Victorville City Council
January 20, 2026

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 involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the 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 United States of America require that the management’s discussion and analysis, the required pension and OPEB schedules, and General Fund Budgetary Comparison Schedules on pages 5-17 and 120-133 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information 2 To the Honorable Mayor and Members of the City Council of the City of Victorville
Victorville, California

and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements.

We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions 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 underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United 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 introductory section and statistical section but does not include the financial statements and 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 otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected 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 January 6, 2026 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, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Badawi & Associates, CPAs
Emeryville, California
January 6, 2026
4 City of Victorville
Management’s Discussion and Analysis
For the year ended June 30, 2025
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, 2025.

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. 5 City of Victorville
Management’s Discussion and Analysis
For the year ended June 30, 2025
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.
6 City of Victorville
Management’s Discussion and Analysis
For the year ended June 30, 2025
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 considered 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 7 City of Victorville
Management’s Discussion and Analysis
For the year ended June 30, 2025
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.
8 City of Victorville
Management’s Discussion and Analysis
For the year ended June 30, 2025

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)
2025 2024 2025 2024 2025 2024
Cash and Investments 255,013$ 221,590$ 236,085$ 215,401$ 491,098$ 436,992$ Other Assets 60,268 61,537 107,027 105,830 167,295 167,367 Internal Balances 889 1,926 (889) (1,926) - - Capital Assets 541,853 542,137 344,715 343,272 886,568 885,409 Total asset s 858,023 827,190 686,938 662,577 1,544,961 1,489,767 Deferred outflows - pension 19,139 21,620 10,554 11,426 29,693 33,047 Deferred outflows - OPEB 3,816 3,320 2,622 2,928 6,438 6,248 Deferred charges on refunding - - 1,129 1,263 1,129 1,263 Total deferred outflows of
resources 22,955 24,940 14,305 15,618 37,260 40,558 Short-Term Liabilities 31,493 40,031 26,733 27,333 58,227 67,364 Total OPEB Liability 21,467 19,708 16,520 16,799 37,987 36,507 Net Pension Liability 61,465 59,576 32,594 30,889 94,059 90,465 Other Long-Term Liabilities 10,482 6,068 323,738 330,716 334,220 336,783 Total Liabilities 124,908 125,383 399,586 405,737 524,494 531,120 Deferred inflows - pension 305 477 510 1,309 815 1,785 Deferred inflows - OPEB 9,385 10,357 5,144 5,391 14,529 15,747 Deferred inflows - Leases 5,526 5,762 80,883 82,769 86,409 88,532 Total deferred inflows of
resources 15,216 16,595 86,538 89,469 101,753 106,064 Net Position:

Net Investment in Capital
Assets 541,166 541,240 56,487 48,758 597,653 589,999 Restricted 123,723 117,572 - - 123,723 117,572 Unrestricted 75,966 51,340 158,632 134,231 234,599 185,571 Total Net Position 740,855 710,152 215,119 182,989 955,974 893,141 Gove rnmental
Activities
Business- Type
Activities Total
9 City of Victorville
Management’s Discussion and Analysis
For the year ended June 30, 2025
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 $62.8 million primarily due to the increase in cash and investments. Cash and investments increased by $54.1million and capital assets increased by $1.2 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 $30.8 million primarily due to an increase in cash and investments of $33.4 million and decreases in the other categories. Other Assets saw a decrease of $1.3 million, interfund balances had a decrease of $1 million, and capital assets had a decrease of just under $285,000.
 Interfund loan balance decrease of $1 million was due to Victorville Municipal Utilities paying their final payment to the general fund.
 Business-type total assets increased by $24.4 million. This was due primarily to an increase in cash and investments in the amount of $20.7 million and a reduction in interfund balances owed in the amount of $1 million. Additionally, capital assets had an increase in the amount of $

1.4 million
and other assets also increased by $1.2 million.

Total Liabilities:
 Governmental total liabilities had a small decrease, just under $475,000. While short term liabilities had a substantial decrease of $8.5 million; this was offset by an increase in OPEB liability and net pension liability totaling $3.8 million. In addition to an increase in long-term liabilities in the amount of $4.4 million.
 Business-type total liabilities decreased by $6.2 million due to decreases in other long-term liabilities of $7million, $600,000 in short term liability, and $279,000 in OPEB liability; these were offset by an increase of $1.7 million in net pension liability. The decrease in long-term liabilities was primarily due to a reduction in bonds payable resulting from the annual principal debt service payments. The decrease in these liabilities was offset primarily by the increase in net pension liability in the amount of $1.7 million.

GOVERNMENTAL ACTIVITIES
During the year ended June 30, 2025, the City’s governmental activities had an increase of $

30.7 million
in the total net position as compared to fiscal year 2024. Significant changes in the revenue and expenses within the City’s governmental activities are as follows:
 Total revenue decreased by $4 million for governmental activities. This decrease is primarily due to lower sales taxes in the amount of $7.1 million and a decrease in operating contributions and grants in the amount of $6.1 million. These decreases were offset by an increase of $3.4 million in property tax, $3.3 million in charges for services, $1.1 million in miscellaneous revenue, and $1.3 million in all other categories such as franchise taxes, capital contributions and grants, and investment income.
 Total governmental expenses increased by $20.6 million as compared to fiscal year 2024. This increase is primarily due to the increase in general government of $14million, an increase in public safety of $6million, and an increase in community development of $5.9 million. These increases were offset by a decrease of $7.5 million in public works. 10 City of Victorville
Management’s Discussion and Analysis
For the year ended June 30, 2025
City of Victorville’s Change in Net Position (table 2)
(In Thousands)
2025 2024 2025 2024 2025 2024
Revenues:

Program Revenues:

Charges for Services 39,056$ 35,720$ 142,301$ 132,234$ 181,357$ 167,954$ Operating Contributions and Grants 18,638 24,721 - - 18,638 24,721 Capital Contributions and Grants 13,980 13,193 6,941 10,573 20,921 23,766 General Revenues:

Property Taxes 44,803 41,398 23,264 23,275 68,066 64,673 Sales Taxes 65,106 72,173 - - 65,106 72,173
Transient Occupancy Tax 1,674 1,640 - - 1,674 1,640 Franchise Taxes 5,296 5,034 - - 5,296 5,034 Investment Income 6,870 6,718 12,752 12,867 19,622 19,585 Gain ( loss) on sale of Assets 35 10 14 - 49 10 Miscellaneous Revenues 1,662 536 - - 1,662 536
Total Revenues 197,121 201,143 185,271 178,949 382,392 380,092 Expenses:

General Government 38,371$ $24,389 - - $38,371 $24,389 Public Safety 69,974 63,933 - - 69,974 63,933 Community Development 7,152 1,283 - - 7,152 1,283 Public Works 37,583 45,128 - - 37,583 45,128 Park and Recreation 9,619 7,379 - - 9,619 7,379 Sanitary - - 22,743 22,969 22,743 22,969 Airport - - 34,198 36,662 34,198 36,662 Solid Waste Management - - 27,999 25,949 27,999 25,949 Water - - 51,962 49,838 51,962 49,838 Municipal Utility - Gas - - 2,740 3,657 2,740 3,657 Municipal Utility - Electric - - 12,778 16,028 12,778 16,028 Interest on Long-Term Debt 110 121 - - 110 121 Total Expense s 162,809 142,233 152,421 155,103 315,230 297,336 Change in Net Position before
Transfers 34,311 58,910 32,850 23,846 67,162 82,756 Transfers 244 -$ (244) -$ - -
Change in net position 34,556 58,910 32,606 23,846 67,162 82,756 Net Position 706,299 651,242 182,513 159,142 888,812 810,385 Net Position - End of Year 740,855 710,152 215,119 182,989 955,974 893,141 Gove rnmental
Activities
Business- Type
Activities Total
11 City of Victorville
Management’s Discussion and Analysis
For the year ended June 30, 2025
Revenues by Source - Governmental Activities
Expenses by Function - Governmental Activities
Property Taxes

22.73%
Sales Taxes 18.29%
Transaction & Use
Taxes 14.75%
Transient Occupancy
Tax 0.85%Franchise Taxes

2.69%
Miscellaneous
Revenues 0.84%
Charges for
Services 19.82%
Investment Income

3.49%
Operating
Contributions &
Grants 9.46%
Capital
Contributions &
Grants 7.09%
General
Government 23.57%
Public Safety 42.98%
Community
Development

4.39%
Public Works 23.08%
Interest on Long-Term
Debt 0.07% Parks and Recreation

5.91%
12 City of Victorville
Management’s Discussion and Analysis
For the year ended June 30, 2025
Revenue by Source - Business-Type Activities
Expenses by Function
– Business-Type Activities
Sanitary 14.92%
Airport 22.44%
Solid Waste
Management 18.37%
Water 34.09%
Gas Utility 1.80%
Electric Utility 8.38%
13 City of Victorville
Management’s Discussion and Analysis
For the year ended June 30, 2025

BUSINESS TYPE ACTIVITIES
During the year ended June 30, 2025, the City’s business-type activities had an increase of $32.1 million in the total net position as compared to fiscal year 2024.

Significant changes in the revenue and expenses within the business-type activities are as follows:
 Overall revenues improved by $6.3 million from the prior year.  Charges for services increased by $10.1 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 decreased by $2.7 million. All business-type activities decreased with the exception of the Solid Waste Management and Water; their increase was $2 million and $2.1 million respectively.
 The major decreases were Municipal Utility (electric and gas) in $4.2 million and Airport which had a decrease in expenditures in the amount of 2.5 million. Much of the decrease was due to a reduction of major projects and various costs savings such as the purchases of commodities such as electricity, natural gas, and water.

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 $161.9 million, while the total fund balance was $163.4 million. This is an increase of $28.7 million in total fund balance from fiscal year 202 4. 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 135%.

General Fund revenue increased by $12.3 million during this fiscal year over the last fiscal year, mainly due to $4.3 million increase in charges for services, $2.8 million increase in taxes and assessments, and a $5.4 million increase in other revenues. Moreover, general fund expenditures increased by $10.8 million as compared to last fiscal year. Major changes were public safety with a $

5.4 million increase in
expenditures, general government had a $3.4 million increase, and public works had a $1.9 million expenditure increase.

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 2025 was $29.1 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 for police, code compliance, animal control, and fire departments, as well as several park improvement projects, Green Tree Library, equipment for the fire department and training. 14 City of Victorville
Management’s Discussion and Analysis
For the year ended June 30, 2025
Budget vs. Actual – The General Fund revenue original budget was $ 136.2 million, and the final budget was adjusted throughout the year to $140.1 million. Actual revenue at the end of the year totaled $148.3 million, which was $8.2 million over the revised budgeted amount. This variance was primarily related to actual revenues coming in higher than expected for investment income in the amount of 3.8 million, $1.4 million in charges for services, $1.7 million in taxes and assessments, and $1.3 million in intergovernmental and other revenues combined.

The General Fund’s original budget
for expenditures was $144.5 million and was adjusted throughout the year to $168.7 million. This increase was primarily for public safety, animal shelter, new multimedia supplies for the new library, and anticipated cost in utilities. Actual expenditures were only $119.8 million with
most of the cost savings realized in capital improvement projects and purchases that were not completed within the fiscal year, approximately $37.7 million. Additionally, cost savings of $11.2 million in operations and maintenance were seen, primarily in wages, contract services, and legal fees.

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 202

5. 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 2025, revenues increased by $3.7 million when compared to the prior year. VWD experienced an increase of $3.1 million in service charges and a slight increase in fines and forfeitures and other revenues in the amount of $610,000.

Expenses
increased by $4 million from the prior year. The major contributing factors were an increase to maintenance and operations for $5 million. This was in large part due to inflation and an increase to contract services.

However, this was offset by a decrease of just under $1 million in production costs.

The Southern California Logistics Airport remained flat in both its revenues in FY 2025 as compared to the
prior year. Revenues decreased by $290 thousand. The decrease was primarily due to a decrease of $392 thousand in charges for services and an offset of $102 in fines and forfeitures and other revenues. SCLAA did see a decrease in expenditures of $2.6 million. The primary cause of this decrease is a $1.7 million reduction in depreciation expense and $1 million in operations and maintenance. These two de creases were offset by an increase of $109 thousand in personnel expenses.

The Victorville
Municipal Utility Services (VMUS) electric fund remained flat with a $141 thousand increase in revenues in FY 2025 as compared to FY 2024. The utility did not have a rate increase during the fiscal year and there was a minimal fluctuation in the number of customers. The expenses for this fund decreased
by $3.2 million from the prior year. The cost savings is due to a reduction in cost afforded by new power purchase agreements and a reduction of $1.7 million in operations and maintenance.

The City’s Solid Waste fund experienced an increase in revenues of $4.3 million from the prior fiscal year.

This increase
is due to an increase in the rates per the latest rate study, ensuring revenue stabilization for the fund. Expenses increased by
$2.1 million primarily due to higher costs in maintenance and operations because of inflation and the cost to implement state mandates. 15 City of Victorville
Management’s Discussion and Analysis
For the year ended June 30, 2025
Fiscal Year 2025 implemented a rate increase, and the Sanitary fund saw an increase in revenues in the amount of $3 million. Conversely, the expenditures remained flat with a slight decrease in the amount of $225 thousand. The fund saw an increase in depreciation expense in the amount of $512 thousand and $130 thousand in personnel, but this was offset by cost savings of $867 thousand in operations and maintenance.

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, 2025 amounted to $886.6 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 $1.2 million. This is mainly due to an increase of $2.6 million in furniture and equipment, $1.9 million increase in infrastructure, $1.6 million in vehicles, and $633,000 in water rights. These increases were offset by a $4.6 million decrease in buildings and improvements, $1 million in land improvements, and $627,000 in computers and communication.

Additional information on the City of Victorville’s capital assets can be found in Note 4 of the Notes to the Basic Financial Statements.
2025 2024 2025 2024 2025 2024
Land 58,777$ 58,777$ 25,211$ 25,211$ 83,988$ 83,988$ Land Right of Way 180,100 180,100 - - 180,100 180,100 Buildings and Improvements 83,120 85,912 77,996 79,785 161,116 165,697 Furniture and Equipment 11,540 8,451 7,954 8,455 19,494 16,906 Computers and Communications 3,052 3,647 131 162 3,182 3,809 Vehicles 4,242 3,909 4,401 3,166 8,643 7,075
Infrastructure 182,948 187,261 191,304 185,046 374,252 372,306 Land Improvement 490 1,479 558 536 1,049 2,015
Water Rights - - 22,040 21,407 22,040 21,407
SBITAs 558 739 09 20 567 759
Leases 153 197 - - 153 197
Intangible Assets - - 3,955 3,955 3,955 3,955
Idle Assets - - 3,018 3,018 3,018 3,018
Construction in Progress 16,873 11,667 8,139 12,510 25,012 24,177 Total 541,853$ 542,137$ 344,715$ 343,272$ 886,568$ 885,409$ Governmental
Activities
Business-Type
Activities Total
16 City of Victorville
Management’s Discussion and Analysis
For the year ended June 30, 2025
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 $427 million, an increase of $4.3 million as compared to the prior fiscal year. This increase is primarily due to the increase of $3.8 million in compensated absences, $3.6 million in the City’s net pension liability and $1.5 million in OPEB Liability, in addition to an increase of $1.3 million in claim/settlement payables.

These increases were offset by a decrease of $5.5 million in tax allocation bonds.

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] . 2025 2024 2025 2024 2025 2024
Compensated Absences 8,976$ 5,638$ $ 1,415 $ 962 $ 10,392 $ 6,600 SBITAs 532 700 - 11 532 711
OPEB Liability 21,467 19,708 16,520 16,799 37,987 36,507 Net Pension Liability 61,465 59,576 32,594 30,889 94,059 90,465 Claim / Settlement Payable 4,584 2,865 750 1,190 5,334 4,055 Pollution Remediation Obligation 483 169 - - 483 169
Tax Allocation Bond - - 271,409 276,889 271,409 276,889 Certificate of Participation - - 7,255 7,700 7,255 7,700 Refunding Charges & Unamortized
Discount/Premiums - - (138) (94) (138) (94)
Total 97,509 88,655 329,805 334,347 427,313 423,002 Governmental
Activities
Business-Type
Activities Total
17 Intentionally Left Blank
18 BASIC

FINANCIAL STATEMENTS
19 Intentionally Left Blank
20 GOVERNMENT-WIDE

FINANCIAL STATEMENTS
21 Intentionally Left Blank
22 Intentionally Left Blank
23 City of Victorville
Statement of Net Position
June 30, 2025
Governmental Business-type
Activities Activities Total
ASSETS
Current assets:

Cash and investments 255,013,014$ 204,487,551$ 459,500,565$ Cash with fiscal agent - 31,597,367 31,597,367
Receivables:

Accounts 4,028,184 16,004,371 20,032,555
Interest 2,219,071 466,052 2,685,123
Notes and loans 960 - 960
Leases receivable 168,183 7,677,132 7,845,315
Internal balances 888,846 (888,846) -
Due from other governments 17,239,031 99,524 17,338,555 Due from successor agency 12,903,772 - 12,903,772 Inventories 229,585 1,894,225 2,123,810
Prepaid items 410,030 - 410,030
Land held for resale 1,549,837 - 1,549,837
Total current assets 294,650,513 261,337,376 555,987,889 Noncurrent assets:

Prepaid deposits - 407,167 407,167
Notes and loans receivable 15,630,148 - 15,630,148 Leases receivable 5,889,371 80,458,292 86,347,663 Equity interest in joint venture - 20,133 20,133
Capital assets:

Nondepreciable 255,749,651 62,898,695 318,648,346 Depreciable 826,794,245 712,749,848 1,539,544,093 Less accumulated depreciation (540,691,072) (430,933,513) (971,624,585) Total capital assets 541,852,824 344,715,030 886,567,854 Total noncurrent assets 563,372,343 425,600,622 988,972,965 Total assets 858,022,856 686,937,998 1,544,960,854

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows - OPEB related 3,816,132 2,622,058 6,438,190 Deferred outflows - pension related 19,139,365 10,553,656 29,693,021 Deferred charges on refunding - 1,128,866 1,128,866
Total deferred outflows of resources 22,955,497 14,304,580 37,260,077 Primary Government
See accompanying Notes to Basic Financial Statements
24 City of Victorville
Statement of Net Position (Continued)
June 30, 2025
Governmental Business-type
Activities Activities Total

LIABILITIES
Current liabilities:

Accounts payable 11,110,349 8,820,054 19,930,403 Accrued liabilities 1,437,729 - 1,437,729
Interest payable - 1,718,922 1,718,922
Deposits payable 3,402,786 3,198,529 6,601,315
Unearned revenue 10,720,076 2,006,388 12,726,464 Compensated absences - due within one year 3,293,985 540,673 3,834,658 Total OPEB liability - due within one year 574,015 688,790 1,262,805 Long-term debt - due within one year 954,479 9,760,000 10,714,479 Total current liabilities 31,493,419 26,733,356 58,226,775 Noncurrent liabilities:

Advances from other governments - 12,133,339 12,133,339 Compensated absences 5,682,228 874,795 6,557,023
Total OPEB liability 21,467,497 16,519,529 37,987,026 Net pension liability 61,464,917 32,594,404 94,059,321 Long-term debt 4,799,786 310,730,317 315,530,103 Total noncurrent liabilities 93,414,428 372,852,384 466,266,812 Total liabilities 124,907,847 399,585,740 524,493,587

DEFERRED INFLOWS OF RESOURCES
Deferred inflows - OPEB related 9,384,980 5,144,231 14,529,211 Deferred inflows - pension related 304,919 510,395 815,314 Deferred inflows - leases 5,525,674 80,883,058 86,408,732 Total deferred inflows of resources 15,215,573 86,537,684 101,753,257

NET POSITION
Net investment in capital assets 541,165,872 56,486,659 597,652,531 Restricted for:

Public safety 82,469 - 82,469
Community development 33,152,922 - 33,152,922 Public works 90,487,408 - 90,487,408
Total restricted 123,722,799 - 123,722,799
Unrestricted 75,966,262 158,632,495 234,598,757 Total net position 740,854,933$ 215,119,154$ 955,974,087$ Primary Government
25 City of Victorville
Statement of Activities
For the year ended June 30, 2025
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Total Governmental activities:

General government 38,370,942$ 12,712,255$ 4,626,348$ -$ 17,338,603$ Public safety 69,974,415 10,655,568 489,534 415,611 11,560,713 Community development 7,152,272 5,117,383 2,353,765 2,403,307 9,874,455 Public works 37,582,624 9,546,629 7,927,821 11,161,404 28,635,854 Parks and recreation 9,618,992 1,024,433 3,240,417 - 4,264,850 Interest expense 110,008 - - - -
Total governmental activities 162,809,253 39,056,268 18,637,885 13,980,322 71,674,475 Business-type Activities:

Water 51,962,074 46,986,777 - 1,975,916 48,962,693 Airport 34,198,260 12,885,341 - 4,154,098 17,039,439 Gas utility 2,740,242 3,187,149 - - 3,187,149 Electric utility 12,777,815 21,262,653 - - 21,262,653 Solid waste management 27,999,122 31,743,471 - - 31,743,471 Sanitary 22,743,378 26,235,156 - 811,004 27,046,160 Total business-type activities 152,420,891 142,300,547 - 6,941,018 149,241,565 Total primary government 315,230,144$ 181,356,815$ 18,637,885$ 20,921,340$ 220,916,040$ 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
Transfers
Total general revenues and transfers
Change in net position
Net position - beginning of year
Restatement - due to implementation of GASB 101 and correction Beginning of year, as restated
Net position - end of year
Program Revenues
See accompanying Notes to Basic Financial Statements.
26 Governmental Business-Type
Activities Activities Total
(21,032,339)$ -$ (21,032,339)$ (58,413,702) - (58,413,702) 2,722,183 - 2,722,183 (8,946,770) - (8,946,770) (5,354,142) - (5,354,142) (110,008) - (110,008) (91,134,778) - (91,134,778) - (2,999,381) (2,999,381) - (17,158,821) (17,158,821) - 446,907 446,907
- 8,484,838 8,484,838 - 3,744,349 3,744,349 - 4,302,782 4,302,782 - (3,179,326) (3,179,326) (91,134,778) (3,179,326) (94,314,104)
44,802,642 23,263,549 68,066,191
36,040,347 - 36,040,347 29,066,067 - 29,066,067 1,673,757 - 1,673,757 5,296,386 - 5,296,386 116,879,199 23,263,549 140,142,748
6,869,533 12,752,221 19,621,754
1,662,435 - 1,662,435 34,868 14,046 48,914
244,345 (244,345) -
125,690,380 35,785,471 161,475,851
34,555,602 32,606,145 67,161,747
710,152,097 182,988,687 893,140,784
(3,852,766) (475,678) (4,328,444)
706,299,331 182,513,009 888,812,340
740,854,933$ 215,119,154$ 955,974,087$
and Changes in Net Position
Net (Expense) Revenue
27 Intentionally Left Blank
28 FUND

FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Fund Financial Statements
29 Intentionally Left Blank
30 City of Victorville
Major Governmental Funds
For the Year Ended June 30, 2025
General Fund
The chief operating fund of local government. The general fund is used to account for all financial resources except those required to be accounted for in another fund.
31 City of Victorville
Balance Sheet
Governmental Funds
June 30, 2025
Nonmajor Total
Governmental Governmental
Funds Funds
ASSETS
Cash and investments 158,809,505$ 96,203,509$ 255,013,014$ Accounts receivable 2,131,928 1,896,256 4,028,184
Interest receivable 2,219,071 - 2,219,071
Notes receivable - 15,631,108 15,631,108
Due from other funds 427,702 - 427,702
Advances to other funds 888,846 - 888,846
Due from other governments 10,140,371 7,098,660 17,239,031 Leases receivable 6,057,554 - 6,057,554
Due from successor agency - 12,903,772 12,903,772
Inventories 229,585 - 229,585
Prepaid items 374,777 35,253 410,030
Land held for resale - 1,549,837 1,549,837
Total assets 181,279,339$ 135,318,395$ 316,597,734$

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable 7,557,135$ 3,553,214$ 11,110,349$
Accrued liabilities 1,437,729 - 1,437,729
Deposits payable 3,382,334 20,452 3,402,786
Due to other funds - 427,702 427,702
Unearned revenue 5,464 10,714,612 10,720,076
Total liabilities 12,382,662 14,715,980 27,098,642
Deferred Inflows of Resources
Deferred inflows - leases 5,525,674 - 5,525,674
Deferred inflow - unavailable revenue - 3,680,964 3,680,964 Total deferred inflows of resources 5,525,674 3,680,964 9,206,638 Fund Balances:

Nonspendable:

Advances to other funds 888,846 - 888,846
Prepaid items 374,777 35,253 410,030
Inventories 229,585 - 229,585
Restricted:

Public safety - 82,469 82,469
Highways and street projects - 86,261,997 86,261,997
Community development - 33,152,922 33,152,922
Unassigned 161,877,795 (2,611,190) 159,266,605 Total fund balances 163,371,003 116,921,451 280,292,454 Total liabilities, deferred inflows of
resources and fund balances 181,279,339$ 135,318,395$ 316,597,734$ General Fund
See accompanying Notes to Basic Financial Statements.
32 Total Fund Balances - Total Governmental Funds 280,292,454$ 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 255,749,651
Depreciable, net 286,103,173
were earned but were not available are reclassified as revenues in the Government-Wide Financial Statements. 3,680,964
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 changes in assumptions and benefits are deferred in the current year.

Deferred outflows of resources related to OPEB 3,816,132 Deferred inflows of resources related to OPEB (9,384,980) Deferred outflows of resources related to pension 19,139,365 Deferred inflows of resources related to pension (304,919) 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 (3,293,985)
Accrued compensated absences - noncurrent (5,682,228)
Long-term debt - due within one year (954,479)
Long-term debt - due in more than one year (4,799,786)
Total OPEB liability - current (574,015)
Total OPEB liability - noncurrent (21,467,497)
Net pension liability (61,464,917)
Net Position of Governmental Activities 740,854,933$
City of Victorville
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2025
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, 2025
Nonmajor Total
Governmental Governmental
Funds Funds
REVENUES:

Taxes and assessments 105,343,946$ 15,423,869$ 120,767,815$ Licenses and permits
4,025,049 - 4,025,049
Intergovernmental 219,593 22,590,561 22,810,154
Charges for services 24,564,183 6,542,267 31,106,450
Fines and forfeitures 867,960 62,864 930,824
Investment income (loss) 6,924,150 4,506,575 11,430,725 Other 6,310,038 249,034 6,559,072
Total revenues 148,254,919 49,375,170 197,630,089 EXPENDITURES:

Current:

General government
23,994,114 325,602 24,319,716
Public safety 67,948,695 185,014 68,133,709
Community development 616,142 5,044,950 5,661,092
Public works 15,173,412 13,193,630 28,367,042
Parks and recreation 6,803,302 18,867 6,822,169
Capital outlay 4,786,478 17,880,814 22,667,292
Debt service:

Principal 41,783 - 41,783
Interest and loan fees 6,413 - 6,413
Principal - SBITA 277,689 1,352 279,041
Interest - SBITA 103,559 36 103,595
Total expenditures 119,751,587 36,650,265 156,401,852

REVENUES OVER (UNDER)
EXPENDITURES 28,503,332 12,724,905 41,228,237
OTHER FINANCING SOURCES (USES):

Transfers in
34,062 - 34,062
Transfers out - (34,062) (34,062)
SBITA financing 111,205 - 111,205
Proceeds from sale of property 40,838 8,253 49,091
Total other financing sources (uses) 186,105 (25,809) 160,296 Net change in fund balances 28,689,437 12,699,096 41,388,533 FUND BALANCES:

Beginning of year
134,681,566 104,222,355 238,903,921 End of year 163,371,003$ 116,921,451$ 280,292,454$ General Fund
See accompanying Notes to Basic Financial Statements.
34 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, 2025
Net Change in Fund Balances - Total Governmental Funds 41,388,533$ Governmental funds reported capital outlay as expenditures. However, in the Government-Wide Statement of Activities, the cost of those assets was allocated over their estimated lives as depreciation expense. 22,393,491
Depreciation and amortization expense on capital assets was reported in the Government-Wide Statement of Activities, but did not require the use of current financial resources. Therefore, depreciation expense was not reported as expenditures in the governmental funds. (22,663,186) Loss on disposal of assets are not recorded in the governmental funds since the assets are not recorded there but they are recorded in the government-wide
(14,223)
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. (13,516)
Debt proceeds provide current financial resources to governmental funds, but issuing debt increased long-term liabilities in the Government-Wide Statement of Net Position. Repayment of debt was an expenditure in governmental funds, but the repayment reduced long-term liabilities in the Government-Wide Statement of Net Position.

Long-term debt repayments
320,824
Issuance of long-term debt (111,205)
Pollution remediation 212,903
Claims payable did not require current financial resources. Therefore, claims payable were not reported as a liability in the governmental funds. (1,719,381)
Unavailable revenues recorded in the fund financial statements resulting from activities in which revenues were earned but were not available are reclassified as revenues in the Government-Wide Financial Statements. (544,447)
Current year employer OPEB contributions are recorded as expenditures in the governmental funds, however, these amounts are reported as a deferred outflow of resources in the Government-Wide Statement of Net Position. 445,749
OPEB expense is reported in the Government-Wide Statement of Activities does not require the use of current financial resources, and therefore is not reported as expenditures in governmental funds. (941,313)
Current year employer pension contributions are recorded as expenditures in the governmental funds, however, these amounts are reported as a deferred outflow of resources in the Government-Wide Statement of Net Position. 8,599,865
Pension expense is reported in the Government-Wide Statement of Activities does not require the use of current financial resources, and therefore is not reported as expenditures in governmental funds. (12,798,492) Change in Net Position of Governmental Activities 34,555,602$ Amounts reported for governmental activities in the Government-Wide Statement of Activities were different because:

See accompanying Notes to Basic Financial Statements. 35

Intentionally Left Blank
36 City of Victorville
Proprietary Funds
For the Year Ended June 30, 2025
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 thescope of the Victorville Water District Fund because of its importance in providing reclaimed and recycled water for public and private uses. The Victorville Water District has imposed connection fees to finance the acquisition and replacement costs of this plant.

Southern California Logistics Airport Authority Fund (SCLAA) Accounts for both operation and capital acquisition of the activities surrounding the airport. The former George Air Force Base now known as Southern California Logistics Airport Authority is a joint powers authority formed by the City of Victorville and the Victorville Redevelopment Agency. In 2012, the Victorville Water District was added as a member of the JPA, shortly thereafter, the Victorville Redevelopment Agency was removed as a result of the dissolution of all Redevelopment Agencies. The authority was created to effectuate the redevelopment of the former base and certain properties within an eight-mile radius of the boundaries of the airport. The airport funding sources comprised of federal grants, charges for services, and tax increment revenues passed through from the Victor Valley Economic Development Authority (VVEDA).

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

Solid Waste Management Fund
Accounts for activities in the following programs: Solid Waste Management, Source Reduction and Recycling, Landfill Mitigation, Household Hazardous Waste, and the California Department of Conservation Grants.

Sanitary Fund
The City has defined the Sanitary Fund to account forthe collection of sewage from the point of origin to be conveyed to the point of treatment or disposal. This fund includes infrastructure of pipes, pumps, and channels to collect and convey sewage to treatment or disposal. The fund provides for collection of revenues from customers and provides payment for maintenance of infrastructure and payment of contractors for disposal. Revenue received is comprised of sewer user fees and connection fees.

Nonmajor Proprietary Fund:

Gas Utility Fund
Accounts for the operation and maintenance, and capital assets of the City’s gas utility, which is funded by user charges, other fees, and loans.
37 City of Victorville
Statement of Net Position
Proprietary Funds
June 30, 2025
ASSETS
Current Assets:

Cash and investments 87,916,131$ 41,585,521$ 33,531,192$ 16,087,167$ Cash with fiscal agent 877,517 27,325,317 3,394,533 -
Accounts receivable 6,564,940 324,745 2,076,180 3,503,468 Interest receivable - 456,414 - 9,638
Due from other governments 24,569 - - 74,955
Leases receivable - 7,677,132 - -
Inventory and other assets 1,366,384 5,165 522,676 -
Total current assets 96,749,541 77,374,294 39,524,581 19,675,228 Noncurrent:

Prepaid deposits 107,195 2,195 288,554 5,105
Advances to other funds - 1,200,000 - -
Leases receivable - 77,635,964 - 2,822,328
Equity interest in joint venture - - - 20,133
Capital assets:

Nondepreciable capital assets 39,013,730 16,700,582 84,659 351,290 Depreciable capital assets 289,137,104 308,344,729 28,532,680 5,931,412 Accumulated depreciation (171,170,032) (205,617,018) (15,980,015) (4,517,366) Net capital assets 156,980,802 119,428,293 12,637,324 1,765,336 Total noncurrent assets 157,087,997 198,266,452 12,925,878 4,612,902 Total assets 253,837,538 275,640,746 52,450,459 24,288,130

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows - OPEB related 1,881,231 267,907 78,844 124,270 Deferred outflow - pension related 5,857,836 1,639,978 551,177 786,493 Deferred charge on refunding - 1,128,866 - -
Total deferred outflows of resources 7,739,067 3,036,751 630,021 910,763

LIABILITIES
Current liabilities:

Accounts payable 2,072,760 743,750 1,176,241 2,126,678
Interest payable 145,319 1,166,156 407,436 -
Deposits payable 1,799,099 815,549 543,985 9,879
Unearned revenue - 449,562 1,556,826 -
Compensated absences - due within one year 425,241 115,432 - - Total OPEB liability - due within one year 537,320 12,958 - 48,080 Long-term debt - due within one year 465,000 7,630,000 1,665,000 - Total current liabilities 5,444,739 10,933,407 5,349,488 2,184,637 Noncurrent liabilities:

Advances from other funds - - 888,846 -
Advances from other governments - 12,133,339 - -
Compensated absences - noncurrent 691,178 183,617 - -
Net pension liability 18,462,040 5,183,366 1,693,504 2,446,307 Total OPEB liability 11,106,949 2,226,953 595,045 906,301 Long-term debt 6,858,083 261,962,107 41,160,092 -
Total noncurrent liabilities 37,118,250 281,689,382 44,337,487 3,352,608 Total liabilities 42,562,989 292,622,789 49,686,975 5,537,245

DEFERRED INFLOWS OF RESOURCES
Deferred inflows - OPEB related 3,168,283 705,148 227,444 317,152 Deferred inflows - pension related 357,648 70,427 14,175 23,930 Deferred inflows - leases - 78,311,500 - 2,571,558
Total deferred inflows of resources 3,525,931 79,087,075 241,619 2,912,640

NET POSITION
Net investment in capital assets 150,169,250 (121,877,748) (27,411,797) 1,765,336 Unrestricted 65,318,435 28,845,381 30,563,683 14,983,672 Total net position 215,487,685$ (93,032,367)$ 3,151,886$ 16,749,008$ Victorville Water
District
Southern California
Logistics Airport
Authority
Electric
Utility Fund
Solid Waste
Management
See accompanying Notes to Basic Financial Statements.
38 Totals
22,567,563$ 2,799,977$ 204,487,551$
- - 31,597,367
3,394,894 140,144 16,004,371
- - 466,052
- - 99,524
- - 7,677,132
- - 1,894,225
25,962,457 2,940,121 262,226,222
4,118 - 407,167
- - 1,200,000
- - 80,458,292
- - 20,133
6,664,643 83,791 62,898,695
74,462,317 6,341,606 712,749,848
(31,897,520) (1,751,562) (430,933,513)
49,229,440 4,673,835 344,715,030
49,233,558 4,673,835 426,800,622
75,196,015 7,613,956 689,026,844
254,902 14,904 2,622,058
1,613,240 104,932 10,553,656
- - 1,128,866
1,868,142 119,836 14,304,580
2,632,673 67,952 8,820,054
11 - 1,718,922
14,112 15,905 3,198,529
- - 2,006,388
- - 540,673
90,432 - 688,790
- - 9,760,000
2,737,228 83,857 26,733,356
- 1,200,000 2,088,846
- - 12,133,339
- - 874,795
4,642,051 167,136 32,594,404
1,571,711 112,570 16,519,529
750,035 - 310,730,317
6,963,797 1,479,706 374,941,230
9,701,025 1,563,563 401,674,586
684,719 41,485 5,144,231
41,615 2,600 510,395
- - 80,883,058
726,334 44,085 86,537,684
49,167,783 4,673,835 56,486,659
17,469,015 1,452,309 158,632,495
66,636,798$ 6,126,144$ 215,119,154$
Sanitary
Fund
Nonmajor
Gas
Utility Fund
See accompanying Notes to Basic Financial Statements.
39 City of Victorville
Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds
For the year ended June 30, 2025
OPERATING REVENUES:

Charges for services 44,597,885$ 11,905,700$ 21,262,653$ 30,805,128$ Pass-Thru charges for services 1,167,675 - - -
Fines and forfeitures 650,365 28,817 - 681,021
Other 570,852 950,824 - 257,322
Total operating revenues 46,986,777 12,885,341 21,262,653 31,743,471 OPERATING EXPENSES:

Personnel services 13,034,357 3,773,683 1,746,468 2,125,206 Maintenance and operations 24,580,644 5,991,285 1,111,503 25,714,387 Production costs 5,472,548 - 6,730,450 -
Pass-Thru production costs 1,138,475 - - -
Depreciation 6,213,339 7,814,864 1,154,741 159,529
Total operating expenses 50,439,363 17,579,832 10,743,162 27,999,122 Operating income (loss) (3,452,586) (4,694,491) 10,519,491 3,744,349 NONOPERATING REVENUES (EXPENSES):

Property taxes 1,624,692 21,638,857 - -
Investment income 4,846,425 4,674,507 1,513,520 700,766 Interest expense (1,423,832) (16,598,791) (2,020,832) - Gain on disposal of assets 9,326 1,375 - -
Other nonoperating revenues (expenses) (98,879) (19,637) (13,821) - Total nonoperating revenues (expenses) 4,957,732 9,696,311 (521,133) 700,766 Income before contributions and transfers 1,505,146 5,001,820 9,998,358 4,445,115 CONTRIBUTIONS AND TRANSFERS:

Transfers in - - 42,534 -
Transfers out - - - (30,460)
Connection fees 1,028,886 - - -
Alternate water source fees 70,928 - - -
Capital restricted use fees 595,214 - - -
Capital contributions 175,287 635,996 (5,769) -
Capital grants - 3,512,333 - -
Total contributions and transfers 1,870,315 4,148,329 36,765 (30,460) Change in net position 3,375,461 9,150,149 10,035,123 4,414,655 NET POSITION:

Beginning of year 212,453,280 (102,047,894) (6,883,237) 12,334,353 Restatements due to implementation of GASB 101 (341,056) (134,622) - - Beginning of year, as restated 212,112,224 (102,182,516) (6,883,237) 12,334,353 End of year 215,487,685$ (93,032,367)$ 3,151,886$ 16,749,008$ Victorville Water
District
Southern California
Logistics Airport
Authority
Electric
Utility Fund
Solid Waste
Management
See accompanying Notes to Basic Financial Statements.
40 Totals
25,567,704$ 3,187,074$ 137,326,144$
- - 1,167,675
656,075 - 2,016,278
11,377 75 1,790,450
26,235,156 3,187,149 142,300,547
4,359,145 371,218 25,410,077
16,385,298 297,393 74,080,510
- 1,843,121 14,046,119
- - 1,138,475
1,998,899 155,670 17,497,042
22,743,342 2,667,402 132,172,223
3,491,814 519,747 10,128,324
- - 23,263,549
878,202 138,801 12,752,221
(36) (72,840) (20,116,331)
3,345 - 14,046
- - (132,337)
881,511 65,961 15,781,148
4,373,325 585,708 25,909,472
30,460 - 72,994
- (42,534) (72,994)
790,773 - 1,819,659
- - 70,928
- - 595,214
(106,975) - 698,539
- - 3,512,333
714,258 (42,534) 6,696,673
5,087,583 543,174 32,606,145
61,549,215 5,582,970 182,988,687
- - (475,678)
61,549,215 5,582,970 182,513,009
66,636,798$ 6,126,144$ 215,119,154$
Nonmajor
Gas
Utility Fund
Sanitary
Fund
See accompanying Notes to Basic Financial Statements.
41 City of Victorville
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2025
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers 47,888,142$ 12,182,668$ 21,898,544$ Cash payments to employees for services (12,215,537) (3,559,452) (1,547,931) Cash payments to suppliers for goods and services (31,793,949) (5,841,794) (8,041,992) Net cash provided (used) by operating activities 3,878,656 2,781,422 12,308,621 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Cash received from other governments 1,624,692 22,094,107 - Cash received from other funds for advances - 400,000 - Cash paid to other funds for advances - - (1,037,338)
Cash received from other funds - - 42,534
Cash paid to other funds - - -
Net Cash Provided (Used) by
Noncapital Financing Activities 1,624,692 22,494,107 (994,804) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Cash received from sale of capital assets 9,326 1,375 - Capital grants - 3,512,333 -
Cash payments to acquire capital and other assets (6,000,871) (9,886,758) (405,121) SBITA principal payments (9,655) - -
Principal paid on capital-related debt (451,193) (7,244,999) (1,725,184) Interest paid on capital-related debt (1,431,898) (14,639,810) (1,995,625) Interest paid on interfund advance - - -
Net Cash Used by Capital and Related
Financing Activities (7,884,291) (28,257,859) (4,125,930) CASH FLOWS FROM INVESTING ACTIVITIES:

Interest Received on Investments 5,217,704 4,506,005 1,513,520 Net cash provided by (used) by investing activities 5,217,704 4,506,005 1,513,520 NET INCREASE IN CASH AND CASH EQUIVALENTS 2,836,761 1,523,675 8,701,407 CASH AND CASH EQUIVALENTS - Beginning of year 85,956,887 67,387,163 28,224,318 CASH AND CASH EQUIVALENTS - End of year 88,793,648$ 68,910,838$ 36,925,725$ Victorville Water
District
Southern California
Logistics Airport
Authority
Electric
Utility Fund
See accompanying Notes to Basic Financial Statements.
42 Totals
31,506,399$ 26,431,873$ 3,150,263$ 143,057,889$
(1,924,800) (3,992,234) (373,860) (23,613,814)
(26,819,675) (16,235,947) (2,232,563) (90,965,920)
2,761,924 6,203,692 543,840 28,478,155
- - - 23,718,799
- - - 400,000
- - (400,000) (1,437,338)
- 30,460 - 72,994
(30,460) - (42,534) (72,994)
(30,460) 30,460 (442,534) 22,681,461
- 3,345 - 14,046
- - - 3,512,333
(3,012) (1,491,908) (1,152,421) (18,940,091)
- (1,352) - (11,007)
- (440,000) - (9,861,376)
- (36) - (18,067,369)
(72,840) (72,840)
(3,012) (1,929,951) (1,225,261) (43,426,304)
695,944 878,202 138,801 12,950,176
695,944 878,202 138,801 12,950,176
3,424,396 5,182,403 (985,154) 20,683,488
12,662,771 17,385,160 3,785,131 215,401,430
16,087,167$ 22,567,563$ 2,799,977$ 236,084,918$
Nonmajor
Gas
Utility Fund
Solid Waste
Management
Sanitary
Fund
43 City of Victorville
Statement of Cash Flows (Continued)
Proprietary Funds
For the year ended June 30, 2025

RECONCILIATION OF CASH AND CASH

EQUIVALENTS TO STATEMENT OF NET POSITION
Operating income (loss) (3,452,586)$ (4,694,491)$ 10,519,491$ Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:

Depreciation 6,213,339 7,814,864 1,154,741
Operating rental and lease revenue - (1,828,308) -
Nonoperating miscellaneous revenue (expense)
and capital contributions 1,771,436 616,359 (19,590)
(Increase) decrease in assets:

Accounts receivable, net (924,754) 76,885 (242,694)
Lease receivable - (103,871) -
Due from other governments 4,138 864,253 -
Inventory and other assets 238,226 (1,553) (522,676)
Prepaid deposits (55,432) 1,954 (54,404)
Deferred outflows - OPEB 405,918 (30,574) (11,751)
Deferred outflows - pension 447,581 128,499 64,110
Increase (decrease) in liabilities:

Accounts payable (785,076) 149,090 377,041
Deposits payable 50,545 72,807 254,001
Unearned revenue - (400,798) 644,174
Compensated absences 59,269 (81,869) -
Total OPEB liability (385,216) 115,495 43,799
Net pension liability 851,324 253,195 162,126
Deferred inflows - OPEB (66,105) (57,143) (21,670)
Deferred inflows - pension (493,951) (113,372) (38,077) Net cash provided by (used in) operating activities 3,878,656$ 2,781,422$ 12,308,621$ NONCASH TRANSACTIONS:

Interest accretion expenses -$ 1,764,379$ -$
Amortization of bond discounts - 91,868 -
Victorville Water
District
Southern California
Logistics Airport
Authority
Electric
Utility Fund
See accompanying Notes to Basic Financial Statements.
44 Totals
3,744,349$ 3,491,814$ 519,747$ 10,128,324$
159,529 1,998,899 155,670 17,497,042
(58,005) - - (1,886,313)
- 683,798 - 3,052,003
(200,681) (490,005) 1,664 (1,779,585)
(3,141) - - (107,012)
18,015 - - 886,406
- - - (286,003)
(4,197) (876) 3,993 (108,962)
(17,788) (38,003) (1,736) 306,066
74,866 152,357 5,115 872,528
(1,101,091) 150,227 (96,042) (1,305,851)
6,740 2,924 (38,550) 348,467
- - - 243,376
- - - (22,600)
58,345 140,202 7,048 (20,327)
164,821 279,204 (5,247) 1,705,423
(28,866) (69,367) (3,488) (246,639)
(50,972) (97,482) (4,334) (798,188)
2,761,924$ 6,203,692$ 543,840$ 28,478,155$
-$ -$ -$ 1,764,379$
- - - 91,868
Nonmajor
Gas
Utility Fund
Solid Waste
Management
Sanitary
Fund
45 Intentionally Left Blank
46 City of Victorville
Fiduciary Fund
For the Year Ended June 30, 2025
Fiduciary funds are presented separately from the Government-Wide and Fund Financial Statements.

Custodial funds
Custodial funds are used to account for assets held by the City as an agent for individuals, private organizations, or other governments.

Trust funds
Trust funds are used to account for assets held by the City as a trustee agent for individuals, private organizations, or other governments.
47 City of Victorville
Statement of Fiduciary Net Position
Fiduciary Funds
For the year ended June 30, 2025
Private Purpose
Trust Fund
Successor
Custodial Agency of the
Funds Former RDA
ASSETS
Cash and investments 614,125$ 4,086,185$
Restricted assets:

Cash with fiscal agent 665,494 2,124,847
Accounts receivable 4,664 -
Land held for resale - 1,379,917
Total assets 1,284,283 7,590,949

LIABILITIES
Interest payable - 111,046
Due to The City - 12,903,772
Bonds payable:

Due within one year - 1,840,000
Due in more than one year - 22,565,000
Total liabilities - 37,419,818

NET POSITION
Restricted for:

Individuals, organizations, and other governments 1,284,283 - Held in trust for private purposes - (29,828,869)
Total Net Position 1,284,283$ (29,828,869)$
See accompanying Notes to Basic Financial Statements.
48 City of Victorville
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the year ended June 30, 2025
Private Purpose
Trust Fund
Successor
Custodial Agency of the
Funds Former RDA
ADDITIONS:

RPTTF distributions -$ 4,329,138$
Property assessments collected 469,808 -
Investment income 49,824 702,475
Total additions 519,632 5,031,613
DEDUCTIONS:

Community development 27,332 781,987
Payments on special assessment debt 436,781 -
Interest - 1,702,644
Total deductions 464,113 2,484,631
Change in net position 55,519 2,546,982
NET POSITION:

Beginning of year 1,228,764 (32,375,851)
End of year 1,284,283$ (29,828,869)$
See accompanying Notes to Basic Financial Statements.
49 Intentionally Left Blank
50 NOTES TO BASIC

FINANCIAL STATEMENTS
51 Intentionally Left Blank
52 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the City of Victorville, California (the City), have been prepared in accordance with generally accepted accounting principles (U.S. GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of the City’s accounting policies are described below.

A. Financial Reporting Entity
The City of Victorville is situated approximately 97 miles northeast of Los Angeles in Southern California’s Mojave Desert. The City was incorporated in 1962 and had an estimated population on June 30, 2025 of 141,013. 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, 2025, the City’s staff comprised of 508 full- and 86 part-time employees who were responsible for the City-provided services.

The accounting policies of the City conform to U.S. GAAP as applicable to governments. These financial statements present the City of Victorville and its component units, entities for which the City is considered to be financially accountable. The City is considered to be financially accountable for an organization if the City appoints a voting majority of that organization’s governing body and the City is able to impose its will on that organization or there is a potential for that organization to provide specific financial benefits to or impose specific financial burdens on the City. The City is also considered to be financially accountable for an organization if that organization is fiscally dependent (i.e., it is unable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval from the City). In certain cases, other organizations are included as component units if the nature and significance of their relationship with the City are such that their exclusion would cause the City’s financial statements to be misleading or incomplete.

Based upon the above criteria, the component units of the City include the Southern California Logistics Airport Authority (SCLAA) and the Victorville Water District.

Since City Council serves as the governing board for the SCLAA and Victorville Water District, the component units are considered to be blended component units. Blended component units, although legally separate entities, are in substance, part of the City’s operations and so data from these units are reported with the interfund data of the primary government. The SCLAA and the Victorville Water District issue separate component unit financial statements. Upon completion, the financial statements of these component units can be obtained at the City of Victorville, located at 14343 Civic Drive,Victorville, CA 92392.
53 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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 and from profits, income, sales proceeds, interest earnings from leases and land sales, and tax increment revenues passed through from the Victor Valley Economic Development Authority (VVEDA).

Victorville Water District
On August 15, 2007, the Victor Valley Water District and the Baldy Mesa Water District were approved to be consolidated into a subsidiary district of the City of Victorville (the City), known as the Victorville Water District (District, per Resolution No. 2977 of the Executive Officer of the Local Agency formation Commission (LAFCO) of San Bernardino County), which adopted a change of organization without election. All of the liabilities including debt obligations of the Victor Valley Water District and the Baldy Mesa Water District were assumed by this subsidiary district and the City effective July 1, 2007 upon consolidation.

Upon consolidation July 1, 2007 of the two districts the City consolidated the operations and activities of its Water Department and Water Funds into the district to serve all of the water customers of the City of Victorville under this District. The basic operations of the District are financed by user charges plus capital contributions to finance growth of the water delivery system. The District is governed by a five-member Board of Directors (the City Council), each holding staggered four-year terms.

On December 21, 2011, Local Agency Formation Commission approved Resolution No. 3154 that ordered the change of organization for the Victorville Water District. TheCommission 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, 2025

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:
 Government-wide financial statements
 Fund financial statements
 Notes to the basic financial statements
The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources or economic resources. The basis of accounting indicates the timing of transactions or events for recognition in the financial statements.

Government-Wide Financial Statements
While separate government-wide and fund financial statements are presented, they are interrelated. In the government-wide financial statements, the governmental activities column incorporates data from governmental funds while business-type activities incorporate data from the government’s enterprise funds.

Government-wide financial statements are presented using the economic resources measurement focus and the accrual basis of accounting. Under the economic resources’ measurement focus, all (both current and long-term) economic resources and obligations of the reporting government are reported in the government-wide financial statements. Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recordedwhen a liability takes place, regardless of the timing of related cash flows. Revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place. Revenue from property taxes is recognized in the fiscal year in which the taxes are levied. Grants and similar items are recognized as revenue as soon as the eligibility requirements imposed by the provider have been satisfied.

Unbilled receivables are recorded as revenues when the services are provided.

Government-wide financial statements display information about the reporting government as a whole, except for its fiduciary activities. These statements include separate columns for the governmental and business-type activities of the primary government (including its blended component units), as well as its discretely presented component units. The City has no discretely presented component units.

Eliminations have been made in the statement of activities so that certain allocated expenses are recorded only once (by the function to which they were allocated). However, general government expenses have not been allocated as indirect expenses to the various functions of the City.

The statement of activities demonstrates the degree to which direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. The types of transactions reported as program revenues of the City are reported in three categories:
 Charges for services,
 Operating grants and contributions, and
 Capital grants and contributions.
55 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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 operational or capital requirements of a particular function.

Program revenues are netted with program expenses in the statement of activities to present the net cost of each program. Taxes and other items not included among program revenues are reported instead as general revenues.

As a general rule the effect of interfund activity has been eliminated from thegovernment-wide financial statements. Amounts paid to acquire capital assets are capitalized as assets in the government-wide financial statements, rather than reported as an expenditure. Proceeds of long-term debt, acquisitions of leases and SBITAs are recorded as a liability in the government-wide financial statements, rather than as an other financing source. Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as an expenditure. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method for bonds issued through 2021 and the effective interest method for bonds issued thereafter. Bonds payable are reported net of the applicable bond premium or discount. Issuance costs, whether or not withheld form the actual debt proceeds received, are reported as debt service expenses.

Fund Financial Statements
The underlying accounting system of the City is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. Theoperations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund equity, revenues and expenditures, or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

Fund financial statements for the primary government’s governmental, proprietary, and fiduciary funds are presented after the government-wide financial statements. These statements display information about major funds individually and nonmajor funds in the aggregate for governmental and enterprise funds. Fiduciary statements include financial information for the City’s fiduciary activities. Fiduciary funds of the City primarily represent assets held by the City in a custodial capacity for other individuals or organizations.
56 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued Governmental Funds
In the fund financial statements, governmental funds are presented using the modified-accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. Measurable means that the amounts can be estimated, or otherwise determined. Available means that the amounts were collected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued for the reporting period. The City uses a 60-day availability period. The City accrues the following revenue types: taxes, licenses, intergovernmental revenues, fines and forfeitures, and other miscellaneous revenues. Exchange transactions are recognized as revenues in the period in which they are earned (i.e., the related goods or services are provided). Locally imposed derived tax revenues are recognized as revenues in the period in which the underlying exchange transaction upon which they are based takes place. Imposed nonexchange transactions are recognized as revenues in the period for which they were imposed. If the period of use is not specified, they are recognized as revenues when an enforceable legal claim to the revenues arises or when they are received, whichever occurs first.

Government-mandated and voluntary nonexchange transactions are recognized as revenues when all applicable eligibility requirements have been met.

Amounts expended to acquire capital assets are recorded as expenditures in the yearthat resources were expended, rather than as fund assets. The proceeds of long-term debt and acquisitions under leases and SBITAs are recorded as an other financing sources rather than as a fund liability. Amounts paid to reduce long-term indebtedness are reported as fund expenditures.

In the fund financial statements, governmental funds are presented using the current financial resources measurement focus. This means that only current assets, liabilities, and deferred inflows of resources are generally included on their balance sheets. The reported fund balance is considered to be a measure of “available spendable resources.” Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in fund balance.

Accordingly, they are said to present a summary of sources and uses of “available spendable resources” during a period.

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 heldin 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 requiredto be maintained intact (such as endowments). 57 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued Spendable Fund Balance
 Restricted Fund Balance – This includes amounts that can be spent only for specific purposes stipulated by legal requirements imposed by other governments, external resource providers, or creditors. City Council imposed restrictions do not create restricted fund balance unless the legal document that initially authorized the revenue(associated with that portion of fund balance) also included language that specified the limited use for which the authorized revenues were to be expended.
 Committed Fund Balance – This includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the City Council. Those committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use by taking the same type of action (for example, resolution, ordinance, minutes action, etc.) that it employed to previously commit those amounts. If the Council action that limits the use of the funds was separate from the action that initially created the revenues that form the basis for the fund balance, then the resultant fund balance is considered to be committed, not restricted. The City considers a resolution to constitute a formal action of the City Council for the purposes of establishing committed fund balance. The City has no committed fund balance.  Assigned Fund Balance – This includes amounts that are intended to be used for specific purposes as indicated either by the Council or by persons to whom has delegated the authority to assign amounts for specific purposes. The City Council has not delegated such authority as of the date of this report. The City has no assigned fund balance.
 Unassigned Fund Balance – This includes the remaining spendable amounts which are not included in one of the other classifications. In other funds, the unassigned classification is used only to report a deficit balance resulting from overspending for specific purposes for which amounts had been restricted, committed, or assigned. Only the General Fund shows a positive unassigned fund balance.

It is the City’s policy that restricted resources will be applied first, followed by (in order of application) committed, assigned, and unassigned resources, in the absence of a formal policy adopted by the City Council.

Proprietary and Fiduciary Funds
The City’s enterprise funds are proprietary funds. In the fund financial statements,proprietary funds are presented using the accrual basis of accounting. Revenues are recognized when they are earned and expenses are recognized when the related goods or services are delivered. In the fund financial statements, proprietary funds are presented using the economic resources measurement focus. This means that all assets, deferred outflows of resources, liabilities, and deferred inflows of resources (whether current or noncurrent) associated with their activity are included on their balance sheets.

Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in total net position.
58 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued Proprietary fund operating revenues, such as charges for services, pass-thru charges for services, and fines and forfeitures, result from exchange transactions associated with principal activity of the fund.

Exchange transactions are those in which each party receives and gives up essentially equal values.

Nonoperating revenues, such as property taxes and investment income result from nonexchange transactions or ancillary activities. Operating expenses for enterprise funds include the cost of sales and services, such as personnel services, maintenance and operations, production costs, pass-thru production costs, and depreciation on capital assets.

All expenses not meeting this definition, such as interest expense, are reported as nonoperating expenses.

Amounts paid to acquire capital assets are capitalized as assets in the proprietary fund financial statements, rather than reported as an expense.Proceeds of long-term debt and acquisitions under leases and SBITAs are recorded as a liability in the proprietary fund financial statements, rather than as other financing source. Amounts paid to reduce long-term indebtedness of the proprietary funds are reported as a reduction of the related liability, rather than as expenditure. Bond premiums and discounts are deferred and amortized over the life of the bonds. Bonds payable arereported 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 includedin 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 wascreated 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.
59 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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 California Logistics Airport Authority is a joint powers authority formed by the City of Victorville and the Victorville Redevelopment Agency. In 2012, the Victorville Water District was added as a member of the JPA, shortly thereafter, the Victorville Redevelopment Agency was removed as a result of the dissolution of all Redevelopment Agencies.

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

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

Solid Waste Management
Accounts for activities in the following programs: Solid Waste Management, Source Reduction and Recycling, Landfill Mitigation, Household Hazardous Waste, and the California Department of Conservation Grants.

Sanitary Fund
The City has defined the Sanitary Fund to account for the collection of sewage from thepoint of origin to be conveyed to the point of treatment or disposal. This fund includesinfrastructure of pipes, pumps, and channels to collect and convey sewage to treatment or disposal. The fund provides for collection of revenues from customers and provides payment for maintenance of infrastructure and payment of contractors for disposal. Revenue received is comprised of sewer user fees and connection fees.

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, 2025

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 specificrevenue 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, andcapital assets of the City’s gas utility, which is funded by user charges and other fees.

D. Adoption of New Accounting Standards
In 2025, the City adopted new account standards in order to confirm with the following Government Accounting Standards Board Statements:
 GASB Statement No. 101, Compensated Absences - The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. The City has recognized accruals for compensated time, administrative leave, and vacation. Beginning net position and compensated absences balances as of June 30, 2024, were restated upon implementation of this Statement. Please refer to Notes 7, 8, and 23 for more details.
 GASB Statement No. 102, Certain Risk Disclosures - The objective of this Statement is to provide users of government financial statements with essential information about risks related to a government’s vulnerabilities due to certain concentrations or constraints. The City had no adjustments or new disclosures as a result of this Statement.

E. Cash and Investments
Cash includes demand deposits. The California Government Code and the City of Victorville’s investment policy permit the City of Victorville to invest in various instruments and pools.

Investments are reported in the accompanying balance sheet at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Changes in fair value that occur during a fiscal year are recognized as investment income reported for thatfiscal year. Investment income includes interest earnings, changes in fair value, any gains or losses realized upon the liquidation or sale of investments, and rental income.

The City pools cash and investments of all funds, except for assets held by fiscal agents. Each fund’s share in this pool is displayed in the accompanying financial statements as cash and investments. Investment income earned by the pooled investments is allocated to the various funds based on each fund’s average cash and investment balance.
61 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued F. Cash and Cash Equivalents
For purposes of the statement of cash flows, cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition. Cash equivalents represent the proprietary funds’ share in the cash and investment pool of the City of Victorville, and the cash recorded in the proprietary funds held by a fiscal agent that meet the definition noted above.

G. Loans Receivable
The accompanying financial statements reflect the recording of certain loans receivable that represent loans made to private developers and other parties. In certain cases, the amount of collection is dependent upon future residual receipts to be generated by theproperty or contingent upon the ability of the owner to sell the property at an amount sufficient to pay all liens against the property, including the obligation to the City. An estimate of the loss (if any) associated with nonrepayment cannot be reasonably estimated at this time.

H. Due from Other Governments
The amounts recorded as a receivable due from other governments include sales taxes, state gas taxes, motor vehicle in-lieu taxes, property taxes, and grant revenues collected or provided by Federal, State, County, and City Governments and unremitted to the City as of June 30, 2025.

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

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

J. Deposits and Prepaid Items
Certain payments to vendors that reflect costs applicable to future accounting periods are recorded as prepaid items in both government-wide, fund and proprietary financial statements utilizing the purchases method.
62 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued K. Inventory and Other Assets
The City uses the consumption method of accounting for inventories. General Fundinventory consists of office supplies, hardware supplies, fuel, and oil, which are valued at cost. Inventory in the proprietary funds consist primarily of water meters, pipe and pipe fittings for construction and repair. Materials and supplies items in the proprietary funds are valued at cost using the weighted average method.

L. Land Held for Resale
Land held for resale consists of property intended to be sold or contributed to other parties. Land held for resale is valued at the lower of cost or realizable value.

M. Capital Assets
Capital assets (including infrastructure) are reported in the applicable governmental or business-type activities column in the government-wide financial statements and the fund financial statements of proprietary funds.

Capital assets include public domain (infrastructure) capital assets consisting of certain improvements other than buildings, including roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, lighting systems and intangible assets such as subscription-based information technology arrangements (SBITAs). Tangible capital assets are valued at historical cost or estimated historical cost if purchased or constructed. Donated tangible capital assets are valued at acquisition value on the date of donation. SBITA assets are initially measured as the sum of the present value ofpayments expected to be made during the subscription term, payments associated with the SBITA contract made to the SBITA vendor at the commencement of the subscription term, when applicable, and capitalizable implementation costs, less any SBITA vendor incentives received form the SBITA vendor at the commencement of the SBITA term.

SBITA assets are amortized in a systematic and rational manner over the shorter of thesubscription 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.
63 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued M. Capital Assets, Continued
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 balancessince the employees’ entitlement to these balances are attributable to services alreadyrendered and it is probable that virtually all of these balances will be liquidated by either paid time off or payments upon termination or retirement.

A liability is recorded for unused sick leave balances that have been earned for service previously rendered by employees, along with the related costs.

Compensated absences (unpaid vacation and sick leave) are recorded in the statements of net position.

Liabilities for leave are assumed to be accrued using the First In, First Out (FIFO) method, meaning the leave that was earned first is used or paid first. The City has recorded a liability only when it is more likely than not the leave will be taken or paid for. All compensated absences and related costs are reported as incurred in the governmental-wide 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. The liability for compensated absences is determined annually.

O. Claims and Judgments
The City records a liability for litigation, judgments, and claims when it is probable thatan asset has been impaired, or a liability has been incurred prior to year-end and the probable amount of loss can be reasonably estimated. Accordingly, such claims are recorded as liabilities in the government-wide financial statements and proprietary fund financial statements.

P. Deposits Payable
Deposits payable in the governmental funds primarily consist of engineering deposits that are refunded once compliance work from the depositor has been performed. Deposits payable in the enterprise funds primarily consist of security deposits for utility accounts that are refunded to the customer when the account is closed or applied to past-due bills in certain cases of delinquency.

Buildings and Improvement 10 to 50 Years
Furniture and Equipment 5 to 10 Years
Computer and Communications 5 Years
Vehicles 5 to 10 Years
Infrastructure 20 to 80 Years
Water Rights 10 to 25 Years
Intangibles 5 to 25 Years
Land Improvements 10 to 50 Years
64 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Q. Unearned Revenue
Unearned revenue is recorded when the City receives funds for which the goods orservices 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 Cityserves 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 Countyof San Bernardino, California bills and collects the property taxes and remits them to theCity in installments during the year. City property tax revenues are recognized when levied to the extent that they result in current receivables within 60 days.

The County is permitted by State law (Proposition 13) to levy taxes at 1% of full market rate (at time of purchase) and can increase the property tax rate no more than 2% per year. As the City of Victorville did not receive property taxes during the period of 1976-1978, the City negotiated its relative 1% share of taxes.

S. Net Position
Net position is classified in the following categories:
 Net Investment in Capital Assets – This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt (including premiums and discounts) and other capital related payables that attributed to the acquisition, construction, or improvement of the assets.
 Restricted Net Position – This amount is restricted by enabling legislation (such as external creditors, grantors, contributors, or laws or regulations of other governments).  Unrestricted Net Position – This amount is the remaining net position that does not meet the definition of “net investment in capital assets” or “restricted net position.” Sometimes the City will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate theamounts 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. 65 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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

In addition to liabilities, the government-wide and proprietary funds statements of net position and the governmental funds balance sheet report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to future periods and will not be recognized as an inflow of resources (revenue) until that time.

The City’s deferred inflows of resources reported on the government-wide statement of net position and the proprietary funds financial statements relate to leases, pension and other postemployment benefits.

Amounts for leases are for amounts not yet received that are deferred and recognized as an inflow of resources in the period that the amounts are available or earned. Pension and other postemployment benefits deferred inflows of resources are more fully discussed in Notes 12 and 14, respectively.

U. Pensions
For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by the CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

CalPERS audited financial statements are publicly available reports that can be obtained at CalPERS’ website under Forms and Publications.

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. 66 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

2. CASH AND INVESTMENTS
Cash and investments as of June 30, 2025 are classified in the accompanying financialstatements as follows:

Cash and investments as of June 30, 2025 consist of the following:

Investments Authorized by the California Government Code and the City’s Investment Policy The table below outlines the type of investment that are authorized for the City under the California Government Code and the City’s investment policy. The table also highlights 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 include investments of debt proceeds held by bond trustees which are governed by the provisions of the City’s debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy.

Primary Government
Cash and Investments 459,500,565$
Cash with Fiscal Agents 31,597,367
Fiduciary Funds
Cash in Investments 4,700,310
Cash with Fiscal Agents 2,790,341
Total Cash and Investments 498,588,583$
Cash on Hand 11,664$
Deposits with Financial Institutions 335,082,065
Investments 163,494,854
Total Cash and Investments 498,588,583$
Local Agency Bonds Yes 5 Years 70% None
U.S. Treasury Obligations Yes 5 Years 70% None
U.S. Agency Securities Yes 5 Years 75%** None
Banker's Acceptances No 180 Day s 40% 30%
Commercial Paper - Non-Pooled Funds No 270 Day s 25% 10% Commercial Paper - Pooled Funds No 270 Day s 40% 10%
Negotiable Certificates of Deposit Yes 2 Years 30% None Repurchase Agreements No 1 Year None None
Revers Repurchase Agreements No 92 Days 20% of Base Value None Medium-Term Notes No 5 Years 30% None
Mutual Funds*** No 5 Years 20%* 10%*
Money Market Mutual Funds*** Yes 5 Years 20%* None
Mortgage Pass - Through Securities No 5 Years 20% None
Country Pooled Investment Funds No N/A None None
Local Agency Investment Fund (LAIF) Yes N/A None $75M
JPA Pools (Other Investment Pools) No N/A None None
* Based on state law requirements or investment policy requirements, whichever is more restrictive. ** Ginne Mae is not to exceed 20% of the total portfolio. ***Fund must be an AAA rated Government or US Treasury money fund. 67 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

2. CASH AND INVESTMENTS, Continued
Investments Authorized by Debt Agreements
Investment of debt proceeds held by bond trustee are governed by provisions of the debtagreements, rather than the general provisions of the California Government Code or the City’s investment policy. The table below identifies the investment types that are authorized for investments held by bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

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 thesensitivity of its fair value to changes in market interest rates. One of the ways that the Citymanages its exposure to interest rate risk is by purchasing a combination of shorter-term and longer-term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.

Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity:

U.S. Treasury Obligations None None None
U.S. Agency Securities None None None
Banker's Acceptances 360 Days None None
Commercial Paper 270 Days None None
Money Market Mutual Funds None None None
Repurchase Agreements None None None
Investment Contracts None None None
Federal Housing Admin Debentures None None None
Certificates of Deposits None None None
State Obligations None None None
Local Agency Investment Fund (LAIF) None None None
Pre-refunded Municipal Obligations None None None
Investment Type Total Within 12 13 to 24 25 to 60 60+
LAIF 129,065,615$ 129,065,615$ -$ -$ -$ Certificate of Deposit 41,530 - 41,530 - - Held by Bond Trustee:

Guaranteed Investment Contract (GIC)* 816,500 - - - 816,500 Money Market Mutual Funds 33,571,209 33,571,209 - - - Total 163,494,854$ 162,636,824$ 41,530$ -$ 816,500$ *The City’s GIC is with Financial Security Assurance (FSA). The contract required FSA to deposit cash, governmen tal securities, or governmen tal bonds as collateral with Bank of New York, at a value of at least 100%, 104%, or 105%, respectfully, of the investment balance. The termina tion of the investment contract and release of collateral would occur in the event of default by FSA. As of June 30, 2024, FSA was not in default and the value of the collateral met the requirements. 68 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

2. CASH AND INVESTMENTS, Continued
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating by Standard & Poor’s required by (where applicable) the California Government Code, the City’s investment policy, or debt agreements, and the actual Standard & Poor’s rating as of year-end for each investment type.

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 ableto 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% ofthe total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. At June 30, 2025, the City’s deposits (bank balances) were insured by the federal depository insurance limits or collateralized as required under California Law.

Investment Type Total
Minimum
Legal Rating AAA Not Rated
LAIF 129,065,615$ N/A -$ 129,065,615$ Certific ate of Deposit 41,530 N/A - 41,530 Held by Bond Trustee:

Guaranteed Investment C ontract (GIC)* 816,500 N/A - 816,500 Money Market Mutual Funds 33,571,209 Multiple* 33,571,209 - Total 163,494,854$ 33,571,209$ 129,923,645$
*Must receive highest ranking by not less than two nationally recognized statistical rating organizations or retain an investment advisor registered by the SEC or exempt from registrati on and who has not less than five years of experience investing in money market instruments with assets under management in excess of $500 million .
69 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

2. CASH AND INVESTMENTS, Continued
Custodial Credit Risk, Continued
For investments identified herein as held by bond trustee, the bond trustee selects the investment under the terms of the applicable trust agreement, acquires the investment, and holds the investment on behalf of the reporting government.

Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the state of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF.

Fair Value Measurements
The City categorizes its fair value measurement within the fair value hierarchy established by U.S. GAAP.

The fair value framework provides a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of fair value hierarchy are described as follows:
 Level 1 – Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets.
 Level 2 – Inputs other than quoted prices included within the Level 1 that are observable for the asset or liability, either directly or indirectly and fair value is determined through the use of models or other valuation methodologies including:
 Quoted prices for similar assets or liabilities in active markets;  Quoted prices for identical or similar assets or liabilities in markets that are inactive;  Inputs other than quoted prices that are observable for the asset or liability;  Inputs that are derived principally from or corroborated by observable market data by correlation of other items.
 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. 70 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

3. INTERFUND ACTIVITIES
The composition of interfund balances as of June 30, 2025 is as follows:

Generally, the above balances result from:
a) This balance arise in the normal course of business and represents a short-term borrowing to cover a negative cash balance for Local Transportation Fund. It is anticipated these funds will be repaid shortly in FY 25-26 when revenues are received.
b) A loan agreement was signed on July 1, 2018 by the City Council for a reimbursement of funds previously advanced from fiscal year 2003-2004 through 2007-2008 from the General Fund to the Municipal Utility Enterprise Fund for working capital, startup costs, and operation funding shortfalls in the amount of $17,850,143. This loan agreement was recorded in fiscal year 2018-2019 through transfers in and out of the respective funds. The loan has an interest rate equal to the annualized LAIF rate of return. The advance will be repaid over a term of eight years with $11,000,000 paid on July 1, 2018 and annual installments of $1,000,000 over the following six years with $850,143 due for the last year with each installment due on July 1 of each year. The outstanding balance of the advance as of June 30, 2025 is $888,846. c) A loan agreement was signed on April 18, 2023 by the City Council that authorizes the SCLAA enterprise fund to loan $2,000,000 to the nonmajor gas utility enterprise fund for the construction of new gas infrastructure that will allow for the purchase of lower priced natural gas and future growth at SCLAA.

The loan principal shall be repaid in five equal installments of $400,000 to commence in the year ending June 30, 2024 and conclude in the year ending June 30, 2028. Interest shall begin to accrue on the total principal amount commencing on July 1, 2023, and shall thereafter be calculated annually on the balance of the outstanding principal and shall be payable each year on June 30 at the annualized (averaged) LAIF rate of return. The outstanding balance of the advance as of June 30, 2025 is $1,200,000.

The transfer of $107,056 from the Nonmajor Governmental Funds to the General Fund is to support the engineering function of traffic safety and the transfer of ownership of vehicles and equipment.

Fund Reporting Receivable Fund Reporting Payable Amount General Fund
Nonmajor T ransportation Tax
Special Revenue Fund 427,702$ a)
Fund Reporting Receivable Fund Reporting Payable Amount General Fund Electric Utilit y Enterprise Fund 888,846$ b) Southern California Logistics
Airport Authority Enterprise Fund Nonmajor G as Utility Enterprise Fund 1,200,000 c) Total 2,088,846$
Advances To/From Other Funds
Transfer In Transfer Out Amount
General Fund Nonmajor Governmental Funds 34,062$
VMUS Electric Nonmajor Gas Utility Fund 42,534
Sanitary/Swer Treatment Solid Waste Management 30,460
71 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

4. CAPITAL ASSETS
Governmental Activities
The following is a summary of changes in capital assets for the year ended June 30, 2025:

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

Balance at
July 1, 2024 Additions Deletions Transfers
Balance at
June 30, 2025
Nondepreciable Assets
Land 58,777,042$ -$ -$ -$ 58,777,042$ Right of Way 180,099,830 - - - 180,099,830 Construction in Progress 11,666,998 13,496,491 (8,290,710) - 16,872,779 Total Nondepreciable Assets 250,543,870 13,496,491 (8,290,710) - 255,749,651 Depreciable Assets
Buildings and Improvements 135,799,451 715,060 - (135,996) 136,378,515 Furniture and Equipment 21,971,084 4,917,457 (318,829) - 26,569,712 Computer and Communications 7,272,442 403,551 - - 7,675,993 Land Improvements 14,913,467 385,312 - 135,996 15,434,775 Vehicles 8,851,072 997,752 (345,862) - 9,502,962 Infrastructure 620,014,656 9,657,373 - 629,672,029 Total Depreciable Assets 808,822,172 17,076,505 (664,691) - 825,233,986 Less Accumulated Depreciation
Buildings and Improvements (49,887,762) (3,354,682) - (15,866) (53,258,310) Furniture and Equipment (13,520,422) (1,813,473) 304,606 - (15,029,289) Computer and Communications (3,625,912) (998,528) - - (4,624,440) Land Improvements (13,434,532) (1,525,738) - 15,866 (14,944,404) Vehicles (4,942,480) (664,503) 345,862 - (5,261,121) Infrastructure (432,753,902) (13,970,286) - (446,724,188) Total Accumulated Depreciation (518,165,010) (22,327,210) 650,468 - (539,841,752) Total Depreciable Assets, Net 290,657,162 (5,250,705) (14,223) - 285,392,234 Assets Being Amortized:

SBITA Assets 1,228,590 111,205 - - 1,339,795 Accumulated Amortiz ation (489,705) (291,883) - - (781,588) Leases Assets 220,464 - - - 220,464 Accumulated Amortiz ation (23,639) (44,093) - - (67,732) Total SBITA Assets,
Being Amortized, Net 935,710 (224,771) - - 710,939 Capital Assets, Net 542,136,742$ 8,021,015$ (8,304,933)$ -$ 541,852,824$ General Government 9,604,959$
Public Safety 1,687,438
Community Development 1,338,980
Public Works 8,491,672
Parks and Recreation 1,540,137
22,663,186$
72 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

4. CAPITAL ASSETS, Continued
Business-Type Activities
The following is a summary of capital assets for enterprise funds at June 30, 2025:

Balance at
June 30, 2024 Additions Deletions
Balance at
June 30, 2025
Nondepreciable Assets
Land and Easements 25,210,691$ -$ -$ 25,210,691$ Intangibles - Service Credit 3,954,891 - - 3,954,891 Water Rights 21,406,942 632,826 - 22,039,768 Idle Assets 3,017,958 - - 3,017,958 Land Improvements 536,342 - - 536,342 Construction in Progress 12,510,369 4,013,730 (8,385,054) 8,139,045 Total Nondepreciable Assets 66,637,193 4,646,556 (8,385,054) 62,898,695 Depreciable Assets
Buildings and Improvements 218,734,067 3,260,900 - 221,994,967 Furniture and Equipment 51,051,835 757,920 (113,036) 51,696,719 Computer and Communications 1,119,826 - - 1,119,826 Vehicles 8,177,465 1,824,411 (64,805) 9,937,071 Infrastructure 409,410,662 16,815,706 - 426,226,368 Intangibles 1,589,862 - - 1,589,862 Land Improvements 128,489 21,838 - 150,327 Total Depreciable Assets 690,212,206 22,680,775 (177,841) 712,715,140 Less Accumulated Depreciation
Buildings and Improvements (138,949,186) (5,049,607) - (143,998,793) Furniture and Equipment (42,596,398) (1,259,669) 113,036 (43,743,031) Computer and Communications (957,630) (31,661) - (989,291) Vehicles (5,011,109) (589,558) 64,805 (5,535,862) Infrastructure (224,364,922) (10,557,164) - (234,922,086) Intangibles (1,589,860) - - (1,589,860) Land Improvements (128,489) - - (128,489) Total Accumulated Depreciation (413,597,594) (17,487,659) 177,841 (430,907,412) Total Depreciable Assets, Net 276,614,612 5,193,116 - 281,807,728 Subscription Based Information
Technology Arrangement (SBITA)
Assets Being Amortiz ed:

SBITA Assets 34,708 - - 34,708 Accumulated Amortization (14,532) (11,569) - (26,101) Total SBITA Assets,
Being Amortiz ed, Net 20,176 (11,569) - 8,607 Total Capital Assets Being
Depreciated or Amortiz ed, Net 276,634,788 5,181,547 - 281,816,335 Capital Assets, Net 343,271,981$ 9,828,103$ (8,385,054)$ 344,715,030$ 73 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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, 2025, the Successor Agency to the Victorville Redevelopment Agency (RDA) and the City Housing Asset Successor Agency had acquired and developed parcels of land in the Bear Valley and Old Town/Midtown project areas. These parcels were purchased for the purpose of providing incentives to developers in order to construct future commercial projects on the property and are recorded as land held for resale at the net realizable values of $1,379,917 and $1,549,837, respectively.

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, 2025, the City Housing Asset Successor Special Revenue Fund has recorded outstanding loan receivable balance of $5,577,340.

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, 2025, the City Housing Asset Successor Special Revenue Fund has recorded outstanding loan receivable balance of $1,093,545.

In December 2005, the former RDA entered into an affordable housing loan agreement with Southern California Housing Development Corporation to develop the Northgate Apartments housing project. The note accrues interest at 3% annually and repayments are based on earning of the housing facility. The expected payoff date is December 15, 2045. At June 30, 2025, the City Housing Asset Successor Special Revenue Fund has recorded outstanding loan receivable balance of $7,272,066.

Water 6,214,690$
Airport 7,817,051
Electric Utility 1,154,741
Solid Waste Management 159,529
Sanitary 1,997,547
Nonmajor Gas Utility 155,670
Total 17,499,228$
74 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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 assistanceand 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, 2025, the City H ousing Asset Successor Special Revenue 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 $1,500,000 borrowed from the Housing Authority of the County of San Bernardino to purchase the property knownas Desert Haven and $9,505 for closing costs with the property acquisition. The note accrues simple interest at 1% annually and repayments are based on the earnings of the housing facility. The note is secured by a deed of trust against the property in the first priority position. The term of the note is 55 years and is expected to be paid off by October 1, 2074. At June 30, 2025, the City HUD Grants Special Revenue Fund has recorded an outstanding loan balance of $1,586,238.

Other Loans
These loans are secured by a deed of trust. Also, at June 30, 2025, the Nonmajor Governmental Funds report residential curb appeal loans, which are 100% forgiven at thetime they are issued. The allowance of $717,842 offsets the receivable resulting in net $0 in the balance sheet. Other various loans reported in the Nonmajor Governmental Funds total $8,933.

7. GOVERNMENTAL LONG-TERM LIABILITIES
Changes in Long-Term Liabilities
A summary of changes in long-term liabilities for the year ended June 30, 2025 is as follows:

Compensated Absences
The City’s policies relating to compensated absences are described in Note 1. This liability, amounting to $8,976,213 at June 30, 2025, will be paid in future years from future resources, generally liquidated by the General Fund.

Balance at
July 1, 2024 Restatement Additions Retirements
Balance at
June 30, 2025
Due Within
One Year
Other Long-Term Liabil ities:

Compensated Absences 5,637,649$ 3,325,048$ 2,197,547$ (2,184,031)$ 8,976,213$ 3,293,985$ Claims Payable 2,864,851 - 2,250,051 (530,670) 4,584,232 300,000 Pollution Remed iation
Obligation 168,538 527,718 - (212,903) 483,353 322,235 Leases Payable 196,116 - - (41,784) 154,332 43,272 SBITAs 700,183 - 111,205 (279,040) 532,348 288,972 9,567,337$ 3,852,766$ 4,558,803$ (3,248,428)$ 14,730,478$ 4,248,464$ 75 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

7. GOVERNMENTAL LONG-TERM LIABILITIES, Continued
Pollution Remediation
In February 2007, the City acquired a property that was previously used as a dry-cleaning facility. In May 2010, the United States Environmental Protection Agency (U.S. EPA) issued the Unilateral Administrative Order (UAO) for the performance of a removal action to the City and the prior owner, due to the presence of tetrachloroethylene (PCE aka dry-cleaning solvent) contamination on site.

The UAO ordered the City to conduct the necessary environmental investigation related to the presence of PCE on the property and, thereafter, conduct the remediation necessary to remediate the soil and groundwater contamination found. The United States EPA has taken action against the City and the prior owner pursuant to its authority under CERCLA section 104, and in response to the UAO, the City has undertaken the damages that the EPA has the right to assess for failure to comply an EPA order.

The investigation was conducted under the supervision and guidance of the U.S. EPA. InJune 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 $1,723,475, 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 $1,723,475. In February 2025, the City was awarded another grant for $483,353 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, 2025, the City is in the third year of the PEP and has spent a total of $1,439,531 with a remaining Pollution Remediation liability of $483,353.

SBITAs
The City has entered into subscription-based information technology arrangements (SBITAs) for various software licenses. The SBITA arrangements expire at various dates through 2029 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.

Year Ending June, 30 Principal Interest Total
2026 288,972$ 14,790$ 303,762$
2027 215,664 6,977 222,641
2028 13,676 730 14,406
2029 14,036 370 14,406
Total 532,348$ 21,767$ 555,215$
76 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

7. GOVERNMENTAL LONG-TERM LIABILITIES, Continued
Leases Payable
The City has entered into a lease agreement with the Victorville 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 reportedin Note 4, Capital Assets.

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, 2025 is as follows:

See Note 10 for pledged revenue information.

Year Ending June, 30 Principal Interest Total
2026 43,272$ 4,727$ 47,999$
2027 44,817 3,183 48,000
2028 46,417 1,584 48,001
2029 19,826 174 20,000
Total 154,332$ 7,910$ 164,000$
Balance at
June 30, 2024
Restatement
(GASB 101) Additions Retirements
Balance at
June 30, 2025
Due Within
One Year`
Other Long-Term Liabilit ies
Compensated Absences 962,390$ 475,579$ 484,291$ (506,792)$ 1,415,468$ 540,673$ Claim Payable 1,190,000 - - (440,000) 750,000 - SBITAs 11,007 - - (11,007) - - Other Debt:
2005 Tax Allocation Bonds 10,565,000 - (1,320,000) 9,245,000 1,375,000 2006 Tax Allocation Bonds (Non-Housing) 44,055,000 - - (1,375,000) 42,680,000 1,435,000 2006 Tax Allocation Bonds (Housing) 11,830,000 - - (370,000) 11,460,000 385,000 2006 Tax Allocation Parity Bonds 41,035,000 - - (190,000) 40,845,000 205,000 2006 Tax Allocation Revenue Parity Bonds 27,705,000 - - (730,000) 26,975,000 775,000 2006 Tax Allocation Revenue Bonds 50,120,000 - - (1,355,000) 48,765,000 1,435,000 2007 Tax Allocation Bonds (Housing) 30,935,000 - - (885,000) 30,050,000 935,000 2007 Tax Allocation Bonds (Non-Housing) 32,405,000 - - (895,000) 31,510,000 945,000 2008A Tax Allocation Bonds 28,239,320 - 1,764,379 (125,000) 29,878,699 140,000 Unamortized Discounts/Premiums (1,908,461) - - 91,869 (1,816,592) - Tax Allocation Bonds Subtotal 274,980,859 - 1,764,379 (7,153,131) 269,592,107 7,630,000 Revenue Refunding Bonds:

Electric Revenue Bonds 2022A 35,980,000 - - - 35,980,000 - Electric Revenue Bonds 2022B 6,830,000 - - (1,595,000) 5,235,000 1,665,000 Unamortized Discounts/Premiums 1,740,276 - - (130,149) 1,610,127 - Certific ates of Participation (COP):
2006 COPs 7,700,000 - - (445,000) 7,255,000 465,000 Unamortized Discounts/Premiums 74,311 - - (6,228) 68,083 - Total 329,468,843$ 475,579$ 2,248,670$ (10,287,307)$ 321,905,785$ 10,300,673$ 77 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

8. BUSINESS-TYPE LONG-TERM LIABILITIES, Continued
Compensated Absences
The City’s policies relating to compensated absences are described in Note 1. This liability, amounting to $1,415,468 at June 30, 2025, will be paid in future years 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 information technology arrangements (SBITAs) for various software licenses. The SBITA arrangements expire at various dates through 2027 and do not provide for renewal options. The interest rates vary from 2.4% to 2.7% and there are no variable payments. The City has paid off the SBITAs as of June 30, 2025.

Right-to-use assets acquired through SBITAs, net of accumulated amortization, are reported in Note 4, Capital Assets.

Tax Allocation Bonds
Tax Allocation Parity Bonds, Series 2005A
In June 2005, the SCLAA issued $42,185,000 principal amount of Tax Allocation Parity Bonds, Series 2005A.

This debt was issued to finance certain public capital improvements benefiting the SCLAA.

On February 8, 2006, $1.8 million of bond proceeds was invested in land for the construction of a new City library. Prior to this purchase (on November 3, 2005), the Board of Directors of the SCLAA adopted a resolution with the intent of entering into a loan agreement between the SCLAA and the City with respect to this land purchase. On September 21, 2010, City Council approved this loan agreement. Legal counsel for the City has indicated that approval by the bond insurer is not required for the investment of proceeds not held by the bond trustee.

Bonds maturing on December 1, 2010, December 1, 2016, December 1, 2020, December 1, 2025, December 1, 2030, and December 1, 2035 in the amounts of $2,765,000, $3,365,000, $5,140,000, $6,335,000, $7,870,000, and $15,335,000, respectively, are term bonds. The outstanding bonds bear interest at 3.50% to 5.00% due June 1 and December 1 of each year.

The bonds are subject to redemption prior to maturity as described in the bond covenants. The bonds maturing on or after June 1, 2016 are subject to optional redemption in whole or in part by lot, without premium.

The bonds maturing on December 1, 2010, December 1, 2016, December 1, 2020, December 1, 2025, December 1, 2030, and December 1, 2035 are subject to mandatory redemption in part by lot, without premium, commencing December 1, 2007, December 1, 2012, December 1, 2016, December 1, 2021, December 1, 2026, and December 1, 2031, respectively, from sinking fund payments made by SCLAA.

In the fiscal year ended June 30, 2006, these bonds were partially defeased by the issuance of the Tax Allocation Revenue Parity Bonds, Refunding Series 2005 (Non-Housing). As of June 30, 2025, 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, 2025 is $9,245,000. 78 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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 principal amount of Tax Allocation Revenue Parity Bonds, Refunding Series 2006. The proceeds were used to refund the 2001 Tax Allocation Bonds, the 2003 Tax Allocation Bonds, and a portion of 2005 Tax Allocation Bonds. As a result, the 2001 and 2003 Tax Allocation Bonds are considered to be defeased, and the 2005 Tax Allocation Bonds are considered to be partially defeased. The respective liabilities have been removed from the statement of net position.

Bonds maturing on December 1, 2026, December 1, 2031, December 1, 2036, and December 1, 2043 in the amounts of $6,895,000, $8,595,000, $10,810,000, and $20,335,000, respectively, are term bonds. The outstanding bonds bear interest at 4.50% to 5.00% due June 1 and December 1 of each year.

The bonds are subject to redemption prior to maturity as described in the bond covenants. The bonds maturing on or after June 1, 2016 are subject to optional redemption in whole or in part by lot without premium.

The bonds maturing on December 1, 2026, December 1, 2031, December 1, 2036, and December 1, 2043 are subject to mandatory redemption in part by lot, without premium, commencing December 1, 2022, December 1, 2027, December 1, 2032, and December 1, 2037, respectively, from sinking fund payments made by SCLAA.

As of June 30, 2025, 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. Theamount of bonds outstanding at June 30, 2025 is $42,680,000.

Tax Allocation Revenue Parity Bonds, Refunding Series 2006 (Housing Set-Aside) In June 2006, the SCLAA issued $16,855,000 principal amount of Housing Set-Aside Revenue Bonds, Refunding Series 2006. The proceeds were used to refund all of the 2003 Tax Allocation Bonds and a portion of the 2005 Tax Allocation Parity Bonds. As a result, the 2003 Tax Allocation Bond is considered to be defeased and the liability has been removed from the statement of net position.

Bonds maturing on December 1, 2026, December 1, 2031, December 1, 2036, and December 1, 2043 in the amounts of $1,855,000, $2,305,000, $2,905,000, and $5,460,000, respectively, are term bonds. The outstanding bonds bear interest at 4.50% to 5.00% due June 1 and December 1 of each year.

The bonds are subject to redemption prior to maturity as described in the bond covenants. The bonds maturing on or after June 1, 2016 are subject to optional redemption in whole or in part by lot without premium.

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, 2025, 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. Theamount of bonds outstanding at June 30, 2025 is $11,460,000.
79 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

8. BUSINESS-TYPE LONG-TERM LIABILITIES, Continued
Tax Allocation Revenue Parity Bonds, Taxable Series 2006 In June 2006, the SCLAA issued $45,020,000 principal amount of Tax Allocation Revenue Parity Bonds, Taxable Series 2006. The proceeds were used to finance certain redevelopment activities benefiting the SCLAA.

Bonds maturing on December 1, 2036 and December 1, 2043 in the amounts of $20,080,000 and $24,940,000, respectively, are term bonds. The outstanding bonds bear interest at 6.10% due June 1 and December 1 of each year.

The bonds are subject to redemption prior to maturity as described in the bond covenants. The bonds are subject to optional redemption in whole or in part by lot, subject to a premium.

The bonds maturing on December 1, 2036 and December 1, 2043 are subject to mandatoryredemption 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, 2025, 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. Theamount of bonds outstanding at June 30, 2025 is $40,845,000.

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 used to finance and refinance certain redevelopment activities benefiting the SCLAA.

The bonds mature from December 1, 2007 to December 1, 2043 in varying amounts. Principal is payable in annual installments ranging from $50,000 to $2,320,000, commencing December 1, 2007. The bonds accrue interest at rates between 6.25% and6.30%. 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, 2025, 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, 2025 is $26,975,000. 80 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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 bondsis 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, 2025, 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, 2025 is $48,765,000.

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, 2025, 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 taxincrement revenues. The amount of bonds outstanding at June 30, 2025 is $30,050,000.
81 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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 principal amount Subordinate Tax Allocation Revenue Bonds, Series 2007. The proceeds were used to finance certain redevelopment activities benefiting the SCLAA.

Bonds maturing on December 1, 2008, December 1, 2009, December 1, 2012, December 1, 2017, December 1, 2022, December 1, 2027, December 1, 2032, December 1, 2032,December 1, 2037, December 1, 2037, December 1, 2037, December 1, 2043, and December 1, 2043 in the amounts of $480,000, $425,000, $1,395,000, $2,805,000, $3,640,000, $4,745,000, $3,000,000, $3,275,000, $3,325,000, $3,800,000, $1,250,000, $9,210,000, and $4,650,000, respectively, are term bonds. The outstanding bonds bearinterest 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 orafter 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, 2025, 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. Theamount of bonds outstanding at June 30, 2025 is $31,510,000.

Subordinate Tax Allocation Revenue Bonds, Series 2008A
In May 2008, the SCLAA issued $13,334,925 principal amount of Subordinate TaxAllocation Revenue Bonds, Series 2008A. The proceeds were used to finance certain redevelopment activities benefiting the SCLAA and to partially refund the $35,000,000 principal amount of Subordinate Tax Allocation Revenue Notes, Series 2008.

Bonds maturing on December 1, 2010, December 1, 2013, December 1, 2018, December 1, 2023, December 1, 2033, December 1, 2038, and December 1, 2043 in the amounts of $130,000, $215,000, $340,000, $530,000, $1,675,000, $1,285,000, and $1,720,000, respectively, are Current Interest Bonds. The outstanding bonds bear interest at 4.25%, 4.50%, 5.00%, 5.25%, 6.00%, 6.00%, and 6.00% due June 1 and December 1 of each year.

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, 2025.

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

As of June 30, 2025, 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. Theamount of bonds outstanding at June 30, 2025 is $29,878,699, which includes an accretion balance of $17,973,775. 82 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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 reserve for the Bonds is $816,500. As of June 30, 2025, the reserve amount was $836,333. The amount of Certificates of Participation outstanding at June 30, 2025 is $7,255,000.
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 2040, plus cost estimates for an irrevocable letter of credit and remarketing agent.

The Electric Revenue Bonds have stated interest rates ranging from 4.08% to 5.00%. The annual debt service is payable from and secured by a pledge of and lien on the net revenues of the District - see Note 10. Principal and interest payments are due each May 1 and interest only payments are due each November 1. As of June 30, 2025, required reserve for the Bonds was met with fiscal agent cash. The amount of Electric Revenue Bonds outstanding at June 30, 2025 is $41,215,000.
83 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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 Certificate of Participations were issued before Baldy Mesa and Victor Valley Water District
were consolidated into Victorville Water District. The City performed the calculation that demonstrated compliance with rate covenant for the fiscal year ended June 30, 2025. 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 and 2022B Electric Revenue Bonds require that the City generate sufficient net revenues which are at least equal to 115% of the debt service on all outstanding bonds and outstanding parity obligations coming due and payable in each fiscal year. The City performed the calculation that demonstrated compliance with rate covenant for the fiscal year ended June 30, 2025. 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, 2025, are as follows for each fiscal year ending June 30:

Year Ending June 30,
Tax
Allocation
Bonds
Principal*
Tax
Allocation
Bonds
Interest
Certific ate of
Participation
Principal
Certific ate of
Participation
Interest
Revenue
Refunding
Bonds
Principal
Revenue
Refunding
Bonds
Interest
2026 7,630,000$ 13,767,567$ 465,000$ 338,511$ 1,665,000$ 2,005,411$ 2027 8,035,000 13,352,576 485,000 317,849 1,740,000 1,927,489 2028 8,455,000 12,914,560 505,000 295,938 1,945,000 1,841,272 2029 8,905,000 12,449,433 530,000 272,650 2,045,000 1,742,100 2030 9,385,000 11,956,957 555,000 - 2,150,000 1,639,850 2031-35 55,280,000 51,088,777 3,200,000 - 12,455,000 6,477,000 2036-40 73,120,000 32,634,179 1,515,000 - 15,890,000 3,036,500 2041-45 76,591,226 33,988,567 - - 1,190,000 609,452 2046-50 5,218,788 85,406,955 - - 1,460,000 334,477 2051-52 814,910 8,635,045 - - 675,000 43,351 Subtotal 253,434,924 276,194,616 7,255,000 1,224,948 41,215,000 19,656,902 Accreted Amount 17,973,775
Discounts/Premiums (1,816,592) - 68,083 - 1,610,127 - Total 269,592,107$ 276,194,616$ 7,323,083$ 1,224,948$ 42,825,127$ 19,656,902$ *This total includes capital appreciation of $104,677,126 tax allocation bonds that will be accrued in the future years. 84 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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, 2025 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 December 1, 2012 to November 30, 2013, December 1, 2013 to November 30, 2014, and December 1, 2014 and thereafter, respectively.

The term bonds maturing on December 1, 2014, December 1, 2031, and December 1, 2031, are subject to mandatory redemption in part by lot, without premium commencing December 1, 2005, December 1, 2015, and December 1, 2022, respectively, from sinking fund payments made by the Agency.

As of June 30, 2025, 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, 2025 is $3,720,000.
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.

Balance at
June 30, 2024 Additions Retirements
Balance at
June 30, 2025
Due Within
One Year
Redevelopment Agency Debt:

Other Debt:

Tax Allocation Bonds:
2002A Tax Allocation Bonds 4,150,000$ $ - (430,000) $ 3,720,000$ 450,000$ 2003A Tax Allocation Bonds 4,385,000 - (460,000) 3,925,000 480,000 2003B Tax Allocation Bonds 2,155,000 - (225,000) 1,930,000 240,000 2006A Tax Allocation Bonds 15,460,000 - (630,000) 14,830,000 670,000 Total 27,810,000$ $ - (1,745,000) $ 24,405,000$ 1,840,000$ 85 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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 premium commencing December 1, 2021, December 1, 2024, and December 1, 2028, respectively, from sinking fund payments made by the Agency.

As of June 30, 2025, 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, 2025 is $3,925,000.
2003 Tax Allocation Bonds, Series B
In September 2003, the Redevelopment Agency issued $5,025,000 principal amount of TaxAllocation 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 andDecember 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, 2025, 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, 2025 is $1,930,000.
2006 Taxable Tax Allocation Parity Bonds, Series A
In May 2006, the Redevelopment Agency issued $22,975,000 principal amount of Taxable Tax Allocation Parity Bonds, Series A. The proceeds were used to finance certain redevelopment activities benefiting the project area.

Bonds maturing on December 1, 2011, December 1, 2021, and December 1, 2036 in theamounts of $2,185,000, $4,175,000, and $16,615,000, respectively, are term bonds. The outstanding bonds bear interest at 5.375% to

6.000% due June 1 and December 1 of each year. The bonds are subject to redemption prior to maturity as described in the bond covenants.

The bonds maturing on December 1, 2011, December 1, 2021, and December 1, 2036 aresubject 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. 86 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

9. SUCCESSOR AGENCY LONG-TERM LIABILITIES, Continued
As of June 30, 2025, 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, 2025 is $14,830,000.

Debt Service Requirements to Maturity
The annual requirements to amortize outstanding general long-term liabilities of the City as of June 30, 2025, 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, 2025, is as follows:
(a) The former Victorville Redevelopment Agency (RDA) entered into three agreements in which the Low- and Moderate-Income Fund (Low/Mod) advanced money to other funds within the RDA to fund the cost of redevelopment activity and capital improvements. In association with the RDA dissolution and Housing Asset Transfer process the Department of Finance approved the transfer of these advances to the City’s Housing Asset Successor. The outstanding balance of these three advances as of June 30, 2025 is $12,903,772, and the terms of each are described below:
i) Per a loan agreement approved March 16, 2010 by the Board of the VictorvilleRDA, a $3,750,000 was made from the Low/Mod Fund to the Victor ValleyProject Area Non- Housing Fund. The advance is to be used to cover necessaryredevelopment 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, 2025, is $5,133,436.

Year Ending June 30, Principal Interest
2026 1,840,000$ 1,382,188$
2027 1,940,000 1,282,926
2028 2,045,000 1,178,226
2029 2,155,000 1,067,844
2030 2,275,000 949,407
2031-35 13,430,000 2,686,069
2036-37 720,000 65,400
Total 24,405,000$ 8,612,060$
Fund Reporting Receivable Fund Reporting Payable Amount Housing Asset Successor
Special Revenue Fund RDA Successor Agency 12,903,772$ a) RDA Successor Agency SCLAA Enterprise Fund 12,133,339 b) 25,037,111$
87 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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, 2025, is $525,000.
iii) Per a loan agreement approved on May 4, 2010, a $5,000,000 advance wasmade from the Low/Mod Fund to the Victor Valley Project Area Non-Housing Fund. The advance is to be used to partially fund the Supplemental Educational Revenue Augmentation Fund (SERAF) payment. The advance bears interest at 3% using the simple interest method in accordance with SB-107. The outstanding balance of the advance as of June 30, 2025, is $7,236,336.
(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 accordance with SB-107. The outstanding balance of the advance as of June 30, 2025, is $12,133,339. Due to the uncertainty on when sufficient tax increment will be available to make payments on this loan, the obligation has not yet been included on the ROPS to request funding for repayment. In future fiscal years, the loan will be added to the ROPS. Considering the uncertainty of the timing of repayment and the lack of prior approval by the California Department of Finance of this obligation, as of June 30, 2025, 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 arecollateralized 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 ofCalifornia, the Successor Agency to the dissolved Redevelopment Agency of the City no longer receives the full amount of tax increment previously pledged by the dissolved redevelopment agency to its bondholders. In its place is a new revenue stream (RPTTF distributions) provided to the Successor Agency that represents only that portion of tax increment that is necessary to pay the approved enforceable obligations that come due for that fiscal year. The aforementioned statutory limitation on tax increment distributions also applies to the VVEDA funding that represents the primary revenue of the SCLAA. 88 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

10. PLEDGED REVENUE, Continued
Also, as noted previously, the 2006 Certificates of Participation result in a pledge of the net revenues of the Victorville Water District Enterprise Fund and the 2022A&B ElectricRevenue 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.

11. FUND DISCLOSURES
The following funds had deficit fund balances/net position as of June 30, 2025:

Description of Pledged Revenue
Annual Amount of
Pledged Revenue
(Net of Expenses,
Where Required)
Annual Debt
Service Payment
(of All Debt
Secured
by This Revenue)
Debt Service as
a Percentage of
Pledged
Revenue Covera ge
Property Tax Increment pledged by the Successor Agency
of the Victorville Redevelopment Agency 4,242,432$ 3,174,231$ 75% 134% Property Tax Increment and Other Revenue Pledged by
the Southern California Logistics Airport Authority 21,384,332 21,429,559 100% 100% Net Revenues Pledged by the Victorville Water District
for the 2006 Certificates of Participation 1,849,600 803,304 43% 230% Net Revenues Pledged by the City of Vi ctorville
for the 2022 Electric Revenue Bonds 12,757,747 3,671,866 29% 347% Deficit Fund Balance
Nonmajor Special Revenue Funds:

Other State / Local Grants Fund (2,534,110)$ (a) Transportation Tax (46,812) (b)
Enterprise Funds:

SCLAA (93,032,367) (c)
(a) The deficit fund balance in this fund is the result of grant expenditures being incurred during the fiscal year while the related reimbu rsements were collected outside the City’s availabilit y period. (b) The deficit represents expenditures that exceeded amounts received for Transportation Development Article (TDA) projects.
(c) See Note 20 for further informati on regarding the deficit balance in the SCLAA fund. 89 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

12. PENSION PLANS
General Information about the Pension Plans
Plan Descriptions
All qualified permanent and probationary employees are eligible to participate in the City’s Miscellaneous Plan, agent multiple-employer defined benefit pension plan, or the City’s Safety plan, a cost-sharing multiple- employer defined benefit pension plan, both administered by California Public Employees’ Retirement System (CalPERS). For the Miscellaneous Plan, CalPERS acts as a common investment and administrative agent for its participating member employers and the Plan is included within the Public Employees’ Retirement Fund A (PERF A). The CalPERS Safety Plan consists of safety pools (referred to as “risk pools”), which are comprised of individual employer safety rate plans. The risk pools are included within the Public Employees’ Retirement Fund C (PERF C). The CalPERS Safety Plan was closed to new entrants until the measurement period ended June 30, 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 available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 to 62 with statutorily reduced benefits. For employees hired into a plan with the

1.5% at 65 formula, eligibility for service retirement is age 55 with at least five years of services. PEPRA miscellaneous members become eligible for service retirement upon attainment of age 52 with at least five years of service. All members are eligible for nonduty disability benefits after five years of service. The death benefit is one of the following: The Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. Safety members can receive a special death benefit if the member dies while actively employed and the death is job-related. Fire members may receive the alternate death benefit in lieu of the Basic Death Benefit or the 1957 Survivor Benefit if the member dies while actively employed and has at least 20 years of total CalPERS service. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.
90 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

12. PENSION PLANS, Continued
The Plan’s provisions and benefits in effect as of the measurement period ended June 30, 2025, are summarized as follows:

Employees Covered
As of the June 30, 2025 measurement date, the following employees were covered by the benefit terms for the Miscellaneous Plan:

Hire Date
Prior to
January 1, 2013
on or after
January 1, 2013
Benefit Formula 2.5% at 55 2% at 62
Benefit Vesting Schedule
5 Years
of Service
5 Years
of Service
Benefit Payments Monthly for Life Monthly for Life
Retirement Age 50 to 55 52 to 67
Required Employee Contribution Rates 8.00% 7.75%
Required Employer Contribution Rates:

Normal Cost Rate 11.23% 11.23%
Payment of Unfunded Liability 5,908,914$ N/A
Hire Date
Prior to
January 1, 2013
on or after
January 1, 2013
Benefit Formula 2.0 at 50 2.7% at 57
Benefit Vesting Schedule
5 Years
or Service
5 Years
of Service
Benefit Payments Monthly for Life Monthly of Life
Retirement Age 50 to 55 52.to 57
Required Employee Contribution Rates 9.00% 14.50%
Required Employer Contribution Rates:

Normal Cost Rate 23.13% 14.72%
Payment of Unfunded Liability 1,270,803$ -$
Safety
Miscellaneous
Miscellaneous
Active Employees 403
Inactive Employees or Beneficiaries Currently
Receiving Benefits 432
Inactive Employees Entitled to, But Not Yet
Receiving Benefits 312
1,147
91 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

12. PENSION PLANS, Continued
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. City contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contributions requirements are classified as plan member contributions.

For the fiscal year ended June 30, 2025, the City contributed $10,172,783 and $2,590,011 to the miscellaneous and safety plans, respectively, which results in total contributions of $12,762,794.

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, 2023, with update procedures used to roll forward the total pension liability to June 30, 2024. The total pension liability for both the Miscellaneous and Safety Plans was based on the following assumptions:

Valuation Date June 30, 2023
Measurement Date June 30, 2024
Actuarial Cost Method Entry Age Normal
Asset Valuation Method Market Value of Assets
Actuarial Assumptions:

Discount Rate 6.90%
Inflation 2.30%
Salary Increases (1)
Mortality Rate Table (2)
Post Retirement Benefit Increase (3)
(1)
(2)
(3)
Varies by entry age and service.

The mortality table used was developed based on CalPERS-specific data.

The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021 experience study report from November 2021 that can be found on the CalPERS website.

The lesser of contract COLA up to 2.30% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.30% thereafter. 92 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

12. PENSION PLANS, Continued
Long-Term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and long- term market return expectations. Using historical returns all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points. The expected real rates of return by asset class are as follows:

Discount Rate
The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Asset Class (a)
Assumed
Asset
Allocation
Real Return
(a) (b)
Global Equity - Cap-weighted 30.00% 4.54%
Global Equity - Non-Cap-weighted 12.00% 3.84
Private Equity 13.00% 7.28
Treasury 5.00% 0.27
Mortgage-backed Securities 5.00% 0.50
Investment Grade Corporates 10.00% 1.56
High Yield 5.00% 2.27
Emerging Market Debt 5.00% 2.48
Private Debt 5.00% 3.57
Real Assets 15.00% 3.21
Leverage -5.00% -0.59%
Total 100.00%
(a) An expected inflation of 2.30% us ed for this period (b) Figures are based on the 2021 Asset Liability Management study. 93 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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, 2025, 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 pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined.

The City’s proportionate share of the net pension liability for each Plan as of the measurement date ended June 30, 2024 and 2025, was as follows:

Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net Pension
Liability
(c) = (a) - (b)
Balance at June 30, 2023 (MD) 260,978,284$ 185,267,467$ 75,710,817$ Changes Recognized for the
Measurement Period:

Service Cost 6,122,390 - 6,12 2,390
Interest on Total Pension Liability 18,416,814 - 18,416,814 Change in Benefit Terms - - -
Differences between Expected and Actual Experience 8,877,285 - 8,87 7,285 Net Plan to Plan Resource Movement - - -
Contributions from the Employer - 8,74 5,621 (8,745,621) Contributions from the Employees - 2,87 2,680 (2,872,680) Net Investment Income - 17,911,341 (17,911,341)
Benefits Payments, including Refunds
of Employee Contributions (12,012,841) (12,012,841) - Administrative Expenses - (150,753) 150,753
Balance at June 30, 2024 (MD) 282,381,932$ 202,633,515$ 79,748,417$ Increase (Decrease)
Proportionate Share of
Net Pension Liability
Safety 14,310,904$
Safety
Proportion - June 30, 2023 0.19738%
Proportion - June 30, 2024 0.19629%
Change - Increase (Decrease) -0.00109%
94 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

12. PENSION PLANS, Continued
Pension Expense and Deferred Outflows and Inflows of Resources Miscellaneous Agent Multiple-Employer Plan
For the year ended June 30, 2025, the City recognized pension expense of $15,512,256 for the Miscellaneous agent multiple-employer Plan. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources for the Miscellaneous Plan:
$10,172,783 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, 2026. 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:

Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Pension Contributions Subsequent to the
Measurement Date 10,172,783$ -$
Changes in Assumptions 1,487,171 -
Differences Between Expected and Actual Experience 9,563,066 (510,395) Net Difference Between Projected and Actual
Earnings on Pension Plan Investments 2,705,656 - Total 23,928,676$ (510,395)$
Measurement Period
Ending June 30,
Deferred
Inflows of
Resources
2025 4,641,465$
2026 8,215,269
2027 1,421,424
2028 (1,032,660)
Total 13,245,498$
95 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

12. PENSION PLANS, Continued
Safety Cost-Sharing Plan
For the year ended June 30, 2025, the City recognized pension expense of $3,249,302 for the Safety cost-sharing Plan. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources for the Safety Plan:
$2,590,011 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, 2026. 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 proportionate share of the net pension liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate:

Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Pension Contributions Subsequent to the
Measurement Date 2,590,011$ -$
Differences Between Expected and Actual Experiences 1,167,897 (37,973) Changes in Assumptions 352,592 -
Net Differences Between Projected and Actual
Earnings on Pension Plan Investments 691,724 - Changes in Proportion and Differences Between
Employer Contributions and Employer's 862,926 (82,273) Change in Employer's Proportion 99,195 (184,673)
Total 5,764,345$ (304,919)$
Measurement Period
Ended June 30,
Deferred
Inflows of
Resources
2026 1,152,767$
2027 1,853,461
2028 99,864
2029 (236,677)
Total 2,869,415$
1% Decrease
(5.90%)
Current Rate
(6.90%)
1% Increase
(7.90%)
Miscellaneous Agent Multiple-Employer P lan 120,297,344$ 79,748,417$ 46,556,266$ Safety Cost-Sharing Plan 21,977,106 14,310,904 8,041,028 Discount Rate
96 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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

Payable to the Pension Plan
At June 30, 2025, 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, 2025.

Summary of Plan Amounts for Government-Wide Financial Statements The following is a summary of the net pension liability, deferred outflows of resources, anddeferred 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 isavailable to employees who are planning on retiring within three years. Under this provision, funds not utilized may be contributed the year prior to retirement.

Deferred Compensation funds may be accessed through a loan program. A 401(a) Defined Contribution Plan is available for new full-time employees who may elect an employee contribution, under Section 401(a) of the IRC. The plan document allows a 60-day period for the individuals to make an election from the initial date of hire. Pursuant to Federal Regulations, effective December 31, 2009, existing full-time employees may not enroll or modify an existing 401(a) plan. The City makes no contribution to the plan on behalf of the members and the City has no liability for losses under the plan.

The City has established a deferred compensation plan through Great-West Life and Annuity Insurance Company in accordance with IRC Section 457(b), whereby the City employees may elect to defer portions of their compensation in a self-directed investment plan for retirement. The City makes no contribution to the plan on behalf of the members except for those specific positions as noted below. Plan assets are invested in each individual’s name with several deferred compensation plan providers. Distributions are made upon the participant’s termination, retirement, death, or total disability, and in a manner in accordance with the election made by the participant. The City has no liability for losses under the plan.

Net Pension
Liability
Deferred
Outflows
Deferred
Inflows
Pension
Expense
Miscellaneous Agent Multiple-Employer Plan (79,748,417)$ 23,928,676$ (510,395)$ 15,512,256$ Safety Cost-Sharing Plan (14,310,904) 5,764,345 (304,919) 3,249,302 Total (94,059,321)$ 29,693,021$ (815,314)$ 18,761,558$ 97 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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. Those represented employees as of July 1, 2022, will be “grandfathered” into the existing deferred compensation structure.” For the fiscal year ended June 30, 2025, the City contributed $213,250 for covered payroll totaling $8,964,741.

14. OTHER POSTEMPLOYMENT BENEFIT (OPEB)
The City of Victorville contributes to two single employer defined benefit healthcare plans: City Retiree Healthcare Plan (City Plan) and Water District Retiree Healthcare Plan (District Plan). The plan description and other related information for each plan are included below.

Other Postemployment Benefits Plan – City Plan
Plan Descriptions
The City Plan provides medical benefits to eligible retired City employees and beneficiaries in accordance with various labor agreements. The plan covers employees who retire directly from the City with eight years of service. The City provides a contribution up to a certain amount (a portion of the Health Net HMO single premium). The percentage varies based on years of City service.

Funding Policy
The contribution requirements of plan members and the City are established and may be amended by City Council. The contribution required to be made under City Council and labor agreement requirements is based on a pay-as-you-go basis (i.e., as medical insurance premiums become due). The City has not established a trust that is administered by the City for the purpose of holding assets accumulated for plan benefits.

Employees Covered
As of the June 30, 2025 measurement date, the following current and former employees were covered by the benefit terms under the Plan:

Valuation Date June 30, 2024
Measurement Date June 30, 2024
Measurement Period July 1, 2023 to June 30, 2024
Active Employees 40 1
Inactive Employees or Beneficiaries Currently
Receiving Benefits 68
Inactive Employees Entitled to, But Not Yet
Receiving Benefits 163
632
98 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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, 2025, the City’s cash contributions were $391,425 for current premiums, administrative costs of $1,744, and the estimated implied subsidy was $143,000 resulting in total payments of $536,169.

Total OPEB Liability
The City’s Total OPEB liability was measured as of June 30, 2025 and was determined by an actuarial valuation as of June 30, 2024.

Discount Rate
The discount rate used to measure the total OPEB liability was 3.93%. 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, 2024 to 2025:
 The discount rate changed from 3.65% to 3.93% based on changes in the index.

Actuarial Cost Method Entry Age Normal
Actuarial Assumptions:

Discount Rate 3.93%
Inflation 2.50%
Salary Increases 2.75% per annum, in aggregate
Investment Rate of Return N/A
Mortality, Retirement, Disabilit y,
and Termination 2000-2019 Experience Study
Morality Improvement Mortality projected fully generational with Scale MP-2021
Healthcare Trend Rate Non-Medicare: 7.9% for 2026, decreasing to an ultimate rate of 3.45% in 2076
Medicare (Non-Kaiser): 6.9% for 2026, decreasing to an
ultimate rate of 3.45% in 2076
Medicare (Kaiser): 5.65% for 2026, decreasing to an
ultimate rate of 3.45% in 2076
99 City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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 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: 6.9% for 2026 decreasing to 2.45% in 2076; Medicare (Non-Kaiser): 5.9% for 2026, decreasing to an ultimate rate of 2.45% in 2076; Medicare (Kaiser): 4.65% for 2026, decreasing to an ultimate rate of 2.45% in 2076) or one percentage point higher (Non-Medicare: 8.9% for 2026 decreasing to 4.45% in 2076; Medicare (Non-Kaiser): 7.9% for 2026, decreasing to an ultimate rate of 4.45% in 2076; Medicare (Kaiser): 6.65% for 2026, decreasing to an ultimaterate 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 OPEBexpense systematically over time. Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are recognized in future OPEB expense.

Total OPEB
Liabilit y
Total OPEB Liability at June 30, 2023 (MD) 25,277,083$
Service Cost 1,728,677
Interest 975,395
Differences Between Expected and Actual Experience 1,484,894 Changes in Assumptions (1,295,254)
Benefit Payments (565,233)
Net Changes 2,328,479
Total OPEB Liability at June 30, 2024 (MD) 27,605,562$
1% Decrease
(2.93%)
Current Rate
(3.93%)
1% Increase
(4.93%)
Total OPEB Liability 32,637,599$ 27,605,562$ 23,582,640$ Discount Rate
1% Decrease Current Rate 1% Increase
Total OPEB Liability 22,764,055$ 27,605,562$ 33,970,413$ Healthcare Trend Rate
100
City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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 OPEBFor the fiscal year ended June 30, 2025, the City recognized OPEB expense of $1,116,235. As of the fiscal year ended June 30, 2025, the City reported deferred outflows/inflows of resources related to OPEB from the following sources:
$536,169 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, 2026.

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, 2025, the City had no outstanding amount of contributions to the OPEB planrequired for the year ended June 30, 2025.

Net Difference Between Projected
and Actual Earnings on OPEB
Plan Investments 5 years
All Other Amounts
Expected average remai ning
service
lifetime (EARSL) (10.7 Years at
June 30, 2024 measurement date)
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Employer Contribu tions Subsequent to the
Measurement Date 536,169$ -$
Differences Between Expected and Actual Experience 1,340,730 (5,123,250) Changes of Assumptions 2,680,060 (6,237,678)
Total 4,556,959$ (11,360,928)$
Year Ending June 30,
Deferred
Outflows/
(Inflows) of
Resources
2026 (1,589,862)$
2027 (1,200,646)
2028 (842,862)
2029 (958,014)
2030 (965,640)
Thereafter (1,783,114)
Total (7,340,138)$
101
City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

14. OTHER POSTEMPLOYMENT BENEFIT (OPEB), Continued
Other Postemployment Benefits Plan – Water District Plan Plan Descriptions
The District Plan provides medical benefits to eligible retired Water District employees and beneficiaries in accordance with various labor agreements. The plan covers employees who retire directly from the District with five years of service. The District Plan also providesDental 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, 2024 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, 2025, the District’s cash contributions were $275,972 for current premiums, administrative costs of $811, and the estimated implied subsidy was $66,000 resulting in total payments of $342,783.

Active Employees 87
Inactive Employees or Beneficiaries Currently
Receiving Benefits 37
Inactive Employees Entitled to, But Not Yet
Receiving Benefits 8
132
102
City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

14. OTHER POSTEMPLOYMENT BENEFIT (OPEB), Continued
Total OPEB Liability
The District’s total OPEB liability was measured as of June 30, 2025 and was determined by an actuarial valuation as of June 30, 2025.

Discount Rate
The discount rate used to measure the total OPEB liability was 3.93%. 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, 2024 to 2025:
 The discount rate changed from 3.65% to 3.93% 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:

Actuarial Cost Method Entry Age Normal
Actuarial Assumptions:

Discount Rate 3.93%
Inflation 2.50%
Salary Increases 2.75% per annum, in aggregate
Investment Rate of Return N/A
Mortality, Retirement, Disabilit y,
and Termination 2000-2019 Experience Study
Morality Improvement Mortality projected fully generational with Scale MP-2021
Healthcare Trend Rate Non-Medicare: 7.9% for 2026, decreasing to an ultimate rate of 3.45% in 2076
Medicare (Non-Kaiser): 6.9% for 2026, decreasing to an
ultimate rate of 3.45% in 2076
Medicare (Kaiser): 5.65% for 2026, decreasing to an
ultimate rate of 3.45% in 2076
Total OPEB
Liabilit y
Total OPEB Liabilit y at June 30, 2023 (MD) 12,029,485$ Service Cost 454,907
Interest 449,831
Differences Between Expected and Actual Experience (480,564) Changes in Assumptions (488,896)
Benefit Payments (320,494)
Net Changes (385,216)
Total OPEB Liabilit y at June 30, 2024 (MD) 11,644,269$ 103
City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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

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: 6.9% for 2026 decreasing to 2.45% in 2076; Medicare (Non-Kaiser): 5.9% for 2026, decreasing to an ultimate rate of 2.45% in 2076; Medicare (Kaiser): 4.65% for 2026, decreasing to an ultimate rate of 2.45% in 2076) or one percentage point higher (Non-Medicare: 8.9% for 2026 decreasing to 4.45% in 2076; Medicare (Non-Kaiser): 7.9% for 2026, decreasing to an ultimate rate of 4.45% in 2076; Medicare (Kaiser): 6.65% for 2026, decreasing to an ultimaterate 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 OPEBexpense systematically over time. Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are recognized in future OPEB expense.

The recognition period differs depending on the source of the gain or loss:
1% Decrease
(2.93%)
Current Rate
(3.93%)
1% Increase
(4.93%)
Total OPEB Liabilit y 13,535,539$ 11,644,269$ 10,115,347$ Discount Rate
1% Decrease Current Rate 1% Increase
Total OPEB Liabilit y 9,930,989$ 11,644,269$ 13,830,357$ Healthcare Trend Rate
Net Difference Between Projected
and Actual Earnings on OPEB
Plan Investments
5 years
All Other Amounts Expected average remain ing service
lifetime (EARSL) (7.7 Years at
June 30, 2024 measurement date)
104
City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

14. OTHER POSTEMPLOYMENT BENEFIT (OPEB), Continued
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2025, the District recognized OPEB expense of $297,380. As of the fiscal year ended June 30, 2025, the District reported deferred outflows/inflows of resources related to OPEB from the following sources:

The $342,783 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, 2026. 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, 2025, the District had no outstanding amount of contributions to the OPEB plan required for the year ended June 30, 2025.

Summary of OPEB Amounts for Government-Wide Financial Statements Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Employer Contributions Subsequent to the
Measurement Date 342,783$ -$
Differences Between Expected and Actual Experience 621,947 (975,355) Changes of Assumptions 916,502 (2,192,928)
1,881,232$ (3,168,283)$
Year Ending June 30,
Deferred
Outflows/
(Inflows) of
Resources
2026 (395,355)$
2027 (139,517)
2028 (198,247)
2029 (299,940)
2030 (332,016)
Thereafter (264,759)
Total (1,629,834)$
Total OPEB
Liability
Deferred
Outflows
Deferred
Inflows
OPEB
Expense
City OPEB Plan (27,605,562)$ 4,556,959$ (11,360,928)$ $ 1,116,235 Water District OPEB Plan (11,644,269) 1,881,231 (3,168,283) 297,380 Total (39,249,831)$ 6,438,190$ (14,529,211)$ $ 1,413,615 105
City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

15. JOINTLY GOVERNED ORGANIZATIONS
The City participates in certain jointly governed organizations that have been formally organized as separate entities under the Joint Exercise of Powers Act of the state of California. As separate legal entities, these entities exercise all of the powers within the scope of the related Joint Powers Agreements including the preparation of annual budgets, accountability for all funds, the power to make and execute contracts, and the right to sue and be sued. Each jointly governed organization is governed by a board consisting of representatives from member municipalities. Each board controls the operations of the respective jointly governed organizations, including selection of management and approval of operating budgets, independent of any influence by member municipalities beyond theirrepresentation on that board. The City of Victorville does not control appointments to a majority of the governing boards for any of these organizations. A summary of the City’s jointly governed organizations are included below:

Mojave Desert and Mountain Integrated Waste Management Authority Mojave Desert and Mountain Integrated Waste Management Authority (the Authority) was formed in September of 1991 by the cities of Victorville, Barstow, Big Bear Lake, Needles, Twentynine Palms, the Towns of Apple Valley and Yucca Valley, and the County of San Bernardino to fund the annual operating costs of a recycling processing center known as the Victor Valley Materials Recovery Facility (the facility). The Governing body of the Authority is made up of representatives from each significant participant in the Authority. Budgeting and financing are the responsibility of the Authority. Contribution rates from member agencies are based on each member’s current population as a percentage of the total population of the Authority. The Authority does not own the facility that is used in the recycling operation.Rather, the facility is owned by the City and the Town of Apple Valley, each of which has a 50% interest in the facility. The City’s investment in the Authority has been recorded using the equity method of accounting and is reflected as an investment in joint venture in the Solid Waste Fund of the accompanying financial statements.

The following schedule summarizes the City’s investment in the Authority as of June 30, 2025 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, 2025:

Financial statements may be obtained by mailing a request to the Town of Apple Valley, 14955 Dale Evans Parkway, Apple Valley, California 92307.

Percentage
Ownership
Total Joint
Venture Equity
City's
Equity
Interest
City's Share of
Joint Venture
Net Income
(Loss)
50% 40,266$ 20,133$ (320,097)$
106
City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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 assets of the former VVEDA have been transferred to the VVEDA Successor Agency and are subject to the distribution’s provisions of the bill. The SCLAA contains a portion of the VVEDA Successor Agency with the Town of Apple Valley and City of Adelanto comprising the rest of the VVEDA Successor Agency. The RPTTF (tax increment distributions) from VVEDA represent the primary revenue of the SCLAA. Financial statements may be obtained by sending a written request to Victor Valley Economic Development Authority, 18374 Phantom Street, Victorville, CA92394.

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. In 2015, VVTA formally merged with Barstow Area Transit (BAT), bringing Barstow services under VVTA. VVTA is the regional transit entity that was created to provide a public transit system for the entire region associated with the Victor Valley. The governing body of VVTA is made up of representatives from each significant participant in VVTA. Budgeting and financing are the responsibility of VVTA. The City of Victorville has agreed to sell monthly bus passes issued by VVTA and to remit between the first and tenth day of each month the previous month’s sales receipts and proceeds. There is no resulting equity applicable to the City from this arrangement. Financial statements may be obtained by sending a written request to Victor Valley Transit Authority, 17150 Smoke Tree Street, Hesperia, CA 92345.

Victor Valley Wastewater Reclamation Authority
The Victor Valley Wastewater Reclamation Authority (VVWRA) was formed in 1999 between the Cities of Victorville, Adelanto, and Hesperia, the Town of Apple Valley, and the County of San Bernardino for the purpose of construction, operation, and maintenance of sewer collection, transmission, and treatment facilities within the high desert region. The governingbody of VVWRA is made up of representatives of each significant participant in VVWRA. Budgeting and financing are the responsibility of the VVWRA. The City makes monthly payments to VVWRA for sewer treatment and connection fee services. The City made payments totaling $16,182,012 to VVWRA for the year ended June 30, 2025. The members have no measurable equity interest in the net position of the Authority. Section 61 of the Joint Powers Authority Agreement provides for no distribution of assets to the members upon dissolution of the Authority or upon otherwise exiting the Authority. Rather than an equity interest, Section 12.2(b) of the Joint Powers Authority Agreement provides each member with Purchased Capacity in return for its capital investment in the plant. Financial statements may be obtained by sending a written request to Victor Valley Wastewater Reclamation Authority, 20111 Shay Road, Victorville, CA 92394.

Consolidated Fire Agencies JPA (CONFIRE)
In 2021, 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. 107
City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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 after-hours dispatch services for local government, i.e.

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

Each member agency has one elected official that is appointed to the CONFIRE Board of Directors by the legislative body of each party. The Board of Directors is responsible for adopting the CONFIRE budget, for establishing assessments to member agencies, and for establishing overall fiscal policy. The Board also establishes the overall policy direction for 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, 2025, the City contributed $1,467,069.

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

In the case of a member withdrawal, notice of intent to withdraw must be presented in writing to the Chairperson of the Board of Directors of CONFIRE with proof of certified mail. No party may withdraw until they have either paid in full their pro-rata share of all outstanding debts and obligations that were incurred while they were a Party. This includes long-term debt, pension obligations and multi-fiscal-year debt. Or executed a contract with CONFIRE to pay for all outstanding debts and obligations incurred while they were a party.

CONFIRE can be dissolved and terminated by a Board vote of not less than 90% of the total parties at that time. No assets may be distributed until all outstanding debts and obligations have been resolved. Resolved means that each Party has (a) either paid their pro-rata share of all outstanding debts and obligations that were incurred while they were a Party; or (b) executed a contract with CONFIRE to pay for all outstanding debts and obligations incurred while they were a Party; and (c) all assets of CONFIRE will be distributed in proportion to the contributions of the Parties during the fiscal year of distribution. 16 . PARTICIPATION IN RISK POOL
The City is a member of the Public Entity Risk Management Authority (PERMA), a joint powers authority formed under Section 990 of the California Government Code for the purpose of jointly funding programs of insurance coverage for its members. PERMA is comprised of 31 participating member agencies, 21 cities with populations ranging from 2,300 to 198,000, 3 transit agencies, and 6 special districts. The City participates in the liability, workers’ compensation, and employment practices liability programs of PERMA.

The liability program provides coverage up to $50 million per occurrence for personal injury, bodily injury, property damage, and public officials’ errors and omissions. The City has selected a self-insured retention of $100,000 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. 108
City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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 City self-insures up to a level of $250,000 per accident or employee and participates in a risk sharing pool for losses up to $500,000 followed by PERMA’s membership in the Local Agency Worker’s Compensation Excess Joint Powers Authority (LAWCX) and the CSAC Excess Insurance Authority for excess coverage to the limits.

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 designated custodial funds for any delinquent assessment district bond payments. If delinquencies occur beyond the amounts held in the reserve funds created from bond proceeds, the City has no duty to pay the delinquency out of any available funds of the City. Neither the faith, credit, nor taxing power of the City is pledged to the payment of the bonds. The City acts solely as an agent for those paying assessmentsand for the bondholders. The outstanding balance at June 30, 2025, for the 2002 Series A and 2005 Series A was $430,000 and $1,750,000, 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 validassessment liens upon certain lands within the special assessment district and are not direct liabilities of the City and, accordingly, are not included in the accompanying general purpose financial statements. The City has no obligation beyond the balances in the designated custodial funds for any delinquent assessment district bond payments. If delinquencies occur beyond the amounts held in the reserve funds created from bond proceeds, the Cityhas no duty to pay the delinquency out of any available funds of the City. Neither the faith, credit, or taxing power of the City is pledged to the payment of the bonds. The City acts solely as an agent for those paying assessments and for the bondholders. The outstanding balance at June 30, 2025 was $2,430,000.

Year
Beginning
Balance
Claims and
Changes in
Estimates
Claim
Payments
Ending
Balance
Due Within
One Year
2023- 24 3,556,713$ 1,753,785$ (1,255,647)$ 4,054,851$ 740,000$ 2024- 25 4,054,851 2,250,051 (970,670) 5,334,232 740,000 109
City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

18. COMMITMENTS AND CONTINGENCIES
A. Litigation
The City is a defendant in certain legal actions arising in the normal course of operations. The accompanying basic financial statements reflect a liability for the probable amounts of loss associated with these claims. In the normal course of municipal operations, the City has recorded a liability for claims and judgments based upon management’s best estimate of the probable amount of loss associated with those claims. Additional amounts of potential loss have not been accrued because management has not determined those additional amounts to be probable of payment.

B. Commitments for the Purchase of Electricity
Victorville Municipal Utility Services (VMUS, an enterprise fund of the City of Victorville) is a member of WSPP Inc., which is an organization of electric wholesale market entities that utilize a standardized WSPP power agreement to execute trading opportunities, allowing WSPP members to manage power delivery and price risk. The WSPP agreement is approved by the Federal Energy Regulatory Commission (FERC) which promotes an efficient and robust wholesale electric market at market-based rates. VMUS 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 electricity with Shell between January 1, 2023 through December 31, 2024. VMUS also entered into two short-term power supply confirmation agreements with NextEra Energy Marketing, LLC for the purchase of electricity from January 1, 2024 through December 31, 2024 and with Constellation Energy Generation, LLC for the purchase of electricity from March 1, 2025 through June 30, 2025. A long -term power purchase agreement
for the Boulder Canyon Project was executed between VMUS, the Western Area Power Administration, and the Bureau of Reclamation, effective October 1, 2016. The annual energy allocation from the Boulder Canyon Project represents approximately 4% of current VMUS customer requirements, and the term of the agreement runs from October 1, 2017, through September 30, 2067. In November 2019, VMUS entered into an agreement with ZGlobal to contract for scheduling coordination and other settlement services through December 31, 2023, and to continue month to month unless terminated by either party.

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 commercial operation date was March 13, 2025, 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 supplies 11 MW of renewable power to VMUS from the Alta Mesa RP27 Wind Energy Center for a fee of $44 per megawatt-hour.
110
City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

18. COMMITMENTS AND CONTINGENCIES, Continued
B. Commitments for the Purchase of Electricity, Continued The City also entered into a Renewable Power Purchase and Sale Agreement with Gaskell West 2 LLC (Gaskell West 2), effective October 27, 2021 (the Gaskell West 2 PPA), for the purchase of renewable energy and battery storage from a 29 MW solar photovoltaic electric generating facility combined with a 20 MW/80 MWh lithium-ion battery storage facility, located in Kern County, California. The commercial operation date for the Gaskell West 2 solar project was May 5, 2023. 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) for a fee of $26.65 per megawatt-hour, including all energy, environmental attributes and capacity attributes associated therewith, and an 8 MW interest in the battery energy storage system for a fee of $6.65 per kilowatt-hour.

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. These two renewable power purchase agreements were 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 2030, at least 60% 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.

C. Southern California Logistics Airport Authority and Stirling Enterprise LLC In the early 1990s the U.S. Air Force closed George Air Force Base (former Base). In response the local communities formed the Victor Valley Economic Development Authority (VVEDA). VVEDA and the Air Force entered into agreements to lease and ultimately transfer title to the former Base to VVEDA. The subject land is designated as either Public Benefit Transfer (PBT) Parcels or Economic Development Conveyance (EDC) Parcels. The PBT Parcels are made up of approximately 2,200 acres previously used by the U.S. Air Force and are restricted to use as an airport. These parcels were transferred to SCLAA at no cost.

The EDC Parcels are made up of approximately 1,800 acres of adjacent property which may be developed for use as commercial property. SCLAA paid $1,636,489 and is required to pay additional $37,176 for these EDC Parcels. In 1993 a Redevelopment Plan was adopted by VVEDA establishing a redevelopment project area encompassing the former Base as well as approximately 55,000 additional acres. VVEDA delegated its decision-making authority relative to the former Base, now known as Southern California Logistics Airport or SCLA, to the Southern California Logistics Airport Authority (SCLAA). SCLAA is a component unit entity of the City of Victorville. It is also a Joint Power Authority comprised of the City of Victorville and the Victorville Water District.

SCLAA adopted a Specific Plan in conformity with the Redevelopment Plan and adopted a Master Development Plan establishing its goal to develop the area as a cargo and aircraft maintenance facility and a business/industrial center thereby creating jobs and improving economic conditions in the Victor Valley.
111
City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

18. COMMITMENTS AND CONTINGENCIES, Continued
C. Southern California Logistics Airport Authority and Stirling Enterprise LLC, Continued In July 1998 SCLAA and Stirling Enterprises, LLC and its related entities (Stirling) entered into the first of several development agreements for the marketing, acquisition, operation and development of SCLAA.

As development occurred, these agreements were amended, which involved multiple property transactions between the SCLAA and Stirling as the SCLAA acquired property from the U.S. Air Force.

In September 2021, Stirling’s ownership structure was changed, whereby Stirling relinquished its role as developer to Prologis L.P. (Prologis).

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

The Disposition, Exchange and Development Agreement (#2) allows for the removal of approximately 280 acres of Airport-owned property from the definition of EDC Parcels and the title transfer in fee to Stirling, of approximately 280 acres. The Airport-owned property will become available for the Airport for revenue-producing purposes and the Airport will have the flexibility to develop the subject property on a ground-lease basis with aviation and nonaviation (Section 2.01 of the Development and Exchange Agreement). Revenue sharing will only exist relating to these parcels if the respective transaction is procured by Stirling and be split 80/20 with the larger share to benefit SCLAA.

The Disposition, Exchange, and Development Agreement also provides for the disposition of additional off-airport property. In addition to the Stirling Exchange Parcels, SCLAA will then transfer, in fee, 200 acres of property for the $.0203/psf purchase price ($176,448) and participate in revenue sharing for net proceeds in an amount equal to 30% (Section 2.03 of the Development and Exchange Agreement). Net proceeds are generally defined to be revenues generated from the eventual sale by Stirling that are residual to infrastructure costs, EIR costs and developer credits. The Agreement also transfers the public infrastructure obligations of the Authority pursuant to the MA and DDA to Stirling.

Finally, the Option and Development Agreement, in connection with performance obligations related to the Development and Exchange Agreement, will provide Stirling the ability to acquire additional acreage currently provided for in the Master Agreement. Such an exercise of option will occur in 50-acre increments based on Stirling having developed 500,000 square feet of property owned by it. The Option Agreement is set up to run through December 2050 and can terminate sooner due to nonperformance described in Section 1.5 of the Option and Development Agreement.

With the recent ownership changes that occurred in 2021, the Disposition, Exchange, and Development Agreement (#2) and the Option and Development Agreement were amended. Currently, the presiding agreement includes the Amendment No. 2 to Disposition, Exchange, and Development Agreement #2, the Amended and Restated Option and Development Agreement, and Satisfaction and Termination Agreement. The revenue participation and property sale information previously stated in the section remains the same.
112
City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

18. COMMITMENTS AND CONTINGENCIES, Continued
D. Management
Prologis is allowed to lease or cause to be leased existing buildings and facilities the located on 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 Prologis to participate in 20% of any net lease revenues from tenants who may be procured by Prologis and approved 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 Prologis and the Authority.

E. Construction Commitments
The following material construction commitments existed at June 30, 2025:

19. SALES TAX ABATEMENTS
On September 7, 2012, the City Council approved a development agreement with Macerich Victor Valley LLC (Macerich), to further develop the Mall of the Victor Valley (the Mall) including the construction of a Macy’s department store. Under the Agreement the City is obligated to make assistance payments to Macerich equal to all sales tax revenue in excess of $1,000,000 generated from the new retail operations directly resulting from the development efforts. Payments are to be made in June of each year following calculation of each calendar year’s sales tax revenue.

The agreement term is 28 years and includes a maximum assistance allowance of $18,886,644. For the year ended June 30, 2025 the City did remit payments totaling $308,842 to Macerich for sales tax revenue earned from January 2024 to December 2024. 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.

Project Title Commit ment
7th Street Traffic Signal Modifications Project 2,876,393$ Traffic Signal at Vil lage Drive and Puesta Del Sol Project 1,120,480 Installation of Retrorefl ective Tape 111,600
GE Driveway Project 339,982
Block Wall Project - Various Locations 1,454,345
Oro Grande Wash at Doris Davies Park
Ribbon Gutter Reconstruction Project 206,720
Old Town Sidewalk Connectivity Phase 2 616,774
Pressure Zone Change Project - Area 7 2,011,621
Total 8,737,915$
113
City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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 Areawas approximately $9.49 billion. Beginning in fiscal year 09/10, there were significant decreases in assessed value for the Victor Valley Redevelopment Project Area. Assessed values for the Project Area reached a low point of $6.6 billion in fiscal year 12/13. The decrease was largely the result of the Great Recession. Since fiscal year 12/13, assessed values have increased steadily. For fiscal year 24/25, the assessed value for the Project Area was approximately $14.54 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 23/24 and 24/25, SCLAA had a positive net income of $5,110,133 and $9,150,148, 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 SCLAA has continued to maintain a balance budget since 2007-2008 and all revenues are projected to cover current liabilities.

SCLAA Deficit
Beginning Net Position (102,047,894)$
Restatement - due to implementa tion of GASB 101 (134,622) Beginning Net Position, as restated (102,182,516)
Net Income (Loss) 9,150,149
Ending Net Position (93,032,367)$
114
City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

21. SUCCESSOR AGENCY TRUST FOR ASSETS OF THE FORMER REDEVELOPMENT AGENCY On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (the Bill) that provides for the dissolution of all redevelopment agencies in the state of California. This action impacted the reporting entity of the City of Victorville that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit. In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011) all redevelopment agencies in the state of California were dissolved and ceased to operate as a legal entity as of February 1, 2012.

The Bill provided that upon dissolution of a redevelopment agency, either the city or another unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. On January 17, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City resolution number 12-005.

After the 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 buildings and land under long-term, noncancelable lease agreements. The leases expire at various dates through 2123 andprovide 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, 2025, the General Fund recognized $112,197 and $124,435 in lease revenue and interest revenue, respectively, pursuant to these contracts.

SCLAA Enterprise Fund
The SCLAA, acting as lessor, leases buildings and land under long-term, non-cancelable lease agreements.

The leases expire at various dates through 2056 and provide for renewal options ranging from 1 year to 55 years. During the year ended June 30, 2025, the SCLAA recognized $7,323,024 and $1,829,492 in lease revenue and interest revenue, respectively, pursuant to these contracts.

Certain leases provide for increases in future minimum annual rental payments based on a defined percent in the contract or increases in the Consumer Price Index, subject to certain minimum increases. Lease revenue comprises a majority of the SCLAA’s operating revenues, therefore, this activity is considered to be the principal operation of the SCLAA.
115
City of Victorville
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

22. LEASES, Continued
Total future minimum 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, 2025, the Sanitary Enterprise Fund recognized $-0- and $54,685 in lease revenue and interest revenue, respectively, pursuant to this contract.

23. RESTATEMENTS
During the fiscal year ended June 30, 2025, the City recorded the following restatements:
(1) The City implemented GASB Statement No. 101, Compensated Absences, which requires recognition of a liability as leave is earned likely to be used or paid. This resulted in a restatement of the prior year’s compensated absences liability balance in order to include additional types of time off that were previously not included in the liability.
(2) Error Correction to the Pollution Remediation Liability – The City identified an error in the recorded amount of the Pollution Remediation Liability. To correct this, a restatement was made to adjust the beginning balance for fiscal year 2025, ensuring the liability reflects the accurate amount as of the beginning of the fiscal year.

Year Ending June 30, Principal Interest Total
2026 7,671,941$ 1,919,198$ 9,591,139$
2027 7,697,979 1,757,699 9,455,678
2028 8,100,403 1,596,919 9,697,322
2029 7,140,309 1,424,428 8,564,737
2030 6,926,162 1,252,276 8,178,438
2031-2035 27,045,809 4,015,567 31,061,376
2036-2040 7,334,366 1,963,652 9,298,018
2041-2045 6,876,236 1,126,410 8,002,646
2046-2050 3,737,598 476,572 4,214,170
2051-2055 2,548,464 133,722 2,682,186
2056 233,829 1,601 235,430
Total 85,313,096$ 15,668,044$ 100,981,140$
Victorville
Water District SCLAA
Governmental
Activities
Business-Type
Activities
June 30, 2024, as previously reported 212,453,280$ (102,047,894)$ 710,152,097$ 182,988,687$ Implementation of GASB 101 (1) (341,056) (134,622) (3,325,048) (475,678) Correction of Pollution Remediation Liability (2) - - (527,718) - June 30, 2024, as restated 212,112,224$ (102,182,516)$ 706,299,331$ 182,513,009$ Fund Statements Government-Wide
116

REQUIRED

SUPPLEMENTARY INFORMATION
117
Intentionally Left Blank
118
Intentionally Left Blank
119
City of Victorville
Required Supplementary Information
For the year ended June 30, 2025
Schedule of Changes in the Net Pension Liability and Related Ratios (Agent Plan) - Last 10 Years Miscellaneous Plan
Reporting Fiscal Year 2025 2024 2023 2022
(Measurement Date) (2024) (2023) (2022) (2021)
TOTAL PENSION LIABILITY:

Service cost 6,122,390$ 5,068,474$ 4,702,701$ 4,361,938$ Interest 18,416,814 17,037,882 15,892,288 15,327,363 Changes in assumptions - 275,105 8,923,031 - Differences between expected and actual experience 8,877,285 6,132,994 (3,062,363) 3,594,527 Benefit payments, including refunds of employee
contributions (12,012,841) (11,039,352) (10,126,951) (9,405,164) Net change in the total pension liability 21,403,648 17,475,103 16,328,706 13,878,664 Total pension liability - beginning 260,978,284 243,503,181 227,174,475 213,295,811 Total pension liability - ending (a) 282,381,932$ 260,978,284$ 243,503,181$ 227,174,475$

PLAN FIDUCIARY NET POSITION
Plan to plan resource movement -$ 1,577$ -$ -$
Contributions - employer 8,745,621 8,144,257 6,751,004 5,963,725 Contributions - employee 2,872,680 2,372,767 2,011,858 1,889,577 Net investment income 17,911,341 10,863,448 (14,410,875) 35,514,329 Benefit payments, including refunds of employee
contributions (12,012,841) (11,039,352) (10,126,951) (9,405,164) Administrative expense (150,753) (128,726) (118,949) (156,975) Other miscellaneous income (expense) - - - -
Net change in plan fiduciary net position 17,366,048 10,213,971 (15,893,913) 33,805,492 Plan fiduciary net position - beginning 185,267,467 175,053,496 190,947,409 157,141,917 Plan fiduciary net position - ending (b) 202,633,515$ 185,267,467$ 175,053,496$ 190,947,409$ Net pension liability - ending (a) - (b) 79,748,417$ 75,710,817$ 68,449,685$ 36,227,066$ Plan fiduciary net position as a percentage of the total pension liability 71.76% 70.99% 71.89% 84.05%
Covered payroll 35,010,936$ 31,453,365$ 26,035,500$ 24,525,949$ Net pension liability as a percentage of covered payroll 227.78% 240.71% 262.91% 147.71% 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, 2024 to June 30, 2025: 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 date is without reduction of pension plan administrative expense.
120
2021 2020 2019 2018 2017 2016
(2020) (2019) (2018) (2017) (2016) (2015)
3,917,361$ 3,878,156$ 3,925,313$ 3,913,955$ 3,391,116$ 3,399,557$ 14,388,003 13,664,664 12,780,111 12,143,449 11,593,629 10,950,745 - - (1,453,429) 10,784,766 - (2,900,838) 901,693 3,533,778 1,426,643 (1,294,528) (114,587) (1,452,436) (8,563,342) (8,131,659) (7,556,833) (6,707,043) (6,190,255) (5,465,312) 10,643,715 12,944,939 9,121,805 18,840,599 8,679,903 4,531,716 202,652,096 189,707,157 180,585,352 161,744,753 153,064,850 148,533,134 213,295,811$ 202,652,096$ 189,707,157$ 180,585,352$ 161,744,753$ 153,064,850$ -$ -$ (332)$ -$ -$ 29,796$
5,479,864 4,590,346 4,017,440 3,945,743 3,406,692 3,132,116 1,928,672 1,749,709 1,942,720 1,762,125 1,615,618 1,655,311 7,528,774 9,361,466 11,287,052 13,554,180 663,966 2,712,238 (8,563,342) (8,131,659) (7,556,833) (6,707,043) (6,190,255) (5,465,312) (212,846) (102,414) (209,479) (180,207) (74,739) (138,171) - 332 (397,805) - - -
6,161,122 7,467,780 9,082,763 12,374,798 (578,718) 1,925,978 150,980,795 143,513,015 134,430,252 122,055,454 122,634,172 120,708,194 157,141,917$ 150,980,795$ 143,513,015$ 134,430,252$ 122,055,454$ 122,634,172$ 56,153,894$ 51,671,301$ 46,194,142$ 46,155,100$ 39,689,299$ 30,430,678$

73.67% 74.50% 75.65% 74.44% 75.46% 80.12%
24,562,823$ 22,226,999$ 22,506,989$ 22,354,507$ 19,918,813$ 19,872,318$ 228.61% 232.47% 205.24% 206.47% 199.26% 153.13%
121
City of Victorville
Required Supplementary Information
For the year ended June 30, 2025
Schedule of Plan Contributions (Agent Plan) - Last 10 Years 2024-2025 2023-2024 2022-2023
Miscellaneous Plan
Actuarially determined contribution 10,172,783$ 8,725,255$ 8,144,580$ Contributions in relation to actuarially deemed contributions (10,172,783) (8,725,255) (8,144,580) Contribution deficiency (excess) -$ -$ -$
Covered payroll2 37,468,604$ 35,010,936$ 31,453,365$ Contributions as a percentage of covered payroll 27.15% 24.92% 25.89% Notes to Schedule:

Valuation Date 6/30/2023 6/30/2021 6/30/2020
Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Entry Age Entry Age
Amortization method (1) (1) (1)
Asset valuation method Fair Value Fair Value Fair Value Inflation 2.300% 2.300% 2.300%
Salary increases (2) (2) (2)
Investment rate of return 6.90% (3) 6.90% (3) 6.90% (3) Retirement age (4) (4) (4)
Mortality (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.
122
2021-2022 2020-2021 2019-2020 2018-2019 2017-2018 2016-2017 2015-2016 6,748,512$ 5,961,400$ 5,477,574$ 4,622,469$ 4,014,719$ 3,787,877$ 3,504,788$ (6,748,512) (5,961,400) (5,477,574) (4,622,469) (4,014,719) (3,787,877) (3,504,788) -$ -$ -$ -$ -$ -$ -$
26,035,500$ 24,525,949$ 24,562,823$ 22,226,999$ 22,506,989$ 22,354,507$ 19,918,813$

25.92% 24.31% 22.30% 20.80% 17.84% 16.94% 17.60%
6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 Entry Age Entry Age Entry Age Entry Age Entry Age Entry Age Entry Age (1) (1) (1) (1) (1) (1) (1)
Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value

2.50% 2.50% 2.63% 2.75% 2.75% 2.75% 2.75%
(2) (2) (2) (2) (2) (2) (2)

7.00% (3) 7.00% (3) 7.25% (3) 7.375% (3) 7.50% (3) 7.50% (3) 7.50% (3) (4) (4) (4) (4) (4) (4) (4)
(5) (5) (5) (5) (5) (5) (5)
123
City of Victorville
Required Supplementary Information
For the year ended June 30, 2025
Schedule of Plan's Proportionate Share of the Net Pension Liability (Cost Sharing Plan) - Last 10 Years Safety Plan
Fiscal Year End: 2025 2024 2023 2022
Measurement Date (2024) (2023) (2022) (2021)
City's proportion of the net pension liability 0.19629% 0.19738% 0.20103% 0.21104% City's proportionate share of the net pension liability 14,310,904$ 14,753,830$ 13,813,980$ 7,406,301$ City's covered payroll (plan year) 7,530,282$ 6,864,378$ 5,534,300$ 5,123,885$ City's proportionate share of the net pension liability as a percentage of its covered payroll 190.04% 214.93% 249.61% 144.54% Fiduciary net position as a percentage of the
total pension liability 0.13382% 0.12234% 0.12520% 0.14623% 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.

From fiscal year June 30, 2024 to June 30, 2025: 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, 2015measurement date is without reduction of pension plan administrative expense.
124
2021 2020 2019 2018 2017 2016
(2020) (2019) (2018) (2017) (2016) (2015)

0.18786% 0.19301% 0.19843% 0.19780% 0.20676% 0.21750%
24,480,116$ 28,079,757$ 28,486,271$ 11,818,679$ 10,708,540$ 8,961,994$ 5,671,207$ 5,857,254$ 5,329,935$ N/A N/A N/A 253.81% 476.14% N/A N/A N/A N/A

0.12039% 0.12227% 0.12558% 0.12223% 0.13033% 0.14547%
125
City of Victorville
Required Supplementary Information
For the year ended June 30, 2025
Schedule of Plan Contributions (Cost Sharing Plan) - Last 10 Years 2024-2025 2023-2024 2022-2023 2021-2022
Safety Plan
Actuarially determined contribution 2,590,011$ 2,262,574$ 2,154,542$ 1,910,223$ Contributions in relation to actuarially deemed
contributions (2,590,011) (2,262,574) (2,154,542) (1,910,223) Contribution deficiency (excess) -$ -$ -$ -$ Covered payroll2 7,228,377$ 7,530,282 $ 6,864,378 $ 5,534,300 $ Contributions as a percentage of covered payroll 35.83% 30.05% 31.39% 34.52% Notes to Schedule:

Valuation Date 6/30/2021 6/30/2021 6/30/2020 6/30/2019
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% 2.300% 2.50%
Salary increases (2) (2) (2) (2)
Investment rate of return 6.90% (3) 6.90% (3) 6.90% (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.
126
2020-2021 2019-2020 2018-2019 2017-2018 2016-2017 2015-2016 1,820,085$ 1,737,805 $ 1,406,021 $ 862,264 $ 700,198 $ 650,960 $ (1,820,085) (1,737,805) (1,406,021) (862,264) (700,198) (650,960) -$ -$ -$ -$ -$ -$ 5,123,885$ 4,931,300$ 2,530,529$ N/A N/A N/A

35.52% 35.24% 55.56% N/A N/A N/A
6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 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 Fair Value

2.50% 2.63% 2.75% 2.75% 2.75% 2.75%
(2) (2) (2) (2) (2) (2)

7.00% (3) 7.25% (3) 7.375% (3) 7.50% (3) 7.50% (3) 7.50% (3) (4) (4) (4) (4) (4) (4)
127
City of Victorville
Required Supplementary Information
For the year ended June 30, 2025
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 1,728,677$ 454,907$ 1,729,997$ 455,359$ Interest 975,395 449,831 888,223 423,401
Changes in assumptions (1,295,254) (488,896) (455,689) (197,575) Differences between expected and actual experience 1,484,894 (480,564) - - Benefit payments, including refunds of employee
contributions (565,233) (320,494) (492,948) (313,663) Net change in the total OPEB liability 2,328,479 (385,216) 1,669,583 367,522 Total OPEB liability - beginning 25,277,083 12,029,485 23,607,500 11,661,963 Total OPEB liability - ending (a) 27,605,562$ 11,644,269$ 25,277,083$ 12,029,485$ Plan fiduciary net position as a percentage of the total OPEB liability 0.00% 0.00% 0.00% 0.00%
Covered payroll 39,258,336$ 8,136,649$ 40,473,063$ 8,679,777$ Total OPEB liability as a percentage of covered payroll 70.32% 143.11% 62.45% 138.59% Notes to Schedule
Changes in assumptions:

Discount rate 3.93% 3.93% 3.65% 3.65%
Mortality improvement rates Scale MP-2021 Scale MP-2021 Scale MP-2021 Scale MP-2021 *Fiscal year 2018 was the first year of implementation, therefore, only seven years are shown.

In the June 30, 2024 measurement period, the following medical trend rates changed: Non-Medicare rate decreased from 8.5% to 7.9%, Medicare decreased from 7.5% to 6.9%, and Kaiser decreased from 6.25% to 5.65%.

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%.

In the June 30, 2020 measurement period, the medical trend rate for Kaiser Senior Advantage plans decreased from 6.5% to 5.0%.

In the June 30, 2018 measurement period, the pre-65 waived retiree re-election was updated to be 10% after age 65.

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 June 30, 2025
(June 30, 2024)
June 30, 2024
(June 30, 2023)
128
City Water City Water City Water
2,334,220$ 626,941$ 2,235,761$ 600,360$ 1,486,270$ 474,890$ 704,405 281,198 657,508 271,338 940,317 372,802
(5,816,473) (2,488,667) 278,410 105,768 4,480,447 1,795,864 (3,673,118) 987,796 - - (4,403,383) (904,000) (437,336) (273,537) (383,313) (253,227) (352,317) (224,298) (6,888,302) (866,269) 2,788,366 724,239 2,151,334 1,515,258 30,495,802 12,528,232 27,707,436 11,803,993 25,556,102 10,288,735 23,607,500$ 11,661,963$ 30,495,802$ 12,528,232$ 27,707,436$ 11,803,993$

0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
$32,718,185 7,778,497$ 30,916,888$ 7,710,052$ $29,376,376 7,618,996$

72.15% 149.93% 98.64% 162.49% 94.32% 154.93%

3.54% 3.54% 2.16% 2.16% 2.21% 2.21%
Scale MP-2021 Scale MP-2021 Scale MP-2020 Scale MP-2020 Scale MP-2020 Scale MP-2020 June 30, 2023 June 30, 2022
(June 30, 2022) (June 30, 2021) (June 30, 2020)
June 30, 2021
129
City of Victorville
Required Supplementary Information
For the year ended June 30, 2025
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 1,301,917$ 417,399$ 1,467,025$ 494,095$ Interest 896,741 364,950 902,150 404,923
Changes in assumptions 1,650,512 601,978 (1,253,215) (509,085) Differences between expected and actual experience - - (2,657,769) (1,985,311) Benefit payments, including refunds of employee
contributions (325,520) (216,889) (316,872) (199,802)
Net change in the total pension liability 3,523,650 1,167,438 (1,858,681) (1,795,180) Total pension liability - beginning 22,032,452 9,121,297 23,891,133 10,916,477 Total pension liability - ending (a) 25,556,102$ 10,288,735$ 22,032,452$ 9,121,297$ Plan fiduciary net position as a percentage of the total pension liability 0.00% 0.00% 0.00% 0.00%
Covered payroll 24,330,808$ 7,078,295$ $20,246,960 6,818,328$ Net pension liability as a percentage of covered payroll 105.04% 145.36% 108.82% 133.78% Notes to Schedule
Changes in assumptions:

Discount rate 3.50% 3.50% 3.87% 3.87%
Mortality improvement rates Scale MP-2018 Scale MP-2018 Scale MP-2018 Scale MP-2018 June 30, 2020
(June 30, 2019)
June 30, 2019
(June 30, 2018)
130
City Water
1,740,815$ 583,831$
763,058 345,325
(3,502,958) (1,452,630)
- -
(285,893) (185,817)
(1,284,978) (709,291)
25,176,111 11,625,768
23,891,133$ 10,916,477$

0.00% 0.00%
17,722,441$ 4,577,527$
134.81% 238.48%

3.58% 3.58%
Scale MP-2016 Scale MP-2016
June 30, 2018
(June 30, 2017)
131
City of Victorville
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual General Fund
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes and assessments 99,510,911$ 99,510,911$ 105,343,946$ 5,833,035$ Licenses and permits
3,563,400 3,593,400 4,025,049 431,649 Intergovernmental 176,500 176,500 219,593 43,093 Charges for services 20,492,829 20,653,801 24,564,183 3,910,382 Fines and forfeitures 645,312 645,312 867,960 222,648 Investment income (loss) 2,728,445 2,669,445 6,924,150 4,254,705 Other 1,852,166 5,562,362 6,310,038 747,676 Total revenues 128,969,563 132,811,731 148,254,919 15,443,188 EXPENDITURES:

Current:

General government
31,685,754 32,109,990 23,994,114 8,115,876 Public safety 67,687,927 68,885,263 67,948,695 936,568 Community development 855,951 872,387 616,142 256,245 Public works 17,201,503 20,122,843 15,173,412 4,949,431 Parks and recreation 8,955,100 9,313,517 6,803,302 2,510,215 Capital outlay 6,877,153 18,130,548 4,786,478 13,344,070 Debt service:

Principal 4,000,000 12,000,000 41,783 11,958,217 Interest and loan fees - - 6,413 (6,413) Principal - SBITA - - 277,689 (277,689) Interest - SBITA - - 103,559 (103,559) Total expenditures 137,263,388 161,434,548 119,751,587 41,682,961

REVENUES OVER (UNDER)
EXPENDITURES (8,293,825) (28,622,817) 28,503,332 57,126,149 OTHER FINANCING SOURCES (USES):

Transfers in
7,183,284 7,183,284 34,062 (7,149,222) Transfers out (7,156,284) (7,156,284) - 7,156,284 SBITA financing - - 111,205 111,205 Proceeds from sale of property - - 40,838 40,838 Total other financing sources (uses) 27,000 27,000 186,105 159,105 Net change in fund balances (8,266,825)$ (28,595,817)$ 28,689,437 57,285,254$ FUND BALANCES:

Beginning of year 134,681,566
End of year 163,371,003$
Budgeted Amounts
132
City of Victorville
Notes to Required Supplementary Information
For the year ended June 30, 2025

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 $799,671 and actual expenditures of $348,182, which resulted in excess expenditures under appropriations of $451,489 for the year ended June 30, 2025.

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 fundmust 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; 133

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134

SUPPLEMENTARY INFORMATION
135

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136
City of Victorville
Description of General Funds
For the Year Ended June 30, 2025
General Fund
This fund accounts for all general activity not within the funds mentioned below.

Measure P
This fund accounts for the 1% transactions and use tax approved by the voters in November 2020. This is a general tax that the City Council and Measure P committee are involved in reviewing the expenditures budget and making recommendations and comments.

Technology
This fund accounts for fees charged to ensure the support of the permitting system by the users of the system.

Fueling Stations
This fund accounts for fees charged to upgrade the fueling stations as needed and their continued maintenance.

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

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, 2025
ASSETS
Cash and investments 90,978,702$ 62,150,359$ 824,175$ Accounts receivable 2,083,916 - - Interest receivable 2,217,559 - - Due from other funds 427,702 - - Advances to other funds 888,846 - - Due from other governments 5,260,505 4,879,866 - Leases receivable 5,802,692 - - Inventories 229,585 - - Prepaid items 374,564 213 - Total assets 108,264,071$ 67,030,438$ 824,175$

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES

Liabilities:

Accounts payable 5,822,115$ 1,582,670 $ 1,196 $ Accrued liabilities 1,437,729 - - Deposits payable 918,667 - - Unearned revenue 5,464 - - Total liabilities 8,183,975 1,582,670 1,196

Deferred Inflows of Resources
Deferred inflows - leases 5,288,879 - - Total deferred inflows of resources 5,288,879 - -

Fund Balances:

Nonspendable:

Advances to other funds 888,846 - - Prepaid items 374,564 213 - Inventories 229,585 - - Unassigned 93,298,222 65,447,555 822,979 Total fund balances 94,791,217 65,447,768 822,979 Total liabilities, deferred inflows of
resources and fund balances 108,264,071$ 67,030,438 $ 824,175 $ General Measure P Technology
140
Totals
2,251,242$ 79,967 $ 2,525,060$ - $ 158,809,505$ 48,012 - - - 2,131,928 - 1,512 - - 2,219,071 - - - - 427,702 - - - - 888,846 - - - - 10,140,371 - 254,862 - - 6,057,554 - - - - 229,585 - - - - 374,777 2,299,254$ 336,341 $ 2,525,060 $ - $ 181,279,339$ 89,684$ 195 $ 61,275$ - $ 7,557,135$ - - - - 1,437,729 - - 2,463,667 - 3,382,334 - - - - 5,464 89,684 195 2,524,942 - 12,382,662 - 236,795 - - 5,525,674 - 236,795 - - 5,525,674 - - - - 888,846
- - - - 374,777 - - - - 229,585 2,209,570 99,351 118 - 161,877,795 2,209,570 99,351 118 - 163,371,003 2,299,254$ 336,341$ 2,525,060$ -$ 181,279,339$ Eliminations
Fueling
Stations
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, 2025
REVENUES:

Taxes and assessments 76,277,879$ 29,066,067$ -$ Licenses and permits
3,795,850 229,199 - Intergovernmental 218,494 1,099 - Charges for services 19,805,908 3,181,461 355,055 Fines and forfeitures 867,865 95 - Investment income (loss) 4,461,857 2,453,106 - Other 2,340,083 3,837,276 (877) Total revenues 107,767,936 38,768,303 354,178 EXPENDITURES:

Current:

General government
22,242,962 1,550,338 200,814 Public safety 57,690,409 10,258,286 - Community development 8,872 607,270 - Public works 9,378,720 4,458,957 1,367 Parks and recreation 6,364,302 439,000 - Capital outlay 708,323 3,843,074 - Debt service:

Principal - 41,783 - Interest and loan fees - 6,413 - Principal - SBITA 277,689 - - Interest - SBITA 103,559 - - Total expenditures 96,774,836 21,205,121 202,181

REVENUES OVER (UNDER)
EXPENDITURES 10,993,100 17,563,182 151,997 OTHER FINANCING SOURCES (USES):

Transfers in
7,190,346 - - Transfers out - (7,156,284) - SBITA financing 111,205 - - Proceeds from sale of property 40,838 - - Total other financing sources (uses) 7,342,389 (7,156,284) - Net change in fund balances 18,335,489 10,406,898 151,997 FUND BALANCES:

Beginning of year
76,455,728 55,040,870 670,982 End of year 94,791,217$ 65,447,768$ 822,979$ General Measure P Technology
142
Totals
-$ -$ -$ -$ 105,343,946$ - - - - 4,025,049 - - - - 219,593 1,183,672 38,087 - - 24,564,183 - - - - 867,960 - 9,187 - - 6,924,150 133,556 - - - 6,310,038 1,317,228 47,274 - - 148,254,919 - - - - 23,994,114 - - - - 67,948,695 - - - - 616,142 1,323,102 11,266 - - 15,173,412 - - - - 6,803,302 235,081 - - - 4,786,478 - - - - 41,783 - - - - 6,413 - - - - 277,689 - - - - 103,559 1,558,183 11,266 - - 119,751,587 (240,955) 36,008 - - 28,503,332 - - - (7,156,284) 34,062 - - - 7,156,284 - - - - - 111,205 - - - - 40,838 - - - - 186,105 (240,955) 36,008 - - 28,689,437 2,450,525 63,343 118 - 134,681,566 2,209,570$ 99,351$ 118$ -$ 163,371,003$ Eliminations
Fueling
Stations
Engineering
Security
Victor Valley
Transportation Center
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144
City of Victorville
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
Special Revenue Funds
Special revenue funds are used to account for revenue derived from specific taxes or other revenue sources that are restricted by law or administrative action to expenditure for specified purposes.

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 accounts for the portion of sales tax revenue received from the County. The funds are legally restricted expenditures for the local street networks that have significant inter-jurisdictional or regional traffic.

Landscape Maintenance and Drainage Facilities Assessment District This fund accounts for the revenue and expenditures of Assessment Districts which provided benefits to the property owner served. These improvements include items such as enhanced landscape, blocked walls, irrigation, and drainage system. Since the maintenance of these enhanced facilities directly benefit the individual parcels within the district rather than the City as a whole, the maintenance costs are assessed to the property owners with the Maintenance Assessment District boundaries.

Street Lighting
This fund accounts for revenue received from assessments levied within the District and disbursed funds are for street lighting maintenance activities.

Traffic Safety
This fund accounts for street projects paid out for the City's share of the gas tax monies received from the state.

Asset Seizure
This fund accounts for a portion of revenues received from sales of assets seized during drug-related arrests and disbursed for authorized public safety activities.

Storm Drain Utility
This fund accounts for revenue received from storm drain user fees and expensed funds are related to storm drains.

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, 2025
Special Revenue Funds, Continued
Transportation Tax
This fund accounts for revenue received for public transportation projects through the Local Transportation Fund, which derived from a ¼ cent of the General Sales Tax. Eligible expenses include projects related to maintenance and repair of streets and roads.

Other Federal Grants
This fund accounts for federal moneys received for the following grants: COPS Fast Grant, Federal Demonstration, Transportation Enhancement Act, Congestion Mitigation Air Quality Grant, Police Hiring Supplement Grant, Federal Asset Seizure, and EPA Water Reuse Grant.

HUD Grants
This fund accounts for the revenues and expenditures under the guidelines of the Federal Community Development Block Grant and HOME Grant programs of the U.S. Department of Housing and Urban Development. The grants are primarily used for the development of viable urban communities by providing decent housing, suitable living environments, and expanding economic opportunities for persons of low and moderate incomes.

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 as part of the MTBE Settlement Litigation. Revenue is received in this fund and allocated-out to the appropriate funds and capital projects that have expenditures associated with MTBE.

Capital Projects Funds
Debt service funds are used to account for the accumulation of resources for, and the retirement of, long-term debt principal and interest.

Capital Impact Facilities Fund
This capital projects fund accounts for the acquisition or construction of major capital facilities related to public improvements needed as population increases.
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City of Victorville
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
ASSETS
Cash and investments 2,212,708$ 6,152,272$ 1,646,863$ 17,380,439$ Accounts receivable - - - 1,755,652 Notes receivable 14,035,937 - - 8,833 Due from other governments - 5,422,439 - - Due from successor agency 12,903,772 - - - Prepaid items - 30,268 - 818 Land held for resale 1,549,837 - - - Total assets 30,702,254$ 11,604,979$ 1,646,863$ 19,145,742$

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable 41,372$ 1,887,584$ 164,546$ 736,677$ Deposits payable - - - - Due to other funds - - - - Unearned revenue - 8,998,930 1,482,317 - Total liabilities 41,372 10,886,514 1,646,863 736,677 Deferred Inflows of Resources
Deferred inflow - unavailable revenue - 3,252,575 - - Total deferred inflows of resources - 3,252,575 - - Fund Balances:

Nonspendable:

Prepaid items - 30,268 - 818 Restricted:

Public safety - - - - Highways and street projects - - - 18,408,247 Community development 30,660,882 - - - Unassigned - (2,564,378) - - Total fund balances 30,660,882 (2,534,110) - 18,409,065 Total liabilities, deferred inflows of
resources and fund balances 30,702,254$ 11,604,979$ 1,646,863$ 19,145,742$ Special Revenue Funds
Housing Asset
Successor
Other State / Local
Grants
COVID-19
Funds Measure I
148
12,421,947$ 2,987,846$ -$ 82,469$ 5,545,040$ 10,540,201$ - - 4,080 - 43,122 - - - - - - - 18,722 32,494 - - - 994,825 - - - - - - 1,470 814 - - 270 1,613 - - - - - - 12,442,139$ 3,021,154$ 4,080$ 82,469$ 5,588,432$ 11,536,639$ 249,252$ 155,289$ -$ -$ 13,813$ 34,021$ 15,750 - - - - 105 - - - - - - - - - - - - 265,002 155,289 - - 13,813 34,126 - - - - - - - - - - - - 1,470 814 - - 270 1,613 - - - 82,469 - - 12,175,667 2,865,051 4,080 - 5,574,349 11,500,900 - - - - - - - - - - - - 12,177,137 2,865,865 4,080 82,469 5,574,619 11,502,513 12,442,139$ 3,021,154$ 4,080$ 82,469$ 5,588,432$ 11,536,639$ 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, 2025
ASSETS
Cash and investments 383,952$ 599,027$ 497,820$ 169,149$ Accounts receivable 93,402 - - - Notes receivable 100 - 1,586,238 - Due from other governments - 97,468 532,712 - Due from successor agency - - - - Prepaid items - - - - Land held for resale - - - - Total assets 477,454$ 696,495$ 2,616,770$ 169,149$

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable 91,967$ -$ 159,471$ -$ Deposits payable 4,597 - - - Due to other funds 427,702 - - - Unearned revenue - 200,400 32,965 - Total liabilities 524,266 200,400 192,436 - Deferred Inflows of Resources
Deferred inflow - unavailable revenue - 97,468 330,921 - Total deferred inflows of resources - 97,468 330,921 - Fund Balances:

Nonspendable:

Prepaid items - - - - Restricted:

Public safety - - - - Highways and street projects - - - 169,149 Community development - 398,627 2,093,413 - Unassigned (46,812) - - - Total fund balances (46,812) 398,627 2,093,413 169,149 Total liabilities, deferred inflows of
resources and fund balances 477,454$ 696,495$ 2,616,770$ 169,149$ Special Revenue Funds
Transportation
Tax
Other Federal
Grants
HUD
Grants
Sidewalk
Assessment District
150
Capital Projects
Fund
Total Nonmajor
Governmental
Funds
-$ 719,116$ 34,864,660$ 96,203,509$
- - - 1,896,256
- - - 15,631,108
- - - 7,098,660
- - - 12,903,772
- - - 35,253
- - - 1,549,837
-$ 719,116$ 34,864,660$ 135,318,395$
-$ 2,876$ 16,346$ 3,553,214$
- - - 20,452
- - - 427,702
- - - 10,714,612
- 2,876 16,346 14,715,980
- - - 3,680,964
- - - 3,680,964
- - - 35,253
- - - 82,469
- 716,240 34,848,314 86,261,997
- - - 33,152,922
- - - (2,611,190)
- 716,240 34,848,314 116,921,451
-$ 719,116$ 34,864,660$ 135,318,395$
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, 2025
REVENUES:

Taxes and assessments -$ -$ -$ 6,644,734$
Intergovernmental
250,000 8,699,984 4,560,736 -
Charges for services - - - 48,927
Fines and forfeitures - - - -
Investment income (loss) 651,803 316,703 - 737,839
Other - - - 14
Total revenues 901,803 9,016,687 4,560,736 7,431,514 EXPENDITURES:

Current:

General government
78,645 14,990 207,298 -
Public safety - 183,976 - -
Community development 269,537 3,083,041 - -
Public works - 666,607 - 2,866,223
Parks and recreation - 18,867 - -
Capital outlay - 8,748,402 4,201,146 3,143,292
Debt service:

Principal - SBITA - - - -
Interest - SBITA - - - -
Total expenditures 348,182 12,715,883 4,408,444 6,009,515

REVENUES OVER (UNDER)
EXPENDITURES 553,621 (3,699,196) 152,292 1,421,999 OTHER FINANCING SOURCES (USES):

Transfers out
- - - -
Proceeds from sale of property - - - -
Total other financing sources (uses) - - - -
Net change in fund balances 553,621 (3,699,196) 152,292 1,421,999 FUND BALANCES:

Beginning of year 30,107,261 1,165,086 (152,292) 16,987,066 End of year 30,660,882$ (2,534,110)$ -$ 18,409,065$ Special Revenue Funds
COVID-19
Funds
Housing Asset
Successor
Other State / Local
Grants Measure I
152
2,522,804$ 2,367,716$ -$ -$ -$ 3,771,408$
- 1,186,290 - 13,566 - 3,512,694
- - - - 1,667,972 -
- - 27,287 - 35,577 -
516,542 110,373 - 3,085 225,132 388,517
36,230 - - - 42,649 -
3,075,576 3,664,379 27,287 16,651 1,971,330 7,672,619 - 7,957 - - 11,682 195
- - - 1,038 - -
156,991 - - - 60,117 -
2,320,631 2,853,667 - - 837,708 3,148,751
- - - - - -
69,025 397,229 - - 72,175 443,304
- - - - - 1,352
- - - - - 36
2,546,647 3,258,853 - 1,038 981,682 3,593,638
528,929 405,526 27,287 15,613 989,648 4,078,981 - - (34,062) - - -
- 27 - - 3,345 4,881
- 27 (34,062) - 3,345 4,881
528,929 405,553 (6,775) 15,613 992,993 4,083,862 11,648,208 2,460,312 10,855 66,856 4,581,626 7,418,651 12,177,137$ 2,865,865$ 4,080$ 82,469$ 5,574,619$ 11,502,513$ Special Revenue Funds
Landscape
Maintenance
Street
Lighting
Traffic
Safety
Asset
Seizure
Storm
Drain
Utility Gas Tax
153
City of Victorville
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds (Continued)
For the year ended June 30, 2025
REVENUES:

Taxes and assessments -$ -$ -$ -$
Intergovernmental
- 2,737,937 1,629,354 -
Charges for services - - - -
Fines and forfeitures - - - -
Investment income (loss) 19,036 23,988 68,730 7,203
Other 93,402 - 76,739 -
Total revenues 112,438 2,761,925 1,774,823 7,203 EXPENDITURES:

Current:

General government
- - 3,162 -
Public safety - - - -
Community development - 22,749 1,452,515 -
Public works 337,419 - 103,111 -
Parks and recreation - - - -
Capital outlay 88,358 471,626 - -
Debt service:

Principal - SBITA - - - -
Interest - SBITA - - - -
Total expenditures 425,777 494,375 1,558,788 -

REVENUES OVER (UNDER)
EXPENDITURES (313,339) 2,267,550 216,035 7,203
OTHER FINANCING SOURCES (USES):

Transfers out
- - - -
Proceeds from sale of property - - - -
Total other financing sources (uses) - - - -
Net change in fund balances (313,339) 2,267,550 216,035 7,203 FUND BALANCES:

Beginning of year 266,527 (1,868,923) 1,877,378 161,946 End of year (46,812)$ 398,627$ 2,093,413$ 169,149$ Special Revenue Funds
Sidewalk
Assessment
District
Transportation
Tax
Other Federal
Grants
HUD
Grants
154
Capital Projects
Fund
Total Nonmajor
Governmental
Funds
-$ 117,207$ -$ 15,423,869$
- - - 22,590,561
- - 4,825,368 6,542,267
- - - 62,864
- 29,119 1,408,505 4,506,575
- - - 249,034
- 146,326 6,233,873 49,375,170
- 1,673 - 325,602
- - - 185,014
- - - 5,044,950
- 33,948 25,565 13,193,630
- - - 18,867
- - 246,257 17,880,814
- - - 1,352
- - - 36
- 3 5,621 271,822 36,650,265
- 110,705 5,962,051 12,724,905
- - - (34,062)
- - - 8,253
- - - (25,809)
- 110,705 5,962,051 12,699,096
- 605,535 28,886,263 104,222,355
-$ 716,240$ 34,848,314$ 116,921,451$
Capital
Impact
Facilities
Foxborough
Rail
Engineering
Security
Special Revenue Funds
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, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental -$ -$ 250,000$ 250,000$ Investment income (loss)
699,595 699,595 651,803 (47,792) Total revenues 699,595 699,595 901,803 202,208 EXPENDITURES:

Current:

General government
241,292 140,818 78,645 62,173 Community development 492,621 658,853 269,537 389,316 Total expenditures 733,913 799,671 348,182 451,489

REVENUES OVER (UNDER)
EXPENDITURES (34,318) (100,076) 553,621 653,697 Net change in fund balances (34,318)$ (100,076)$ 553,621 653,697$ FUND BALANCES:

Beginning of year
30,107,261
End of year 30,660,882$
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, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental
27,913,535$ 27,992,347$ 8,699,984$ (19,292,363)$ Investment income (loss) - - 316,703 316,703 Other 17,255 17,255 - (17,255) Total revenues 27,930,790 28,009,602 9,016,687 (18,992,915) EXPENDITURES:

Current:

General government
53,800 53,800 14,990 38,810 Public safety 271,676 576,521 183,976 392,545 Community development 7,699,279 7,421,078 3,083,041 4,338,037 Public works 2,320,087 2,339,407 666,607 1,672,800 Parks and recreation 26,372 38,570 18,867 19,703 Capital outlay 17,329,209 16,644,035 8,748,402 7,895,633 Total expenditures 27,700,423 27,073,411 12,715,883 14,357,528

REVENUES OVER (UNDER)
EXPENDITURES 230,367 936,191 (3,699,196) (4,635,387) OTHER FINANCING SOURCES (USES):

Proceeds from sale of property
90,970 90,970 - (90,970) Total other financing sources (uses) 90,970 90,970 - (90,970) Net change in fund balances 321,337$ 1,027,161$ (3,699,196) (4,726,357)$ FUND BALANCES:

Beginning of year
1,165,086
End of year (2,534,110)$
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, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental 26,192,678$ 26,192,678$ 4,560,736$ (21,631,942)$ Total revenues 26,192,678 26,192,678 4,560,736 (21,631,942) EXPENDITURES:

Current:

General government
1,240,097 1,240,097 207,298 1,032,799 Community development 2,000,000 2,000,000 - 2,000,000 Public works 5,227 5,227 - 5,227 Capital outlay 4,047,893 4,047,893 4,201,146 (153,253) Total expenditures 7,293,217 7,293,217 4,408,444 2,884,773

REVENUES OVER (UNDER)
EXPENDITURES 18,899,461 18,899,461 152,292 (18,747,169) Net change in fund balances 18,899,461$ 18,899,461$ 152,292 (18,747,169)$ FUND BALANCES:

Beginning of year
(152,292)
End of year -$
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, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes and assessments 7,418,259$ 7,418,259$ 6,644,734$ (773,525)$ Charges for services
60,000 71,000 48,927 (22,073) Investment income (loss) - - 737,839 737,839 Total revenues 7,478,259 7,489,259 7,431,514 (57,745) EXPENDITURES:

Current:

Public works
3,602,368 3,581,501 2,866,223 715,278 Capital outlay 3,561,545 9,869,182 3,143,292 6,725,890 Total expenditures 7,173,913 13,460,683 6,009,515 7,451,168

REVENUES OVER (UNDER)
EXPENDITURES 304,346 (5,971,424) 1,421,999 7,393,423 Net change in fund balances 304,346$ (5,971,424)$ 1,421,999 7,393,423$ FUND BALANCES:

Beginning of year
16,987,066
End of year 18,409,065$
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, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes and assessments 2,522,336$ 2,523,990$ 2,522,804$ (1,186)$ Investment income (loss)
- - 516,542 516,542 Other - - 36,230 36,230 Total revenues 2,522,336 2,523,990 3,075,576 551,586 EXPENDITURES:

Current:

Public works
2,735,170 2,649,102 2,320,631 328,471 Capital outlay 128,000 394,754 69,025 325,729 Total expenditures 2,913,170 3,288,125 2,546,647 741,478

REVENUES OVER (UNDER)
EXPENDITURES (390,834) (764,135) 528,929 1,293,064 Net change in fund balances (390,834)$ (764,135)$ 528,929 1,293,064$ FUND BALANCES:

Beginning of year
11,648,208
End of year 12,177,137$
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, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes and assessments 2,248,000$ 2,248,000$ 2,367,716$ 119,716$ Intergovernmental 920,000 920,000 1,186,290 266,290
Investment income (loss) 60,000 60,000 110,373 50,373 Total revenues 3,228,000 3,228,000 3,664,379 436,379 EXPENDITURES:

Current:

General government
16,300 17,300 7,957 9,343
Public works 3,159,678 3,110,538 2,853,667 256,871
Capital outlay 260,250 866,231 397,229 469,002
Total expenditures 3,436,228 3,994,069 3,258,853 735,216

REVENUES OVER (UNDER)
EXPENDITURES (208,228) (766,069) 405,526 1,171,595 OTHER FINANCING SOURCES (USES):

Proceeds from sale of property - - 27 27
Total other financing sources (uses) - - 27 27
Net change in fund balances (208,228)$ (766,069)$ 405,553 1,171,622$ FUND BALANCES:

Beginning of year 2,460,312
End of year 2,865,865$
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, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Fines and forfeitures 41,000$ 41,000$ 27,287$ (13,713)$ Total revenues 41,000 41,000 27,287 (13,713) OTHER FINANCING SOURCES (USES):

Transfers out
(41,000) (41,000) (34,062) 6,938 Total other financing sources (uses) (41,000) (41,000) (34,062) 6,938 Net change in fund balances -$ -$ (6,775) (6,775)$ FUND BALANCES:

Beginning of year
10,855
End of year 4,080$
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, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental 10,000$ 10,000$ 13,566$ 3,566$ Investment income (loss)
- - 3,085 3,085 Total revenues 10,000 10,000 16,651 6,651 EXPENDITURES:

Current:

Public safety
5,709 5,709 1,038 4,671 Total expenditures 5,709 5,709 1,038 4,671

REVENUES OVER (UNDER)
EXPENDITURES 4,291 4,291 15,613 11,322 Net change in fund balances 4,291$ 4,291$ 15,613 11,322$ FUND BALANCES:

Beginning of year
66,856
End of year 82,469$
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, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Charges for services 1,692,368$ 1,692,368$ 1,667,972$ (24,396)$ Fines and forfeitures 22,000 30,000 35,577 5,577
Investment income (loss) - - 225,132 225,132
Other - - 42,649 42,649
Total revenues 1,714,368 1,722,368 1,971,330 248,962 EXPENDITURES:

Current:

General government
6,100 16,423 11,682 4,741
Community development - 60,117 60,117 -
Public works 1,358,939 1,291,378 837,708 453,670
Capital outlay 111,567 383,667 72,175 311,492
Total expenditures 1,476,606 1,751,585 981,682 769,903

REVENUES OVER (UNDER)
EXPENDITURES 237,762 (29,217) 989,648 1,018,865 OTHER FINANCING SOURCES (USES):

Proceeds from sale of property - - 3,345 3,345
Total other financing sources (uses) - - 3,345 3,345 Net change in fund balances 237,762$ (29,217)$ 992,993 1,022,210$ FUND BALANCES:

Beginning of year 4,581,626
End of year 5,574,619$
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, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes and assessments 3,511,092$ 3,511,092$ 3,771,408$ 260,316$ Intergovernmental
3,764,232 3,880,377 3,512,694 (367,683) Investment income (loss) - - 388,517 388,517 Total revenues 7,275,324 7,391,469 7,672,619 281,150 EXPENDITURES:

Current:

General government
- 500 195 305 Public works 3,752,913 3,753,634 3,148,751 604,883 Capital outlay 3,799,150 7,369,970 443,304 6,926,666 Debt service:

Principal - SBITA - - 1,352 (1,352) Interest - SBITA - - 36 (36) Total expenditures 7,552,063 11,124,104 3,593,638 7,530,466

REVENUES OVER (UNDER)
EXPENDITURES (276,739) (3,732,635) 4,078,981 7,811,616 OTHER FINANCING SOURCES (USES):

Proceeds from sale of property - - 4,881 4,881 Total other financing sources (uses) - - 4,881 4,881 Net change in fund balances (276,739)$ (3,732,635)$ 4,083,862 7,816,497$ FUND BALANCES:

Beginning of year 7,418,651
End of year 11,502,513$
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, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental 499,640$ 499,640$ -$ (499,640)$ Investment income (loss)
- - 19,036 19,036 Other 98,267 98,267 93,402 (4,865) Total revenues 597,907 597,907 112,438 (485,469) EXPENDITURES:

Current:

Public works
711,035 714,745 337,419 377,326 Capital outlay - 499,640 88,358 411,282 Total expenditures 711,035 1,214,385 425,777 788,608

REVENUES OVER (UNDER)
EXPENDITURES (113,128) (616,478) (313,339) 303,139 Net change in fund balances (113,128)$ (616,478)$ (313,339) 303,139$ FUND BALANCES:

Beginning of year
266,527
End of year (46,812)$
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, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental 14,761,062$ 14,761,062$ 2,737,937$ (12,023,125)$ Investment income (loss)
- - 23,988 23,988 Other 37 37 - (37) Total revenues 14,761,099 14,761,099 2,761,925 (11,999,174) EXPENDITURES:

Current:

General government
2,000,000 2,000,000 - 2,000,000 Public safety 111,511 111,511 - 111,511 Community development - - 22,749 (22,749) Public works 28,240 28,240 - 28,240 Capital outlay 12,489,912 12,489,912 471,626 12,018,286 Total expenditures 14,629,663 14,629,663 494,375 14,135,288

REVENUES OVER (UNDER)
EXPENDITURES 131,436 131,436 2,267,550 2,136,114 Net change in fund balances 131,436$ 131,436$ 2,267,550 2,136,114$ FUND BALANCES:

Beginning of year
(1,868,923)
End of year 398,627$
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, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental 8,667,602$ 8,703,472$ 1,629,354$ (7,074,118)$ Investment income (loss)
647,980 647,980 68,730 (579,250) Other 4,404,064 4,480,803 76,739 (4,404,064) Total revenues 13,719,646 13,832,255 1,774,823 (12,057,432) EXPENDITURES:

Current:

General government
4,254 4,254 3,162 1,092 Public safety 780 780 - 780 Community development 9,269,502 9,407,111 1,452,515 7,954,596 Public works 684,643 659,643 103,111 556,532 Parks and recreation 824 824 - 824 Capital outlay 8,027 8,027 - 8,027 Total expenditures 9,968,030 10,080,639 1,558,788 8,521,851

REVENUES OVER (UNDER)
EXPENDITURES 3,751,616 3,751,616 216,035 (3,535,581) Net change in fund balances 3,751,616$ 3,751,616$ 216,035 (3,535,581)$ FUND BALANCES:

Beginning of year
1,877,378
End of year 2,093,413$
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, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Investment income (loss) -$ -$ 7,203$ 7,203$ Total revenues - - 7,203 7,203 Net change in fund balances -$ -$ 7,203 7,203$ FUND BALANCES:

Beginning of year
161,946
End of year 169,149$
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, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes and assessments 117,209$ 117,209$ 117,207$ (2)$ Investment income (loss)
- - 29,119 29,119 Total revenues 117,209 117,209 146,326 29,117 EXPENDITURES:

Current:

General government
3,673 3,673 1,673 2,000 Public works 130,500 130,500 33,948 96,552 Capital outlay 78,000 128,000 - 128,000 Total expenditures 212,173 262,173 35,621 226,552

REVENUES OVER (UNDER)
EXPENDITURES (94,964) (144,964) 110,705 255,669 Net change in fund balances (94,964)$ (144,964)$ 110,705 255,669$ FUND BALANCES:

Beginning of year
605,535
End of year 716,240$
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, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Charges for services 7,459,650$ 7,461,650$ 4,825,368$ (2,636,282)$ Investment income (loss)
380,000 380,000 1,408,505 1,028,505 Total revenues 7,839,650 7,841,650 6,233,873 (1,607,777) EXPENDITURES:

Current:

General government
554 554 - 554 Public safety 506 506 - 506 Public works 1,070,784 985,095 25,565 959,530 Parks and recreation 118,288 168,288 - 168,288 Capital outlay 170,516 2,463,362 246,257 2,217,105 Debt service:

Interest and loan fees 320,000 320,000 - 320,000 Total expenditures 1,680,648 3,937,805 271,822 3,665,983

REVENUES OVER (UNDER)
EXPENDITURES 6,159,002 3,903,845 5,962,051 2,058,206 Net change in fund balances 6,159,002$ 3,903,845$ 5,962,051 2,058,206$ FUND BALANCES:

Beginning of year
28,886,263
End of year 34,848,314$
Budgeted Amounts
171

Intentionally Left Blank
172
City of Victorville
Custodial Funds
For the Year Ended June 30, 2025
Custodial funds are one of four types of fiduciary funds. Custodial funds are used to report resources held by the reporting government in a purely custodial capacity. Custodial funds typically involve only the receipt, temporary investment, and remittance of fiduciary resources to individuals, private organizations, or other governments.

Community Facilities District 90-01
This fund accounts for the Brentwood, West Creek, and Joshua Ridge assessment district in accordance with the Mello- Roos Community Facilities Act of 1982. The taxes received are for the payment made to the debt service related to this bond issuance. The debt is debt without government commitment of the City of Victorville.

Community Facilities District 07-01
This fund accounts for the Senna, Solana, and Sierra Project assessment district in accordance with the Mello-Roos Community Facilities Act of 1982. The taxes received are for the payment made to the debt service related to this bond issuance. The debit is debt without government commitment of the City of Victorville.

Community Facilities District 01-01
This fund accounts for the Eagle Ranch assessment district in accordance with the Mello-Roos Community Facilities Act of 1982. The taxes received are for the payment made to the debt service related to this bond issuance. The debit is debt without government commitment of the City of Victorville.

Community Facilities District Cahuenga
This fund accounts for the Cahuenga assessment district in accordance with the Mello-Roos Community Facilities Act of 1982. The taxes received are for the payment made to the debt service related to this bond issuance. The debit is debt without government commitment of the City of Victorville. 173

Intentionally Left Blank
174

Intentionally Left Blank
175
City of Victorville
Combining Statement of Fiduciary Net Position
Custodial Funds
For the year ended June 30, 2025
ASSETS
Cash and investments 87,567$ 225,367$ 261,542$ Restricted assets:

Cash with fiscal agent - 309,581 355,913 Accounts receivable - 748 3,916 Total assets 87,567 535,696 621,371

NET POSITION
Restricted for:

Individuals, organizations, and other governments 87,567 535,696 621,371 Total Net Position 87,567$ 535,696$ 621,371$ Community
Facilities District
90-01
Community
Facilities District
07-01
Community
Facilities District
01-01
176
Total
Custodial
Funds
39,649$ 614,125$
- 665,494
- 4,664
39,649 1,284,283
39,649 1,284,283
39,649$ 1,284,283$
Community
Facilities District
Cahuenga
177
City of Victorville
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
For the year ended June 30, 2025
ADDITIONS:

Property assessments collected -$ 187,346$ 282,462$ Investment income 3,729 21,434 22,972 Total additions 3,729 208,780 305,434 DEDUCTIONS:

Community development - 9,209 18,123 Payments on special assessment debt - 178,229 258,552 Total deductions - 187,438 276,675 Change in net position 3,729 21,342 28,759 NET POSITION:

Beginning of year 83,838 514,354 592,612 End of year 87,567$ 535,696$ 621,371$ Community
Facilities District
90-01
Community
Facilities District
07-01
Community
Facilities District
01-01
178
Total
Custodial
Funds
-$ 469,808$
1,689 49,824
1,689 519,632
- 27,332
- 436,781
- 464,113
1,689 55,519
37,960 1,228,764
39,649$ 1,284,283$
Community
Facilities District
Cahuenga
179

Intentionally Left Blank
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 financial 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

Intentionally Left Blank
182
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Governmental activities
Net Investment in Capital
Assets 479,306$ 473,590$ 462,796$ 480,006$ 466,516$ 453,555$ 471,522$ 510,418$ 541,240$ 541,166$ Restricted 56,682 58,111 58,571 63,733 77,665 86,627 90,462 100,773 117,572 123,723 Unrestricted (47,079) (47,596) (50,734) (43,759) (44,619) (23,215) 19,767 46,204 51,340 75,966 Total governmental
activities net position 488,909 484,105 470,633 499,980 499,563 516,967 581,752 657,395 710,152 740,855 Business-type activities
Net Investment in Capital
Assets 66,591 59,439 64,164 49,262 42,900 39,962 47,471 46,894 48,758 56,487 Restricted 9,600 11,981 13,937 - - - - - - Unrestricted 54,098 48,212 24,147 33,883 42,640 56,629 76,595 112,206 134,231 158,632 Total business-type
activities net position 130,290 119,632 102,248 83,145 85,541 96,591 124,066 159,100 182,989 215,119 Primary government
Net Investment in Capital
Assets 545,897 533,029 526,960 529,267 509,416 493,517 518,993 557,313 589,999 597,653 Restricted 66,282 70,092 72,508 63,733 77,665 86,627 90,462 100,773 117,572 123,723 Unrestricted 7,020 616 (26,587) (9,876) (1,978) 33,414 96,362 158,410 185,571 234,599 Total primary government
net position 619,199$ 603,738$ 572,881$ 583,124$ 585,104$ 613,558$ 705,818$ 816,496$ 893,141$ 955,974$ Fiscal Year

CITY OF VICTORVILLE
(in thousands)
(accrual basis of accounting)

LAST TEN FISCAL YEARS

NET POSITION BY COMPONENT
183
2016 2017 2018 2019 2020* 2021 2022 2023 2024 2025
Expenses
Governmental activities:

General government $12,121 $8,982 $21,271 $19,256 $20,924 $19,440 $21,653 $27,941 $24,483 $38,371 Public safety 35,624 37,719 37,294 45,498 42,413 45,868 49,006 59,556 63,933 69,974 Community Development 1,646 5,375 1,696 1,552 1,314 9,231 2,477 3,586 1,283 7,152 Public works 31,972 33,835 29,076 28,971 31,103 32,425 29,054 34,794 45,059 37,583 Park and recreation 4,911 5,245 5,113 6,090 6,826 7,035 5,562 7,226 7,341 9,619 Interest on long-term debt 102 177 44 112 104 51 33 14 29 110 Total governmental activities expenses 86,376 91,332 94,493 101,481 102,685 114,051 107,784 133,116 142,129 162,809 Business-type activities
Sanitary Sewer 11,960 12,651 17,019 14,994 17,314 16,552 17,630 20,207 22,969 22,743 Golf course 1,566 1,507 1,544 439 - - - - - - Airport 31,597 32,742 37,406 32,756 34,860 40,578 36,659 37,391 36,662 34,198 Water 33,851 40,185 35,431 41,110 39,439 42,734 44,121 44,649 49,843 51,962 Rail - - - - - - - - -
Solid Waste 14,197 15,467 16,614 16,516 17,850 18,616 19,640 21,969 25,949 27,999 Municipal Utilities* 11,016 10,479 12,967 13,569 - - - - - - Municipal Utilities - Gas - - - - 2,353 2,064 2,844 4,378 3,657 2,740 Municipal Utilities - Electric - - - - 11,717 12,156 15,801 15,567 16,028 12,778 Total business-type activities expenses 104,186 113,031 120,982 119,383 123,533 132,701 136,695 144,160 155,108 152,421 Total primary government expenses 190,563 204,363 215,475 220,864 226,217 246,752 244,480 277,276 297,237 315,230 Program Revenues
Governmental activities:

Charges for services:

General government 3,136 3,221 5,493 9,144 10,240 10,159 10,274 11,800 12,992 12,712 Public safety 874 720 575 571 887 1,466 1,679 5,587 5,613 10,656 Community development 1,950 3,163 2,874 5,163 5,800 8,066 9,804 6,802 8,523 5,117 Public works 4,142 4,745 4,560 4,591 4,905 8,310 9,938 7,557 7,625 9,547 Parks and recreation 930 956 876 856 569 834 746 892 960 1,024 Operating grants and contributions 15,165 10,654 3,964 6,947 4,555 11,719 6,050 22,926 24,721 18,638 Capital contributions and grants 10,626 8,076 4,702 10,312 11,916 7,992 29,326 39,917 12,502 13,980 Total governmental activities program
revenues 36,822 31,537 23,044 37,584 38,873 48,548 67,817 95,481 72,937 71,674 Business-type activities:

Charges for services:

Sanitary Sewer 13,381 11,374 11,694 13,196 14,663 17,292 19,786 21,953 23,219 26,235 Golf course 583 432 470 - - - - - - -
Airport 8,027 6,949 7,531 9,315 11,198 11,056 13,028 13,676 13,175 12,885 Water 27,704 31,146 30,907 31,820 35,607 42,167 46,259 42,295 43,279 46,987 Solid Waste 12,716 13,965 14,336 17,546 18,867 19,776 21,987 23,366 27,465 31,743 Municipal Utilities* 13,899 14,483 13,885 14,882 - - - - - - Municipal Utilities - Gas - - - - 2,616 2,657 3,216 4,572 3,974 3,187 Municipal Utilities - Electric - - - - 13,131 15,830 17,421 20,223 21,122 21,263 Operating grants and contributions - - - - - - 1,273 - - Capital contributions and grants 6,263 2,297 5,178 12,688 6,393 13,777 9,731 8,446 10,573 6,941 Total business-type activities program
revenues 82,573 80,647 84,002 99,446 102,474 122,556 132,701 134,531 142,807 149,242 Total primary government program revenues 119,395$ 112,184$ 107,046$ 137,031$ 141,347$ 171,104$ 200,518$ 230,012$ 215,744$ 220,916$ Fiscal Year
* Started reporting Gas and Electric utilities separately in FY2020.

CITY OF VICTORVILLE
(in thousands)
(accrual basis of accounting)

LAST TEN FISCAL YEARS

CHANGE IN NET POSITION
184
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Net (expense) revenue
Governmental activities (49,554)$ (59,796)$ (71,449)$ (63,897)$ (63,812)$ (65,503)$ (39,967)$ (37,635)$ (69,192)$ (91,135)$ Business-type activities (21,614) (32,384) (36,980) (19,937) (21,058) (10,144) (3,995) (9,629) (12,301) (3,179) Total primary government net expense (71,168) (92,180) (108,429) (83,834) (84,870) (75,648) (43,962) (47,264) (81,493) (94,314) General Revenues and Other Changes in Net Position
Governmental activities:

Taxes:

Property taxes 23,752 24,097 25,662 27,202 28,211 31,980 32,795 36,458 41,398 44,803 Sales taxes 28,212 26,802 26,653 30,629 28,566 35,227 36,865 37,382 37,484 36,040 Transactions and Use Tax* - - - - - 7,103 29,587 29,260 29,224 29,066 Transient occupancy tax 1,074 1,138 1,305 1,487 1,539 1,899 2,026 2,013 1,640 1,674 Other taxes 3,039 2,840 3,737 3,816 3,988 4,112 4,442 4,764 5,034 5,296 Investment income 158 478 726 1,148 574 (391) (1,274) 2,787 6,633 6,870 Motor vehicle in lieu - - - - - - - - - - Gain on sale of assets - - - - - - 19 10 35 Miscellaneous revenues 201 192 377 384 515 818 211 519 526 1,662 SERAF Obligation - - - - - - - - - - Transfers (779) (554) (521) 26,795 - 1,685 82 95 - 244 Extraordinary Gain - - - - - - - - - - Legal Settlement - - - - - - - - - - Total governmental activities 55,657 54,992 57,940 91,461 63,394 82,432 104,752 113,278 121,949 125,690 Business-type activities:

Taxes 24,879 25,918 29,070 24,659 20,772 22,405 22,862 23,408 23,443 23,264 Other Taxes - - - - - - - - - Investment income 1,002 726 1,828 2,374 1,918 216 1,266 6,775 12,746 12,752 Gain on sale of assets 125 17 290 - - 110 17 14,576 - 14,046 Miscellaneous revenues 1,432 1,779 1,099 190 630 149 867 - - - Impairment loss on Capital assets - - - - - - - - - - Legal Settlement - - - - - - - - - - Transfers 779 554 521 (26,795) - (1,685) (82) (95) - (244) Total business-type activities 28,217 28,993 32,808 429 23,320 21,196 24,930 44,664 36,189 35,785 Total primary government 83,874 83,985 90,748 91,890 86,714 103,628 129,682 157,942 158,138 161,476 Change in Net Position
Governmental activities 6,103 (4,803) (13,510) 27,564 (418) 16,929 64,785 75,644 52,757 34,556 Business-type activities 6,604 (3,392) (4,171) (19,509) 2,262 11,051 20,936 35,034 23,888 32,606 Total primary government 12,706$ (8,195)$ (17,681)$ 8,056$ 1,844$ 27,980$ 85,721$ 110,678$ 76,645$ 67,162$ * Measure P Transactions and Use Tax was approved by voters in November 2020 election and went into effect April 1, 2021.

Fiscal Year

CITY OF VICTORVILLE
(in thousands)
(accrual basis of accounting)

LAST TEN FISCAL YEARS

CHANGE IN NET POSITION
185
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
General fund
Reserved -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Unreserved - - - - - - - - - - Nonspendable 192 172 472 7,236 6,225 5,149 4,192 3,287 2,611 1,493 Restricted - - - - - - - - - - Unassigned 4,630 5,181 6,179 12,812 18,110 41,107 75,466 103,870 132,070 161,878 Total general fund 4,822 5,353 6,651 20,049 24,335 46,256 79,659 107,156 134,682 163,371 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 194 174 474 04 11 05 4,221 4,249 2,138 35 Restricted 56,305 58,108 60,819 62,198 75,962 83,555 76,510 97,941 106,208 119,497 Assigned - - - - - - - Unassigned (2,587) (882) (2,487) (7,599) (4,120) (2,946) (1,788) (12,747) (4,123) (2,611) Total all other governmental funds 53,912 57,400 58,807 54,602 71,853 80,614 78,944 89,444 104,222 116,921 Fiscal Year

CITY OF VICTORVILLE
(in thousands)
(modified accrual basis of accounting)

LAST TEN FISCAL YEARS

FUND BALANCES OF GOVERNMENTAL FUNDS
186
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Revenue
Taxes 55,966$ 54,877$ 57,357$ 65,402$ 64,092$ 83,170$ 108,455$ 113,043$ 118,437$ 120,768$ Licenses and permits 1,387 1,463 1,863 2,633 2,786 4,244 5,393 4,036 3,880 4,025 Intergovernmental 25,947 19,293 8,404 8,920 14,651 9,150 27,339 54,571 35,342 22,810 Charges for services 11,627 13,247 15,016 17,236 23,306 23,927 24,982 29,561 30,532 31,106 Fines and forefitures 737 793 514 473 418 704 829 880 1,494 931 Investment income 158 478 726 966 1,437 276 (357) 5,420 11,415 11,431 Sale of assets - (3,544) - - - 109 - - - - Legal Settlement - - - - - - - - - - Other 201 192 464 532 849 3,942 582 1,074 915 6,559 Total revenues 96,022$ 86,798$ 84,345$ 96,164$ 107,539$ 125,523$ 167,222$ 208,585$ 202,015$ 197,630$ Expenditures
General government 9,676 9,272 11,105 10,625 11,650 11,978 16,722 19,909 21,148 24,320 Public safety 35,875 37,855 39,185 45,004 41,731 45,039 48,066 58,559 62,934 68,134 Community development 1,438 1,899 1,629 1,118 1,128 8,734 2,476 3,265 1,258 5,661 Public works 31,956 29,412 26,185 17,781 18,926 19,299 22,660 24,497 30,527 28,367 Park and recreation 3,363 3,746 3,739 4,047 4,238 4,308 4,267 5,607 6,467 6,822 Capital Outlay* - - - 21,593 8,068 7,428 43,072 59,367 37,307 22,667 Debt services:

Principal - - - - 153 159 165 725 24 42 Interest & Fiscal agent
charges 102 177 44 74 109 57 38 36 04 06 Principal-SBITA - - - - - - - 320 247 279 Interest-SBITA - - - - - - - 00 26 104 SERAF Obligation - - - - - - - - - - Total expenditures 82,411$ 82,362$ 81,887$ 100,243$ 86,003$ 97,001$ 137,466$ 172,286$ 159,941$ 156,402$ Excess of revenues
over (under)
expenditures 13,611 4,437 2,458 (4,080) 21,536 28,521 29,755 36,299 42,074 41,228 Other financing sources
(uses):

SBITA Financing - - - - - - - 798 220 111 Capital lease proceeds - - - 1,201 - - - 900 00 - Transfer in 218 246 80 18,424 41 1,757 4,325 55 311 34 Transfer out (997) (800) (601) (6,649) (41) (73) (2,348) (55) (311) (34) Gain (loss) on sale of
assets 1,058 156 28 - - - - - 9,978 49,091 Total other financing
sources(uses) 280 (398) (494) 12,977 - 1,685 1,977 1,699 231 160 Extraordinary gain(loss) - - - - - - - - - Net change in fund
balances 13,890 4,039 1,964 8,897 21,536 30,206 31,732 37,998 42,304 41,389 Debt service as a
percentage of noncapital
expenditures

0.1% 0.2% 0.1% 0.1% 0.3% 0.2% 0.1% 0.4% 0.0% 0.0%

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS

CITY OF VICTORVILLE
*Starting in FY2019, Capital outlay was broken out of categorical (in thousands)
(modified accrual basis of accounting)

LAST TEN FISCAL YEARS
Fiscal Year
187
Fiscal Year Secured Property Unsecured Property SBE Nonunitary Total Assessed Total Direct Tax Rate
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% 2025 12,996,958,455 867,594,967 483,127,876 14,347,981,298 10.16% Source: County of San Bernardino Assessor and HdL, Coren & Cone

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 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. $0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Millions
Secured Property Unsecured Property SBE Nonunitary
188
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
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 0.0797 0.0830 0.0871 0.0970 0.0835 0.0916 0.0912 0.0000 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 0.0378 0.0898 (0.0102) 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 Victor Elementary Bond 0.1124 0.1162 0.1216 0.1204 0.0406 0.0611 0.0591 0.0574 0.5440 0.0529 Victor High School Bond 0.0716 0.0986 0.0915 0.0958 0.0703 0.0445 0.0532 0.0537 0.0480 0.0457 Victor Valley Community College Bond 0.0197 0.0174 0.0198 0.0181 0.0181 0.0198 0.0218 0.0206 0.0250 0.0156 Total Direct and Overlapping Tax Rates 1.4887 1.5725 1.4773 1.4988 1.3800 1.3845 1.3928 1.2992 1.7845 1.2817 City's basic rate** 0.1605 0.1605 0.1605 0.1605 0.1605 0.1605 0.1605 0.1605 0.1605 1.1605 Total Direct Rate^ 0.1824 0.1823 0.1822 0.1821 0.1820 0.1819 0.2026 0.2025 0.2010 0.2003 Notes:

DIRECT AND OVERLAPPING PROPERTY TAX RATES

CITY OF VICTORVILLE
* 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 resides within. In addition 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. ^ 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 enforceable 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. ** 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.

RATE PER $100 OF TAXABLE VALUE

LAST TEN FISCAL YEARS
Fiscal Year
189
2025 2016
Taxpayer
Taxable
Assessed Value
Percentage of
Total City
Taxable
Assessed Value
Taxable
Assessed Value
Percentage of
Total City
Taxable
Assessed Value
High Desert Power Trust 482,299,998$ 3.36% 176,851,000$ 2.29% Higcov-Sclc-Dc LLC 280,908,000$ 1.96%
The American Bottling Company 154,860,525$ 1.08% 102,125,363$ 1.32% Macerich Victor Valley 148,458,170$ 1.03% 119,125,796$ 1.54% Prologis SCLC Investments LLC
146,502,600$ 1.02%
Stirling Capital Investments 125,522,144$ 0.87% 80,997,503$ 1.05% Cemex Construction Materials Pacific 97,524,251$ 0.68% 63,148,723$ 0.82% Nutro Products Inc. 96,540,486$ 0.67% 90,320,546$ 1.17% Desert Valley Hospital Inc, 79,258,293$ 0.55%
Veyron KDP I Partners LLC 70,014,797$ 0.49%
Prime A Investments LLC 74,408,244$ 0.96%
Walmart Stores INC 48,151,329$ 0.62%
Victor Valley Hospital Real Estate 39,384,719$ 0.51% Church and Dwight Company INC 33,968,197$ 0.44% 1,681,889,264$ 11.71% 828,481,420$ 10.72%
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
2016 - - 0.00% 2016 - - 0.00% 2017 - - 0.00% 2017 - - 0.00% 2018 - - 0.00% 2018 - - 0.00% 2019 - - 0.00% 2019 - - 0.00% 2020 - - 0.00% 2020 - - 0.00% 2021 - - 0.00% 2021 - - 0.00% 2022 - - 0.00% 2022 - - 0.00% 2023 - - 0.00% 2023 - - 0.00% 2024 - - 0.00% 2024 - - 0.00% 2025 - - 0.00% 2025 - - 0.00% 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
2016 - - 0.00% 2016 814,455 764,955 93.92% 2017 - - 0.00% 2017 725,345 723,720 99.78% 2018 - - 0.00% 2018 706,459 704,679 99.75% 2019 - - 0.00% 2019 735,987 734,996 99.87% 2020 - - 0.00% 2020 756,545 754,972 99.79% 2021 - - 0.00% 2021 765,513 764,053 99.81% 2022 - - 0.00% 2022 804,802 803,156 99.80% 2023 - - 0.00% 2023 788,274 786,490 99.77% 2024 - - 0.00% 2024 803,591 801,804 99.78% 2025 - - 0.00% 2025 865,896 864,226 99.81%

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 districts above. ** In fiscal year 2010, LAFCO approved consolidation of Sanitary District to the City. This property tax revenue is currently recorded in the General Fund.
*** In fiscal year 2011, LAFCO approved consolidation of Fire and Park Districts to the City. This property tax revenue is currently recorded in the General Fund.

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
2016 -$ -$ -$ 33,111$ 33,111$ 2017 -$ -$ -$ 59,503$ 59,503$ 2018 -$ -$ -$ 65,026$ 65,026$ 2019 -$ -$ 1,201$ 62,594$ 63,795$ 2020 -$ -$ -$ 70,349$ 70,349$ 2021 -$ -$ -$ 76,223$ 76,223$ 2022 -$ -$ -$ 60,686$ 60,686$ 2023 -$ -$ -$ 81,489$ 81,489$ 2024 -$ -$ -$ 85,352$ 85,352$ 2025 -$ -$ -$ 98,237$ 98,237$ the revenue bond for this fund also got reclass. -$
** In Fiscal Year 2015, the City implemented GASB68, which adjusted the amount for 2014 to reflect prior Net Pension Liability. In Fiscal Year 2018, the City implemented GASB75 which adjusted the amount for 2017 to reflect prior Net OPEB Liability.

Source: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
*In 2012, the Redevelopment Agency dissolution caused the bonds to go to the Successor Agency to the Redevelopment Agency, a private purpose trust.

Governmental Activities
^ In Fiscal Year 2007, the City reclass Solid Waste from Governmental activities to Business-

RATIOS OF OUTSTANDING DEBT BY TYPE

LAST TEN FISCAL YEARS
(in thousands)

CITY OF VICTORVILLE
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*
2016 -$ 314,936$ 53,070$ 945$ 12,035$ 13,866$ 394,851$ 427,962$ 3,465 225.42 2017 -$ 311,741$ 51,925$ 725$ 10,360$ 21,160$ 395,910$ 455,413$ 3,686 238.40 2018 -$ 308,400$ 50,720$ 495$ 10,025$ 35,661$ 405,301$ 470,327$ 3,806 234.98 2019 -$ 300,964$ 49,450$ 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 -$ 289,776$ 46,710$ -$ 8,930$ 44,403$ 389,819$ 466,042$ 3,665 192.45 2022 -$ 285,064$ -$ 48,044$ 8,622$ 36,356$ 378,086$ 438,772$ 3,213 165.43 2023 -$ 280,133$ -$ 46,205$ 8,206$ 47,155$ 381,699$ 463,188$ 3,376 151.09 2024 -$ 274,981$ -$ 44,550$ 7,774$ 50,281$ 377,586$ 462,938$ 3,350 138.81 2025 -$ 269,592$ -$ 42,825$ 7,323$ 51,968$ 371,709$ 469,945$ 3,333 128.21 ^ 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 Fiscal Year 2018, the City implemented GASB75 which adjusted the amount for 2017 to reflect prior Net OPEB Liability.

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*
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% 2025 - - - - 0.00% Source: City of Victorville Annual Comprehensive Financial Reports FY25 * 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
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Debt Limit 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$ 2,152,197$ Total net debt applicable to
limit - - - - - - - - - - Legal debt margin 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 2,152,197 Total net debt applicable to
the limit as a percentage of
debt limit 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Legal Debt Margin Calculation for Fiscal Year 2025
Assessed value
Debt Limit (15% of total
assessed value)
Debt applicable to limit:

General obligation bond
Total net debt applicable to
limit
Legal 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
(amounts expressed in thousands)

LAST TEN FISCAL YEARS

LEGAL DEBT MARGIN INFORMATION

CITY OF VICTORVILLE
195
2024-25 Assessed Valuation: $14,345,329,960
Total Debt City’s Share of
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2025 % Applicable (1) Debt 6/30/25 Victor Valley Joint Community College District $159,888,228 30.16% $48,214,295 Victor Valley Joint Union High School District 172,526,803 63.407 109,394,070 Snowline Joint Unified School District 30,000,000 17.123 5,136,900 Victor School District 42,236,640 84.432 35,661,240
Adelanto School District Community Facilities District No. 1, I.A. A 11,420,000 100 11,420,000 Adelanto School District Community Facilities District No. 2 3,400,000 100 3,400,000 Adelanto School District Community Facilities District No. 4 11,100,000 100 11,100,000 Hesperia Unified School District Community Facilities Districts 12,375,000 100 12,375,000 Snowline Joint Unified School District Community Facilities Districts 6,630,000 100 6,630,000 Victor School District Community Facilities Districts 26,793,500 100 26,793,500 Victor Valley Joint Union High School District Community Facilities Districts 4,585,000 100 4,585,000 City of Victorville Community Facilities Districts 4,610,000 100 4,610,000 California Statewide Community Development Authority Assessment District No. 22-02 745,000 100 745,000 California Municipal Finance Authority Community Facilities District No. 2022-28 1,830,000 100 1,830,000 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $281,895,005
DIRECT AND OVERLAPPING GENERAL FUND DEBT:

San Bernardino County General Fund Obligations $100,765,000 4.20% $4,231,122 San Bernardino County Flood Control District General Fund Obligations 37,295,000 4.199 1,566,017 Hesperia Unified School District General Fund Obligations 110,275,000 8.786 9,688,762 Snowline Joint Unified School District General Fund Obligations 53,765,000 17.123 9,206,181 Victor Valley Joint Union High School District Certificates of Participation 15,240,000 63.407 9,663,227 Adelanto School District Certificates of Participation 5,110,000 48.598 2,483,358 Oro Grande School District Certificates of Participation 24,485,000 2.305 564,379 City of Victorville General Fund Obligations 0 100 0
TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $37,403,046 OVERLAPPING TAX INCREMENT DEBT (Successor Agencies): $277,839,925 70.764 - 100.% $203,745,690 TOTAL DIRECT DEBT $0
TOTAL OVERLAPPING DEBT $523,043,741
COMBINED TOTAL DEBT $523,043,741 (2)
Ratios to 2024-25 Assessed Valuation:

Total Overlapping Tax and Assessment Debt 1.97%
Total Direct Debt ($0) 0.00%
Combined Total Debt 3.65%
Ratios to Redevelopment Successor Agencies Incremental Valuation ($9,425,445,351) Total Overlapping Tax Increment Debt 2.16%
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 2024-25
196
Pledged
Fiscal Year Revenue Principal Interest Coverage
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 1,350 1,840 88% 2021 641 1,420 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% 2025 4,242 1,745 1,429 134% Pledged
Fiscal Year Revenue Principal Interest Coverage
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 5,365 16,208 110% 2020 20,407 5,635 15,845 95% 2021 23,021 5,920 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% 2025 21,384 7,245 14,185 100% Pledged
Fiscal Year Revenue Principal Interest Coverage
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 1,571 410 395 195% 2024 1,802 425 377 225% 2025 1,850 445 358 230% Pledged
Fiscal Year Revenue Principal Interest Coverage
2022 4,131 1,480 108 260% 2023 8,749 1,715 2,130 228% 2024 8,106 1,525 2,171 219% 2025 12,758 1,595 2,077 347% 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

CITY OF VICTORVILLE

PLEDGE REVENUE COVERAGE

LAST TEN FISCAL YEARS
(in thousands)
197
Fiscal Year
City of Victorville
Population
Personal Income
(in thousands)
Unemployment
Rate*
Per Capital
Personal Income
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$
2024 141,013 3,665,458$ 7.0% 25,993$
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
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
City of Victorville Population

5.0%

7.0%

9.0%

11.0%

13.0%

15.0%

17.0%
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Unemployment Rate*
$-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Thousands
Personal Income (in thousands)
$-
$3,000
$6,000
$9,000
$12,000
$15,000
$18,000
$21,000
$24,000
$27,000
$30,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Per Capital Personal Income
198
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Function
General government 72 73 77 77 75 76 86 95 146 181
Public Safety* 0 0 1 60 59 60 76 70 84 76
Public Works 110 113 116 113 118 116 138 120 104 92
Community Development 4 4 4 4 3 3 3 5 13 25
Community Services 75 75 82 78 86 85 86 79 44 60
Airport 25 26 26 26 24 24 23 27 30 23
Water 57 63 66 66 59 56 56 57 91 56
Total 343 354 372 424 424 420 468 453 512 513
Source: City of Victorville Finance Department.

CITY OF VICTORVILLE

FULL-TIME CITY EMPLOYEES BY FUNCTION

LAST TEN FISCAL YEARS
Fiscal Year
* Only includes Fire Services. In fiscal year 2018, fire staff were added for start up of new City fire department. 199
Function 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Public Safety
Police
Physical arrests 5, 194 5, 716 5, 733 3 ,531 2 ,793 2 ,860 2 ,761 1,531 3,256 4,093 Traffic Violations 4, 070 5, 561 3, 635 * * * * 4,049 5,621 6,856 Public works
Street Maintenance
Potholes repaired (number)
4, 138 5, 667 7, 427 7, 713 11, 444 8, 653 9, 455 15, 524 34, 520 162,841 Graffiti removal (locations) 4, 708 2, 824 3, 116 2, 592 2, 966 3, 240 2, 793 3, 808 3, 461 4,439 Streets sweeping (tons) 1, 687 1, 627 1, 544 1, 712 1, 878 1, 877 1, 824 2,182 2,345 Sanitation
Refuse collected (tons/day) 202 206 210 220 228 236 240 233 233 234 Recyclables collected (tons/day) 33 32 32 33 35 39 40 40 27 30 32 32
Community Services
Park and Recreation
Athletic field permits issued
5, 905 6, 310 5, 785 5, 020 162 41*** 45*** 105 92 97 Community center enrollments 29, 958 25, 343 19, 518 14, 503 1, 973 882** 1, 667 6, 382 2, 436 9,236 Facilities rental used 2, 388 2, 469 2, 252 1, 803 62 9** 177** 74 132 157 Water
Residential 5, 191,845 5, 505,636 5,722,934 4,961,977 5,135,298 5,522,763 5,371,857 4,888,059 4,993,729 5,258,573 Multi Residential 405, 373 444, 737 490,302 752,766 781,018 840,414 844,824 786,059 792,172 817,663 Commercial 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 1,189,357 Institutional 389, 782 437, 698 470,500 773,125 857,134 852,178 944,442 870,590 869,838 876,675 Irrigation 522, 308 491, 157 471,954 460,627 486,095 541,868 592,475 523,424 520,834 573,364 Fire service 50 94 148 2,963 3,919 3,112 3,844 4,250 3,368 3,350 Recycled 274,824 127,752 205,354 316,953 275,268 344,982 380,617 413,966 328,058 287,416 Total 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 9,006,398 Water Sold (in acre feet) 17, 896 19, 201 20,543 19,730 20,868 22,346 22,096 20,079 20,389 20,676 Number of Customer Connections
Residential 3 2,884 32, 650 32,386 32,680 33,047 33,709 34,501 34,889 35,401 35,575 Multi Residential 1 98 197 776 768 759 762 762 763 770 785 Commercial 1, 066 1, 074 1,099 1,333 1,325 1,358 1,363 1,285 1,292 1,299 Institutional 2 06 207 169 256 225 226 226 226 225 227 Irrigation 236 239 266 331 371 386 396 410 419 425 Fire service 555 564 580 598 608 616 625 638 646 653 Recycled 2 2 4 4 5 7 5 8 8 8
Total 35, 147 34, 933 35,280 35,970 36,340 37,064 37,878 38,219 38,761 38,972 16, 540 17, 142 16, 917 17, 614 18, 629 19, 950 19, 726 17, 925 18, 202 18,458 Estimated Population 121, 419 121, 608 122,699 123,758 125,085 127,543 130,788 137,193 138,202 141,013 136 141 138 1 42 149 156 151 140 134 139 Rainfall in inches 0. 92 5. 69 4.92 0.69 4.16 4.95 1.63 2.00 2.41 1.07 Source: City of Victorville departments
Note: Indicators are not available for the general government function. * Indicator information unavailable at this time. San Bernardino County changed reporting software for Police and information has not been retrievable. ** Parks and Recreation facilities and classes were closed through most of the year related to COVID-19 restrictions. ***Athletic Permits issued for six month periods instead of the previous monthly periods.

Water Consumption (in hundred
cubic feet)
Average Daily Consumption (in
thousands of gallons)
Per Capita Average Daily
Consumption (in gallons)

CITY OF VICTORVILLE

OPERATION INDICATORS BY FUNCTION

LAST TEN FISCAL YEARS
Organics collected (tons/day)
Fiscal Year
200
2016* 2017 2018 2019 2020 2021 2022 2023 2024 2025
Consumption (per hundred cubic feet)
Standard Domestic 1.75$ 1.75$ 1.88$ 2.03$ 2.18$ 2.35$ 2.61$ 2.57$ 2.52 2.47 Construction Flow 2.77 2.77 2.94 3.12 3.32 3.51 3.56 3.67 3.78 3.89 Untreated Well 0.60 0.60 0.64 0.69 0.74 0.80 0.89 0.87 0.86 0.84 Recycled 1.05 1.05 1.13 1.22 1.31 1.41 1.57 1.54 1.51 1.48 Public Benefit - - - - - - - - - Monthly Service Fee
Monthly per average
daily use 0.00-0.26 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Monthly per average
daily use 0.27-1.17 - - - - - - - - - - Monthly per average
daily use 1.18-6.60 - - - - - - - - - - Monthly per average
daily use > 6.60 - - - - - - - - - - 3/4 inch meter 11.78$ 11.78$ 12.23$ 12.68$ 13.15$ 13.36$ 15.24$ 17.68$ 20.25$ 22.96 1 inch meter 18.59 18.59 19.30 20.02 20.75 21.09 23.31 27.04 30.97 35.12 1 1/2 inch meter 35.62 35.62 36.99 38.37 39.76 40.41 43.49 50.45 57.78 65.51 2 inch meter 56.06 56.06 58.21 60.39 62.58 63.60 67.71 78.54 89.96 101.99 3 inch meter 110.56 110.56 114.80 119.09 123.42 125.44 132.28 153.44 175.75 199.26 4 inch meter 171.88 171.88 179.47 185.14 191.87 195.01 204.93 237.71 272.27 308.69 6 inch meter 342.19 342.19 355.32 368.60 382.00 388.25 406.72 471.78 540.38 612.67 8 inch meter 955.34 955.34 991.99 1,029.07 1,066.48 1,083.92 1,133.18 1,314.45 1,505.58 1706.99 > 8 inch meter 1,432.23 1,432.23 1,487.17 1,542.77 1,598.85 1,624.99 1,698.21 1,969.86 2,256.28 2558.12 Fire Service Fee
1 inch meter 2.69$ 2.69$ 2.82$ 2.96$ 3.10$ 3.20$ 4.14$ 4.67$ 5.23$ 5.83 2 inch meter 5.19 5.19 5.48 5.78 6.09 4.64 5.15 5.71 6.31 6.93 2 1/2 inch meter 5.19 5.19 5.48 10.65 6.09 6.37 6.36 6.96 7.60 8.26 3 inch meter 9.50 9.50 10.06 19.62 11.27 11.83 10.19 10.92 11.68 12.47 4 inch meter 17.45 17.45 18.50 42.68 20.80 21.90 17.26 18.20 19.19 20.22 6 inch meter 37.88 37.88 40.21 73.44 45.31 47.78 35.42 36.94 38.52 40.16 8 inch meter 65.13 65.13 69.16 114.45 77.99 82.30 59.63 61.91 64.28 66.74 > 8 inch meter 101.45 101.45 107.75 114.45 121.56 128.31 91.91 95.22 98.64 102.18 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
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Public Safety
Police:

Stations 1 1 1 1 1 1 1 1 1 1 Patrol Units 52 55 54 54 54 70 70 86 86 85 Fire Stations 5 5 5 5 5 5 5 5 5 5 Public Works
Highways and streets:

Streets (miles) 449 449 449 449 449 449 449 451 467 479.1 Streetlights 396 404 408 418 418 428 428 428 527 535 Traffic Signals 88 90 91 94 94 97 97 97 100 101 Sewer:

Sanitary sewers (miles) 440 440 443 443 449 455 455 467 470 473 Storm sewers (miles) 473 473 473 473 473 473 473 474 474 474 Number of treatment plants 2 2 2 2 2 2 2 2 2 2 Number of service connections 40,092 40,551 41,232 41,723 36,616 36,222 36,764 31,286 31,217 31,524 Community Services
Parks acreage 263 180 180 180 180 180 180 182 180 210 Park 18 19 19 19 19 19 19 19 19 18 Golf Courses 1 1 1 1 1 1 1 1 1 1 Swimming pools 1 1 1 1 1 1 1 1 1 1 Tennis courts 6 6 6 6 6 6 6 6 6 6 Community Centers 6 7 7 7 7 7 7 7 7 6 Airport
Runway length (miles) 5 5 5 5 5 5 4* 4* 4 4 Sewer pipeline 30 30 30 30 30 30 30 30 30 30 Number of hangars 26 26 26 26 26 26 26 26 26 26 Number of buildings 52 52 52 52 52 52 52 52 52 52 Water
Water Production in Acre feet 20,905 22,476 24,383 21,755 22,017 23,487 22,468 20,627 20,982 21,949 Domestic Water Tanks (Reservoirs) 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 Recycled Water Tanks (Reservoirs) 1 1 1 1 1 1 1 1 1 1 Recycled Storage in Millions of Gallons 1 1 1 2 2 2 2 1.6 2 1 Wells 32 32 32 34 34 34 34 34 33 34 Pipeline - Linear Feet (in thousands) 3,666 3,666 3,666 3,666 3,666 3,666 4,087 4,087 88,514 4,097 Pipeline - Miles 694 694 694 694 709 709 774 774 775 776 Booster Pumping Stations 4 4 4 4 4 4 4 4 4 7 Pressure Regulating Stations 24 25 25 25 25 25 25 33 25 35 *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
Attachment B

Victorville Water District
Basic Financial Statements
for Fiscal Year ended
June 30, 2025

Victorville Water
District
Victorville, California

Financial Statements and
Independent Auditor’s Report

For the year ended June 30, 2025

Victorville Water District
Table of Contents
For the year ended June 30, 2025

Page

Independent Auditor’s Report ................................................................................................................................... 1

Basic Financial Statements:

Statement of Net Position .................................................................................................. ................................. 7 Statement of Revenues, Expenses and Changes in Fund Net Position ........................................................ 8 Statement of Cash Flows .................................................................................................... ............................... 10 Notes to Basic Financial Statements ................................................................................................................ 15

Required Supplementary Information (Unaudited):

Schedule of the Proportionate Share of the Net Pension Liability ................................................................. 44 Schedule of Pension Plan Contributions ...................................................................................... ...................... 46 Schedule of Changes in Total OPEB Liability and Related Ratios ................................................................. 48

Supplementary Information:

Combining Statement of Net Position ......................................................................................... ....................... 54 Combining Statement of Revenues, Expenses, and Change in Net Position ................................................ 56

This page intentionally left blank
INDEPENDENT AUDITOR’S REPORT
To the Board of Directors
of the Victorville Water District
Victorville, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the Victorvi lle Water District (District), a component unit of the City of Victorville, California, as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the Di strict’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the District, as of June 30, 2025, and the respective changes in financial position and 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 applicab le 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 Resp onsibilities for the Audit of the Financial Statements section of our report. We are required to be indepe ndent of the District and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements The District’s management is resp onsible for the preparation and fa ir presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

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

To the Board of Directors
of the Victorville Water District
Victorville, California