Attachment A
Activity Report for the
First Quarter
FINANCE DEPARTMENT
QUARTERLY REPORT
FY 2026 - Q1
FINANCE:
53 Positions
6 Divisions
1 Team
City Manager
Keith C. Metzler
Deputy City Manager
Jenele Davidson
Director of Finance
Carmen Cun
Assistant Director of Finance
Asdghik Keyvanian
July 1, 2025 – September 30,2025
Finance Projects Completed:
Annual tax roll update for outstanding utility bills. Regulatory reporting to:
o Quarterly State payroll taxes
o Quarterly State & Fed tax payment for CNG, diesel & underground tanks o Annual CalPERS payroll report
o Quarterly PERMA wage report
o Quarterly SMIP (seismic fees) processed
Re-implementation of OpenGov and Munis – Budget Module Went live with the Procurement Module of OpenGov – Phase I. This system allows for electronic bid management. Phase II will be contract management. Went live with Evident – Partnered with our Risk Management team to electronically begin tracking insurance for all City contracts.
Projects In Progress: FY 2025 Annual Audit FY 2025 Single Audit SBCTA / Measure I Audit Testing of IVR System AB-1600 Report Cost Allocation Plan User / DIF Fee Updates
Department Statistics by Division
Q1 General Fund Revenues and Expenditures Comparison FY25 vs. FY26
The General Fund serves as the City’s primary operating fund, providing the financial resources necessary to support daily operations and essential community services.
As of the first quarter, General Fund revenues total $8.3 million for FY 2025–26, which is consistent with the same period in the prior fiscal year. This reflects an increase of $626,284.52 compared to FY 2024–25 revenues of $7.6 million. This growth is primarily driven by higher administrative citation fees, payments received from the State of California for state-mandated costs related to FY 2023–24, an increase in General Sales Tax revenues resulting from continued consumer spending, all contributing to the overall revenue growth.
Total expenditures for the first quarter of FY 2025–26 was $28.5 million, compared to $19.4 million for the same period in FY 2024–25, representing an increase of $9.0 million. The variance is primarily due to the timing of certain expenditures. Specifically, the $8.3 million payment to the San Bernardino County SheriƯ’s Department for law enforcement services was recorded in September 2025 for FY 2025–26, whereas the corresponding payment in the prior fiscal year was recorded in October 2024.
Q1 Measure P Revenues and Expenditures Comparison FY25 vs. FY26
Measure P is a one-percent General Transaction and Use Tax that took eƯect on April 1, 2021, increasing Victorville’s sales tax rate from 7.75% to 8.75% to support the expansion of essential services such as police, fire, and code compliance for the City’s growing community.
The Measure P revenues for FY 2025–26 total $3.0 million, representing a decrease from the FY 2024–25 revenues of $7.3 million. The decline of $4.3 million is primarily due to several one-time revenues received in the prior fiscal year. In FY 2024-25, the City received a $3.7 million payment for the purchase of land intended for the new police station. Additionally, the City collected about $432,978 of Bed Fees from the Wellness Center during FY 2024-25, which are no longer being received in FY 2025-26.
Expenditures for Measure P total $4.3 million in the current fiscal year, compared to $3.0 million in the prior fiscal year, an increase of approximately $1.3 million. The variance is primarily due to a $732,939.20 payment to for law enforcement services that was recorded in September 2025 for this fiscal year, whereas the corresponding payment in the prior fiscal year was recorded in October 2024. In addition, payments of $305,836.99 for design services related to the new police station project, and $262,862.75 for library construction services contributed to the year-over- year increase in expenditures.
Q1 Citywide Revenues and Expenditures Comparison FY25 vs. FY26
Citywide revenues for FY 2024–25 totaled $59.6 million, compared to $53.1 million for FY 2025– 26, reflecting a decrease of $6.6 million. This decline is primarily attributed to the one-time receipt of $1.1 million in Caltrans grant funding for the Bear Valley Road Bridge Widening Project during FY 2024–25. An additional $1.0 million reimbursement for this project is anticipated later in FY 2025-26. The City also received $1.1 million during FY 2024-25 as the final reimbursement from Caltrans for the Green Tree Extension project. Furthermore, Measure P revenues approximately $4.3 million received in FY 2024-25 but not received in FY 2025-26. Collectively, these factors contributed to the lower overall revenue levels observed in FY 2025-26 compared to FY 2024-25.
Overall, Citywide expenditures for FY 2025–26 total $65.3 million, an increase of $12.3 million compared to FY 2024–25 expenditures of $53.0 million. This variance is primarily due to the timing of recording certain expenditures, including payments to the San Bernardino County SheriƯ’s Department, pass-through sewage payments, and hauling changes which were recorded in the first quarter of FY 2025-26 but in the second quarter of FY 2024-25. Additionally, a payment to Symba Center for shelter operations during FY 2025-26 which included both startup costs and July operating expenses contributed to the higher expenditures reported for FY 2025-26. Excluding expenditures where the variance is solely to timing diƯerences, the overall expenditures remain consistent with the prior fiscal year's levels.
Notes:
The primary revenue sources for non-Enterprise funds are from Property Tax, Sales Tax, and Transient Occupancy Tax (TOT). For this quarter, the first payment for FY 2025–26 will not be received until December 2025. Property Tax revenues received in July and August apply to FY 2024-25 and are recorded accordingly. The City received its July Sales Tax payment in September 2025; therefore, two months of Sales Tax revenue for this quarter are still pending.
TOT revenues tend to vary and are received unevenly throughout the year.
The significant increase in expenditures this quarter is not uncommon and reflects annual entries recorded at the beginning of the fiscal year. For example, the increase shown in FY 2025-26 Q1 includes the annual $7.1 million unfunded liability payment to CALPERS, which is recorded each July for all departments.
Transactions in progress are not included. Revenues and expenditures may include prior quarter adjustments.