar e excluded from the liability since their payment is contingent solely upon the occurrence of a future even t (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 yearend 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 ar e 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 pe rformed. Deposits payable in the enterprise funds primarily consist of security deposits for utility acco unts 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.

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.
64 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued R. Property Taxes, Continued
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 1976-1 978, the City negotiated its relative 1% share of taxes.

S. Net Position
Net position is classified in the following categories:
¾ Net Investment in Capital Assets – This amount consists of capital asse ts 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.
¾ Restricted Net Position – This amount is restricted by enabling legislation (such as external creditors, grantors, contributors, or laws or regulations of other governments). ¾ 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 pu rpose 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.

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 ne t 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 stat ement 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 postemploy ment 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 recogn ized as an inflow of resources (revenue) until that time.
65 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued T. Deferred Outflows and Deferred Inflows of Resources, Continued 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 av ailable reports that can be obtained at CalPERS’ website under Forms and Publications.

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.

2. CASH AND INVESTMENTS
Cash and investments as of June 30, 2024are classified in the accompanying financial statements as follows:

Cash and investments as of June 30, 2024 consist of the following:
66 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

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 al so 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.

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 Governme nt 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.
67 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

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 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 maturi ng 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 th e 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:

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. 68 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

2. CASH AND INVESTMENTS, Continued
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).

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 allo ws 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, 2024, 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 trus tee 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.
69 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

2. CASH AND INVESTMENTS, Continued
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 prio ritizes 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) an d the lowest priority to unobservable inputs (Level 3 measurements). The three levels of fair value hierarchy are described as follows:
¾ Level 1 – Inputs to the valuation methodology are un adjusted quoted prices for identical assets or liabilities in active markets.
¾ 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:
x Quoted prices for similar assets or liabilities in active markets; x Quoted prices for identical or similar assets or liabilities in markets that are inactive; x Inputs other than quoted prices that are observable for the asset or liability; x Inputs that are derived principally from or corroborated by observable market data by correlation of other items.
¾ 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.

3. INTERFUND ACTIVITIES
The composition of interfund balances as of June 30, 2024 is as follows:
70 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

3. INTERFUND ACTIVITIES, Continued
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 2007-200 8 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 equa l 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, 2024 is $1,926,184. c) A loan agreement was signed on April 18, 2023 by th e City Council that authorizes the SCLAA enterprise fund to loan $2,000,000 to the nonmajor gas utilit y enterprise fund for the construction of new gas infrastructure that will allow for th e purchase of lower priced natural gas and future growth at SCLAA.

The loan principal shall be repaid in five equal inst allments 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, 2024 is $1,600,000.

The transfer of $311,095 from the Nonmajor Governmental Funds to the General Fund to support the engineering function of traffic safety and City Housing Asset Successor. 71 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

4. CAPITAL ASSETS
Governmental Activities
The following is a summary of changes in capital assets for the year ended June 30, 2024:

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

Balance at
July 1, 2023 Additions Deletions
Balance at
June 30, 2024
Nondepreciable Assets
Land 56,273,814 $ 2,503,228 $ - $ 58,777,042$ Right of Way 180,001,603 98,227 - 180,099,830 Construction in Progress 46,815,131 10,433,851 (45,581,984) 11,666,998 Total Nondepreciable Assets 283,090,548 13,035,306 (45,581,984) 250,543,870 Depreciable Assets
Buildings and Improvements 88,993,508 46,805,943 - 135,799,451 Furniture and Equipment 17,978,048 5,155,521 (1,162,485) 21,971,084 Computer and Communications 5,651,475 1,620,967 - 7,272,442 Land Improvements 14,913,467 - - 14,913,467 Vehicles 7,522,118 1,369,924 (40,970) 8,851,072 Infrastructure 599,202,634 20,812,022 - 620,014,656 Total Depreciable Assets 734,261,250 75,764,377 (1,203,455) 808,822,172 Less Accumulated Depreciation
Buildings and Improvements (47,082,775) (2,804,987) - (49,887,762) Furniture and Equipment (13,360,680) (1,322,227) 1,162,485 (13,520,422) Computer and Communications (2,827,788) (798,124) - (3,625,912) Land Improvements (11,956,994) (1,477,538) - (13,434,532) Vehicles (4,374,184) (609,266) 40,970 (4,942,480) Infrastructure (419,336,667) (13,417,235) (432,753,902) Total Accumulated Depreciation (498,939,088) (20,429,377) 1,203,455 (518,165,010) Total Depreciable Assets, Net 235,322,162 55,335,000 - 290,657,162 Assets Being Amortized:

SBITA Assets 1,331,833 - (103,243) 1,228,590 Accumulated Amortization (317,356) (275,592) 103,243 (489,705) Leases Assets - 220,464 - 220,464 Accumulated Amortization - (23,639) - (23,639) To
tal SBITA Assets,
Being Amortized, Net 1,014,477 (78,767) - 935,710 Capital Assets, Net 519,427,187$ 68,291,539$ (45,581,984)$ 542,136,742$ 72 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

4. CAPITAL ASSETS, Continued
Business-Type Activities
The following is a summary of capital assets for enterprise funds at June 30, 2024:
73 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

4. CAPITAL ASSETS, Continued
Business-Type Activities, Continued
Depreciation expense was charged in the following programs of the primary government:

5. LAND HELD FOR RESALE
As of June 30, 2024, the Successor Agency to the Victorville Redevelopment Agency (RDA) and the City Housing Asset Successor Agency had acquired and deve loped parcels of land in the Bear Valley and Old Town/Midtown project areas. These parcels were purc hased 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.

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, 2024, the City Housing Asset Successor Specia l Revenue Fund has recorded outsta nding loan receivable balance of $5,460,550.

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, 2024, the City Housing Asset Successor Special Revenue Fund has recorded outstanding loan receivable balance of $1,072,706.

In December 2005, the former RDA entered into an affordable housing loan agreement with Southern California Housing Development Corporation to deve lop 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, 2024, the City Housing Asset Successor Special Revenue Fund has recorded outstanding loan receivable balance of $6,857,372. 74 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

6. LONG-TERM NOTES RECEIVABLE, Continued
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, 2024, the City ousing Asset Successor Special Reve nue Fund has recorded outstanding loan receivable balance of $92,986.

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 $1,5 00,000 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 inte rest 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, 2024, the City HUD Grants Special Revenue Fund has recorded an outstanding loan balance of $1,571,143.

Other Loans
These loans are secured by a deed of trust. Also, at June 30, 2024, 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 $9,894.

7. GOVERNMENTAL LONG-TERM LIABILITIES
Changes in Long-Term Liabilities
A summary of changes in long-term liabilities for the year ended June 30, 2024 is as follows:

Compensated Absences
The City’s policies relating to compensated absences ar e described in Note 1. This liability, amounting to $5,637,649 at June 30, 2024, will be paid in future ye ars from future resources, generally liquidated by the General Fund.
75 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

7. GOVERNMENTAL LONG-TERM LIABILITIES, Continued
Pollution Remediation
In February 2007, the City acquired a property that wa s previously used as a dry-cleaning facility. In May 2010, the United States Environmental Protection Agen cy (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 envi ronmental 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 sectio n 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.

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, 2024, the City is in the third year of the PEP and has spent a total of $1,344,04 4 with a remaining Pollution Remediation liability of $168,538.

SBITAs
The City has entered into subscription-based inform ation 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:

Right-to-use assets acquired through SBITAs, net of accumulated amortization, are reported in Note 4, Capital Assets.
76 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

7. GOVERNMENTAL LONG-TERM LIABILITIES, Continued
Leases Payable
The City has entered into a lease agreement with the Vi ctorville Valley Union High School District to lease space to be used by the City as an animal shelter. The agreement expires on December 17, 2028 and do not provide for renewal options. The interest rate is 3.5110% and there are no variable payments.

The future lease payments under the agreements are as follows:

Right-to-use assets acquired through leases, net of accumulated amortization, are reported in Note 4, Capital Assets.
77 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

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, 2024 is as follows:

See Note 10 for pledged revenue information.

Compensated Absences
The City’s policies relating to compensated absences ar e described in Note 1. This liability, amounting to $962,390 at June 30, 2024, will be paid in future ye ars from future resources, generally liquidated by the Victorville Water District, Victorville Municipal Utility, and the SCLAA Enterprise Funds.

SBITAs
The City has entered into subscription-based inform ation 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.

Balance at
June 30, 2023 Additions Retirements
Balance at
June 30, 2024
Due Within
One Year
Other Long-Term Liabilties
Compensated Absences 888,733 $ 739,292 $ (665,635) $ 962,390 $ 695,135 $ Settlement Payable 1,630,000 - (440,000) 1,190,000 440,000 SBITAs 21,752 - (10,745) 11,007 11,007 Other Debt:
2005 Tax Allocation Bonds 11,830,000 - (1,265,000) 10,565,000 1,320,000 2006 Tax Allocation Bonds (Non-Housing) 45,370,000 - (1,315,000) 44,055,000 1,375,000 2006 Tax Allocation Bonds (Housing) 12,185,000 - (355,000) 11,830,000 370,000 2006 Tax Allocation Parity Bonds 41,215,000 - (180,000) 41,035,000 190,000 2006 Tax Allocation Revenue Parity Bonds 28,395,000 - (690,000) 27,705,000 730,000 2006 Tax Allocation Revenue Bonds 51,400,000 - (1,280,000) 50,120,000 1,355,000 2007 Tax Allocation Bonds (Housing) 31,775,000 - (840,000) 30,935,000 885,000 2007 Tax Allocation Bonds (Non-Housing) 33,255,000 - (850,000) 32,405,000 895,000 2008A Tax Allocation Bonds 26,707,874 1,641,446 (110,000) 28,239,320 125,000 Unamortized Discounts/Premiums (2,000,328) 91,867 - (1,908,461) - Tax Allocation Bonds Subtotal 280,132,546 1,733,313 (6,885,000) 274,980,859 7,245,000 Revenue Refunding Bonds:

Electric Revenue Bonds 2022A 35,980,000 - - 35,980,000 - Electric Revenue Bonds 2022B 8,355,000 - (1,525,000) 6,830,000 1,595,000 Unamortized Discounts/Premiums 1,870,459 - (130,183) 1,740,276 - Certificates of Participation (COP):
2006 COPs 8,125,000 - (425,000) 7,700,000 445,000 Unamortized Discounts/Premiums 80,504 - (6,193) 74,311 - Total 337,083,994$ 2,472,605 $ (10,087,756) $ 329,468,843 $ 10,431,142$ 78 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

8. BUSINESS-TYPE LONG-TERM LIABILITIES, Continued
The future subscription payments under SBITA agreements are as follows:

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 am ount 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, 20 05), 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 $2,765,00 0, $3,365,000, $5,140,000, $6,335,000, $7,870,000, and $15,335,000, respectively, are term bonds. The outstand ing 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 mandat ory redemption in part by lot, without premium, commencing December 1, 2007, December 1, 2012, Dece mber 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, 2024, 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, 2024 is $10,565,000. 79 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

8. BUSINESS-TYPE LONG-TERM LIABILITIES, Continued
Tax Allocation Revenue Parity Bonds, Refunding Series 2006 (Non-Housing) In June 2006, the SCLAA issued $62,780,000 principa l amount of Tax Allocation Revenue Parity Bonds, Refunding Series 2006. The proceeds were used to re fund 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 m a t u r i n g o n o r a f t e r J u n e 1 , 2 0 1 6 a r e s u b j e c t t o o p t i o n a l r e d e m p t i o n i n w h o l e o r i n p a r t b y l o t w i t h o u t 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, 2024, 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, 2024 is $44,055,000.

Tax Allocation Revenue Parity Bonds, Refunding Series 2006 (Housing Set-Aside) In June 2006, the SCLAA issued $16,855,000 princi pal 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 $5,46 0,000, 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 m a t u r i n g o n o r a f t e r J u n e 1 , 2 0 1 6 a r e s u b j e c t t o o p t i o n a l r e d e m p t i o n i n w h o l e o r i n p a r t b y l o t w i t h o u t 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, 2024, 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, 2024 is $11,830,000.
80 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

8. BUSINESS-TYPE LONG-TERM LIABILITIES, Continued
Tax Allocation Revenue Parity Bonds, Taxable Series 2006 In June 2006, the SCLAA issued $45,020,000 principa l amount of Tax Allocation Revenue Parity Bonds, Taxable Series 2006. The proceeds were used to fin ance 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.

As of June 30, 2024, 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, 2024 is $41,035,000.

Taxable Tax Allocation Revenue Parity Bonds, Forward Series 2006 In November 2006, SCLAA issued $34,980,000 principal amount of Taxable Tax Allocation Revenue Parity Bonds, Forward Series 2006. The proceeds were us ed 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 are secured by pledged tax revenues - see Note 10. As of June 30, 2024, 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, 2024 is $27,705,000. 81 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

8. BUSINESS-TYPE LONG-TERM LIABILITIES, Continued
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, 2024, 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, 2024 is $50,120,000.

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, 2024, 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, 2024 is $30,935,000.
82 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

8. BUSINESS-TYPE LONG-TERM LIABILITIES, Continued
Subordinate Tax Allocation Revenue Bonds, Series 2007 (Non-Housing) In December 2007, the SCLAA issued $42,000,000 pr incipal 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, $3,325,0 00, $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.

As of June 30, 2024, 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, 2024 is $32,405,000.

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 Allocati on 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, ar e 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, 2024.

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

As of June 30, 2024, 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, 2024 is $28,239,320, which includes an accretion balance of $16,209,395. 83 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

8. BUSINESS-TYPE LONG-TERM LIABILITIES, Continued
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 re serve for the Bonds is $816,500. As of June 30, 2024, the reserve amount was $836,333. The amount of Certificat es of Participation outstanding at June 30, 2024 is $7,700,000.
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 20 40, 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, 2024, required reserve for the Bonds was met with fiscal agent cash. The amount of Electric Revenue Bonds outstanding at June 30, 2024 is $42,810,000.
84 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

8. BUSINESS-TYPE LONG-TERM LIABILITIES, Continued
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 Ce rtificate 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, 2024. 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 outstandin g 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, 2024. The calculation was prepared using revenues and the proportionate expenses applicable to the Electric Enterprise Fund and is included in Note 10.

Debt Service Requirements to Maturity
The annual requirements to amortize outstanding proprietary funds debt of the City as of June 30, 2024, are as follows for each fiscal year ending June 30:
85 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

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, 2024 is as follows:

Tax Allocation Bonds
2002 Tax Allocation Bonds, Series A
In August 2002, the Redevelopment Agency issued $9,710,000 principal amount of Tax Allocation Bonds, Series A. The proceeds were used to finance certain redevelopment activities within and of the benefit to the project area.

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

The bonds are subject to redemption prior to maturity as described in the bond covenants. The serial bonds maturing on December 1, 2013, are subject to optional redemption in whole or in part by lot, with premium of 2%, 1%, and 0% for periods Decemb er 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 premiu m commencing December 1, 2005, December 1, 2015, and December 1, 2022, respectively, from sinking fund payments made by the Agency.

As of June 30, 2024, 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, 2024 is $4,150,000.
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. 86 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

9. SUCCESSOR AGENCY LONG-TERM LIABILITIES, Continued
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 premiu m commencing December 1, 2021, December 1, 2024, and December 1, 2028, respectively, from sinking fund payments made by the Agency.

As of June 30, 2024, 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, 2024 is $4,385,000.
2003 Tax Allocation Bonds, Series B
In September 2003, the Redevelopment Agency issued $5,025,000 principal amount of Tax Allocation Bonds, Series B. The proceeds were used to refund the 1994 Tax Allocation Bonds, Series C, as well as finance certain redevelopment activities within and of the benefit to the project area.

Bonds maturing in the years 2004 to 2022 are serial bonds payable December 1 in annual installments of $60,000 to $205,000. Bonds maturing on December 1, 2027 and December 1, 2031 in the amounts of $1,185,000 and $1,185,000, 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.

As of June 30, 2024, 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, 2024 is $2,155,000.
2006 Taxable Tax Allocation Parity Bonds, Series A
In May 2006, the Redevelopment Agen cy 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 bond s. The outstanding bonds bear interest at 5.375% to

6.000% due June 1 and December 1 of each year. The bo nds 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. 87 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

9. SUCCESSOR AGENCY LONG-TERM LIABILITIES, Continued
As of June 30, 2024, 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, 2024 is $15,460,000.

Debt Service Requirements to Maturity
The annual requirements to amortize outstanding general long-term liabilities of the City as of June 30, 2024, are as follows for each fiscal year ending June 30:

Advances To/From the Former Victorville Redevelopment Agency The composition of advances to or from the former Victorville RDA as of June 30, 2024, is as follows:
(a) The former Victorville Redevelopment Agency (R DA) 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, 2024 is $13,329,238, 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, 2024, is $5,717,902.
88 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

9. SUCCESSOR AGENCY LONG-TERM LIABILITIES, Continued
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, 2024, is $525,000. iii) Per a loan agreement approved on May 4, 2010, a $5,000,000 advance was made from the Low/Mod Fund to the Victor Valley Project Area Non-Housing Fund. The advance is to be used to partially fund the Supplemental Ed ucational Revenue Augmentation Fund (SERAF) payment. The advance bears interest at 3% usin g the simple interest method in accordance with SB-107. The outstanding balance of the advance as of June 30, 2024, is $7,086,336. (b) Southern California Logistics Airport Authority (SCLAA) entered into an agreement to borrow money from the Victorville Redevelopment Agency to fund the cost of redevelopment activity and prior years’ capital improvements and redevelopment projects that were incurred by the SCLAA in prior years.

Per a loan agreement approved on September 15, 2009 by the Board of Victorville RDA, a $10,000,000 advance was made from the Bear Valley Road Redevelopment Project Area (RDA Capital Project Fund) to the SCLAA. The advance is to be used to continue redevelopment at SCLAA and to fund prior years’ capital improvements and redevelopment project expenses. The advance bears interest at 3% using the simple interest method in accordan ce with SB-107. The outstanding balance of the advance as of June 30, 2024, is $11,678,089. 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 fisc al years, the loan will be added to the ROPS.

Considering the uncertainty of the timing of re payment and the lack of prior approval by the California Department of Finance of this obligation , as of June 30, 2024, the receivable within the Successor Agency to the Victorville RDA Fiduciary Fund has an allowance of an equal amount.

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.

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 redevelo pment 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. 89 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

10. PLEDGED REVENUE, Continued
Also, as noted previously, the 2006 Cert ificates 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:

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.
90 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

11. FUND DISCLOSURES
The following funds had deficit fund balances/net position as of June 30, 2024:

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 administ ered by California Public Employees’ Retirement System (CalPERS). For the Miscellaneous Plan, CalPER S 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 cons ists 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, 2023, 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 availa ble 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.
91 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

12. PENSION PLANS, Continued
Benefits Provided
CalPERS provides service retirement and disability be nefits, 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 empl oyment. Members with five years of total service are eligible to retire at age 50 to 62 with statutorily re duced 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 ma y receive the alternate death benefit in lieu of the Basic Death Benefit or the 1957 Survivor Benefit if the member dies while actively employed and has at least 20 years of total CalPERS service. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

The Plan’s provisions and benefits in effect as of the measurement period ended June 30, 2023, are summarized as follows:
92 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

12. PENSION PLANS, Continued
Employees Covered
As of the June 30, 2023 measurement date, the following employees were covered by the benefit terms for the Miscellaneous Plan:

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 annu al 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, 2024, the City contributed $8,725,255 and $2,262,574 to the miscellaneous and safety plans, respectively, which results in total contributions of $10,987,829. 93 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

12. PENSION PLANS, Continued
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, 2023 measurement period was determined by an actuarial valuation as of June 30, 2022, with update procedures used to roll forward the total pension liability to June 30, 2023. The total pension liability for both the Miscellaneous and Safety Plans was based on the following assumptions:

Long-Term Expected Rate of Return
The long-term expected rate of return on pension pl an 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. 94 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

12. PENSION PLANS, Continued
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:

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 app lied to all periods of projected benefit payments to determine the total pension liability.
95 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

12. PENSION PLANS, 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:

Proportionate Share of Net Pension Liability – Safety Cost-Sharing Plan As of June 30, 2024, the City reported a net pension liability for its proportionate share of the collective net pension liability of the Safety Plan as follows:

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 pens ion liability was based on a projection of the City’s long-term share of contributions to the pension plan s relative to the projected contributions of all participating employers, actuarially determined.

The City’s proportionate share of the net pension liability for each Plan as of the measurement date ended June 30, 2022 and 2023, was as follows:
96 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

12. PENSION PLANS, Continued
Pension Expense and Deferred Outflows and Inflows of Resources Miscellaneous Agent Multiple-Employer Plan
For the year ended June 30, 2024, the City recognized pension expense of $14,133,247 for the Miscellaneous agent multiple-employer Plan. At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources for the Miscellaneous Plan:
$8,745,621 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, 2025. 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:
97 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

12. PENSION PLANS, Continued
Safety Cost-Sharing Plan
For the year ended June 30, 2024, the City recognized pension expense of $2,726,705 for the Safety cost-sharing Plan. At June 30, 2024, the City reported deferred outf lows of resources and deferred inflows of resources related to pensions from the following sources for the Safety Plan:
$2,262,576 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, 2025. 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:

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 proportionat e 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:

Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Pension Contributions Subsequent to the
Measurement Date 2,262,574 $ - $
Differences Between Expected and Actual Experiences 1,083,203 (92,734) Changes in Assumptions 861,053 -
Net Differences Between Projected and Actual
Earnings on Pension Plan Investments 2,019,058 - Changes in Proportion and Differences Between
Employer Contributions and Employer's 518,945 (242,867) Change in Employer's Proportion 240,902 (88,499) Total 6,985,735 $ (424,100) $
98 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

12. PENSION PLANS, Continued
Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciar y net position is available in the separate issued CalPERS financial reports.

Payable to the Pension Plan
At June 30, 2024, 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, 2024.

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:

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 ut ilized 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 De cember 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. 99 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

13. DEFERRED COMPENSATION, Continued
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 “g randfathered” into the existing deferred compensation structure.” For the fiscal year ended June 30, 2024, the City contributed $229,025 for covered payroll totaling $8,964,741.

14. OTHER POSTEMPLOYMENT BENEFIT (OPEB)
The City of Victorville contributes to two single empl oyer 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.

A. Other Postemployment Benefits Plan – City Plan
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 th e 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, 2023 measurement date, the following current and former employees were covered by the benefit terms under the Plan:
100
City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

14. OTHER POSTEMPLOYMENT BENEFIT (OPEB), Continued
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, 2024, the City’s cash contributions were $390,233 for current premiums, administrative costs of $2,029, and the estimated implied subsidy was $175,000 resulting in total payments of $567,262.

Total OPEB Liability
The City’s Total OPEB liability was measured as of June 30, 2023 and was determined by an actuarial valuation as of June 30, 2023.

Discount Rate
The discount rate used to measure the total OPEB liability was 3.65%. 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, 2022 to 2023:
¾ The discount rate changed from 3.54% to 3.65% based on changes in the index. 101
City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

14. OTHER POSTEMPLOYMENT BENEFIT (OPEB), Continued
Changes in the Total OPEB Liability
The changes in the total OPEB liability for the City Plan are as follows:

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 usin g a discount rate that is one percentage point lower or one percentage point higher than the current 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:

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 de ferred inflows of resources related to OPEB and are recognized in future OPEB expense.
102
City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

14. OTHER POSTEMPLOYMENT BENEFIT (OPEB), Continued
The recognition period differs depending on the source of the gain or loss:

OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2024, the City recognized OPEB expense of $1,011,878. As of the fiscal year ended June 30, 2024, the City reported deferred outflows/inflows of resources related to OPEB from the following sources:
$567,262 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, 2025.

Other amounts reported as deferred outflows/inflows of resources related to OPEB will be recognized as expense as follow:

Payable to the OPEB Plan
At June 30, 2024, the City had no outstanding amount of contributions to the OPEB plan required for the year ended June 30, 2024.
103
City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

14. OTHER POSTEMPLOYMENT BENEFIT (OPEB), Continued
B. 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, 2023 measurement date, the following current and former employees were covered by the benefit terms under the Plan:

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, 2024, the District’s cash contributions were $251,494 for current premiums, administrative costs of $938, and the estimated implied subsidy was $69,000 resulting in total payments of $321,432. 104
City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

14. OTHER POSTEMPLOYMENT BENEFIT (OPEB), Continued
Total OPEB Liability
The District’s total OPEB liability wa s measured as of June 30, 2023 and was determined by an actuarial valuation as of June 30, 2023.

Discount Rate
The discount rate used to measure the total OPEB liability was 3.65%. The discount rate is determined based on the Bond Buyer 20-bond index since the District has not established a trust.

Changes in Actuarial Assumptions
The following actuarial assumption changes occurred form the measurement periods ended June 30, 2022 to 2023:
¾ The discount rate changed from 3.54% to 3.65% based on changes in the index.

Changes in the Total OPEB Liability
The changes in the total OPEB liability for the District Plan are as follows:
105
City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

14. OTHER POSTEMPLOYMENT BENEFIT (OPEB), Continued
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB lia bility of the District if it were ca lculated using a discount rate that is one percentage point lower or one percentage point higher than the current 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:

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 de ferred inflows of resources related to OPEB and are recognized in future OPEB expense.

The recognition period differs depending on the source of the gain or loss:
106
City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

14. OTHER POSTEMPLOYMENT BENEFIT (OPEB), Continued
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2024, the District recognized OPEB expense of $358,469. As of the fiscal year ended June 30, 2024, the District reported deferred outf lows/inflows of resources related to OPEB from the following sources:

The $321,432 reported as de ferred 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, 2025. Other amounts reported as deferred outflows/inflows of resources related to OPEB will be recognized as expense as follows:

Payable to the OPEB Plan
At June 30, 2024, the District had no outstanding amount of contributions to the OPEB plan required for the year ended June 30, 2024.

Other Postemployment Benefits Plan – Water District Plan Summary of OPEB Amounts for Government-Wide Financial Statements Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Employer Contributions Subsequent to the
Measurement Date 321,432 $ - $
Differences Between Expected and Actual Experience 743,897 (921,173) Changes of Assumptions 1,221,821 (2,313,215)
2,287,150$ (3,234,388) $
107
City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

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 or g a n i z a t i o n i s g o v e r n e d b y a b o a r d c o n s i s t i n g o f 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 Mana g e m e n t A u t h o r i t y ( t h e A u t h o r i t y ) w a s f o r m e d i n 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 Valle y Materials Recovery Facility (the facility). The Governing body of the Authority is made up of repr esentatives 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.

The following schedule summarizes the City’s investment in the Authority as of June 30, 2024 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, 2024:

Financial statements may be obtained by mailing a requ est to the Town of Apple Valley, 14955 Dale Evans Parkway, Apple Valley, California 92307.
108
City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

15. JOINTLY GOVERNED ORGANIZATIONS, Continued
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 asse ts of the former VVEDA have been transferred to the VVEDA Successor Agency and are subject to the distribu tion’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 requ est to Victor Valley Transit Authority, 17150 Smoke Tree Street, Hesperia, CA 92345.

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 Appl e 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 financ ing 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 $16,509,350 to VVWRA for the year ended June 30, 2024. 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 member s 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 retu rn 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. 109
City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

15. JOINTLY GOVERNED ORGANIZATIONS, Continued
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 afte r-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 Director s 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, 2024, the City contributed $1,440,291.

In fiscal year 2022-2023, CONFIRE joined the San Be rnardino County Employees’ Retirement Association (SBCERA). Each member agency is jointly and severally liable for the entire retirement obligation and liability t o S B C E R A (S a n B e r n a d i n o C o u n t y E m p l o y ee s ’ R e t i r ement 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 de bt, 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.

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 agenci es, 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 m illion 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. 110
City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

16. PARTICIPATION IN RISK POOL, Continued
The workers’ compensation program provides statutory limits per accident for workers’ compensation and $5 million each accident for employers’ liability. The Ci ty 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.

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:

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 desi gnated custodial funds fo r 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 delinqu ency out of any available funds of the City. Neither the faith, credit, nor taxing power of the City is pledge d 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, 2024, for the 2002 Series A and 2005 Series A was $470,000 and $1,850,000, 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 di rect liabilities of the City and, accordingly, are not included in the accompanying general purpose financia l 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 fu nds 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, 2024 was $2,480,000. 111
City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

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 liab ility 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 ente rprise 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 We stern 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 “Comme rcial 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.

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 Ga skell 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. 112
City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

18. COMMITMENTS AND CONTINGENCIES, Continued
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 Bene fit 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 th e area as a cargo and aircraft maintenance facility and a business/industrial center thereby creating jobs and improving economic conditions in the Victor Valley.

In July 1998 SCLAA and Stirling Enterprises, LLC and its related entities (Stirling) entered into the first of several agreements for the marketing, acquisition, operation and development of SCLAA. The Fourth Amended and Restated Master Agreement (Stirling Agreement) is the current agreement superseding all previous versions.

D. Revenues from Sales of Land
In August 2016, three agreements with Stirling were approved by the SCLAA Board of Directors that were intended to serve as a framework that encourages development before the expiration of the Master Agreement (MA). The three agreements are a Satisfac tion and Termination Agreement, a Disposition, Exchange and Development Agreement (#2) and an Option and Development Agreement.

The Disposition, Exchange and Development Agreem ent 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 pr operty 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. 113
City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

18. COMMITMENTS AND CONTINGENCIES, Continued
D. Revenues from Sales of Land, Continued
The Agreement also provides for the disposition of additional off-airport property. In addition to the Stirling Exchange Parcels, SCLAA will then transfer, in fee, 200 acres of property for the $.0203/psf purchase price ($176,448) and participate in revenue sharing for net proceeds in an amount equal to 30% (Section 2.03 of the Development and Exchange Agre ement). 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 th e 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 Stir ling 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.

F. Construction Commitments
The following material construction commitments existed at June 30, 2024:

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.
114
City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

19. SALES TAX ABATEMENTS, Continued
The agreement term is 28 years and includes a maximum assistance allowance of $18,886,644. For the year ended June 30, 2024 the City did remit payments totaling $360,674 to Macerich for sales tax revenue earned from January 2023 to December 2023. 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.

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 resu lt of the Great Recession. Since fiscal year 12/13, assessed values have increased steadily. For fiscal year 23/24, the assessed value for the Project Area was approximately $13.19 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.

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 22/23 and 23/24, SCLAA had a positive net income of $16,492,949 and $4,942,3 04, respectively. A summary of the financial condition of the SCLAA enterprise fund is as follows:

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. 115
City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

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 st ate of California. This action impacted the reporting entity of the City of Victorville that previously ha d 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 redevelopm ent 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, 20 12, the City Council electe d to become the Successor Agency for the former redevelopment ag ency in accordance with the Bill as part of City resolution number 12-005.

After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the state of California cannot enter into new projects, obligations, or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments).

22.LEASES
General Fund
The General Fund, acting as lessor, leases buildi ngs 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, 2024, the General Fund recognized $153,143 and $126,394 in lease revenue and interest revenue, respectively, pursuant to these contracts.

SCLAA Enterprise Fund
The SCLAA, acting as lessor, leases buildings and l and 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, 2024, the SCLAA recognized $7,595,353 and $1,884,663 in lease revenue and interest revenue, respectively, pursuant to these contracts. 116
City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

22. LEASES, Continued
Certain leases provide for increases in future minimu m 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 mi nimum lease payments to be received under lease agreements are as follows:

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, 2024, the Sanitary Enterprise Fund recognized $-0- and $53,248 in lease revenue and interest revenue, respectively, pursuant to this contract.

23. RESTATEMENT OF FUND BALANCES
117
City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2024

23. RESTATEMENT OF FUND BALANCES, Continued
During the fiscal year ended June 30, 2024, the City recorded the following restatements:
(1) Error correction to the General Fund and the Side walk Assessment District Fund– In prior years, the Sidewalk Assessment District Fund was combined with the General Fund in error. The City recorded a restatement to remove the Sidewalk Assessment District Fund from the General Fund to presented separately as a special revenue fund.
(2) Change in Reporting Entity – The Housing Asse t Successor Fund, Other State/Local Grants Fund, COVID-19 Fund and Capital Impact Facilities Fund moved from major to nonmajor funds. 118

REQUIRED

SUPPLEMENTARY INFORMATION
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121
City of Victorville
Required Supplementary Information
For the year ended June 30, 2024
Schedule of Changes in the Net Pension Liability and Related Ratios (Agent Plan) - Last 10 Years Miscellaneous Plan
Reporting Fiscal Year 2024 2023 2022 2021
(Measurement Date) (2023) (2022) (2021) (2020)
TOTAL PENSION LIABILITY:

Service cost 5,068,474$ 4,702,701$ 4,361,938$ 3,917,361$ Interest 17,037,882 15,892,288 15,327,363 14,388,003 Changes in assumptions 275,105 8,923,031 - - Differences between expected and actual experience 6,132,994 (3,062,363) 3,594,527 901,693 Benefit payments, including refunds of employee
contributions (11,039,352) (10,126,951) (9,405,164) (8,563,342) Net change in the total pension liability 17,475,103 16,328,706 13,878,664 10,643,715 Total pension liability - beginning 243,503,181 227,174,475 213,295,811 202,652,096 Total pension liability - ending (a) 260,978,284$ 243,503,181$ 227,174,475$ 213,295,811$

PLAN FIDUCIARY NET POSITION
Plan to plan resource movement 1,577$ -$ -$ -$ Contributions - employer 8,144,257 6,751,004 5,963,725 5,479,864 Contributions - employee 2,372,767 2,011,858 1,889,577 1,928,672 Net investment income 10,863,448 (14,410,875) 35,514,329 7,528,774 Benefit payments, including refunds of employee
contributions (11,039,352) (10,126,951) (9,405,164) (8,563,342) Administrative expense (128,726) (118,949) (156,975) (212,846) Other miscellaneous income (expense) - - - - Net change in plan fiduciary net position 10,213,971 (15,893,913) 33,805,492 6,161,122 Plan fiduciary net position - beginning 175,053,496 190,947,409 157,141,917 150,980,795 Plan fiduciary net position - ending (b) 185,267,467$ 175,053,496$ 190,947,409$ 157,141,917$ Net pension liability - ending (a) - (b) 75,710,817$ 68,449,685$ 36,227,066$ 56,153,894$ Plan fiduciary net position as a percentage of the total pension liability 70.99% 71.89% 84.05% 73.67%
Covered payroll 31,453,365$ 26,035,500$ 24,525,949$ 24,562,823$ Net pension liability as a percentage of covered payroll 240.71% 262.91% 147.71% 228.61% Notes to Schedule:

Benefit changes:

There were no benefit changes.

Changes in Assumptions:

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, 2023 to June 30, 2024: 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%.

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 dat e is without reduction of pension plan administrative expense.
122
2020 2019 2018 2017 2016 2015
(2019) (2018) (2017) (2016) (2015) (2014)
3,878,156$ 3,925,313$ 3,913,955$ 3,391,116$ 3,399,557$ 3,479,263$ 13,664,664 12,780,111 12,143,449 11,593,629 10,950,745 10,425,889 - (1,453,429) 10,784,766 - (2,900,838) - 3,533,778 1,426,643 (1,294,528) (114,587) (1,452,436) - (8,131,659) (7,556,833) (6,707,043) (6,190,255) (5,465,312) (5,288,466) 12,944,939 9,121,805 18,840,599 8,679,903 4,531,716 8,616,686 189,707,157 180,585,352 161,744,753 153,064,850 148,533,134 139,916,448 202,652,096$ 189,707,157$ 180,585,352$ 161,744,753$ 153,064,850$ 148,533,134$ -$ (332)$ -$ -$ 29,796$ -$ 4,590,346 4,017,440 3,945,743 3,406,692 3,132,116 2,729,427 1,749,709 1,942,720 1,762,125 1,615,618 1,655,311 1,675,275 9,361,466 11,287,052 13,554,180 663,966 2,712,238 18,040,044 (8,131,659) (7,556,833) (6,707,043) (6,190,255) (5,465,312) (5,288,466) (102,414) (209,479) (180,207) (74,739) (138,171) (138,890) 332 (397,805) - - - - 7,467,780 9,082,763 12,374,798 (578,718) 1,925,978 17,017,390 143,513,015 134,430,252 122,055,454 122,634,172 120,708,194 103,690,804 150,980,795$ 143,513,015$ 134,430,252$ 122,055,454$ 122,634,172$ 120,708,194$ 51,671,301$ 46,194,142$ 46,155,100$ 39,689,299$ 30,430,678$ 27,824,940$

74.50% 75.65% 74.44% 75.46% 80.12% 81.27%
22,226,999$ 22,506,989$ 22,354,507$ 19,918,813$ 19,872,318$ 19,389,560$ 232.47% 205.24% 206.47% 199.26% 153.13% 143.50%
123
City of Victorville
Required Supplementary Information
For the year ended June 30, 2024
Schedule of Plan Contributions (Agent Plan) - Last 10 Years 2023-2024 2022-2023 2021-2022 2020-2021
Miscellaneous Plan
Actuarially determined contribution 8,725,255$ 8,144,580$ 6,748,512$ 5,961,400$ Contributions in relation to actuarially deemed
contributions (8,725,255) (8,144,580) (6,748,512) (5,961,400) Contribution deficiency (excess) -$ -$ -$ -$ Covered payroll2 35,010,936$ 31,453,365 $ 26,035,500 $ 24,525,949 $ Contributions as a percentage of covered payroll 24.92% 25.89% 25.92% 24.31% Notes to Schedule:

Valuation Date 6/30/2021 6/30/2020 6/30/2019 6/30/2018
Methods and assumptions used to determine contribution
rates:

Actuarial cost method Entry Age Entry Age Entry Age Entry Age Amortization method (1) (1) (1) (1)
Asset valuation method Fair Value Fair Value Fair Value Fair Value Inflation 2.300% 2.300% 2.50% 2.50%
Salary increases (2) (2) (2) (2)
Investment rate of return 6.90% (3) 6.90% (3) 7.00% (3) 7.00% (3) Retirement age (4) (4) (4) (4)
Mortality (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.
124
2019-2020 2018-2019 2017-2018 2016-2017 2015-2016 2014-2015 5,477,574$ 4,622,469 $ 4,014,719 $ 3,787,877 $ 3,504,788 $ 3,132,116 $ (5,477,574) (4,622,469) (4,014,719) (3,787,877) (3,504,788) (3,132,116) -$ -$ -$ -$ -$ -$ 24,562,823$ 22,226,999$ 22,506,989$ 22,354,507$ 19,918,813$ 19,872,318$

22.30% 20.80% 17.84% 16.94% 17.60% 15.76%
6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012 Entry Age Entry Age Entry Age Entry Age Entry Age Entry Age (1) (1) (1) (1) (1) (1)
Fair Value Fair Value Fair Value Fair Value Fair Value 15-Year Smoothed
Market Method

2.63% 2.75% 2.75% 2.75% 2.75% 2.75%
(2) (2) (2) (2) (2) (2)

7.25% (3) 7.375% (3) 7.50% (3) 7.50% (3) 7.50% (3) 7.50% (3) (4) (4) (4) (4) (4) (4)
(5) (5) (5) (5) (5) (5)
125
City of Victorville
Required Supplementary Information
For the year ended June 30, 2024
Schedule of Plan's Proportionate Share of the Net Pension Liability (Cost Sharing Plan) - Last 10 Years Safety Plan
Fiscal Year End: 2024 2023 2022 2021
Measurement Date (2023) (2022) (2021) (2020)
City's proportion of the net pension liability 0.19738% 0.20103% 0.21104% 0.18786% City's proportionate share of the net pension liability 14,753,830$ 13,813,980$ 7,406,301$ 24,480,116$ City's covered payroll (plan year) 6,864,378$ 5,534,300$ 5,123,885$ 5,671,207$ City's proportionate share of the net pension liability as a percentage of its covered payroll 214.93% 249.61% 144.54% 253.81% Fiduciary net position as a percentage of the
total pension liability 0.12234% 0.12520% 0.14623% 0.12039% Notes to the schedule:

Benefit changes:

There were no benefit changes.

Changes in Assumptions:

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, 2023 to June 30, 2024: There were no changes in assumptions. *The plan had no active members until fiscal year ended June 30, 2019, and therefore, no covered payroll.

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%.

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 dat e is without reduction of pension plan administrative expense.
126
2020 2019 2018 2017 2016 2015
(2019) (2018) (2017) (2016) (2015) (2014)

0.19301% 0.19843% 0.19780% 0.20676% 0.21750% 0.20657%
28,079,757$ 28,486,271$ 11,818,679$ 10,708,540$ 8,961,994$ 7,748,626$ 5,857,254$ 5,329,935$ N/A N/A N/A N/A 476.14% N/A N/A N/A N/A N/A

0.12227% 0.12558% 0.12223% 0.13033% 0.14547% 0.14547%
127
City of Victorville
Required Supplementary Information
For the year ended June 30, 2024
Schedule of Plan Contributions (Cost Sharing Plan) - Last 10 Years 2023-2024 2022-2023 2021-2022 2020-2021
Safety Plan
Actuarially determined contribution 2,262,574$ 2,154,542$ 1,910,223$ 1,820,085$ Contributions in relation to actuarially deemed
contributions (2,262,574) (2,154,542) (1,910,223) (1,820,085) Contribution deficiency (excess) -$ -$ -$ -$ Covered payroll2 7,530,282$ 6,864,378 $ 5,534,300 $ 5,123,885 $ Contributions as a percentage of covered payroll 30.05% 31.39% 34.52% 35.52% Notes to Schedule:

Valuation Date 6/30/2021 6/30/2020 6/30/2019 6/30/2018
Methods and assumptions used to determine contribution
rates:

Actuarial cost method Entry Age Entry Age Entry Age Entry Age Amortization method (1) (1) (1) (1)
Asset valuation method Fair Value Fair Value Fair Value Fair Value Inflation 2.300% 2.300% 2.50% 2.50%
Salary increases (2) (2) (2) (2)
Investment rate of return 6.90% (3) 6.90% (3) 7.00% (3) 7.00% (3) Mortality (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. *The plan had no active members until fiscal year ended June 30, 2019, and therefore, no covered payroll. (4) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board.
128
2019-2020 2018-2019 2017-2018 2016-2017 2015-2016 2014-2015 1,737,805$ 1,406,021 $ 862,264 $ 700,198 $ 650,960 $ 585,811 $ (1,737,805) (1,406,021) (862,264) (700,198) (650,960) (585,811) -$ -$ -$ -$ -$ -$ 4,931,300$ 2,530,529$ N/A N/A N/A N/A

35.24% 55.56% N/A N/A N/A N/A
6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012 Entry Age Entry Age Entry Age Entry Age Entry Age Entry Age (1) (1) (1) (1) (1) (1)
Fair Value Fair Value Fair Value Fair Value Fair Value 15-Year Smoothed
Market Method

2.63% 2.75% 2.75% 2.75% 2.75% 2.75%
(2) (2) (2) (2) (2) (2)

7.25% (3) 7.375% (3) 7.50% (3) 7.50% (3) 7.50% (3) 7.50% (3) (4) (4) (4) (4) (4) (4)
129
City of Victorville
Required Supplementary Information
For the year ended June 30, 2024
Schedule of Changes in the Total OPEB Liability and Related Ratios - Last 10 Years* Reporting Fiscal Year
(Measurement Date)
City Water City Water
TOTAL OPEB LIABILITY:

Service cost 1,729,997 $ 455,359 $ 2,334,220 $ 626,941 $ Interest 888,223 423,401 704,405 281,198 Changes in assumptions (455,689) (197,575) (5,816,473) (2,488,667) Differences between expected and actual experience - - (3,673,118) 987,796 Changes of Benefit Terms - - - - Benefit payments, including refunds of employee
contribution
s (492,948) (313,663) (437,336) (273,537) Net change in the total OPEB liability 1,669,583 367,522 (6,888,302) (866,269) Total OPEB liability - beginning 23,607,500 11,661,963 30,495,802 12,528,232 Total OPEB liability - ending (a) 25,277,083$ 12,029,485 $ 23,607,500 $ 11,661,963 $ Plan fiduciary net position as a percentage of the total OPEB liabilit
y 0.00% 0.00% 0.00% 0.00%
Covered payroll 40,473,063$ 8,679,777$ $32,718,185 7,778,497$ Total OPEB liability as a percentage of covered payroll 62.45% 138.59% 72.15% 149.93% Notes to Schedule
Changes in assumptions:

Discount rate 3.65% 3.65% 3.54% 3.54%
Mortality improvement rates Scale MP-2021 Scale MP-2021 Scale MP-2021 Scale MP-2021 In the June 30, 2018 measurement peiod, the pre-65 waived retiree re-election was updated to be 10% after age 65.

In the June 30, 2020 meaurement period, the medical trend rate for Kaiser Senior Advantage plans decreased from 6.5% to 5.0%. *Fiscal year 2018 was the first year of implementation, therefore, only seven years are shown.

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, 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%.

June 30, 2023
(June 30, 2022)
June 30, 2024
(June 30, 2023)
130
City Water City Water City Water
2,235,761$ 600,360$ 1,486,270$ 474,890$ 1,301,917$ 417,399$ 657,508 271,338 940,317 372,802 896,741 364,950 278,410 105,768 4,480,447 1,795,864 1,650,512 601,978 - - (4,403,383) (904,000) - - - - - - - - (383,313) (253,227) (352,317) (224,298) (325,520) (216,889) 2,788,366 724,239 2,151,334 1,515,258 3,523,650 1,167,438 27,707,436 11,803,993 25,556,102 10,288,735 22,032,452 9,121,297 30,495,802$ 12,528,232$ 27,707,436$ 11,803,993$ 25,556,102$ 10,288,735$

0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
30,916,888$ 7,710,052$ $29,376,376 7,618,996$ 24,330,808$ 7,078,295$

98.64% 162.49% 94.32% 154.93% 105.04% 145.36%

2.16% 2.16% 2.21% 2.21% 3.50% 3.50%
Scale MP-2020 Scale MP-2020 Scale MP-2020 Scale MP-2020 Scale MP-2018 Scale MP-2018 June 30, 2022
(June 30, 2021)
June 30, 2020
(June 30, 2020) (June 30, 2019)
June 30, 2021
131
City of Victorville
Required Supplementary Information
For the year ended June 30, 2024
Schedule of Changes in the Total OPEB Liability and Related Ratios - Last 10 Years* (Continued)
Reporting Fiscal Year
(Measurement Date)
City Water City Water
TOTAL PENSION LIABILITY:

Service cost 1,467,025 $ 494,095 $ 1,740,815 $ 583,831 $ Interest 902,150 404,923 763,058 345,325 Changes in assumptions (1,253,215) (509,085) (3,502,958) (1,452,630) Differences between expected and actual experience (2,657,769) (1,985,311) - - Changes of Benefit Terms - - - - Benefit payments, including refunds of employee
contribution
s (316,872) (199,802) (285,893) (185,817) Net change in the total pension liability (1,858,681) (1,795,180) (1,284,978) (709,291) Total pension liability - beginning 23,891,133 10,916,477 25,176,111 11,625,768 Total pension liability - ending (a) 22,032,452$ 9,121,297$ 23,891,133$ 10,916,477$ Plan fiduciary net position as a percentage of the total pension liability 0.00% 0.00% 0.00% 0.00%
Covered payroll $20,246,960 6,818,328$ 17,722,441$ 4,577,527$ Net pension liability as a percentage of covered payroll 108.82% 133.78% 134.81% 238.48% Notes to Schedule
Changes in assumptions:

Discount rate 3.87% 3.87% 3.58% 3.58%
Mortality improvement rates Scale MP-2018 Scale MP-2018 Scale MP-2016 Scale MP-2016 June 30, 2019
(June 30, 2018)
June 30, 2018
(June 30, 2017)
132
City of Victorville
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual General Fund
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes and assessments 94,847,733$ 93,112,738$ 102,621,091$ 9,508,353$ Licenses and permits 3,536,000 3,363,500 3,880,185 516,685 Intergovernmental 135,000 135,000 171,736 36,736
Charges for services 19,579,368 19,580,258 20,247,580 667,322 Fines and forfeitures 592,412 1,029,412 1,428,089 398,677 Investment income (loss) 10,000 2,675,000 6,778,680 4,103,680 Other 371,893 479,723 875,671 395,948
Total revenues 119,072,406 120,375,631 136,003,032 15,627,401 EXPENDITURES:

Current:

General government 25,654,913 26,183,114 20,615,557 5,567,557 Public safety 66,360,70
1 67,321,611 62,547,882 4,773,729
Community development 7,868 126,618 7,817 118,801
Public works 16,066,171 16,922,892 13,234,860 3,688,032 Parks and recreation 7,455,084 7,754,410 6,438,441 1,315,969 Capital outlay 5,988,550 14,722,030 5,711,290 9,010,740 Debt service:

Principal 4,000,000 8,000,000 24,348 7,975,652
Interest and loan fees - - 3,652 (3,652)
Principal - SBITA - - 245,20 1 (245,201)
Interest - SBITA - - 25,722 (25,722 )
Total expenditures 125,533,287 141,030,675 108,854,770 32,175,905

REVENUES OVER (UNDER)
EXPENDITURES (6,460,881) (20,655,044) 27,148,262 47,803,306 OTHER FINANCING SOURCES (USES):

Transfers in 8,050,034 8,050,034 311,095 (7,738,939
)
Transfers out (8,009,034) (8,009,034) - 8,009,034
SBITA financing - - 220,464 220,464
Proceeds from sale of property - - 62 62
Total other financing sources (uses) 41,000 41,000 531,621 490,621 Net change in fund balances (6,419,881)$ (20,614,044)$ 27,679,883 48,293,927$ FUND BALANCES:

Beginning of year 107,156,268
Restatement - error corrections (154,585)
Beginning of year, as restated 107,001,683
End of year 134,681,566$
Budgeted Amounts
133
City of Victorville
Notes to Required Supplementary Information
For the year ended June 30, 2024

1. BUDGETARY DATA
a.
b.
c.
d.
e.
f.
g.

The City follows these procedures in establishing the budgetary data in the financial statements.

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.

The City Manager submits to the City Council a proposed operating budget. The operating budget includes the proposed expenditures and source of financing;
The City Housing Asset Successor Major Special Revenue Fund had total appropriations of $479,336 and actual expenditures of $199,879, which resulted in excess expenditures under appropriations of $279,457 for the year ended June 30, 2024.

Public hearings are conducted to obtain taxpayer comments; A budget is legally enacted through passage of a resolution; 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;
Budgeted amounts are as originally adopted and as further amended by the City Council; 134

SUPPLEMENTARY INFORMATION
135
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136
City of Victorville
General Funds
For the Year Ended June 30, 2024
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.

Technolo
gy
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 correspondin g lease and maintenance expenditure s for leasing the Victor Valley Transportation Center to the Victor Valley Transit Authority.

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.
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139
City of Victorville
Combining Balance Sheet
General Fund
June 30, 2024
ASSETS
Cash and investments 68,562,275 $ 50,590,108 $ 530,658 $ 2,401,241 $ Accounts receivable 3,688,571 2,872,872 - 171,682 Interest receivable 2,300,031 - - - Due from other funds 1,247,570 - - - Advances to other funds 1,926,184 - - - Due from other governments 2,652,214 2,471,537 - - Leases receivable 5,879,994 - - - Inventories 229,448 - - - Prepaid items 291,050 24,073 140,639 - Total assets 86,777,337$ 55,958,590 $ 671,297 $ 2,572,923 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable 2,910,795 $ 917,720 $ 315 $ 122,398$ Accrued liabilities 1,336,085 - - - Deposits payable 585,954 - - - Unearned revenue 1,304 - - - Total liabilities 4,834,138 917,720 315 122,398 Deferred Inflows of Resources
Deferred inflows - leases 5,487,471 - - - Total deferred inflows of resources 5,487,471 - - - Fund Balances:

Nonspendable:

Advances to other funds 1,926,184 - - - Prepaid items 291,050 24,073 140,639 - Inventories 229,448 - - - Unassigned 74,009,046 55,016,797 530,343 2,450,525 Total fund balances 76,455,728 55,040,870 670,982 2,450,525 T
otal liabilities, deferred inflows of
resources and fund balances 86,777,337$ 55,958,590$ 671,297$ 2,572,923$ General Measure P Technology
Fueling
Stations
140
Totals
48,253$ 2,752,943$ - $ - $ 124,885,478$ 253 - - - 6,733,378 1,077 - - - 2,301,108 - - - - 1,247,570 - - - - 1,926,184 - - - - 5,123,751 289,757 - - - 6,169,751 - - - - 229,448 - - - - 455,762 339,340$ 2,752,943 $ - $ - $ 149,072,430$ 1,315$ 61,275 $ - $ - $ 4,013,818$ - - - - 1,336,085 - 2,691,550 - - 3,277,504 - - - - 1,304 1,315 2,752,825 - - 8,628,711 274,682 - - - 5,762,153 274,682 - - - 5,762,153 - - - - 1,926,184 - - - - 455,762 - - - - 229,448 63,343 118 - - 132,070,172 63,343 118 - - 134,681,566 339,340$ 2,752,943$ -$ -$ 149,072,430$ Eliminations
Sidewalk
Assessment
District
Engineering
Security
Victor Valley
Transportation
Center
141
City of Victorville
Combining Statement of Revenues, Expenditures and Changes in Fund Balances General Fund
For the year ended June 30, 2024
REVENUES:

Taxes and assessments 73,396,865 $ 29,224,226 $ - $ - $ Licenses and permits 3,880,185 - - -
Intergovernmental 171,736 - - -
Charges for services 16,401,548 2,099,787 291,929 1,458,727 Fines and forfeitures 1,428,089 - - -
Investment income (loss) 4,478,856 2,291,030 - -
Other 835,760 - - -
Total revenues 100,593,039 33,615,043 291,929 1,458,727 EXPENDITURES:

Current:

General government 19,408,16
1 1,031,767 150,444 -
Public safety 55,641,253 6,906,629 - -
Community development -7 ,817 - -
Public works 9,584,932 2,253,500 3,291 1,386,326
Parks and recreation 6,217,737 220,704 - -
Capital outlay 528,556 5,109,37 1 - 73,363
Debt service:

Principal - 24,348 - -
Interest and loan fees -3 ,652 - -
Principal - SBITA 245,201 ---
Interest - SBITA 25,722 - - -
Total expenditures 91,651,562 15,557,788 153,735 1,459,689

REVENUES OVER (UNDER)
EXPENDITURES 8,941,477 18,057,255 138,194 (962) OTHER FINANCING SOURCES (USES):

Transfers in 8,320,129 - - -
Transfers out - (8,009,034
) --
SBITA financing - 220,464 - - Proceeds from sale of property 62 - - -
Total other financing sources (uses) 8,320,191 (7,788,570) - - Net change in fund balances 17,261,668 10,268,685 138,194 (962) FUND BALANCES:

Beginning of year 59,194,060 44,772,185 532,788 2,451,487 Restatement ----
Beginning of year, as restated 59,194,060 44,772,185 532,788 2,451,487 End of year 76,455,728$ 55,040,870$ 670,982$ 2,450,525$ General Measure P Technology
Fueling
Stations
142
Totals
-$ - $ - $ - $ 102,621,091$ - - - - 3,880,185
- - - - 171,736
(4,411) - - - 20,247,580
- - - - 1,428,089
8,794 - - - 6,778,680
39,911 - - - 875,671
44,294 - - - 136,003,032 25,185 - - - 20,615,55 7
- - - - 62,547,882
- - - - 7,817
6,811 - - - 13,234,860
- - - - 6,438,441
- - - - 5,711,290
- - - - 24,348
- - - - 3,652
- - - - 245,201
- - - - 25,722
31,996 - - - 108,854,770 12,298 - - - 27,148,262 - - - (8,009,034) 311,095
- - - 8,009,034 -
- - - - 220,464 ---- 6 2
- - - - 531,621 12,298 - - - 27,679,883 51,045 - 154,703 - 107,156,268
- 118 (154,703) - (154,585)
51,045 118 - - 107,001,683
63,343$ 118$ -$ -$ 134,681,566$ Eliminations
Engineering
Security
Victor Valley
Transportation
Center
Sidewalk
Assessment
District
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144
City of Victorville
Nonmajor Governmental Funds
For the Year Ended June 30, 2024
Special Revenue Funds
Special revenue fund s are used t o account for revenue derived fro m specific taxes or other revenue sources that are restricted by law or administrative action to expenditure for specified purposes.

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

Other State / Local Grants
This 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
This fund accounts for the revenues and expenditures received from federal, state, and county funds for COVID-19 relief and response. The grants are primarily used for public safety, telecommuting, homelessness and outreach, and social distancing communications.

Measure
I
This fund account s for the portion of sale s tax revenue received fro m the Count y. The fund s are le gally 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 dir ectly benefit the individual parcels within the district rather than the City as a whole, the maintenance costs a re assessed to the property owners with the Maintenance Assessment District boundaries.

Street Li
ghting
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 street projects paid out for the City's share of the gas tax monies received from the state.

Asset Seizure
This fund account s for ap o r t i on of revenue s received fro m sales of asset s seized durin g drug-related arrest s 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.

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.
145
City of Victorville
Nonmajor Governmental Funds
For the Year Ended June 30, 2024
Special Revenue Funds, Continued
Transportation Tax
This fund accounts for revenue received for public transpor tation 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 Communit 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.

General Construction Fund
This fund accounts for other major construction projects.

Vocational Center Fund
This fund accounts for the expenditures associated with the operation of the Vocational Center.

MTBE Fund
This fund accounts for the revenue received a s part of the MTBE Settlement Liti gation. Revenue is received i n this fund and allocated-out to the appropriate funds and capital projects that have expenditures associated with MTBE.

Capital Projects Funds
Debt service fund s are used t o account for the accumulation of resources for, and the retirement of, lon g-term debt principal and interest.

Capital Impact Facilities Fund
This capital pro jects fund account s for the acquisitio n or construction of ma jor capital facilitie s related t o public improvements needed as population increases.
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City of Victorville
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
ASSETS
Cash and investments 1,811,900 $ 11,168,265 $ 4,815,998 $ 19,095,401 $ Accounts receivable - 361,520 - 1,898,390 Notes receivable 13,483,615 - - 9,793 Due from other governments - 1,143,497 152,292 - Due from successor agency 13,329,238 - - - Prepaid items - 29,792 2,101,973 755 Land held for resale 1,549,837 - - - Total assets 30,174,590$ 12,703,074 $ 7,070,263 $ 21,004,339 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable 67,329 $ 2,805,959$ 1,179,502 $ 4,017,273 $ Deposits payable - - - - Due to other funds - - - - Unearned revenue - 7,550,417 5,890,761 - Total liabilities 67,329 10,356,376 7,070,263 4,017,273 Deferred Inflows of Resources
Deferred inflow - unavailable revenue - 1,181,612 152,292 - Total deferred inflows of resources - 1,181,612 152,292 - Fund Balances:

Nonspendable:

Prepaid items - 29,792 2,101,973 755 Restricted:

Public safety - - - - Highways and street projects - 1,135,294 - 16,986,311 Community development 30,107,261 - - - Unassigned - - (2,254,265) - Total fund balances 30,107,261 1,165,086 (152,292) 16,987,066 Total liabilities, deferred inflows of
resources and fund balances 30,174,590$ 12,703,074$ 7,070,263$ 21,004,339$ Special Revenue Funds
Housing Asset
Successor
Other State / Local
Grants
COVID-19
Funds Measure I
148
11,818,542$ 2,713,656 $ - $ 66,856$ 4,602,772$ 7,807,073 $ - 5,649 10,855 - 7,142 361,354 - - - - - - 14,782 26,256 - - - 940,740 - - - - - - 1,365 773 - - 1,112 2,190 - - - - - - 11,834,689$ 2,746,334 $ 10,855 $ 66,856 $ 4,611,026$ 9,111,357 $ 170,731$ 286,022 $ - $ - $ 29,400$ 1,692,601$ 15,750 - - - - 105 - - - - - - - - - - - - 186,481 286,022 - - 29,400 1,692,706 - - - - - - - - - - - - 1,365 773 - - 1,112 2,190 - - - 66,856 - - 11,646,843 2,459,539 10,855 - 4,580,514 7,416,461 - - - - - - - - - - - - 11,648,208 2,460,312 10,855 66,856 4,581,626 7,418,651 11,834,689$ 2,746,334$ 10,855$ 66,856$ 4,611,026$ 9,111,357$ Special Revenue Funds
Landscape
Maintenance
Street
Lighting
Traffic
Safety
Asset
Seizure
Storm
Drain
Utility Gas Tax
149
City of Victorville
Combining Balance Sheet
Nonmajor Governmental Funds (Continued)
June 30, 2024
ASSETS
Cash and investments 274,696 $ - $ 104,431$ 161,946 $ Accounts receivable 1,350 247,129 - - Notes receivable 100 - 1,571,143 - Due from other governments - 2,620,456 634,021 - Due from successor agency - - - - Prepaid items - - - - Land held for resale - - - - Total assets 276,146$ 2,867,585 $ 2,309,595 $ 161,946 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable 3,791 $ 760,955 $ 111,372 $ - $ Deposits payable 5,828 - - - Due to other funds - 1,247,570 - - Unearned revenue - 157,321 - - Total liabilities 9,619 2,165,846 111,372 - Deferred Inflows of Resources
Deferred inflow - unavailable revenue - 2,570,662 320,845 - Total deferred inflows of resources - 2,570,662 320,845 - Fund Balances:

Nonspendable:

Prepaid items - - - - Restricted:

Public safety - - - - Highways and street projects 266,527 - - 161,946 Community development - - 1,877,378 - Unassigned - (1,868,923) - - Total fund balances 266,527 (1,868,923) 1,877,378 161,946 Total liabilities, deferred inflows of
resources and fund balances 276,146$ 2,867,585$ 2,309,595$ 161,946$ Special Revenue Funds
Transportation
Tax
Other Federal
Grants
HUD
Grants
Sidewalk
Assessment District
150
Capital Projects
Fund
Total Nonmajor
Governmental
Funds
-$ 596,437$ 31,666,638$ 96,704,611 $ - - - 2,893,389 - - - 15,064,651 - 16,702 - 5,548,746 - - - 13,329,238 - - - 2,137,960 - - - 1,549,837 -$ 613,139$ 31,666,638$ 137,228,432 $ -$ 7,604$ 2,780,375$ 13,912,914 $ - - - 21,683 - - - 1,247,570 - - - 13,598,499 - 7,604 2,780,375 28,780,666 - - - 4,225,411 - - - 4,225,411 - - - 2,137,960 - - - 66,856 - 605,535 28,886,263 74,156,088 - - - 31,984,639 - - - (4,123,188) - 605,535 28,886,263 104,222,355 -$ 613,139$ 31,666,638$ 137,228,432 $ Special Revenue Funds
Foxborough
Rail
Capital
Impact
Facilities
Engineering
Security
151
City of Victorville
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2024
REVENUES:

Taxes and assessments - $ - $ - $ 7,575,760$ Intergovernmental 125,000 5,328,596 13,912,967 -
Charges for services - - - 64,845
Fines and forfeitures ----
Investment income (loss) 686,524 497,417 - 804,710
Other ----
Total revenues 811,524 5,826,013 13,912,967 8,445,315 EXPENDITURES:

Current:

General government 26,676 - 502,762 -
Public safety - 170,644 - -
Community development 173,203 65,070 - -
Public works - 1,914,670 - 2,624,509
Parks and recreation - 10,366 - -
Capital outlay - 2,754,965 13,410,205 5,563,336
Debt service:

Principal - SBITA ----
Interest - SBITA ----
Total expenditures 199,879 4,915,715 13,912,967 8,187,845

REVENUES OVER (UNDER)
EXPENDITURES 611,645 910,298 - 257,470 OTHER FINANCING SOURCES (USES):

Transfers out (268,743
) ---
Proceeds from sale of property -9 , 9 1 6 - -
Total other financing sources (uses) (268,743) 9,916 - - Net change in fund balances 342,902 920,214 - 257,470 FUND BALANCES:

Beginning of year - - - 16,729,596
Restatement ----
Restatement - change in major funds 29,764,359 244,872 (152,292 ) - Beginning of year, as restated 29,764,359 244,872 (152,292 ) 16,729,596 End of year 30,107,261$ 1,165,086$ (152,292)$ 16,987,066$ Measure I
Special Revenue Funds
COVID-19
Funds
Housing Asset
Successor
Other State / Local
Grants
152
2,480,663$ 2,102,273 $ - $ - $ - $ 3,540,410$ - 1,123,363 - 7,809 - 3,778,785
- - - - 1,665,964 5,591
- - 46,169 - 20,029 -
515,768 109,136 - 3,010 201,572 334,266
6,591 --- 7 ,682-
3,003,022 3,334,772 46,169 10,819 1,895,247 7,659,052 ------
- - - 998 - -
------
2,183,670 2,680,883 - - 1,260,910 2,986,250
------
170,572 401,278 - - 134,193 3,373,921
- - - - - 1,317
----- 7 1
2,354,242 3,082,161 - 998 1,395,103 6,361,559 648,780 252,611 46,169 9,821 500,144 1,297,493 -- ( 4 2 , 3 5 2 ) ---
------
- - (42,352) - - - 648,780 252,611 3,817 9,821 500,144 1,297,493 10,999,428 2,207,70 1 7,038 57,035 4,081,482 6,121,158
------
------
10,999,428 2,207,701 7,038 57,035 4,081,482 6,121,158
11,648,208$ 2,460,312$ 10,855$ 66,856$ 4,581,626$ 7,418,651$ Landscape
Maintenance
Street
Lighting
Traffic
Safety
Asset
Seizure
Storm
Drain
Utility Gas Tax
Special Revenue Funds
153
City of Victorville
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds (Continued)
For the year ended June 30, 2024
REVENUES:

Taxes and assessments - $ - $ - $ - $ Intergovernmental 244,000 9,051,474 1,598,113 -
Charges for services ----
Fines and forfeitures ----
Investment income (loss) 38,867 310 66,806 7,243
Other 25,200 - - -
Total revenues 308,067 9,051,784 1,664,919 7,243 EXPENDITURES:

Current:

General government ----
Public safety - 214,423 - -
Community development - - 1,011,967 -
Public works 607,834 - 427,26
1 -
Parks and recreation ----
Capital outlay - 2,326,679 - -
Debt service:

Principal - SBITA ----
Interest - SBITA ----
Total expenditures 607,834 2,541,102 1,439,228 -

REVENUES OVER (UNDER)
EXPENDITURES (299,767) 6,510,682 225,691 7,243 OTHER FINANCING SOURCES (USES):

Transfers out ----
Proceeds from sale of property ----
Total other financing sources (uses) - - - - Net change in fund balances (299,767) 6,510,682 225,691 7,243 FUND BALANCES:

Beginning of year 566,294 (8,379,605
) 1,651,687 -
Restatement - - - 154,703
Restatement - change in major funds ----
Beginning of year, as restated 566,294 (8,379,605) 1,651,687 154,703 End of year 266,527$ (1,868,923)$ 1,877,378$ 161,946$ Sidewalk
Assessment
District
Transportation
Tax
Other Federal
Grants
HUD
Grants
Special Revenue Funds
154
Capital Projects
Fund
Total Nonmajor
Governmental
Funds
-$ 116,368$ - $ 15,815,474$ - - - 35,170,107
- - 8,547,949 10,284,349
- - - 66,198
- 25,555 1,344,83
1 4,636,015
- - - 39,473
- 141,923 9,892,780 66,011,616 - 1,604 996 532,038
- - 506 386,571
- - - 1,250,240
- 34,469 2,571,466 17,291,922
- - 18,288 28,654
- - 3,460,268 31,595,417
--- 1 ,317
--- 7 1
- 36,073 6,051,524 51,086,230 - 105,850 3,841,256 14,925,386 - - - (311,095 )
--- 9 ,916
- - - (301,179) - 105,850 3,841,256 14,624,207 118 499,685 - 34,541,617
(118) - - 154,585
- - 25,045,007 54,901,946
- 499,685 25,045,007 89,598,148
-$ 605,535$ 28,886,263$ 104,222,355$ Foxborough
Rail
Engineering
Security
Special Revenue Funds
Capital
Impact
Facilities
155
City of Victorville
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Housing Asset Successor
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental -$ -$ 125,000$ 125,000$ Investment income (loss) 172,500 172,500 686,524 514,024 Total revenues 172,500 172,500 811,524 639,024 EXPENDITURES:

Current:

General government 75,792 87,503 26,676 60,827
Community development 389,82
1 391,833 173,203 218,630
Total expenditures 465,613 479,336 199,879 279,457

REVENUES OVER (UNDER)
EXPENDITURES (293,113) (306,836) 611,645 918,481 OTHER FINANCING SOURCES (USES):

Transfers out - - (268,743) (268,743)
Total other financing sources (uses) - - (268,743) (268,743) Net change in fund balances (293,113)$ (306,836) $ 342,902 649,738 $ FUND BALANCES:

Beginning of year -
Restatement - change in reporting entity 29,764,359
Beginning of year, as restated 29,764,359
End of year 30,107,261$
Budgeted Amounts
156
City of Victorville
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Other State / Local Grants
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental 25,148,841$ 26,037,521$ 5,328,596$ (20,708,925)$ Investment income (loss) - - 497,417 497,417
Other 17,255 17,255 - (17,255 )
Total revenues 25,166,096 26,054,776 5,826,013 (20,228,763) EXPENDITURES:

Current:

General government 35,800 53,800 - 53,800
Public safety 401,910 443,387 170,644 272,743
Community development 866,587 866,587 65,070 801,517
Public works 3,998,513 4,213,40
1 1,914,670 2,298,731
Parks and recreation 3,749,473 36,738 10,366 26,372
Capital outlay 15,734,492 20,084,174 2,754,965 17,329,209 Total expenditures 24,786,775 25,698,087 4,915,715 20,782,372

REVENUES OVER (UNDER)
EXPENDITURES 379,321 356,689 910,298 553,609 OTHER FINANCING SOURCES (USES):

Proceeds from sale of property 61,253 100,886 9,916 (90,970 )
Total other financing sources (uses) 61,253 100,886 9,916 (90,970) Net change in fund balances 440,574$ 457,575 $ 920,214 462,639 $ FUND BALANCES:

Beginning of year -
Restatement - change in reporting entit
y 244,872
Beginning of year, as restated 244,872
End of year 1,165,086$
Budgeted Amounts
157
City of Victorville
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual COVID-19 Funds
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental 29,707,799$ 29,707,799$ 13,912,967$ (15,794,832)$ Total revenues 29,707,799 29,707,799 13,912,967 (15,794,832) EXPENDITURES:

Current:

General government 7,900,157 1,742,859 502,762 1,240,097 Community development 2,000,000 2,000,000 - 2,000,000
Public works (5,227
) (5,227) -( 5,227)
Capital outlay 11,830,800 17,458,098 13,410,205 4,047,893 Total expenditures 21,725,730 21,195,730 13,912,967 7,282,763

REVENUES OVER (UNDER)
EXPENDITURES 7,982,069 8,512,069 - (8,512,069) Net change in fund balances 7,982,069$ 8,512,069 $ - (8,512,069)$ FUND BALANCES:

Beginning of year -
Restatement - change in reporting entity (152,292)
End of year (152,292)$
Budgeted Amounts
158
City of Victorville
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Measure I
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes and assessments 7,320,214$ 7,320,214$ 7,575,760$ 255,546$ Charges for services 60,000 60,000 64,845 4,845
Investment income (loss) - - 804,710 804,710
Total revenues 7,380,214 7,380,214 8,445,315 1,065,101 EXPENDITURES:

Current:

Public works 3,451,043 3,451,043 2,624,509 826,534
Capital outlay 5,925,288 12,400,122 5,563,336 6,836,786 Total expenditures 9,376,331 15,851,165 8,187,845 7,663,320

REVENUES OVER (UNDER)
EXPENDITURES (1,996,117) (8,470,951) 257,470 8,728,421 Net change in fund balances (1,996,117)$ (8,470,951)$ 257,470 8,728,421$ FUND BALANCES:

Beginning of year 16,729,596
End of year 16,987,066$
Budgeted Amounts
159
City of Victorville
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Landscape Maintenance
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes and assessments 2,449,086$ 2,449,086$ 2,480,663$ 31,577$ Investment income (loss) - - 515,768 515,768
Other - - 6,591 6,591
Total revenues 2,449,086 2,449,086 3,003,022 553,936 EXPENDITURES:

Current:

Public works 2,991,23
1 2,994,806 2,183,670 811,136
Capital outlay 90,000 496,754 170,572 326,182
Total expenditures 3,081,231 3,491,560 2,354,242 1,137,318

REVENUES OVER (UNDER)
EXPENDITURES (632,145) (1,042,474) 648,780 1,691,254 Net change in fund balances (632,145)$ (1,042,474)$ 648,780 1,691,254$ FUND BALANCES:

Beginning of year 10,999,428
End of year 11,648,208$
Budgeted Amounts
160
City of Victorville
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Street Lighting
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes and assessments 2,059,000$ 2,059,000$ 2,102,273$ 43,273$ Intergovernmental 694,000 694,000 1,123,363 429,363
Investment income (loss) 2,500 48,000 109,136 61,136
Total revenues 2,755,500 2,801,000 3,334,772 533,772 EXPENDITURES:

Current:

Public works 2,644,705 2,644,705 2,680,883 (36,178
)
Capital outlay 500,000 1,067,502 401,278 666,224
Total expenditures 3,144,705 3,712,207 3,082,161 630,046

REVENUES OVER (UNDER)
EXPENDITURES (389,205) (911,207) 252,611 1,163,818 Net change in fund balances (389,205)$ (911,207) $ 252,611 1,163,818 $ FUND BALANCES:

Beginning of year 2,207,701
End of year 2,460,312$
Budgeted Amounts
161
City of Victorville
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Traffic Safety
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Fines and forfeitures 41,000$ 41,000$ 46,169$ 5,169$ Total revenues 41,000 41,000 46,169 5,169 OTHER FINANCING SOURCES (USES):

Transfers out (41,000
) (41,000) (42,352) (1,352)
Total other financing sources (uses) (41,000) (41,000) (42,352) (1,352) Net change in fund balances -$ - $ 3,817 3,817 $ FUND BALANCES:

Beginning of year 7,038
End of year 10,855$
Budgeted Amounts
162
City of Victorville
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Asset Seizure
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental -$ -$ 7,809$ 7,809$ Investment income (loss) - - 3,010 3,010
Total revenues - - 10,819 10,819 EXPENDITURES:

Current:

Public safety 996 996 998 (2
)
Total expenditures 996 996 998 (2)

REVENUES OVER (UNDER)
EXPENDITURES (996) (996) 9,821 10,817 Net change in fund balances (996)$ (996) $ 9,821 10,817 $ FUND BALANCES:

Beginning of year 57,035
End of year 66,856$
Budgeted Amounts
163
City of Victorville
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Storm Drain Utility
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Charges for services 1,692,368$ 1,692,368$ 1,665,964$ (26,404)$ Fines and forfeitures 22,000 22,000 20,029 (1,971)
Investment income (loss) - - 201,572 201,572
Other - - 7,682 7,682
Total revenues 1,714,368 1,714,368 1,895,247 180,879 EXPENDITURES:

Current:

Public works 1,711,180 1,711,582 1,260,910 450,672
Capital outlay 50,000 300,000 134,193 165,807
Total expenditures 1,761,180 2,011,582 1,395,103 616,479

REVENUES OVER (UNDER)
EXPENDITURES (46,812) (297,214) 500,144 797,358 Net change in fund balances (46,812)$ (297,214) $ 500,144 797,358 $ FUND BALANCES:

Beginning of year 4,081,482
End of year 4,581,626$
Budgeted Amounts
164
City of Victorville
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Gas Tax
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes and assessments 3,375,820$ 3,375,820$ 3,540,410$ 164,590$ Intergovernmental 3,883,108 3,703,686 3,778,785 75,099
Charges for services 6,700 6,700 5,591 (1,109)
Investment income (loss) - - 334,266 334,266
Total revenues 7,265,628 7,086,206 7,659,052 572,846 EXPENDITURES:

Current:

Public works 3,581,742 3,413,713 2,986,250 427,463
Capital outlay 3,650,820 6,981,978 3,373,92
1 3,608,057
Debt service:

Principal - SBITA - - 1,317 (1,317)
Interest - SBITA -- 7 1 (71)
Total expenditures 7,232,562 10,395,691 6,361,559 4,034,132

REVENUES OVER (UNDER)
EXPENDITURES 33,066 (3,309,485) 1,297,493 4,606,978 Net change in fund balances 33,066$ (3,309,485)$ 1,297,493 4,606,978 $ FUND BALANCES:

Beginning of year 6,121,158
End of year 7,418,65
1$
Budgeted Amounts
165
City of Victorville
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Transportation Tax
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental 493,640$ 743,640$ 244,000$ (499,640)$ Investment income (loss) - - 38,867 38,867
Other 20,000 20,000 25,200 5,200
Total revenues 513,640 763,640 308,067 (455,573) EXPENDITURES:

Current:

Public works 951,174 951,284 607,834 343,450
Capital outlay - 509,284 - 509,284
Total expenditures 951,174 1,460,568 607,834 852,734

REVENUES OVER (UNDER)
EXPENDITURES (437,534) (696,928) (299,767) 397,161 Net change in fund balances (437,534)$ (696,928)$ (299,767) 397,161$ FUND BALANCES:

Beginning of year 566,294
End of year 266,527$
Budgeted Amounts
166
City of Victorville
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Other Federal Grants
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental 23,113,275$ 23,812,536$ 9,051,474$ (14,761,062)$ Investment income (loss) - - 310 310
Other (37) (37) -3 7
Total revenues 23,113,238 23,812,499 9,051,784 (14,760,715) EXPENDITURES:

Current:

General government 2,000,000 2,000,000 - 2,000,000
Public safety 271,205 321,934 214,423 107,51
1 Public works 28,240 28,240 - 28,240
Capital outlay 14,168,059 14,816,59 1 2,326,679 12,489,912 Total expenditures 16,467,504 17,166,765 2,541,102 14,625,663

REVENUES OVER (UNDER)
EXPENDITURES 6,645,734 6,645,734 6,510,682 (135,052) Net change in fund balances 6,645,734$ 6,645,734$ 6,510,682 (135,052)$ FUND BALANCES:

Beginning of year (8,379,605
)
End of year (1,868,923)$
Budgeted Amounts
167
City of Victorville
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual HUD Grants
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental 8,021,653$ 7,414,654$ 1,598,113$ (5,816,541)$ Investment income (loss) 677,864 677,864 66,806 (611,058) Other 4,404,064 4,404,064 - (4,404,064 )
Total revenues 13,103,581 12,496,582 1,664,919 (10,831,663) EXPENDITURES:

Current:

General government 54,254 4,254 - 4,254
Public safety 780 780 - 780
Community development 7,561,594 7,425,436 1,011,967 6,413,469 Public works 1,857,462 1,111,904 427,26
1 684,643
Parks and recreation 15,595 824 - 824
Capital outlay (8,027) (8,027) -( 8,027)
Total expenditures 9,481,658 8,535,171 1,439,228 7,095,943

REVENUES OVER (UNDER)
EXPENDITURES 3,621,923 3,961,411 225,691 (3,735,720) Net change in fund balances 3,621,923$ 3,961,411 $ 225,691 (3,735,720)$ FUND BALANCES:

Beginning of year 1,651,687
End of year 1,877,378$
Budgeted Amounts
168
City of Victorville
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Sidewalk Assessment District
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Investment income (loss) -$ -$ 7,243$ 7,243$ Total revenues - - 7,243 7,243 Net change in fund balances -$ -$ 7,243 7,243$ FUND BALANCES:

Beginning of year -
Restatement - error corrections 154,703
Beginning of year, as restated 154,703
End of year 161,946$
Budgeted Amounts
169
City of Victorville
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Foxborough Rail
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes and assessments 116,370$ 116,370$ 116,368$ (2)$ Investment income (loss) - - 25,555 25,555
Total revenues 116,370 116,370 141,923 25,553 EXPENDITURES:

Current:

General government 3,604 3,604 1,604 2,000
Public works 130,500 130,500 34,469 96,03
1 Capital outlay - 50,000 - 50,000
Total expenditures 134,104 184,104 36,073 148,031

REVENUES OVER (UNDER)
EXPENDITURES (17,734) (67,734) 105,850 173,584 Net change in fund balances (17,734)$ (67,734) $ 105,850 173,584 $ FUND BALANCES:

Beginning of year 499,685
End of year 605,535$
Budgeted Amounts
170
City of Victorville
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Capital Impact Facilities
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Charges for services 5,034,788$ 5,034,788$ 8,547,949$ 3,513,161$ Investment income (loss) 129,550 129,550 1,344,831 1,215,281 Total revenues 5,164,338 5,164,338 9,892,780 4,728,442 EXPENDITURES:

Current:

General government 554 554 996 (442
)
Public safety 506 506 506 -
Public works 74,866 2,574,866 2,571,466 3,400
Parks and recreation 118,288 168,288 18,288 150,000
Capital outlay 4,834,165 6,683,060 3,460,268 3,222,792
Debt service:

Interest and loan fees 317,250 317,250 - 317,250
Total expenditures 5,345,629 9,744,524 6,051,524 3,693,000

REVENUES OVER (UNDER)
EXPENDITURES (181,291) (4,580,186) 3,841,256 8,421,442 Net change in fund balances (181,291)$ (4,580,186)$ 3,841,256 8,421,442$ FUND BALANCES:

Beginning of year -
Restatement - change in reporting entity 25,045,007
Beginning of year, as restated 25,045,007
End of year 28,886,263$
Budgeted Amounts
171
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172
City of Victorville
Custodial Funds
For the Year Ended June 30, 2024
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. Cust odial 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 i n accordance with the Mello-RoosCommunity 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. 173
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174
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175
City of Victorville
Combining Statement of Fiduciary Net Position
Custodial Funds
For the year ended June 30, 2024
ASSETS
Cash and investments 83,838$ 218,858 $ 250,490 $ 37,960 $ Restricted assets:

Cash with fiscal agent - 295,557 340,097 -
Accounts receivable - - 2,793 -
Total assets 83,838 514,415 593,380 37,960

LIABILITIES
Accounts payable -6 1 768 -
Total liabilities - 61 768 -

NET POSITION
Restricted for:

Individuals, organizations, and other governments 83,838 514,354 592,612 37,960 Total Net Position 83,838$ 514,354$ 592,612$ 37,960$ Community
Facilities District
90-01
Community
Facilities District
07-01
Community
Facilities District
01-01
Community
Facilities District
Cahuenga
176
Total
Custodial
Funds
-$ 591,146$
- 635,654
-2 ,793
- 1,229,593
- 829
- 829
- 1,228,764
-$ 1,228,764$
Regional Fire
Protection
Authority
177
City of Victorville
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
For the year ended June 30, 2024
ADDITIONS:

Property assessments collected -$ 192,092$ 279,558 $ - $ Investment income 3,750 22,568 24,377 1,697
Total additions 3,750 214,660 303,935 1,697 DEDUCTIONS:

Community development - 8,929 15,457 -
Payments on special assessment debt - 175,397 265,932 - Total deductions - 184,326 281,389 - Change in net position 3,750 30,334 22,546 1,697 NET POSITION:

Beginning of year 80,088 484,020 570,066 36,263
End of year 83,838$ 514,354$ 592,612$ 37,960$ Community
Facilities District
90-01
Community
Facilities District
07-01
Community
Facilities District
01-01
Community
Facilities District
Cahuenga
178
Total
Custodial
Funds
-$ 471,650$
- 52,392
- 524,042
- 24,386
- 441,329
- 465,715
- 58,327
- 1,170,437
-$ 1,228,764$
Regional Fire
Protection
Authority
179
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180
Index
Financial Trends
Revenue Capacity
Debt Capacity
Demographic and Economic Information
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.

STATISTICAL SECTION
This part of the City’s annual comprehensive financial report presents detailed information as a context for understanding what the information in the finan cial statements, note disclosures, and required supplementary information say about the City’s overall financial health.

These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time.

These schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax.

These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future.

These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place. 181
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182
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Governmental activities
Invested in capital
assets, net of related debt 484,943$ 479,306 $ 473,590 $ 462,796 $ 480,006 $ 466,516 $ 453,555 $ 471,522 $ 510,418 $ 541,240 $ Restricted 44,922 56,682 58,111 58,571 63,733 77,66 5 86,627 90,462 100,773 117,572 Unrestricted (46,227) (47,079) (47,596) (50,734) (43,759) (44,619) (23,215) 19,767 46,204 51,340 Total governmental
activities net
position 483,638 488,909 484,105 470,633 499,980 499,563 516,967 581,752 657,395 710,152 Business-type activities
Invested in capital
assets, net of related
debt 150,794 66,591 59,439 64,164 49,262 42,900 39,962 47,471 46,894 48,758 Restricte
d 8,911 9,60 0 11,981 13,937 - - - - - -
Unrestricted (35,217) 54,098 48,212 24,147 33,883 42,640 56,629 76,595 112,206 134,231 Total business-type
activities net
position 124,488 130,290 119,632 102,248 83,145 85,541 96,591 124,066 159,100 182,989 Primary government
Invested in capital
assets, net of related debt 635,737 545,897 533,029 526,960 529,267 509,416 493,517 518,993 557,313 589,999 Restricted 53,833 66,282 70,092 72,508 63,733 77,66 5 86,627 90,462 100,773 117,572 Unrestricted (81,444) 7,020 616 (26,587) (9,876) (1,978) 33,414 96,362 158,410 185,571 Total primary
government net position 608,125$ 619,199 $ 603,738 $ 572,881 $ 583,124 $ 585,104 $ 613,558 $ 705,818 $ 816,496 $ 893,141 $

CITY OF VICTORVILLE

NET POSITION BY COMPONENT

LAST TEN FISCAL YEARS
(accrual basis of accounting)
(in thousands)
Fiscal Year
183
2015 2016 2017 2018 2019 2020* 2021 2022 2023 2024
Expenses
Governmental activities:

General government $12,188 $12,121 $8,982 $21,271 $19,256 $20,92 4 $19,440 $21,653 $27,941 $24,483 Public safety 36,066 35,62 4 37,719 37,29 4 45,498 42,413 45,868 49,006 59,556 63,933 Community Development 1,780 1,646 5,375 1,696 1,552 1,31 4 9,231 2,477 3,586 1,283 Public works 28,856 31,972 33,835 29,076 28,971 31,103 32,425 29,05 4 34,794 45,059 Park and recreation 3,188 4,911 5,245 5,113 6,09 0 6,826 7,035 5,562 7,226 7,341 Interest on long-term debt 63 102 177 44 112 104 51 33 14 29 Total governmental activities expenses 82,141 86,376 91,332 94,493 101,481 102,685 114,051 107,784 133,116 142,129 Business-type activities
Sanitary Sewer 13,523 11,96 0 12,651 17,019 14,99 4 17,314 16,552 17,63 0 20,207 22,969 Golf course 1,716 1,566 1,507 1,54 4 4 3 9 -----
Airport 35,453 31,597 32,742 37,406 32,756 34,86 0 40,578 36,659 37,391 36,662 Water 30,298 33,851 40,185 35,431 41,11 0 39,439 42,73 4 44,121 44,649 49,843 Rail -- --------
Solid Waste 13,144 14,197 15,467 16,61 4 16,516 17,85 0 18,616 19,64 0 21,969 25,949 Municipal Utilities* 1 1 , 6 0 3 1 1 , 0 1 6 1 0 , 4 7 9 1 2 , 9 6 7 1 3 , 5 6 9 - ---- Municipal Utilies - Gas - - - - - 2,353 2,06 4 2,844 4,378 3,657 Municipal Utilities - Electric - - - - - 11,717 12,156 15,801 15,567 16,028 Total business-type activities expensess 105,736 104,186 113,031 120,982 119,383 123,533 132,701 136,695 144,160 155,108 Total primary government expenses 187,877 190,563 204,363 215,475 220,864 226,217 246,752 244,480 277,276 297,237 Program Revenues
Governmental activities:

Charges for services:

General government 4,203 3,136 3,221 5,493 9,14 4 10,240 10,159 10,27 4 11,800 12,992 Public safety 1,570 874 720 575 571 887 1,466 1,679 5,587 5,613 Community development 960 1,950 3,163 2,87 4 5,163 5,80 0 8,066 9,80 4 6,802 8,523 Public works 3,519 4,142 4,745 4,56 0 4,591 4,905 8,31 0 9,938 7,557 7,625 Parks and recreation 935 93 0 956 876 856 569 83 4 746 892 96 0 Operating grants and contributions 5,191 15,165 10,65 4 3,964 6,947 4,555 11,719 6,05 0 22,926 24,721 Capital contributions and grants 7,745 10,626 8,076 4,702 10,312 11,916 7,992 29,326 39,917 12,502 Total governmental activities program
revenues 24,123 36,822 31,537 23,044 37,584 38,873 48,548 67,817 95,481 72,937 Business-type activities:

Charges for services:

Sanitary Sewer 15,560 13,381 11,37 4 11,694 13,196 14,663 17,292 19,786 21,953 23,219 Golf course 395 583 432 47 0 ------
Airport 8,110 8,027 6,949 7,531 9,315 11,198 11,056 13,028 13,676 13,175 Water 25,978 27,70 4 31,146 30,907 31,82 0 35,607 42,167 46,259 42,295 43,279 Solid Waste 12,342 12,716 13,965 14,336 17,546 18,867 19,776 21,987 23,366 27,465 Municipal Utilities* 1 3 , 6 3 8 1 3 , 8 9 9 1 4 , 4 8 3 1 3 , 8 8 5 1 4 , 8 8 2 ----- Municipal Utilities - Gas - - - - - 2,616 2,657 3,216 4,572 3,97 4 Municipal Utilities - Electric -- --- 1 3 , 1 3 1 1 5 , 8 3 0 17,421 20,223 21,122 Operating grants and contributions -- ----- 1 , 2 7 3 -- Capital contributions and grants 54 6,263 2,297 5,178 12,688 6,393 13,777 9,731 8,446 10,573 Total business-type activities program
revenues 76,076
82,573 80,647 84,002 99,446 102,474 122,556 132,701 134,531 142,807 Total primary government program revenues 100,199$ 119,395$ 112,184$ 107,046$ 137,031$ 141,347$ 171,104$ 200,518$ 230,012$ 215,744$ * Started reporting Gas and Electric utilities
separately in FY2020.

CITY OF VICTORVILLE

CHANGE IN NET POSITION

LAST TEN FISCAL YEARS
(accrual basis of accounting)
(in thousands)
Fiscal Year
184
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Net (expense) revenue
Governmental activities (58,018)$ (49,554)$ (59,796)$ (71,449)$ (63,897)$ (63,812)$ (65,503)$ (39,967)$ (37,635)$ (69,192)$ Business-type activities (29,660) (21,614) (32,384) (36,980) (19,937) (21,058) (10,144) (3,995) (9,629) (12,301) Total primary government net expense (87,678) (71,168) (92,180) (108,429) (83,834) (84,870) (75,648) (43,962) (47,264) (81,493) General Revenues and Other Changes in Net Position
Governmental activities:

Taxes:

Property taxes 22,138 23,75 2 24,097 25,66 2 27,202 28,211 31,98 0 32,795 36,458 41,398 Sales taxes 24,085 28,212 26,802 26,653 30,629 28,56 6 35,227 36,86 5 37,382 37,484 Transactions and Use Tax* ----- - 7 , 1 0 3 29,587 29,26 0 29,224 Transient occupancy tax 1,064 1,074 1,138 1,30 5 1,487 1,539 1,899 2,02 6 2,013 1,640 Other taxes 3,000 3,039 2,84 0 3,737 3,81 6 3,988 4,11 2 4,442 4,764 5,034 Investment income 68 158 478 72 6 1,148 57 4 (391) (1,274) 2,787 6,63 3 M o t o r v e h i c l e i n l i e u ----- -----
Gain on sale of assets 55 ---- -- 1 9 1 0
Miscellaneous revenues 314 201 19 2 377 38 4 515 818 211 519 52 6 SERAF Obliga t i o n ----- -----
Transfers 24,090 (779) (554) (521) 26,795 -1 , 6 8 5 82 95 - Extraordinary G a i n ----- -----
Legal Settlement - - - - - - - - - -
Total governmental activities 74,815 55,657 54,992 57,940 91,461 63,394 82,432 104,752 113,278 121,949 Business-type activities:

Taxes 19,781 24,879 25,918 29,07 0 24,659 20,77 2 22,405 22,862 23,408 23,44 3 Other Taxes 1 7 7 ---- -----
Investment income -1 , 0 0 2 726 1,828 2,37 4 1,918 21 6 1,266 6,775 12,746 Gain on sale of assets -1 2 5 17 29 0 -- 1 1 0 17 14,57 6 - Miscellaneous revenues 2,003 1,432 1,779 1,099 19 0 630 149 867 - - Impairment loss on Capital assets (24,090) ---- -----
Legal Settlement ----- -----
Transfers - 779 554 521 (26,795) - (1,685) (82) (95) - Total business-type activities (2,129) 28,217 28,993 32,808 429 23,320 21,196 24,930 44,664 36,189 Total primary government 72,686 83,874 83,985 90,748 91,890 86,714 103,628 129,682 157,942 158,138 Change in Net Position
Governmental activities 16,797 6,10 3 (4,803) (13,510) 27,564 (418) 16,929 64,78 5 75,644 52,757 Business-type activities (31,789) 6,604 (3,392) (4,171) (19,509) 2,262 11,051 20,936 35,034 23,888 Total primary government (14,992)$ 12,706 $ (8,195) $ (17,681)$ 8,056 $ 1,844 $ 27,980$ 85,721 $ 110,678$ 76,645 $ * Measure P Transactions and Use Tax was approved by voters in November 2020 election and went into effect April 1, 2021.

CITY OF VICTORVILLE

CHANGE IN NET POSITION

LAST TEN FISCAL YEARS
(accrual basis of accounting)
(in thousands)
Fiscal Year
185
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
General fund
Reserved -$ $ - $ - $ - $ - $ - $ - $ - $ - $ - Unreserved - - - - - - - - - - Nonspendable 195 192 172 472 7,236 6,225 5,149 4,192 3,287 2,611 Restricted - - - - - - - - - - Unassigned 3,238 4,630 5,181 6,179 12,812 18,110 41,107 75,466 103,870 132,070 Total general fund 3,433 4,822 5,353 6,651 20,049 24,335 46,256 79,659 107,156 134,682 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 195 194 174 474 04 11 05 4,221 4,249 2,138 Restricted 44,922 56,305 58,108 60,819 62,198 75,962 83,555 76,510 97,941 106,208 Assigned - - - -----
Unassigned (3,111) (2,587) (882) (2,487) (7,599) (4,120) (2,946) (1,788) (12,747) (4,123) Total all other governmental funds 42,00 6 53,912 57,400 58,807 54,602 71,853 80,614 78,944 89,444 104,222

CITY OF VICTORVILLE

FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
(in thousands)
Fiscal Year
186
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Revenue
Taxes 50,287$ 55,96 6$ 54,877 $ 57,357 $ 65,402 $ 64,092 $ 83,17 0$ 108,45 5$ 113,043 $ 118,437 $ Licenses and permits 1,533 1,387 1,463 1,863 2,633 2,78 6 4,244 5,393 4,03 6 3,880 Intergovernmental 13,833 25,947 19,293 8,404 8,92 0 14,651 9,15 0 27,339 54,571 35,342 Charges for services 9,587 11,627 13,247 15,01 6 17,236 23,306 23,927 24,982 29,561 30,532 Fines and forefitures 1,308 737 793 514 473 418 704 829 88 0 1,494 Investment income 68 158 478 72 6 966 1,437 27 6 (357) 5,420 11,415 Sale of assets -- (3,544) --- 1 0 9 -
Legal Settlement -- - --- -
Other 314 201 192 464 532 849 3,942 582 1,074 915
Total revenues 76,930$ 96,022$ 86,798$ 84,345$ 96,164$ 107,539$ 125,523$ 167,222$ 208,585$ 202,015$ Expenditures
General government 11,171 9,67 6 9,272 11,10 5 10,625 11,650 11,978 16,722 19,909 21,148 Public safety 35,674 35,87 5 37,855 39,185 45,004 41,731 45,039 48,06 6 58,559 62,934 Community development 1,769 1,438 1,899 1,629 1,118 1,128 8,734 2,47 6 3,265 1,258 Public works 28,349 31,95 6 29,412 26,18 5 17,781 18,92 6 19,299 22,66 0 24,497 30,527 Park and recreation 2,956 3,363 3,74 6 3,739 4,047 4,238 4,308 4,267 5,607 6,467 Capital Outlay* - - - - 21,593 8,068 7,428 43,072 59,367 37,307 Debt services:

Principal - --- - 1 5 3 1 5 9 1 6 5 725 24
Interest & Fiscal agent
charges 63 102 177 44 74 109 57 38 36 04 Principal-SBITA 320 247
Interest-SBITA 00 26
SERAF Obligation - - - - - - - - - -
Total expenditures 79,982$ 82,411$ 82,362$ 81,887$ 100,243$ 86,003$ 97,001$ 137,466$ 172,286$ 159,941$ Excess of revenues
over (under)
expenditures (3,052) 13,611 4,437 2,458 (4,080) 21,536 28,521 29,755 36,299 42,074 Other financing sources
(uses):

SBITA Financing -- - ----- 7 9 8- $
Capital lease proceeds - - - - 1,201 - - - 90 0 220
Transfer in 1,289 218 24 6 80 18,424 41 1,757 4,32 5 55 311 Transfer out (2,200) (997) (800) (601) (6,649) (41) (73) (2,348) (55) (311) Gain (loss) on sale of
assets 55 1,058 156 28 - - - - - 10 Total other financing
sources
(uses) (856) 280 (398) (494) 12,977 - $ 1,685 1,977 1,699 230 Extraordinary gain(loss) -- - ------ -
Net change in fund
balances (3,908) 13,890 4,039 1,964 8,897 21,536 30,206 31,732 37,998 42,304 Debt service as a
percentage of noncapital
ex
penditures

0.1% 0.1% 0.2% 0.1% 0.1% 0.3% 0.2% 0.1% 0.4% 0.3%
*Starting in FY2019, Capital outlay was broken out of categorical expenditures

CITY OF VICTORVILLE

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
(in thousands)
Fiscal Year
187
Fiscal Year Secured Property Unsecured Property SBE Nonunitary Total Assessed Total Direct Tax Rate
2004 3,141,841,715 222,573,199 477,500,712 3,841,915,626 8.10% 2005 3,828,701,477 219,700,978 492,977,851 4,541,380,306 16.75% 2006 4,973,962,731 234,285,388 487,511,504 5,695,759,623 3.79% 2007 6,671,588,958 254,201,465 475,654,862 7,401,445,285 10.22% 2008 8,445,139,241 528,505,928 483,739,950 9,457,385,119 7.70% 2009 8,482,819,863 446,754,325 469,192,873 9,398,767,061 10.61% 2010 6,876,396,453 475,171,025 446,393,003 7,797,960,481 13.73% 2011 6,152,107,952 531,098,592 349,464,067 7,032,670,611 20.40% 2012 6,015,259,937 486,592,953 324,863,210 6,826,716,100 20.63% 2013 5,983,453,352 502,968,659 279,763,216 6,766,185,227 21.62% 2014 6,079,669,684 578,809,444 232,263,205 6,890,742,333 18.33% 2015 6,523,751,292 563,911,351 180,492,248 7,268,154,891 18.25% 2016 6,961,515,866 598,447,036 177,480,228 7,737,443,130 18.24% 2017 7,358,274,302 548,314,490 225,429,163 8,132,017,955 18.23% 2018 7,751,404,680 507,854,639 106,929,139 8,366,188,458 18.22% 2019 8,173,462,255 553,108,056 104,329,108 8,830,899,419 18.21% 2020 8,697,654,376 549,306,339 98,788,971 9,345,749,686 18.20% 2021 9,212,471,887 608,604,365 100,188,971 9,921,265,223 18.19% 2022 9,722,567,162 570,333,790 116,988,971 10,409,889,923 20.26% 2023 10,674,814,139 725,356,217 153,988,971 11,554,159,327 20.25% 2024 12,107,859,030 719,067,810 197,227,878 13,024,154,718 20.10% Source: County of San Bernardino Assessor and HdL, Coren & Cone assessed value of the property being taxed. Each year, the assessed value of the property may be increased by an "inflation factor" (limited to a maximum of 2%). With few exceptions, property is only reassessed as a result of new construction activitiy or at the time it is sold to a new owner. At that point, the property is reassessed based upon the added value of the construction or at the purchase price (market value) or economic value of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitation described above.

CITY OF VICTORVILLE

ASSESSED VALUE OF TAXABLE PROPERTY

LAST TEN FISCAL YEARS
In 1978, the voters of the State of California passed Proposition 13 which limited taxes to a total Maximum rate of 1% based upon the $0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Secured Property Unsecured Property SBE Nonunitary
188
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Basic Levy* 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 Adelanto Elementary Bond 0.0810 0.0797 0.0830 0.0871 0.0970 0.0835 0.0916 0.0912 0.0000 0.0000 Mojave Water Agency 0.1675 0.1675 0.1675 0.1675 0.1675 0.1675 0.1675 0.1675 0.1675 0.1675 Oro Grande Elementary Bond 0.0379 0.0378 0.0898 (0.0102) 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 Victor Elementary Bond 0.1022 0.1124 0.1162 0.1216 0.1204 0.0406 0.0611 0.0591 0.0574 0.5440 Victor High School Bond 0.0770 0.0716 0.0986 0.0915 0.0958 0.0703 0.0445 0.0532 0.053 7 0.0480 Victor Valley Community College Bond 0.0262 0.019 7 0.0174 0.0198 0.0181 0.0181 0.0198 0.0218 0.0206 0.0250 Total Direct and Overlapping Tax Rates 1.4918 1.4887 1.5725 1.4773 1.4988 1.3800 1.3845 1.3928 1.2992 1.7845 City's basic rate** 0.1605 0.1605 0.1605 0.1605 0.1605 0.1605 0.1605 0.1605 0.1605 0.1605 Total Direct Rate^ 0.1825 0.1824 0.1823 0.1822 0.1821 0.1820 0.1819 0.2026 0.2025 0.2010 Notes:

LAST TEN FISCAL YEARS
RATE PER $100 OF TAXABLE VALUE
* 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

DIRECT AND OVERLAPPING PROPERTY TAX RATES
189
2024 2015
Taxpayer
Taxable
Assessed Value
Percentage of
Total City
Taxable
Assessed Value
Taxable
Assessed Value
Percentage of
Total City
Taxable
Assessed Value
Higcov-Sclc-Dc LLC 275,400,000$ 2.11%
High Desert Power Trust 196,400,000 1.51% 179,863,000$ 2.47% Prologis SCLC Investmnets LLC 156,321,196 1.20%
Macerich Victor Valley 150,451,875 1.16% 113,912,334 1.57% The American Bottling Company 119,869,165 0.92%
Striling Capital Investments 107,001,022 0.82% 79,410,874 1.09% Desert Valley Hospital Inc, 78,089,480 0.60%
Cemex Construction Materials Pacific 77,346,985 0.59% 55,390,152 0.76% Nutro Products Inc. 69,706,993 0.54% 90,480,365 1.24%
Veyron KDP I Partners LLC 68,641,958 0.53%
The American Bottling Company 116,111,944 1.60%
Prime A investments LLC 73,189,893 1.01%
Walmart Stores Inc 49,584,747 0.68%
Church And Dwight Company Inc 36,019,134 0.50%
Goodyear Tire And Rubber Company 32,834,571 0.45%
1,299,228,674$ 9.98% 826,797,014$ 11.37%
Data is only presented for the top ten property in each of the two years presented.

Source: HdL Coren & Cone

CITY OF VICTORVILLE

PRINCIPAL PROPERTY TAXPAYERS
Current Year and Nine Years Ago
190
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
2015 -- 0 . 0 0 % 2015 -- 0 . 0 0 %
2016 -- 0 . 0 0 % 2016 -- 0 . 0 0 %
2017 -- 0 . 0 0 % 2017 -- 0 . 0 0 %
2018 -- 0 . 0 0 % 2018 -- 0 . 0 0 %
2019 -- 0 . 0 0 % 2019 -- 0 . 0 0 %
2020 -- 0 . 0 0 % 2020 -- 0 . 0 0 %
2021 -- 0 . 0 0 % 2021 -- 0 . 0 0 %
202
2 -- 0 .00% 2022 -- 0 .00%
2023 -- 0 .00% 2023 - - 100.00%
2024 -- 0 .00% 2024 - - 200.00%
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
2015 -- 0 .00% 2015 751,196 737,646 98.20%
2016 -- 0 . 0 0 % 2016 814,455 764,955 93.92%
2017 -- 0 . 0 0 % 2017 725,345 723,72 0 99.78%
2018 -- 0 . 0 0 % 2018 706,459 704,679 99.75%
2019 -- 0 . 0 0 % 2019 735,987 734,99 6 99.87%
2020 -- 0 . 0 0 % 2020 756,545 754,972 99.79%
2021 -- 0 . 0 0 % 2021 765,513 764,053 99.81%
2022 -- 0 .00% 2022 804,802 803,15 6 99.80%
2023 -- 0 . 0 0 % 2023 788,274 786,490 99.77%
2024 -- 0 . 0 0 % 2024 803,591 801,80 4 99.78%
Source: San Bernardino County Assessor's Office

CITY OF VICTORVILLE
*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 distric ts 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.

PROPERTY TAX LEVIES AND COLLECTIONS BY DISTRICT

LAST TEN FISCAL YEARS
191
Fiscal
Year
Certificate of
Participation
Tax Allocation
Bonds*
Capital Lease
Agreement Other**
Total
Governmental
Activities
2015 -$ - $ - $ 44,078$ 44,078 $ 2016 -$ - $ - $ 33,111$ 33,111 $ 2017 -$ - $ - $ 59,50 3$ 59,503$ 2018 -$ - $ - $ 65,02 6$ 65,026$ 2019 -$ - $ 1,201 $ 62,59 4$ 63,795$ 2020 -$ - $ - $ 70,34 9$ 70,349$ 2021 -$ - $ - $ 76,22 3$ 76,223$ 2022 -$ - $ - $ 60,68 6$ 60,686$ 2023 -$ - $ - $ 81,48 9$ 81,489$ 2024 -$ - $ - $ 85,35 2$ 85,352$ the revenue bond for this fund also got reclass. - $

CITY OF VICTORVILLE

RATIOS OF OUTSTANDING DEBT BY TYPE

LAST TEN FISCAL YEARS
(in thousands)
** 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 -
192
Fiscal
Year
Lease
Purchase
Agreement
Tax
Allocation
Bonds
Lease
Revenue
Bonds
Revenue
Bonds^
Certificate of
Participation Other
Total
Business-
Type
Activities
Total
Primary
Government
Debt Per
Capita*
% of
Personal
Income*
2015 347$ 318,564$ 53,07 0$ 1,155$ 12,465$ 13,651 $ 399,252$ 443,330$ 3,680 228.88 2016 -$ 314,93 6$ 53,070$ 945$ 12,035$ 13,86 6$ 394,851$ 427,962$ 3,465 225.42 2017 -$ 311,741$ 51,92 5$ 725$ 10,360$ 21,16 0$ 395,910$ 455,413$ 3,686 238.40 2018 -$ 308,40 0$ 50,720$ 495$ 10,025$ 35,661 $ 405,301$ 470,327$ 3,806 234.98 2019 -$ 300,964$ 49,45 0$ 253$ 9,675$ 20,481 $ 380,822$ 444,618$ 3,514 208.77 2020 -$ 294,282$ 48,214 $ -$ 9,310$ 40,902 $ 392,709$ 463,058$ 3,663 200.58 2021 -$ 289,77 6$ 46,710$ -$ 8,930$ 44,403 $ 389,819$ 466,042$ 3,665 192.45 2022 -$ 285,064$ - $ 48,044$ 8,622 $ 36,35 6$ 378,086$ 438,772$ 3,213 165.43 2023 -$ 280,133$ -$ 46,20 5$ 8,206$ 47,15 5$ 381,699$ 463,188$ 3,376 151.09 2024 -$ 274,981$ - $ 44,55 0$ 7,774$ 50,281 $ 377,586$ 462,938$ 3,350 138.81 ^ 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

CITY OF VICTORVILLE

RATIOS OF OUTSTANDING DEBT BY TYPE

LAST TEN FISCAL YEARS
(in thousands)
Business-Type Activities
193
Fiscal
Year
Certificate of
Participation
Revenue
Bonds
Tax Allocation
Bonds¤ Total
Percentage
Assessed
Value*
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%
2024 - - - - 0.00%
Source: City of Victorville Annual Comprehensive Financial Reports FY24 * Assessed value has been used because the actual value of taxable property is not readily available in the State of California.

CITY OF VICTORVILLE

RATIO OF GENERAL BONDED DEBT OUTSTANDING

LAST TEN FISCAL YEARS
194
Fiscal Year
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Debt Limit 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$ 1,953,623$ Total net debt applicable to
limit - - - - - - - - - - Legal debt margin 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 1,953,623 Total net debt applicable to
the limit as a percentage of
d e b t l i m i t 0 %0 %0 %0 %0 %0 %0 %0 %0 % 0 %
Legal Debt Margin Calculation for Fiscal Year 2024
Assessed value
Debt Limit (15% of total
assessed value)
Debt applicable to limit:

General obligation bond
Total net debt applicable to
limit
Le
gal debt margin
Note: Under state finance law, the City of Victorville's outstanding general obligation debt should not exceed 15 percent of total assessed property value.

By law, the general obligation debt subject to the limitation may be offset by amounts set aside for repaying obligation bonds.

Source: HdL Companies
Less: Amount set aside for
repayment of general
obligation debt

CITY OF VICTORVILLE

LEGAL DEBT MARGIN INFORMATION

LAST TEN FISCAL YEARS
(amounts expressed in thousands)
195
2023-24 Assessed Valuation: $13,015,390,572
Total Debt City’s Share of
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2024 % Applicable (1) Debt 6/30/24 Victor Valley Joint Community College District $165,055,575 29.59% $48,844,89 6 Victor Valley Joint Union High School District 116,553,734 62.821 73,220,221 Victor School District 44,002,770 84.339 37,111,49 6
Adelanto School District Community Facilities District No. 1, I.A. A 11,940,000 100 11,940,000 Adelanto School District Community Facilities District No. 2 3,525,000 100 3,525,000 Adelanto School District Community Facilities District No. 4 11,100,000 100 11,100,000 Hesperia Unified School District Community Facilities Districts 7,195,000 100 7,195,000 Snowline Joint Unified School District Community Facilities Districts 7,085,000 100 7,085,000 Victor School District Community Facilities Districts 27,743,900 100 27,743,900 Victor Valley Joint Union High School District Community Facilities Districts 4,755,000 100 4,755,000 City of Victorville Community Facilities Districts 4,800,000 100 4,800,000 California Statewide Community Development Authority Assessment District No. 22-02 760,000 100 760,000 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $238,080,513
DIRECT AND OVERLAPPING GENERAL FUND DEBT:

San Bernardino County General Fund Obligations $131,565,000 4.09% $5,375,74 6 San Bernardino County Flood Control District General Fund Obligations 37,295,000 4.086 1,523,874 Hesperia Unified School District General Fund Obligations 113,810,000 8.527 9,704,579 Snowline Joint Unified School District General Fund Obligations 56,635,000 17.153 9,714,602 Victor Valley Joint Union High School District Certificates of Participation 16,440,000 62.821 10,327,77 2 Adelanto School District Certificates of Participation 5,435,000 46.21 2,511,51 4 Oro Grande School District Certificates of Participation 26,785,000 2.507 671,500 City of Victorville General Fund Obligations 01 00 0
TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $39,829,587 OVERLAPPING TAX INCREMENT DEBT (Successor Agencies): $286,829,925 69.766- 100. % $208,015,957 TOTAL DIRECT DEBT $0
TOTAL OVERLAPPING DEBT $485,926,057
COMBINED TOTAL DEBT $485,926,057 (2)
Ratios to 2023-24 Assessed Valuation:

Total Overlapping Tax and Assessment Debt 1.83%
Total Direct Debt ($0) 0.00%
Combined Total Debt 3.73%
Ratios to Redevelopment Successor Agencies Incremental Valuation ($8,193,724,335) Total Overlapping Tax Increment Debt 2.54%
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

DIRECT AND OVERLAPPING DEBT
FISCAL YEAR 2023-24
196
Pledged
Fiscal Year Revenue Principal Interest Coverage
2015 5,600 1,060 2,139 175%
2016 5,343 1,110 2,085 167%
2017 5,689 1,165 2,029 178%
2018 3,955 1,225 1,965 124%
2019 3,569 1,285 1,907 112%
2020 2,797 1,35 0 1,840 88%
2021 641 1,42 0 1,767 20%
2022 1,850 1,495 1,690 58%
2023 3,306 1,575 1,608 104%
2024 4,716 1,660 1,521 148%
Pledged
Fiscal Year Revenue Principal Interest Coverage
2015 18,554 4,410 17,150 86%
2016 25,176 4,635 16,950 117%
2017 24,649 4,865 16,746 114%
2018 28,983 4,405 17,580 132%
2019 23,801 5,36 5 16,208 110%
2020 20,407 5,63 5 15,845 95%
2021 23,021 5,92 0 15,551 107%
2022 22,410 6,225 15,238 104%
2023 22,583 6,550 14,907 105%
2024 21,434 6,885 14,555 100%
Pledged
Fiscal Year Revenue Principal Interest Coverage
2015 1,157 41 5 583 116%
2016 1,183 430 564 119%
2017 1,244 320 485 155%
2018 1,244 335 471 154%
2019 1,285 350 457 159%
2020 1,330 365 443 165%
2021 1,294 380 428 160%
2022 1,312 395 412 163%
2023 1,571 41 0 395 195%
2024 1,802 425 377 225%
Pledged
Fiscal Year Revenue Principal Interest Coverage
2022 4,131 1,48 0 108 260%
2023 8,749 1,715 2,130 228%
2024 8,106 1,525 2,171 219%

CITY OF VICTORVILLE

PLEDGE REVENUE COVERAGE

LAST TEN FISCAL YEARS
(in thousands)
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements
Fiduciary Trust Activities - Successor Agency Tax Allocation Bond Debt Service
Business Type Activities Debt - SCLAA Tax Allocation Bond Debt Service
Business Type Activities Debt - Water District Certificates of Participation Debt Service
Business Type Activities Debt - Electric
Debt Service
197
Fiscal Year
City of Victorville
Population
Personal Income
(in thousands)
Unemployment
Rate*
Per Capital
Personal Income
2014 120,485 1,936,917$ 8.6% 16,076$
2015 123,510 1,898,511$ 6.9% 15,371$
2016 123,565 1,910,290$ 6.1% 15,459$
2017 123,565 2,001,567$ 7.1% 16,198$
2018 126,543 2,129,706$ 5.7% 16,829$
2019 126,432 2,308,617$ 5.5% 18,259$
2020 127,170 2,421,637$ 12.4% 19,042$
2021 136,561 2,652,278$ 10.9% 19,421$
2022 137,193 3,065,677$ 6.2% 22,345$
2023 138,202 3,335,030$ 6.8% 24,131$
Source: HdL Coren & Cone; Decennial Census Data, CA State Department of Finance, CA EDD

CITY OF VICTORVILLE

DEMOGRAPHIC STATISTICS

LAST TEN FISCAL YEARS
100,000
105,000
110,000
115,000
120,000
125,000
130,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
City of Victorville Population

5.0%

7.0%

9.0%

11.0%

13.0%

15.0%

17.0%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Unemployment Rate*…
$-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Personal Income (in thousands)
$-
$3,000
$6,000
$9,000
$12,000
$15,000
$18,000
$21,000
$24,000
$27,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Per Capital Personal Income
198
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Function
General government 71 7 2 73 77 77 7 5 76 86 95 146
Public Safety* 0001 6 0 59 60 76 70 84
Public Works 108 11 0 113 116 113 118 11 6 138 12 0 104 C o m m u n i t y D e v e l o p m e n t44444 3335 1 3
Community Services 11 2 75 75 82 78 8 6 85 86 79 44
Airport 26 25 26 26 26 24 24 23 27 3 0
Water 53 57 6 3 66 66 59 56 56 57 91
Total 37 4 343 354 372 424 424 420 468 45 3 512
Source: City of Victorville Finance Department.
* Only includes Fire Services. In fiscal year 2018, fire staff were added for start up of new City fire department.

CITY OF VICTORVILLE

FULL-TIME CITY EMPLOYEES BY FUNCTION

LAST TEN FISCAL YEARS
Fiscal Year
199
Function 2013 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Public Safety
Police
Physical arrests 4,096 5,389 5,194 5,716 5,733 3,531 2,793 2,860 2,76 1 1531 3256 Traffic Violations 9,404 6,759 4,070 5,561 3 ,635 **** 4 049 5621 Public works
Street Maintenance
Potholes repaired (number) 3,124 3,832 4,138 5 ,667 7,427 7,713 11,444 8,653 9,455 15,524 34,520 Graffiti removal (locations) 14,708 5 ,687 4,708 2 ,824 3,116 2,592 2,966 3,240 2,793 3,808 3 ,461 Streets sweeping (tons) 1,907 1,782 1,687 1,627 1,544 1,712 1,878 1 ,877 1,824 2,182 Sanitation
Refuse collected (tons/day) 166 182 202 206 210 220 228 23 6 240 233 233 Recyclables collected (tons/day) 28 3 2 33 32 32 33 35 39 40 40 27 Community Services
Park and Recreation
Athletic field permits issued 6,788 5 ,970 5,905 6,310 5,785 5,020 162 41*** 45*** 105 92 Community center enrollments 30 ,915 31,384 29,958 25 ,343 19,518 14 ,503 1,973 882** 1,667 6,382 2,436 Facilities rental used 2,062 2,036 2,388 2 ,469 2,252 1,803 62 9** 177** 74 132 Water
Residential 6,198,485 5,991,545 5,191,845 5,505,636 5,722,934 4,961,977 5,135,298 5,522,76 3 5,371,857 4,888,059 4,993,729 Multi Residential 483,968 467 ,812 405,373 444,737 490,302 752,766 781,018 840,41 4 844,824 786,059 792,172 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 1,373,246 Institutional 465,354 449,819 389,782 437,698 470,500 773,125 857,134 852,178 944,44 2 870,590 869,838 Irrigation 623,574 602,757 522,308 491 ,157 471,954 460,627 486,095 541,868 592,47 5 523,424 520,834 Fire service 22 43 50 94 148 2,96 3 3,919 3,112 3,844 4,250 3,368 Recycled - 407,194 274,824 127,752 205,354 316,953 275,268 344,982 380,617 413,966 328,058 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 8,881,245 Water Sold (in acre feet) 21,366 20,653 17,896 19,201 20,543 19,730 20,868 22,34 6 22,096 20,079 20,389 Number of Customer Connections
Residential 32,145 32,841 32 ,884 32,650 32,386 32,680 33,047 33,709 34,501 34,88 9 35,401 Multi Residential 195 195 198 19 7 776 768 75 9 762 762 763 770 Commercial 1,059 1,064 1,066 1,074 1,099 1,333 1,325 1,358 1,36 3 1,285 1,292 Institutional 204 205 206 207 169 256 225 226 226 226 225 Irrigation 235 236 236 239 266 331 371 38 6 396 410 419 Fire service 554 555 555 564 580 598 608 61 6 625 638 64 6 Recycled - 2 2 2 4 4 5 7 5 8 8
Total 34,392 35,098 35 ,147 34,933 35,280 35,970 36,340 37,064 37,878 38,21 9 38,761 19,074 19,272 16,540 17,142 16,917 17,614 18,629 19,950 19,726 17,925 18,202 Estimated Population 119,658 122 ,233 121,419 121,608 122,699 123,758 125 ,085 127,543 130,788 137 ,193 138,202 159 158 136 141 138 142 149 156 151 140 134 Rainfall in inches 1.90 2.75 0.92 5.69 4.92 0.69 4.16 4.95 1.63 2.00 2.41 Source: City of Victorville departments
Note: Indicators are not available for the general government function. * Indicator information unavailable at this time. San Bernarndino Count y changed reporting software for Police and information has not been retreivable . ** Parks and Recreation facilities and classes were closed throu gh 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

LAST TEN FISCAL YEARS
200
2014 2015 2016* 2017 2018 2019 2020 2021 2022 2023 2024 Consumption (per hundred cubic feet)
Standard Domestic $ 1.53 $ 1.53 $ 1.75 $ 1.75 1.88$ $ 2.03 2.18$ $ 2.35 2.6 1$ $ 2.57 2.52 Construction Flow 2.47 2.47 2.77 2.77 2.9 4 3.12 3.32 3.51$ 3.5 6$ $ 3.67 3.78 Untreated Well 0.52 0.52 0.60 0.60 0.64 0.69 0.74 0.80$ 0.8 9$ $ 0.87 0.86 Recycled 0.92 0.92 1.05 1.05 1.13 1.2 2 1.31 1.41$ $ 1.57 1.54$ 1.51 Public Benefit 0.61 0.61 - - --- - -- -
Monthly Service Fee
Monthly per average
daily use 0.00-0.26 $ 17.25 $ 17.25 $ - $ - $ - $ - $ - $ - $ - $ - $ - Monthly per average
dail
y 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
dail
y use > 6.60 130.50 130.50 - - - - - - - - - 3/4 inch meter $ - $ - 11.7 8$ 11.78$ $ 12.23 12.68$ $ 13.15 13.3 6$ 15.2 4$ 17.68$ $ 20.25 1 inch meter - - 18.5 9 18.59 19.30 20.02 20.75 21.0 9 23.31 27.04 30.97 1 1/2 inch meter - - 35.6 2 35.62 36.99 38.37 39.7 6 40.41 43.49 50.45 57.7 8 2 inch meter - - 56.0 6 56.06 58.21 60.39 62.58 63.60 67.71 78.54 89.96 3 inch meter - - 110.5 6 110.56 114.80 119.09 123.42 125.44 132.28 153.44 175.75 4 inch meter - - 171.8 8 171.88 179.47 185.1 4 191.87 195.0 1 204.93 237.7 1 272.27 6 inch meter - - 342.1 9 342.19 355.32 368.60 382.00 388.25 406.7 2 471.78 540.38 8 inch meter - - 955.3 4 955.34 991.99 1,029.07 1,066.4 8 1,083.92 1,133.18 1,314.45 1,505.5 8 > 8 inch meter - - 1,432.23 1,432.23 1,487.17 1,542.77 1,598.85 1,624.9 9 1,698.21 1,969.86 2,256.28 Fire Service Fee
1 inch meter 10.00$ 10.0 0$ 2.69$ 2.69$ 2.82$ 2.96$ 3.10$ 3.2 0$ 4.1 4$ $ 4.67 $ 5.23 2 inch meter 10.00 10.00 5.19 5.19 5.48 5.78 6.09 4.64 5.15 5.7 1 6.31 2 1/2 inch meter 10.00 10.00 5.19 5.19 5.48 10.65 6.0 9 6.37 6.3 6 6.96 7.60 3 inch meter 9.50 9.50 10.06 19.62 11.27 11.83 10.1 9 10.92 11.68 4 inch meter 10.00 10.00 17.45 17.45 18.5 0 42.68 20.80 21.90 17.26 18.20 19.19 6 inch meter 10.00 10.00 37.88 37.88 40.21 73.44 45.31 47.78 35.42 36.94 38.52 8 inch meter 10.00 10.00 65.13 65.13 69.1 6 114.45 77.9 9 82.30 59.63 61.9 1 64.28 > 8 inch meter 10.00 10.00 101.45 101.45 107.75 114.45 121.5 6 128.31 91.91 95.22 98.64 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.

CITY OF VICTORVILLE

OPERATION INDICATORS BY FUNCTION

LAST TEN FISCAL YEARS
Principal Water Rates
Fiscal Year
201
Function 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Public Safety
Police:

Stations 111111 1 1111
Patrol Units 52 52 52 55 5 4 54 54 70 70 86 86
Fire Stations 665555 5 5555
Public Works
Highways and streets:

Streets (miles) 448 448 449 449 449 449 449 449 449 45 1 467 Streetlights 392 392 396 40 4 408 418 418 428 428 428 527 Traffic Signals 87 87 88 9 0 91 94 94 97 97 97 10 0
Sewer:

Sanitary sewers (miles) 419 419 44 0 440 443 443 449 455 455 467 47 0 Storm sewers (miles) 473 473 473 473 473 473 473 473 473 474 474 Number of treatment plants 2 22222 2 2 222 Number of service connections 40,152 40,029 40,092 40,55 1 41,232 41,72 3 36,616 36,222 36,76 4 31,286 31,217 Community Services
Parks acreage 263 263 263 180 180 180 180 180 180 182 18 0 Park 18 18 18 19 19 19 19 19 19 19 19
Golf Courses 111111 1 1111
Swimming pools 111111 1 1111
Tennis courts 666666 6 6666
Community Centers 666777 7 7777
Airport
Runway length (miles) 555555 5 5 4 * 4 * 4
Sewer pipeline 30 30 30 30 30 30 30 30 30 30 30
Number of hangars 26 26 26 26 26 26 26 26 26 26 26
Number of buildings 52 52 52 52 52 52 52 52 52 52 52
Water
Water Production in Acre feet 23,830 22,030 20,905 22,476 24,38 3 21,755 22,017 23,487 22,468 20,627 20,982 Domestic Water Tanks (Reservoirs) 26 26 26 26 26 26 26 26 26 26 26 Domestic Storage in Millions of Gallons 74 74 74 74 74 74 74 74 74 74 74 Recycled Water Tanks (Reservoirs) 111111 1 1 111
Recycled Storage in Millions of Gallons 111112 2 2 21 . 6 2 Wells 32 32 32 32 32 3 4 34 34 34 34 33
Pipeline - Linear Feet (in thousands) 3,666 3,666 3,666 3,666 3,666 3,666 3,666 3666 4087 4087 8851 4 Pipeline - Miles 694 694 694 694 694 694 709 709 774 774 775 Booster Pumping Stations 444444 4 4 444
Pressure Regulating Stations 24 24 24 25 25 25 25 25 25 3 3 25 *Per request by FAA, Runway 17/35 was shortened resulting in a combined total of 4 miles.

Source: City of Victorville departments
Note: Indicators are not available for the general government function.

CITY OF VICTORVILLE

CAPITAL ASSET STATISTICS BY FUNCTION

LAST TEN FISCAL YEARS
Fiscal Year
202