Attachment C - Southern California Logistics Airport Authority Basic Financial Statements for Fiscal Year ended June 30, 2025 — Victorville City Council, January 20, 2026

Attachment C

Southern California Logistics
Airport Authority
Basic Financial Statements
for Fiscal Year ended
June 30, 2025

Southern
California Logistics
Airport Authority

Victorville, California

Financial Statements and
Independent Auditor’s Report

For the year ended June 30, 2025

Southern California Logistics Airport Authority
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 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 ................................................................. 54 Schedule of Pension Plan Contributions ............................................................................................................ 56 Schedule of Changes in Total OPEB Liability and Related Ratios ................................................................. 58 Supplementary Information:

Combining Statement of Net Position ................................................................................................................ 64 Combining Statement of Revenues, Expenses, and Change in Net Position ................................................ 66 i
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ii
INDEPENDENT AUDITOR’S REPORT
To the Board of Directors
of the Southern California Logistics Airport Authority
Victorville, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the Southern California Logistics Airport Authority (SCLAA), a component unit of the City of Victorville, California, as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the SCLAA’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the SCLAA, 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 inde pendent of the SCLAA and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

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

In preparing the financial statements, management is re quired to evaluate whether there are conditions or events, considered in the aggregate, that raise subst antial doubt about the SCLAA’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 Southern California Logistics Airport Authority
Victorville, California

Page 2 ends

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 issu e an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolu te assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may in volve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the 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 misstat ement of the financial statements, whether due to fraud or error, and design and pe rform 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 circ umstances, but not for the purpose of expressing an opinion on the effectiveness of the SCLAA’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting polic ies used and the reasonableness of significant accounting estimates made by management, as we ll as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the SCLAA’s ability to continue as a going concern for a reasonable period of time.

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

2 To the Board of Directors
of the Southern California Logistics Airport Authority
Victorville, California

Page 3 ends

Required Supplementary Information

Accounting principles generally accept ed in the United States of America require that the required pension schedules and other post-employment benefit plan schedules be presented to supplement the basic financial statements.

Such information is the responsibility of m anagement and, although not a part of the basic financial statements, is required by the Govern mental Accounting Standards Board who considers it to be an essential part of financial reporting for pl acing 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 managem ent about the methods of preparing the information and comparing the information for consistency with ma nagement’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 assuranc e on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America requir e to be presented to supplement the basic financial statements. Such missing information, although not a pa rt of the basic financial statements, is required by the Governmental Accounting Standards Board who cons iders it to be an essential part of the financial reporting for placing the basic financial statements in an appropriate operational , economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information.

Supplementary Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the SCLAA’s basic financial statements. The combining statements of the SCLAA are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The combining statements of the SCLAA are the resp onsibility of management and were derived from and relates directly to the underlying accounting and other records us ed 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 proc edures, 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 themse lves, and other additional procedures in accordance with auditing standards generally accepted in the Unit ed States of America. In our opinion, the combining statements of the SCLAA are fairly stated, in all ma terial respects, in relation to the basic financial statements as a whole.

Report on Summarized Comparative Information

We have previously audited the SCLAA’s June 30, 2024 financial statements, and we expressed an unmodified opinion on those statements in our report dated April 10, 2025. In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2024 is consistent, in all material respects, with the audited financial statements from which it has been derived. 3 To the Board of Directors
of the Southern California Logistics Airport Authority
Victorville, California

Page 4 ends

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 SCLAA’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters.

The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the SCLAA’s internal control over financial reporting and compliance.

Badawi & Associates, CPAs
Emeryville, California
January 6, 2026
4 BASIC

FINANCIAL STATEMENTS
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6 Southern California Logistics Airport Authority
Statement of Net Position
June 30, 2025
(With Comparative Data for June 30, 2024)
2025 2024
ASSETS
Current Assets:

Cash and investments 41,585,521 $ 41,290,155 $ Cash and investments with fiscal agent 27,325,317 26,097,008 Accounts receivable, net 324,745 401,630 Interest receivable 456,414 287,912 Due from other governments - 864,253 Leases receivable 7,677,132 7,246,566 Inventory 5,165 3,612
Total current assets 77,374,294 76,191,136 Noncurrent:

Prepaid Items 2,195 4,149
Advances to City of Victorville 1,200,000 1,600,000 Leases 77,635,964 77,962,659
Nondepreciable capital assets 16,700,582 15,760,072 Depreciable capital assets 308,344,729 299,509,331 Accumulated depreciation (205,617,018) (197,913,004) Depreciable capital assets, net 102,727,711 101,596,327 Total noncurrent assets 198,266,452 196,923,207 Total assets 275,640,746 273,114,343
DEFERRED OUTFLOWS OF RESOURCES Deferred outflows - OPEB related 267,907 237,333 Deferred outflows - pension related 1,639,978 1,768,477 Deferred charge on refunding 1,128,866 1,263,381 Total deferred outflows of resources 3,036,751 3,269,191 LIABILITIES Current liabilities:

Accounts payable 743,750 594,660
Interest payable 1,166,156 1,197,937
Deposits payable 815,549 742,742
Unearned revenue 449,562 850,360
Compensated absences - due within one year 115,432 133,833 Total OPEB liability - due within one year 12,958 8,504 Long-term debt - current portion 7,630,000 7,245,000 Total current liabilities 10,933,407 10,773,036 Noncurrent liabilities:

Advances from other governments 12,133,339 11,678,089 Total OPEB liability 2,226,953 2,115,912 Net pension liability 5,183,366 4,930,171 Long-term debt 261,962,107 267,735,859
Compensated absences 183,617 112,463 Total noncurrent liabilities 281,689,382 286,572,494 Total liabilities 292,622,789 297,345,530

DEFERRED INFLOWS OF RESOURCES
Deferred inflows - OPEB related 705,148 762,291 Deferred inflows - pension related 70,427 183,799 Deferred inflows - leases 78,311,500 80,139,808 Total deferred inflows of resources 79,087,075 81,085,898

NET POSITION
Net investment in capital assets (121,877,748) (130,492,014) Unrestricted 28,845,381 28,444,120
Total net position (93,032,367)$ (102,047,894)$ See accompanying Notes to Basic Financial Statements.
7 Southern California Logistics Airport Authority
Statement of Revenues, Expenses, and Changes in Net Position For the year ended June 30, 2025
(With Comparative Data for the year ended June 30, 2024) 2025 2024
OPERATING REVENUES:

Charges for services
Landing fees 1,278,330$ 1,492,219 $
Fuel flowage fees 310,743 382,140
Rent and lease revenue 10,316,627 10,424,249 Total charges for services 11,905,700 12,298,608 Fines and forfeitures 28,817 25,274 Other 950,824 851,560
Total operating revenues 12,885,341 13,175,442 OPERATING EXPENSES:

Personnel services 3,773,683 3,664,583 Maintenance and operations 5,991,285 7,034,343 Depreciation 7,814,864 9,480,389
Total operating expenses 17,579,832 20,179,315 Operating income (loss) (4,694,491) (7,003,873) NONOPERATING REVENUES (EXPENSES):

Taxes 21,638,857 21,875,148
Investment income 4,674,507 4,998,166
Interest expense (16,598,791) (16,804,585) Gain on sale of capital assets 1,375 - Other nonoperating expenses (19,637) 322,056 Total nonoperating revenues (expenses) 9,696,311 10,390,785 Income before contributions and transfers 5,001,820 3,386,912 CONTRIBUTIONS AND TRANSFERS:

Capital contributions 635,996 -
Capital grants 3,512,333 1,723,221
Total contributions and transfers 4,148,329 1,723,221 Change in net position 9,150,149 5,110,133 NET POSITION:

Beginning of year (102,047,894) (107,158,027) Restatements - due to implementation of GASB 101 (134,622) - Beginning of year, as restated (102,182,516) (107,158,027) End of year (93,032,367)$ (102,047,894)$
See accompanying Notes to Basic Financial Statements.
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9 Southern California Logistics Airport Authority
Statement of Cash Flows
For the year ended June 30, 2025
(With Comparative Data for the year ended June 30, 2024) 2025 2024
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers 12,182,668 $ 10,921,299 $ Cash payments to employees for services (3,559,452) (3,294,872) Cash payments to suppliers for goods and services (5,841,794) (6,823,614) Net cash provided by (used in) operating activities 2,781,422 802,813 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Cash received from other governments 22,094,107 22,286,148 Cash paid to City of Victorville 400,000 400,000
Net cash provided by (used in)
Noncapital financing activities 22,494,107 22,686,148
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Cash received from sale of capital assets 1,375
-
Capital grants 3,512,333 1,723,221
Cash payments to acquire capital assets (9,886,758) (3,157,971) Principal paid on capital-related debt (7,244,999) (6,885,000) Interest paid on capital-related debt (14,639,810) (14,966,860) Net cash provided by (used in) capital and related
Financing activities (28,257,859) (23,286,610) CASH FLOWS FROM INVESTING ACTIVITIES:

Interest received on investments 4,506,005 4,846,482
Net cash provided by (used) by investing activities 4,506,005 4,846,482 NET INCREASE IN CASH AND CASH EQUIVALENTS 1,523,675 5,048,833 CASH AND CASH EQUIVALENTS - Beginning of year 67,387,163 62,338,330 CASH AND CASH EQUIVALENTS - End of year 68,910,838$ 67,387,163$

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

Cash and investments 41,585,521 41,290,155
Cash and investments with fiscal agent 27,325,317 26,097,008 Cash and cash equivalents 68,910,838 67,387,163
10 See accompanying Notes to Basic Financial Statements.

Southern California Logistics Airport Authority
Statement of Cash Flows (Continued)
For the year ended June 30, 2025
(With Comparative Data For The Year Ended June 30, 2024) 2025 2024

RECONCILIATION OF OPERATING LOSS TO NET CASH

PROVIDED (USED) BY OPERATING ACTIVITIES
Operating loss (4,694,491)$ (7,003,873) $
Adjustments to reconcile operating loss to net cash
Provided (used) by operating activities:

Depreciation 7,814,864 9,480,389
Operating rental and lease revenue (1,828,308) (7,431,065) Nonoperating miscellaneous expense 616,359 322,056
(Increase) decrease in assets:

Accounts receivable, net 76,885 (10,854)
Lease receivable (103,871) 5,768,668
Due from other governments 864,253 (711,781)
Inventory (1,553) 10,266
Prepaid items 1,954 51,445
Deferred outflows - OPEB (30,574) 30,270
Deferred outflows - pension 128,499 (59,265)
Increase (decrease) in liabilities:

Accounts payable 149,090 149,018
Deposits payable 72,807 22,046
Unearned revenue (400,798) (213,213)
Accrued compensated absences (81,869) 30,745
Total OPEB liability 115,495 84,332
Net pension liability 253,195 426,483
Deferred inflows - OPEB (57,143) (92,549)
Deferred inflows - pension (113,372) (50,305)
Net cash provided by (used in) operating activities 2,781,422$ 802,813$

SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING

AND FINANCING ACTIVITY
Interest accretion expenses 1,764,379 1,641,446
Amortization of bond discounts and premiums 91,868 91,867 Total $1,856,247 $1,733,313
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12 NOTES TO BASIC

FINANCIAL STATEMENTS

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14 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the Southern Calif ornia Logistics Airport Authority (SCLAA) have been prepared in conformity with generally accepted acco unting principles (GAAP) as applied to governmental agencies. 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 SCLAA’s accounting policies are described below.

A. Description of the Reporting Entity
The Southern California Logistics Airport Authority (SCLAA), a component unit of the City of Victorville, was formed in June of 1997 by the City of Victorville and the former Victorville Redevelopment Agency.

Prior to the dissolution of the Victorville Redevelopm ent Agency in 2012, the Vi ctorville Water District was added as a member of the JPA. The purpose of SCLAA is to provide for the coordination of long- range planning of the territory of George Air Force Ba se (now Southern California Logistics Airport, or the Airport). The Victor Valley Economic Development Authority (VVEDA), a Joint Powers Authority of the City of Victorville and other entities, was auth orized to exclusively ex ercise the powers of a redevelopment agency in the area including and surrounding the Airport. VVEDA subsequently delegated to the SCLAA all of its redevelopment auth ority over the portion of the VVEDA project area comprised of the Airport.

B. Relationship to the City of Victorville
The SCLAA is an integral part of the reporting entity of the City of Victorville (the City) and is reflected as a blended component unit within the City of Vict orville. The SCLAA fund has been included within the scope of the basic financial statements of the Ci ty because, although it is a legally separate organization, the City Council is the governing board and has financial accountability over the operations of the SCLAA. Only the SCLAA fund is included herein and these financial statements, therefore, do not purport to represent the financial position or results of operations of the City of Victorville, California.

C. Basic Financial Statements
The basic financial statements are comprised of the st atement of net position, the statement of revenues, expenses, and changes in net position, the statement of cash flows and the notes to the basic financial statements.

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

15 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued D. Basis of Accounting, Measurement Focus, and Financial Statement Presentation, Continued 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 economic resources. The basis of accounting indicates the timi ng of transactions or events for recognition in the financial statements.

Proprietary funds are presented usin g the economic resources measurement focus. This means that all assets, deferred outflows of resources, liabilities, and deferred inflows of resources (whether current or noncurrent) associated with their activity are included on their statement of net position.

Proprietary funds are presented using the accrual ba sis of accounting. Revenues are recognized when they are earned and expenses are recognized when the related goods or services are delivered, regardless of when the related cash flows take place. Amounts paid to acquire capital assets are capitalized as assets.

Proceeds of long-term debt and acquisitions under capital leases are recorded as a liability. Amounts paid to reduce long-term indebtedness are reported as a reduction of the related liability. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method for bonds issued through 2021 and the effective interest method for bonds issued thereafter. Bonds payable are reported net of the applicable bond premium or disc ount. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenses.

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

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

16 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued F. Cash Equivalents
For purposes of the statement of cash flows, cash equivalents are defined as short-term, highly liquid investments that are both readily convertible to know n amounts of cash or so near their maturity that they present insignificant risk of changes in value be cause of changes in interest rates. Cash equivalents include the cash and investments held by a fiscal agent.

G. Accounts Receivable
The SCLAA specifically identifies accounts that are deemed uncollectable and offsets the receivable by an allowance for doubtful accounts. The amounts reco rded as accounts receivable include various reimbursements and fees due to the SCLAA, net of an allowance for doubtful accounts totaling $12,380 as of June 30, 2025.

H. Due from Other Governments
The amounts recorded as a receivable due from othe r governments includes grant revenues collected or provided by Federal, State, County, and City Governments and unremitted to the City as of June 30, 2025.

I. Inventory and Prepaid Items
The SCLAA uses the consumption method of accounting for inventories. Inventory consists primarily of supplies for construction and repair that are valued at cost using the weighted average method. Certain payments to vendors that reflect costs applicable to future accounting periods are recorded as prepaid items utilizing the consumption method.

J. Leases
When the SCLAA is a lessee, a lease liability and a le ase 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 pr esent value of payments expected to be made during the lease term (less any lease incentives). The leas e asset is measured at the amount of the initial measurement of the lease liability, plus any payments made to the lessor at or before the commencement of the lease term and certain direct costs.

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

17 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued K. Capital Assets
Tangible capital assets (including infrastructure) are valued at cost where historical records are available and at an estimated historical cost where no historic al records exist. Donated tangible capital assets are valued at acquisition value on the date of donation. SBITA assets are initially measured as the sum of the present value of payments expected to be made duri ng 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 from the SBITA vendor at the commencement of the SBITA term . SBITA assets are amortized in a systematic and rational manner over the shorter of the subscription term or the useful life of the underlying IT assets.

SCLAA capitalizes all assets with an initial individual cost of more than $5,000 and a useful life in excess of one year. The cost of normal maintenance and repa irs that do not add to the value of the assets or materially extend the life are not capitalized.

Depreciation is computed utilizing the straight-line method over the following useful lives for tangible capital assets:

L. Compensated Absences
A liability is recorded for unused vacation and similar compensatory leave balances since the employees’ entitlement to these balances is attributable to services already rendered and it is probable that virtually all of these balances will be liquidated by either paid time off or payments upon termination or retirement.

A liability is recorded for unused sick leave balances that have be en 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. Th e 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 proprietar y 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.

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

Buildings and Improvements 10 to 50 Years
Computer and Communications 5 Years
Furniture and Equipment 3 to 7 Years
Infrastructure 20 to 40 years
Land Improvements 10 to 50 Years
Vehicles 8 to 15 Years
18 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued M. Unearned Revenue
Unearned revenue is recorded when the SCLAA receives funds for which the goods or services have not yet been provided and, therefore, revenue has not yet been earned. The balance in unearned revenue for the SCLAA primarily consists of funds received in advance from tenants in which the City serves as the lessor.

N. Deferred Outflows and Defe rred Inflows of Resources In addition to assets, the statement of net position reports a separate section for deferred outflows of resources. This separate financial statement elemen t, deferred outflows of resources, represents a consumption of net assets that applies to future pe riods and so will not be recognized as an outflow of resources (expense) until that time. The category of deferred outflow of resources reported in the statement of net position is related to a loss on refunding, pension, and other postemployment benefits.

A deferred loss on refunding results from the differenc e in the carrying value of the refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. Deferred outflows on pension and other postemployment benefits are more fully discussed in Notes 6 and 7, respectively.

In addition to liabilities, the stat ement of net position reports a sepa rate 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 SCLAAs deferred inflows of resources reported on the statement of net position relate to leases, pension and other postemployment benefits. Amounts for leases are for amounts not yet received that are deferred and recognized as an inflow of resources in the period that the amounts are available or earned.

Pension and other postemployment benefits deferred inflows of resources are more fully discussed in Notes 9 and 10, respectively.

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

Net Investment in Capital Assets – This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt (including prem iums and discounts) and capital related payables that are attributed to the acquisition, construction, or improvement of the assets.

Restricted Net Position – This amount is restricted by enabling legislation (such as external creditors, grantors, contributors, laws or regulations of other governments).

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

19 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued O. Net Position, Continued
Sometimes the SCLAA will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position, a flow assumption must be made about the order in which the resources are considered to be applied. It is the SCLAA’s practice to consider restricted net position to have been depleted before unrestricted net position is applied, unless otherwise directed by Council.

P. Pensions
For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to pensions, and pension expense, information about th e fiduciary net position of the SCLAA’s California Public Employees’ Retirement System (CalPERS) pl ans (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 refu nds of employee contributions) are recognized when currently due and payable in accordanc e with the benefit terms. Investments are reported at fair value.

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

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

R. Estimates
The presentation of basic financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of asse ts, deferred outflows of resources, liabilities, and deferred inflows of resources and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

20 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued S. Adoption of New Accounting Standards
In 2025, the Authority adopted new accounting st andards in order to conform 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 Authority has recognized accruals for compensated time, administrative leave, and vacation. Beginning net po sition and compensated absences balances as of June 30, 2024, were restated upon implementation of this Statement. Please refer to Notes 4 and 13 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 co nstraints. The District had no adjustments or new disclosures as a result of this Statement.

21 Southern California Logistics Airport Authority
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 financial statements as follows:

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

A. Investments Pool of the City of Victorville
The SCLAA has no separate bank accounts or investments other than investments held by bond trustee, and their investment in LAIF. The SCLAA’s equity in the cash and investment pool is managed by the City of Victorville. The SCLAA is a voluntary participant in that pool. This pool is governed by and under the regulatory oversight of the Investment Policy adopted by the City Council of the City of Victorville.

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

Statement of Net Position:

Cash and Investments 41,585,521$
Cash and Investments with Fiscal Agent 27,325,317
Total Cash and Investments 68,910,838$
Equity in City of Victorville Pool 22,350,942$
Investments 46,559,896
Total Cash and Investments 68,910,838$
22 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

2. CASH AND INVESTMENTS, Continued
B. Investments Authorized by the California G overnment Code and the City’s Investment Policy The City adopts the investment policy for the SCLAA. The table below outlines the type of investment that are authorized for the SCLAA under the Califor nia 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 agreement, ra ther than the general provisions of the California Government Code or the City’s investment policy.

C. Investments Authorized by Debt Agreements
Investment of debt proceeds held by bond trustee ar e governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the SCLAA’s investment policy.

The table below identifies the investment types that are authorized for investments held by bond trustee.

The table also identifies certain provisions of these debt agreements that address interest rate risk and concentration of credit risk.

Authorized by Maximum Maximum
Investment Type Investment Maximum Percentage Investment Authorized by State Law Policy Maturity* of Portfolio* in One Issuer 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 Days 40% 30%
Commercial Paper - Nonpooled Funds No 270 Days 25% 10%
Commercial Paper - Pooled Funds No 270 Days 40% 10%
Negotiable Certificates of Deposit Yes 2 Years 30% None Repurchase Agreements No 1 Year None None
Reverse 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
County 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. ** Ginnie Mae is not to exceed 20% of the total portfolio. *** Fund must be an AAA rated Government or U.S. Treasury money fund.

Maximum
Authorized Maximum Percentage Investment
Investment Types Maturity Allowed in One Issuer
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
Certificate of Deposit None None None
Local Agency Investment Fund (LAIF) None None None
23 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

2. CASH AND INVESTMENTS, Continued
D. Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the Authority manages its exposure to interest rate risk is by purchasing a combination of shorter-term and longer-term investments and by timing cash flows from maturities so that a portion of the portfo lio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.

Information about the sensitivity of the fair values of the Authority’s investments (including investments held by bond trustee) to market interest rate fluctu ations is provided by the following table that shows the distribution of these investments by maturity.

E. 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 nationa lly recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, or debt agreements, and the actual Standard & Poor’s rating as of year-end for each investment type.

F. Concentration of Credit Risk
The investment policy of the SCLAA contains no limitat ions on the amount that can be invested in any one issuer beyond that stipulated by the Califor nia Government Code. The SCLAA has no investments in any one issuer (other than LAIF and money market mutual funds) that represent 5% or more of the City’s investments.

Remaining
Maturities
(in Months)
Investment Type Total Within 12
LAIF 19,234,579 $ 19,234,579 $
Held by Bond Trustee:

Money Market Mutual Funds 27,325,317 27,325,317
Total 46,559,896 $ 46,559,896 $
Minimum
Investment Type Total Legal Rating AAA Not Rated
LAIF 19,234,579 $ N/A - $ 19,234,579$ Held by Bond Trustee:

Money Market Mutual Funds 27,325,317 AAA 27,325,317 - Total 46,559,896 $ 27,325,317 $ 19,234,579 $ Ratings as of Year-End
24 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

2. CASH AND INVESTMENTS, Continued
G. Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside part y. 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 ri sk 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 re gulated under state law (unless so waived by the governmental unit).

The market value of the pledged securities in the co llateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure SCLAA deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. At June 30, 2025, the SCLAA’s deposits (bank balances) were equity in the City of Victorville’s pool, which was insured by the federal depository in surance limits or collateralized as required under California Law.

For investments identified herein as held by bond trustee, the bond trustee selects the investment under the terms of the applicable trust agreement, acquires the investment, and holds the investment on behalf of the reporting government.

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

I. Fair Value Measurements
The SCLAA categorizes its fair value measurement within the fair value hi erarchy established by accounting principles generally accepted in the United States of America. The fair value framework provides a hierarchy that prioritizes the inputs to va luation 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:

25 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

2. CASH AND INVESTMENTS, Continued
I. Fair Value Measurements, Continued
Level 1 – Inputs to the valuation methodology are u nadjusted 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; - I n p u t s t h a t a r e d e r i v e d p r i n c i p a l l y f r o m o r c o r r o b o r a t e d b y o b s e r v a b l e m a r k e t d a t a b y correlation of other items.

Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurements. These unobservable inputs reflec t the SCLAA’s own assumptions about the inputs market participants would use in pricing the asset or liability (including a ssumptions about risk).

These unobservable inputs are developed based on the best information available in the circumstances and may include the SCLAA’s own data.

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

26 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

3. CAPITAL ASSETS

The following is a summary of changes in capital assets for SCLAA at June 30, 2025:

Depreciation expense for the SCLAA was $7,817,049 for the year ended June 30, 2025.

Balance Balance
July 1, 2024 Additions Deletions June 30, 2025
Nondepreciable Assets:

Land 13,888,112$ -$ -$ 13,888,112$ Construction in progress 1,871,960 1,373,433 (432,923) 2,812,470 Total Nondepreciable Assets 15,760,072 1,373,433 (432,923) 16,700,582 Depreciable Assets:

Buildings and Improvements 185,457,911 2,787,324 - 188,245,235 Computer and Communication 218,903 - - 218,903 Furniture and Equipment 8,370,867 363,680 (113,036) 8,621,511 Infrastructure 104,545,552 5,464,403 - 110,009,955 Land Improvements 128,489 - - 128,489 Vehicles 787,610 333,026 - 1,120,636 Total Depreciable Assets 299,509,332 8,948,433 (113,036) 308,344,729 Less Accumulated Depreciation:

Buildings and Improvements (122,013,250) (4,233,885) - (126,247,135) Computer and Communication (218,903) - - (218,903) Furniture and Equipment (6,513,784) (413,608) - (6,927,392) Infrastructure (68,368,538) (3,141,773) 113,036 (71,397,275) Land Impovements (128,489) - - (128,489) Vehicles (670,041) (27,783) - (697,824) Total Accumulated Depreciation (197,913,005) (7,817,049) 113,036 (205,617,018) Total Depreciable Assets, Net 101,596,327 1,131,384 - 102,727,711 Capital Assets, Net 117,356,399$ 2,504,817 $ (432,923)$ 119,428,293$ 27 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

4. LONG-TERM LIABILITIES

A summary of changes in long-term liabilities for the year ended June 30, 2025, is noted below:

See pledged revenue information at the end of this note.

A. Tax Allocation Parity Bonds, Series 2005A
In June 2005, the SCLAA issued $42,185,000 principa l 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 wa s 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 maturi ty 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.

Balance Balance Due Within
July 1, 2024 Restatement
(GASB 101) Additions Retirements June 30, 2025 One Year Other Long-Term Liabilities:

Compensated Absences 246,296$ 134,622$ 57,601$ (139,471)$ 299,049$ 115,432$ Other Debt:

Tax Allocation Bonds:
2005 Tax Allocation Parity 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 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 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 2008 Tax Allocation Bonds 28,239,320 - 1,764,379 (125,000) 29,878,699 140,000 Tax Allocation Bonds Subtotal 276,889,320 - 1,764,379 (7,245,000) 271,408,699 7,630,000 Unamortized Discounts/Premiums (1,908,461) - - 91,869 (1,816,592) - Total 275,227,155$ 134,622$ 1,821,980$ (7,292,602)$ 269,891,156$ 7,745,432 $ 28 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

4. LONG-TERM LIABILITIES, Continued
A. Tax Allocation Parity Bonds, Series 2005A, Continued The bonds maturing on December 1, 2010, Decemb er 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, the required reserve for the Bonds was met with fiscal agent ca sh. 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.

B. 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 Alloca tion 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, 203 1, 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 maturi ty as described in the bond covenants. The bonds maturing on or after June 1, 2016 are subject to opti onal 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 lo t, 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, the required reserve for the Bo nds 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 $42,680,000.

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

Bonds maturing on December 1, 2026, December 1, 203 1, 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. 29 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

4. LONG-TERM LIABILITIES, Continued
C. Tax Allocation Revenue Parity Bonds, Ref unding Series 2006 (Housing Set-Aside), Continued The bonds are subject to redemption prior to maturi ty as described in the bond covenants. The bonds maturing on or after June 1, 2016 are subject to opti onal redemption in whole or in part by lot without premium.

D. 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 financ e certain redevelopment activities benefiting the SCLAA.

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

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

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

E. Taxable Tax Allocation Revenue Parity Bonds, Forward Series 2006 In November 2006, SCLAA issued $34,980,000 principal amount of Taxable Tax Allocation Revenue Parity Bonds, Forward Series 2006. The proceeds were us ed to finance and refinance certain redevelopment activities benefiting the SCLAA.

The bonds mature from December 1, 2007 to December 1, 2043 in varying amounts. Principal is payable in annual installments ranging from $50,000 to $2, 320,000, commencing December 1, 2007. The bonds accrue interest at rates between 6.25% and 6.30%. Interest on the bonds is payable semi-annually on each June 1 and December 1, commencing June 1, 2007.

30 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

4. LONG-TERM LIABILITIES, Continued
E. Taxable Tax Allocation Revenue Parity Bonds, Forward Series 2006, Continued The bonds are subject to optional and mandatory redemption prior to maturity.

F. Taxable Subordinate Tax Allocation Revenue Bonds, Series 2006 In November 2006, the SCLAA issued $64,165,000 principal amount of Ta xable Subordinate Tax Allocation Revenue Bonds, Series 2006. The proc eeds 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 $4,13 5,000, commencing December 1, 2007. The bonds accrue interest at 6.05%. Interest on the bonds is payable semiannually on each June 1 and December 1, commencing June 1, 2007.

The bonds are subject to optional and mandatory redemp tion prior to maturity. As of June 30, 2025, the required reserve for the Bonds was met with fiscal agent cash. The bo nds are a special obligation of the SCLAA payable from tax increment revenues. The am ount of bonds outstanding at June 30, 2025 is $48,765,000.

G. Taxable Housing Set-Aside Revenue Parity Bonds, Series 2007 In March 2007, the SCLAA issued $41,460,000 princi pal 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 coun sel 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, the required reserve for the Bo nds was met with fiscal agent cash and an insurance policy. The bonds are a special obligation of th e SCLAA payable from tax increment revenues. The amount of bonds outstanding at June 30, 2025 is $30,050,000.

31 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

4. LONG-TERM LIABILITIES, Continued
H. Subordinate Tax Allocation Reve nue 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 financ e 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, Decemb er 1, 2032, December 1, 2037, December 1, 2037, December 1, 2037, December 1, 2043 and December 1, 2043 in the amounts of $480,000, $425,000, $1,395,000, $2,805,000, $3,640,000, $4,745,000, $3,000,000, $3,275,000, $3,325,000, $3,800,000, $1,250,000, $9,210,000, and $4,650,000, respectively, are term bonds. The outstanding bonds bear interest at 4.000%,

4.200%, 4.375%, 5.250%, 5.375%, 5.600%, 5.900%, 6.000%, 5.900%, 6.000%, 6.100%, 5.900%, and 6.150% due June 1 and December 1 of each year.

The bonds are subject to redemption prior to maturity at the option of the Authority, on or after December 1, 2017, in whole or in part by lot, without premium.

The bonds maturing on the dates described above are subject to mandatory redemption in part by lot, without premium, commencing December 1, 2010, Dece mber 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.

I. Subordinate Tax Allocation Revenue Bonds, Series 2008A In May 2008, the SCLAA issued $13,334,925 principal amount of Subordinate Tax Allocation Revenue Bonds, Series 2008A. The proceeds were used to financ e 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.

32 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

4. LONG-TERM LIABILITIES, Continued
I. Subordinate Tax Allocation Reve nue Bonds, Series 2008A, Continued The current interest bonds are subject to redemption pr ior 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.

J. Debt Service Requirements to Maturity
The annual requirements to amortize outstanding SCLAA debt as of June 30, 2025, are as follows for each fiscal year ending June 30:

K. Pledged Revenue
All of the above Tax Allocation Bonds are collateralized by the pledging of certain revenues. The amount and term of the remainder of these commitments are indicated in the debt service to maturity tables presented in the accompanying notes. The purposes for which the proceeds of the related debt issuances were utilized are disclosed in the debt descriptions in the accompanying notes.

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

Year Ending June 30, Principal* Interest
2026 7,630,000$ 13,767,567$
2027 8,035,000 13,352,576
2028 8,455,000 12,914,560
2029 8,905,000 12,449,433
2030 9,385,000 11,956,957
2031-35 55,280,000 51,088,777
2036-40 73,120,000 32,634,179
2041-45 76,591,226 33,988,567
2046-50 5,218,788 85,406,955
2051-52 814,910 8,635,045
Subtotal 253,434,924 276,194,616$
Acccreted Amount 17,973,775
Discounts/Premiums (1,816,592)
Total 269,592,107$
Tax Allocation Bonds
*This total includes capital appreciation of $104,677,126 for tax allocation bonds that will be accrued in the future years. 33 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

4. LONG-TERM LIABILITIES, Continued
K. Pledged Revenue, Continued
As a result of the state’s action to dissolve all re development agencies in the state of California, the VVEDA Successor Agency no longer receives the full amount of tax increment previously pledged by the dissolved redevelopment agency to its bondholders. In its place is a new revenue stream (RPTTF distributions) provided to the VVEDA Successor Agen cy that represents only that portion of tax increment that is necessary to pay the approved enforceable obligations that come due for that fiscal year.

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

5. ADVANCES TO/FROM

A. Advances to/from the City

a) Per a loan agreement approved on September 15, 2009 by the Board of Victorville RDA, a $10,000,000 advance was made from the Bear Valley Road Redevelopment Project Area (RDA Capital Project Fund) to the SCLAA. The advance is to be used to contin ue redevelopment at SCLAA and to fund prior years’ capital improvements and redevelopm ent 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.

Annual Amount Annual Debt
of Pledged Service Pa yment Pled ged
Revenue (Net (of All Debt Revenue as
of Expenses, Secured b y a Percentage
Description of Pled ged Revenue Where Required) This Revenue) of Debt Service Property Tax Increment Pledged by
the Southern California Logistics
Airport Authority
21,384,332$ 21,429,559$ 100%Fund Reporting Receivable Fund Reporting
Payable Amount
Successor Agency* SCLAA 12,133,339$ a)
SCLAA City of Victorville 1, 200,000 b)
*Advances from the Successor Agency have been classified as Advances from Other Governments in the statement of net position.
34 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

5. ADVANCES TO/FROM, Continued
A. Advances to/from the City, Continued
b) A loan agreement was signed on April 18, 2023 by the City Council that authorizes the SCLAA to loan $2,000,000 to the City’s nonmajor gas utility enterprise fund for the construction of new gas infrastructure that will allow for the purchase of lower priced nat ural 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. Inte rest shall begin to accrue on the total principal amount commencing on July 1, 2023, and shall therea fter be calculated annually on the balance of the outstanding principal and shall be pa yable 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. 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.

6. PENSION PLAN
A. General Information about the Pension Plan
Plan Description
All qualified permanent and probationary employees are eligible to participate in the City’s Miscellaneous Plan, agent multiple-employer defi ned benefit pension plans administered by the California Public Employees’ Retirement System (C alPERS), which acts as a common investment and administrative agent for its participating member employers. The SCLAA’s share of the net pension liability is reported as a cost-sharing plan in these financial statements. Benefit provisions under the Plan are established by State statute and Local Governme nt 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 employ ees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with fi ve 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 Be nefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

35 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

6. PENSION PLAN, Continued
A. General Information about the Pension Plan, Continued The Plan’s provisions and benefits in effect as of the measurement period ended June 30, 2024, are summarized as follows:

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. Th e SCLAA is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. SCLAA contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension pl an terms as plan member contributions requirements are classified as plan member cont ributions. For the fiscal year ended June 30, 2025, SCLAA made contributions totaling $613,058.

Prior to On or After
Hire Date January 1, 2013 January 1, 2013
Benefit Formula 2.5% @ 55 2.0% @ 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% 7.78%
Required Employer Contribution Rates:

Normal Cost Rate 11.23% 11.23%
Payment of Unfunded Liability 356,308$ N/A Miscellaneous
36 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

6. PENSION PLAN, Continued
B. Pension Liabilities, Pension Expenses, and Deferred Ou tflows/Inflows of Resources Related to Pensions Actuarial Assumptions
The total pension liability for the Miscellaneous Plan for the June 30, 2024 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 the Miscellaneous Plan was based on the following assumptions:

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.

Valuation Date June 30, 2023
Measurement Date June 30, 2024
Actuarial Cost Method Entry-Age Normal
Cost Method
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 Income (3)
(1) Varies by entry age and service.
(2) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study 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 CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CalPERS website.
(3) The lesser of contract COLA up to 2.30% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.30% thereafter. 37 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

6. PENSION PLAN, Continued
B. Pension Liabilities, Pension Expenses, and Deferred Ou tflows/Inflows of Resources Related to Pensions, Continued
In determining the long-term expected rate of retu rn, 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 fr om 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 investme nts was applied to all periods of projected benefit payments to determine the total pension liability.

Change in Assumptions
The discount rate and long-term rate of return remained the same as prior year from 6.90% to 6.90% and the inflation rate remained the same as 2.30% from the measurement date June 30, 2023 to June 30, 2024.

Assumed
Asset Real Return
Asset Class (a) Allocation (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% used for this period (b) Figures are based on the 2021 Asset Liab ility Management study. 38 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

6. PENSION PLAN, Continued
B. Pension Liabilities, Pension Expenses, and Deferred Ou tflows/Inflows of Resources Related to Pensions, Continued
Proportionate Share of Net Pension Liability – City’s Miscellaneous Agent Multiple-Employer Plan Allocation to the SCLAA
The SCLAA’s net pension liability for the Plan is measured as the proportionate share of the net pension liability. The SCLAA’s proportionate share of the net pension liability was based on a projection of the SCLAA’s long-term share of contributions to th e Miscellaneous Plan rela tive to the projected contributions of the City, actuarially determined.

The SCLAA’s proportionate share of the net pensio n liability for the Miscellaneous Plan as of the measurement dates ended June 30, 2023 and 2024, was as follows:

Pension Expense and Deferred Outflows and Inflows of Resources For the year ended June 30, 2025, the SCLAA recognized pension expense of $669,532 for the Miscellaneous Plan. At June 30, 2025, the SCLAA reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources for the Miscellaneous Plan:

$613,085 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.

Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability Proportionate
(a) (b) (c) = (a) - (b) Share
Balance at June 30, 2023 (MD) 16,994,501$ 12,064,330 $ 4,930,171 $ 6.51% Balance at June 30, 2024 (MD) 18,353,830 13,170,464 5,183,366 6.50% Net Changes During 2023-24 1,359,329$ 1,106,134 $ 253,195 $ -0.01% Increase (Decrease)
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension Contributions Subsequent to the
Measurement Date 613,085 $ - $ Changes of Assumptions 111,019 - Differences Between Expected and Actual Experience 713,894 (70,427) Net Difference Between Projected and Actual
Earnings on Pension Plan Investments 201,980 - Total 1,639,978 $ (70,427) $
39 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

6. PENSION PLAN, Continued
B. Pension Liabilities, Pension Expenses, and Deferred Ou tflows/Inflows of Resources Related to Pensions, Continued
Other amounts reported as deferred outflows of reso urces and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the SCLAA’s proportionate share of the net pension liability for the Miscellaneous Plan, calculated using the discount rate of 6.90%, as well as what the SCLAA’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:

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 SCLAA had no outstanding amou nt of contributions to the Miscellaneous Plan required for the year ended June 30, 2025.

Measurement
Period
Ended June 30,
Deferred
Inflows of
Resources
2025 335,163 $
2026 593,230
2027 102,642
2028 (74,569)
2029 -
Thereafter -
1% Decrease Current Rate 1% Increase
-5.90% -6.90% -7.90%
Net Pension Liability 7, 818,903$ 5,183,366 $ 3,025,993 $ Discount Rate
40 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

7. OTHER POST-EMPLOYMENT BENEFTIS PLAN
A. Plan Descriptions
The SCLAA participates in the City’s Other Postemployment Benefits Defined Benefit Pension Plan and the SCLAA’s share of the total OPEB liability is reported as a cost-sharing plan in these financial statements.

The City Plan provides medical benefits to eligible retired City employees and beneficiaries in accordance with various labor agreements. The plan covers employ ees 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 HMO single premium). The percentage varies based on years of service.

B. 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 C. Contributions
The City Plan and its contribution requirements ar e 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 SCLAA’s cash contributions were $20,142 in cash benefit payments, $88 in administrative costs, and the estimated implied subsidy was $7,358, resulting in total payments of $27,588.

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

Actuarial Cost Method Entry Age Normal
Actuarial Assumptions:

Discount Rate 3.95%
Inflation 2.50%
Salary Increases 2.75 per annum, in aggregate
Investment Rate of Return N/A
Mortality, Retirement,
Disability,
and Termination 2000-2019 Experience Study
Mortality Improvement
Healthcare Trend Rate
Postretirement mortality projected fully generational
with Scale MP-2021
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
41 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

7. OTHER POST-EMPLOYMENT BENEFTIS PLAN, Continued
E. 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.

F. Change in Actuarial Assumptions
The following actuarial assumption changes occurred form the measurement periods ended June 30, 2023 to 2024:
 The discount rate changed from 3.65% to 3.93% based on changes in the index.  Inflation remained unchanged at 2.50%.
 The healthcare trend rate was updated as follows : Non-Medicare rate decreased from 8.5% to

7.9%, Medicare (Non-Kaiser) decreased from 7.5% to 6.9%, and Medicare (Kaiser) decreased from

6.25% to 5.65%.
 Demographic assumptions were updated from the CalPERS 1997-2015 Experience Study to the CalPERS 2000-2019 Experience Study.
 Mortality improvement was updated from Scale MP-2020 to Scale MP-2021.

G. Allocation of Total OPEB Liability
The SCLAA’s proportionate share of the total OPEB liability as of the measurement dates ended June 30, 2023 and 2024, was as follows:

H. Sensitivity of the Total OPEB Liab ility to Changes in the Discount Rate The following presents the SCLAA’s proportionate share of the total OPEB liability if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate:

Total OPEB
Liability
Proportionate
Share
Balance - June 30, 2023 (MD) 2,115,912$ 8.37%
Balance - June 30, 2024 (MD) 2,226,953 8.07%
Net Changes During 2023-24 (111,041)$ -0.30%
1% Decrease
(2.93%)
Current Rate
(3.93%)
1% Increase
(4.93%)
Total OPEB Liability 2, 632,890$ 2,226,953 $ 1,902,422 $ Discount Rate
42 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

7. OTHER POST-EMPLOYMENT BENEFTIS PLAN, Continued
I. Sensitivity of the Total OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the SCLAA’s proportionate share of the total OPEB liability 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 ultimate rate of 4.45% in 2076) than the current rate:

J. Recognition of Deferred Outflows and Deferred Inflows of Resources Gains and losses related to changes in total OPEB liability are recognized in OPEB expense systematically over time. Amounts are first recognized in OPEB ex pense 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 to be recognized in future OPEB expense.

The recognition period differs depending on the source of the gain or loss:

K. OPEB Expense and Deferred Outflows/In flows of Resources Related to OPEB For the fiscal year ended June 30, 2025, the SCLAA recognized OPEB expense of $57,435. As of fiscal year ended June 30, 2025, the SCLAA reported deferred ou tflows/inflows of resources related to OPEB from the following sources:

1% Decrease Current Rate 1% Increase
Total OPEB Liability 1, 836,386$ 2,226,953 $ 2,740,408 $ Healthcare Trend Rate
Net Difference Between Projected and Actual
Earnings on OPEB Plan Investments
Plan Investments 5 Years
All Other Amounts
Expected average remaining
service
lifetime (EARSL) (10 Years at
June 30, 2024 measurement date)
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Employer Contributions Subsequent to the
Measurement Date 27,588 $ - $
Differences Between Expected and Actual 80,134 (317,989) Changes of Assumptions 160,185 (387,159) Total 267,907 $ (705,148) $
43 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

7. OTHER POST-EMPLOYMENT BENEFTIS PLAN, Continued
K. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB, Continued The $27,588 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 defe rred outflows of resources related to OPEB will be recognized as expense as follows:

L. Payable to the Pension Plan
At June 30, 2025, the SCLAA had no outstanding amount of contributions to the OPEB plan required for the year ended June 30, 2025.

8. COMMITMENT AND CONTINGENCIES
A. Litigation
The SCLAA is a defendant in certain legal actions arising in the normal course of operations. The accompanying basic financial statements reflect a liabi lity for the probable amounts of loss associated with these claims.

B. Southern California Logistics Airport Authority and Stirling Enterprise LLC In the early 1990s the U.S. Air Force closed George Ai r 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 ei ther 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 Califor nia 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.

Measurement Period
Ending June 30,
Deferred
Inflows of
Resources
2026 (100,681) $
2027 (76,033)
2028 (53,376)
2029 (60,668)
2030 (61,151)
Therefore (112,919)
44 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

8. COMMITMENT AND CONTINGENCIES, Continued
B. Southern California Logistics Airport Authority and Stirling Enterprise LLC, Continued SCLAA adopted a Specific Plan in conformity wi th the Redevelopment Plan and adopted a Master Development Plan establishing its goal to develop th e area as a cargo and aircraft maintenance facility and a business/industrial center ther eby creating jobs and improving ec onomic conditions in the Victor Valley.

In July 1998 SCLAA and Stirling Enterprises, LLC and it s 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 fr om 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 Parcel s 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 avia tion 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 Exc hange 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 co nnection 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. Su ch an exercise of option will occur in 50-acre increments based on Stirling having developed 500,000 sq uare 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 Ag reement 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 sa le information previously stated in the section remains the same
45 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

8. COMMITMENT AND CONTINGENCIES, Continued
C. Management
Prologis is allowed to lease or caus e 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.

9. SCLAA’S FINANCIAL CONDITION, SI GNIFICANT FINANCIAL OBLIGATIONS, AND MANAGEMENT’S PLANS
In fiscal year 08/09, the assessed value for the Victor Valley Redevelopment Project Area was approximately $9.49 billion. Beginning in fiscal year 09/10, there were significant decreases in assessed value for the Victor Valley Redevelopment Project Area. Assessed values fo r the Project Area reached a low point of $6.6 Billion in fiscal year 12/13. The decrease was largely the re sult of the Great Recession. Since fiscal year 12/13, assessed values have increased steadily. For fiscal ye ar 20/21, the assessed value for the Project Area was approximately $9.99 billion. The stea dy increase in assessed values have resulted in the SCLAA paying all past due debt service in the previous fiscal year. As of the December 1, 2018 tax distribution, the SCLAA was no longer in default. 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 fa vorable 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:

A. 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 bu dget since 2007-2008 and all revenues are projected to cover current liabilities.

Beginning Net Position (102,047,894)$
Restatement - due to implementation 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)$
46 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

9. SCLAA’S FINANCIAL CONDITION, SI GNIFICANT FINANCIAL OBLIGATIONS, AND MANAGEMENT’S PLANS, Continued
A. Management’s Plans with Respect to its Financial Condition, Continued Regarding the SCLAA’s financial condition, an Interfund loan agreement was signed July 1, 2016 by the Board of SCLAA and a $10,000,000 advance was made available from the 2007 SCLA Housing bond fund to the Airport Operations Fund and has been used to subsidize operations. The advance had a term repayment of five years, with an annualized Wall Street Journal Prime Rate as the interest rate. In October 2022, the outstanding balance of the loan was repaid. The advance was within the fund itself.

10. JOINTLY GOVERNED ORGANIZATIONS
A. 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 Adel anto 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 Vi ctor Valley Economic Development Authority, 18374 Phantom Street, Victorville, CA 92394.

11. 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 SCLAA because the SCLAA has historically funded its operatio ns and debt service using significant tax increment revenue from the Victor Valley Economic Developm ent Agency (VVEDA). VVEDA has acted as a pass- through agency for the various recipien ts of tax increment revenue in the Vi ctor Valley and is subject to the dissolution requirements of the Bill.

The Bill provides that upon dissolution of a redevelopm ent agency, either the city or another unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. On January 17, 2012, the Victorville 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.

47 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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

12. LEASES
The SCLAA, acting as lessor, leases buildings and land under long-term, noncancelable 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.

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

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$
48 Southern California Logistics Airport Authority
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

13. RESTATEMENT OF NET POSITION

During the fiscal year ended June 30, 2025, SCLAA recorded the following restatement:

(1) SCLAA implemented GASB Statement No. 101 Comp ensated Absences, which requires recognition of a liability as leave is earned lik ely to be used or paid. This resu lted 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.

SCLAA
June 30, 2024, as previously reported (102,047,894)$
Implementation of GASB 101 (1) (134,622)
June 30, 2024, as restated (102,182,516)$
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50 REQUIRED

SUPPLEMENTARY INFORMATION
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53 Southern California Logistics Airport Authority
Required Supplementary Information
For the year ended June 30, 2025
CalPERS Cost Sharing Plan
Schedule of the Proportionate Share of the Net Pension Liability - Last Ten Fiscal Years Reporting Fiscal Year 2016 2017 2018
Measurement Date 6/30/2015 6/30/2016 6/30/2017
Plan's proportion of the net pension liability 6.87% 7.07% 6.95% Plan's proportionate share of
the net pension liability 2,090,587$ 2,805,052$ 3,210,086$ Plan's covered payroll 1,343,244$ 1,368,422$ 1,579,911$ Plan's proportionate share of
the net pension liability as percentage
of its covered payroll 155.64% 204.98% 203.18%
Fiduciary net position as a percentage of the
total pension liability 5.50% 5.33% 5.18%
Notes to the schedule:

From fiscal year June 30, 2015 to June 30, 2016:

From fiscal year June 30, 2016 to June 30, 2017:

There were no changes in assumptions.

From fiscal year June 30, 2017 to June 30, 2018:

The discount rate was reduced from 7.65% to 7.15%.

From fiscal year June 30, 2018 to June 30, 2022:

There were no significant changes in assumptions.

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

From fiscal year June 30, 2023 to June 30, 2024:

From fiscal year June 30, 2024 to June 30, 2025:
*Fiscal year 2015 was the 1st year of implementation, therefore ten years are shown.

Benefit
Changes: There were no changes to benefit terms that applied to all members of the Public Agency Pool. However, individual employers in the Plan may have provided a benefit improvement to their employees by granting Two Years Additional Service Credit to members retiring during a specified time period (a.k.a. Golden Handshakes).

Changes in Assumptions:

The discount rate and long-term rate of return remain the same as the prior year at 6.90%, and the inflation rate is also unchanged from the prior year at 2.30%
The discount rate and long-term rate of return remain the same as the prior year at 6.90%, and the inflation rate is also unchanged from the prior year at 2.30%
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%.

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. 54 2019 2020 2021 2022 2023 2024 2025
6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023 6/30/2024

6.90% 6.86% 6.84% 7.18% 6.58% 6.51% 6.50%
3,189,455$ 3,546,936$ 3,838,581$ 2,599,527$ 4,503,687$ 4,930,169$ 5,183,366$ 1,565,360$ 1,534,654$ 1,686,096$ 1,676,551$ 1,868,216$ 2,069,493$ 1,988,118$ 203.75% 231.12% 227.66% 155.05% 241.07% 238.23% 260.72%

5.22% 5.11% 5.04% 6.03% 4.73% 4.62% 4.66%
55 Southern California Logistics Airport Authority
Required Supplementary Information
For the year ended June 30, 2025
CalPERS Cost Sharing Plan
Schedule of Pension Plan Contributions - Last 10 Fiscal Years Fiscal Year Ended 2016 2017 2018 2019
Actuarially determined contribution 233,116 $ 273,075$ 275,299$ 279,699$ Contributions in relation to actuarially
deemed contributions (233,116) (273,075) (275,299) (279,699) Contribution deficiency (excess) -$ -$ -$ -$ Covered payroll 1,368,422$ 1,579,911$ 1,565,360$ 1,534,654$ Contributions as a percentage of
covered payroll 17.04% 17.28% 17.59% 18.23%
Notes to Schedule:

Valuation Date 6/30/2013 6/30/2014 6/30/2015 6/30/2016
Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry age
Amortization method Level percentage of payroll, closed Asset valuation method Fair Value except for 2015 is Market Value of Assets Discount Rate 6.90%
Inflation 2.75% to 2.30%
Salary increases
Retirement age 50 and up
Annual increase vary by category, entry age and duration of service
56 2020 2021 2022 2023 2024 2025
345,578$ 381,393$ 414,447$ 484,566$ 515,986$ 613,085$ (345,578) (381,393) (414,447) (484,566) (515,986) (613,085) -$ -$ -$ -$ -$ -$ 1,686,096$ 1,676,551$ 1,868,216$ 2,069,493$ 1,988,118$ 2,435,459$

20.50% 22.75% 22.18% 23.41% 25.95% 25.17%
6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2022 6/30/2023 57 Southern California Logistics Airport Authority
Required Supplementary Information
For the year ended June 30, 2025
OPEB Plan
Schedule of the Proportionate Share of Total OPEB Liability - Last Ten Fiscal Years* Reporting Fiscal Year 2018 2019 2020
Measurement Date 6/30/2017 6/30/2018 6/30/2019
Plan's proportion of the total OPEB liability 8.43% 8.57% 8.19% Plan's proportionate share of
the total OPEB liability 2,014,829$ 1,888,372$ 2,093,649$ Plan's covered payroll 1,494,600$ 1,735,340$ 1,993,268$ Plan's proportionate share of
the total OPEB liability as percentage
of its covered payroll 134.81% 108.82% 105.04%
Notes to Schedule:

Changes in Assumptions:

Discount Rate 3.58% 3.87% 3.50%
Mortality Improvement Rates Scale MP-2016 Scale MP-2018 Scale MP-2018 In the June 30, 2018 measurement period, the pre-65 waived retiree re-election was updated to be 10% after age 65. * Fiscal year 2018 was the 1st year of implementation.

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, 2023 measurement period, the following medical trend rates remained unchanged: Non-Medicare increased by 8.5%, Medicare increased by 7.5%, and Kaiser increased by 6.25%.

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%.

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. 58 2021 2022 2023 2024 2025
6/30/2020 6/30/2021 6/30/2022 6/30/2023 6/30/2024

7.99% 7.75% 8.64% 8.40% 8.11%
2,214,981$ 2,363,785$ 2,040,084$ 2,124,416$ 2,239,911$ 2,348,399$ 2,396,424$ 2,827,400$ 2,557,509$ 3,183,851$

94.32% 98.64% 72.15% 83.07% 70.35%

2.21% 2% 3.54% 3.65% 3.93%
Scale MP-2020 Scale MP-2020 Scale MP-2021 Scale MP-2021 Scale MP-2021 59 This page intentionally left blank
60 SUPPLEMENTARY INFORMATION
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63 Southern California Logistics Airport Authority
Combining Statement of Net Position
June 30, 2025
(With Comparative Data for June 30, 2024)
Non Other
Aeronautical Aeronautical Services
ASSETS
Current assets:

Cash and investments 11,642,930$ 4,105,041$ 25,837,550$ Cash with fiscal agent - - 27,325,317 Accounts receivable 324,745 - - Interest receivable 455,293 921 200 Due from other governments - - - Leases 7,677,132 - - Inventory 5,165 - - Total current assets 20,105,265 4,105,962 53,163,067 Noncurrent:

Prepaid deposits 1,667 528 - Advances to City of Victorville - 1,200,000 - Leases 77,635,964 - - Capital assets:

Nondepreciable capital assets 2,907,400 - 13,793,182 Depreciable capital assets 53,940,506 803,708 253,600,515 Accumulated depreciation (24,560,557) (2,186) (181,054,275) Depreciable capital assets, net 29,379,949 801,522 72,546,240 Total noncurrent assets 109,924,980 2,002,050 86,339,422 Total assets 130,030,245 6,108,012 139,502,489 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows - OPEB related 267,907 - - Deferred outflow - pension related 1,639,978 - - Deferred charge on refunding - - 1,128,866 Total deferred outflows of resources 1,907,885 - 1,128,866

LIABILITIES
Current liabilities:

Accounts payable 375,673 368,077 - Interest payable - - 1,166,156 Deposits payable 797,845 17,704 - Unearned revenue 437,081 12,481 - Compensated absences - due within one year 115,432
Total OPEB Liability - due within one year 12,958 - - Long-term liabilities - due within one year - - 7,630,000 Total current liabilities 1,738,989 398,262 8,796,156 Noncurrent liabilities:

Advances from other governments - - 12,133,339 Total OPEB liability 2,226,953 - - Net pension liability 5,183,366 - - Long-term debt - - 261,962,107 Compensated absences 183,617 - - Total noncurrent liabilities 7,593,936 - 274,095,446 Total liabilities 9,332,925 398,262 282,891,602

DEFERRED INFLOWS OF RESOURCES
Deferred inflows - OPEB related 705,148 - - Deferred inflows - pension related 70,427 - - Deferred Inflows - leases 78,311,500 - - Total deferred inflows of resources 79,087,075 - -

NET POSITION
Net investment in capital assets 32,119,232 801,522 (154,798,502) Unrestricted 11,398,898 4,908,228 12,538,255 Total net position 43,518,130$ 5,709,750 $ (142,260,247)$ 64 2025 2024
41,585,521$ 41,290,155$
27,325,317 26,097,008
324,745 401,630
456,414 287,912
- 864,253
7,677,132 7,246,566
5,165 3,612
77,374,294 76,191,136
2,195 4,149
1,200,000 1,600,000
77,635,964 77,962,659
16,700,582 15,760,072
308,344,729 299,509,331
(205,617,018) (197,913,004)
102,727,711 101,596,327
198,266,452 196,923,207
275,640,746 273,114,343
267,907 237,333
1,639,978 1,768,477
1,128,866 1,263,381
3,036,751 3,269,191
743,750 594,660
1,166,156 1,197,937
815,549 742,742
449,562 850,360
115,432 133,833
12,958 8,504
7,630,000 7,245,000
10,933,407 10,773,036
12,133,339 11,678,089
2,226,953 2,115,912
5,183,366 4,930,171
261,962,107 267,735,859
183,617 112,463
281,689,382 286,572,494
292,622,789 297,345,530
705,148 762,291
70,427 183,799
78,311,500 80,139,808
79,087,075 81,085,898
(121,877,748) (130,492,014)
28,845,381 28,444,120
(93,032,367)$ (102,047,894) $
65 Southern California Logistics Airport Authority
Combining Statement of Revenues, Expenses and Changes in Net Position For the year ended June 30, 2025
(With Comparative Data for the year ended June 30, 2024) Non Other
Aeronautical Aeronautical Services
OPERATING REVENUES:

Charges for services:

Landing fees 1,278,330$ -$ -$ Fuel flowage fees 310,743 - - Rent and lease revenue 9,280,117 287,409 749,101 Total charges for services 10,869,190 287,409 749,101 Fines and forfeitures 28,817 - - Other 916,923 33,901 - Total operating revenues 11,814,930 321,310 749,101 OPERATING EXPENSES:

Personnel services 3,773,477 206 - Maintenance and operations 5,800,167 164,638 26,480 Depreciation 2,374,841 - 5,440,023 Total operating expenses 11,948,485 164,844 5,466,503 Operating income (loss) (133,555) 156,466 (4,717,402) NONOPERATING REVENUES (EXPENSES):

Taxes 208,410 - 21,430,447 Investment income 2,235,284 245,452 2,193,771 Interest expense - - (16,598,791) Gain on sale of capital aAssets 1,375 - - Other nonoperating exepenses - - (19,637) Total nonoperating revenues (expenses) 2,445,069 245,452 7,005,790 Income before contributions and transfers 2,311,514 401,918 2,288,388 CONTRIBUTIONS AND TRANSFERS:

Capital contributions 637,958 (1,962) -

Capital grants 3,512,333 - - Total contributions and transfers 4,150,291 (1,962) - Change in net position 6,461,805 399,956 2,288,388 NET POSITION:

Beginning of year 37,190,947 5,309,794 (144,548,635) Restatements - due to implementation of GASB 101 (134,622) - - Beginning of year, as restated 37,056,325 5,309,794 (144,548,635) End of year 43,518,130$ 5,709,750$ (142,260,247)$ 66 2025 2024
1,278,330$ 1,492,219$
310,743 382,140
10,316,627 10,424,249
11,905,700 12,298,608
28,817 25,274
950,824 851,560
12,885,341 13,175,442
3,773,683 3,664,583
5,991,285 7,034,343
7,814,864 9,480,389
17,579,832 20,179,315
(4,694,491) (7,003,873)
21,638,857 21,875,148
4,674,507 4,998,166
(16,598,791) (16,804,585)
1,375 -
(19,637) 322,056
9,696,311 10,390,785
5,001,820 3,386,912
635,996 -
3,512,333 1,723,221
4,148,329 1,723,221
9,150,149 5,110,133
(102,047,894) (107,158,027)
(134,622) -
(102,182,516) (107,158,027)
(93,032,367)$ (102,047,894)$
67

Victorville City CouncilJanuary 20, 2026

Victorville City Council
January 20, 2026