Presentation
FISCAL YEAR 2025-2026 MID-YEAR BUDGET REVIEWPresented By : Finance DepartmentFebruary 3, 202601 OBJECTIVESConfirm the sustainability of current revenue and expenditure trends relative to adopted budget assumptions.1 42 5
Position the budget to respond to current and evolving fiscal conditions through targeted adjustments and policy-driven recommendations.3 6 Safeguard the City’s long-term financial stability by maintaining adequate reserves and strengthening fiscal resilience.Provide a mid-year assessment of actual revenues and expenditures compared to the adopted budget, including identification and explanation of material variances.Ensure fiscal decisions support the City’s strategic priorities while reinforcing transparency and accountability.Reinforce public trust by demonstrating responsible, disciplined, and effective financial management.02 OVERVIEWMid-year budget comparison (Citywide)Summary of proposed budget revenues & highlights of adjustments2 General Fund and Measure P cash flow reserves035
Mid-year overview of the current fiscal year's budget performance1 Summary of proposed budget expenditures & highlights of adjustmentsConclusionSummary of Personnel ChangesImpact of the adjustments 34678
FY 2025FY 2024FY 2023FY 2022520,221,018489,342,126494,569,511458,598,790Budgeted Expenditures350,787,109354,627,092385,464,711307,973,756Actual Expenditures447,961,827432,216,886465,674,194442,273,643Budgeted Revenue396,749,228396,510,653436,843,275345,176,364Actual Revenue 04 HISTORICAL: BUDGETED VS ACTUALS
Actuals Through 12/31/2025Revised BudgetAdopted Budget$180,250,350$390,035,949376,296,015Revenue$144,887,394499,688,508387,669,612Expenditures MID-YEAR BUDGET OVERVIEWCITYWIDE - FY 2025-2026
05Revenue Received = 46%Expenditures Expended = 29%
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MID-YEAR BUDGET OVERVIEW GENERAL FUND% Received/ExpendedActuals Through 12/31/2025Revised BudgetAdopted BudgetGeneral Fund37%$39,902,157$108,981,833$108,939,903Revenue47%$52,911,201$113,508,421$110,497,231ExpendituresAs of December 31, 2025, the City has received $39.9 million in General Fund revenues, or 37% of the revised budget.Expenditures total $52.9 million, or 47% of the revised budget. 06 % Received/ExpendedActuals Through 12/31/2025Revised BudgetAdopted BudgetMeasure P36%$11,324,179$31,578,839$31,578,839Revenue36%$23,487,921$65,156,513$44,087,839Expenditures 07 MID-YEAR BUDGET OVERVIEW MEASURE PAs of December 31, 2025, the City has received $11.3 million in Measure P revenues, or 36% of the revised budget.Expenditures total $23.5 million, or 36% of the revised budget.
MID-YEAR BUDGET COMPARISONMid-YearProposed BudgetRequestedIncrease / (Decrease)FY 2025-26 Revised BudgetCitywide$404,312,179$14,276,230$390,035,949Revenue$355,572,673$12,583,624$342,989,049Expenditures (O&M)$48,739,506$ 1,692,606$ 47,046,900Surplus / (Deficit)$164,536,429$7,836,971$156,699,458Capital Improvements$(115,796,923)$(6,144,365)$(109,652,558)Revenues Over Total Expenditures08 Mid-Year Proposed BudgetRequestedIncrease/(Decrease)FY 2025-2026 Revised BudgetDepartments$105,482,322$5,901,631$99,580,691General Fund$4,099,745$2,402,896$1,696,849Police$3,192,000$128,500$3,063,500Building/Business License$134,250$126,250$8,000Economic Development$1,160,500$42,349$1,118,151Code Compliance/Animal Control$241,273$10,773$230,500Planning$1,310,421$5,525$1,304,896Community Services$511,000$5,000$506,000Solid Waste$1,417,825$(55,420)$1,473,245All Other Departments$117,549,336$8,567,504$108,981,832 General Fund Total
GENERAL FUND - PROPOSED REVENUES BY DEPARTMENT
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Mid-Year Proposed BudgetRequestedIncrease/(Decrease)FY 2025-2026 Revised BudgetDepartments$78,500$50,500$28,000Animal Control$1,086,000$(181,000)$1,267,000Building$314,839-$314,839Police$29,969,000-$29,969,000Measure P (Sales Tax)$31,448,339$(130,500)$31,578,839Measure P Fund Total
MEASURE P - PROPOSED REVENUES BY DEPARTMENT
10 Mid-Year Proposed BudgetRequestedIncrease/(Decrease)FY 2025-2026 Revised BudgetDepartments$1,545,780$45,780$1,500,000Parks$102,037$32,037$70,000Police$31,310$27,869$3,441Library$121,323$21,323$100,000Fire$496,500$(2,000)$498,500Finance$301,350$(381,650)$683,000Building$446,400$(492,600)$939,000Planning$9,206,850$(560,310)$9,767,160Public Works$18,510,048$(1,669,640)$20,179,688Engineering$6,809,288-$6,809,288All Other Departments$37,570,886$(2,979,191)$40,550,077Other Gov Funds Total11
OTHER GOVERNMENTAL FUNDS -PROPOSED REVENUES BY DEPARTMENT Mid-Year Proposed BudgetRequestedIncrease/(Decrease)FY 2025-2026 Revised BudgetDepartments$37,776,749$4,638,367$33,138,382Public Works$63,694,215$2,433,694$61,260,521Water$31,377,614$1,662,210$29,715,404VMUS$33,469,769$105,433$33,364,336Solid Waste$28,522,459$(21,287)$28,543,746Airport$22,902,812-$22,902,812Finance$217,743,618$8,818,417$208,925,201Proprietary Funds Total12
PROPRIETARY FUNDS - PROPOSED REVENUES BY DEPARTMENT
HIGHLIGHTS OF GENERAL FUND REVENUE ADJUSTMENTSThe General Fund revenue is projected to increase by $8,567,504, reflecting stronger-than-anticipated revenues across the following key categories: •$2,727,188 - Property Taxes•$2,402,896 - Police Revenue•$1,400,000 - Interest Income•$1,391,714 - Redevelopment Property Tax Trust Fund (RPTTF)•$228,349 - Cost Allocation•$165,000 - Rental Business License Fee•$163,280 - Sales Tax•$134,250 - Reader Board Lease Revenue•$100,000 - Transient Occupancy TaxThese increases are partially offset by projected decreases of $75,000 in Weed Abatement Cost Recovery and $73,400 in Franchise Fees.13 HIGHLIGHTS OF MEASURE P REVENUE ADJUSTMENTSMeasure P revenue is projected to decrease by $130,500 due to the following:•$146,000 - An adjustment to revenue classification•$35,000 - Fire PermitThese decreases are partially offset by a projected increase of $50,500 in Animal Controlshelter revenue. 14 15
HIGHLIGHTS OF OTHER GOVERNMENTAL FUNDS REVENUE ADJUSTMENTSThe Other Governmental Funds - Special Revenue Funds are projected to experience arevenue decrease of $2,979,191 due to the following key factors:•$1,924,281 - Reduction in Development Impact Fees•$574,060 - Fueling services discontinuation by Burrtec•$492,600 - Symba Center bed fees are no longer expectedThese decreases are partially offset by an anticipated $275,000 annual buyout payment theCity expects to receive from Burrtec. 16 HIGHLIGHTS OF PROPRIETARY FUNDS REVENUE ADJUSTMENTS Proprietary Fund revenues are projected to increase by $8,818,417 primarily due to thefollowing factors:•$1,662,210 - Victorville Municipal Utilities Services (VMUS) has experienced arevenue increase driven by higher interest income and natural gas sales.•$2,302,579 - The Industrial Wastewater Treatment Plan (IWWTP) anticipatespayments for Service Area B sewer flows in the amount of $9.9 million. This will beoffset by $7.4 million of sewer use fees for non-industrial customers that is beingreclassified to fund 425.•$4,488,367 - The Sanitary / Sewer Treatment fund projects a revenue increase, mainlyfrom reclassifying $4.3 million in Sewer Treatment Service Area B fees from theIWWTP Fund. Additional increases include higher penalty and late fees ($150,000)and $40,000 from sewer feasibility study permits. 17 Mid-Year Proposed BudgetRequestedIncrease/(Decrease)FY 2025-2026 Revised BudgetDepartments$6,969,224$402,544$6,566,680Information Technology$4,555,532$330,400$4,225,132Capital$13,739,221$197,986$13,541,235Community Services$4,875,729$164,768$4,710,961Finance$6,716,492$81,073$6,635,419Human Resources/Risk Management$20,609,592$49,363$20,560,229Fire$1,064,531$37,000$1,027,531Engineering$2,910,836$15,000$2,895,836City Manager/City Clerk$1,022,632$15,000$1,007,632Solid Waste$39,968,589$(296,687)$40,265,276Police$12,053,419$(19,071)$12,072,490All Other Departments114,485,797977,376113,508,421General Fund Total
GENERAL FUND - PROPOSED EXPENDITURES BY DEPARTMENT
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Mid-Year Proposed BudgetRequestedIncrease/(Decrease)FY 2025-2026 Revised BudgetDepartments$15,454,603$565,597$14,889,006Measure P$5,856,450$55,284$5,801,166Code Compliance / Animal Control$5,545,691$36,054$5,509,637Fire$28,844,943$9,389$28,835,554Capital$1,262,646$6,000$1,256,646Building$249,026$5,740$243,286City Manager$3,249,993$(17,004)$3,266,997Planning$2,996,581$(104,430)$3,101,011Police$2,253,210-$2,253,210All Other Departments$65,713,143$556,630$65,156,513Measure P Fund Total
MEASURE P - PROPOSED EXPENDITURES BY DEPARTMENT
18 Mid-Year Proposed BudgetRequestedIncrease/(Decrease)FY 2025-2026 Revised BudgetDepartments$36,840,664$1,409,666$35,430,998Capital$12,929,401$199,483$12,729,918Public Works$3,731,241$135,000$3,596,241Planning$4,318,947$84,070$4,234,877Economic Development$489,105$60,533$428,572Information Technology$19,792$18,727$1,065Police$493,544$11,637$481,907Finance$550,710$204$550,506Building$115,300$(2,988)$118,288Parks$5,153,515$(124,283)$5,277,798Engineering$64,642,219$1,792,049$62,850,170Other Gov Funds Total
OTHER GOVERNMENTAL FUNDS PROPOSED EXPENDITURES BY DEPARTMENT 19 Mid-Year Proposed BudgetRequestedIncrease/(Decrease)FY 2025-2026 Revised BudgetDepartments$34,152,980$10,176,986$23,975,994Public Works$94,295,290$6,087,516$88,207,774Capital$12,300,152$602,955$11,697,197Airport$29,279,477$457,169$28,822,308Solid Waste$26,625,026$442,652$26,182,374Finance$24,636,550$204,658$24,431,892VMUS$5,222,822$122,000$5,100,822Engineering$48,029,272$(999,396)$49,028,668Water$726,374-$726,374All Other Departments$275,267,943$17,094,540$258,173,403Proprietary Funds Total20
PROPRIETARY FUNDS - PROPOSED EXPENDITURES BY DEPARTMENT Mid-Year Proposed BudgetRequestedIncrease/(Decrease)FY 2025-2026 Revised BudgetDepartments$50,000$50,000-Public Safety$50,000$50,000-Grant AB3229 Total 21 GRANT AB3229 (SLESF 270)*Supplemental Law Enforcement Services Fund (SLESF)Proposed expenditure is to enhance the portable radios used across all City departments.
HIGHLIGHTS OF GENERAL FUND & MEASURE P EXPENDITURE ADJUSTMENTSGeneral Fund expenditures are projected to increase by $977,376 driven by several keyfactors, including the following:• $900,000 - Police to support overtime work and training for new hires•$402,544 - Information Technology including new switches and increase in internetcapacity•$247,709 - 4 new positions•$250,000 - Infrastructure (Mojave Dr. I-15 to El Evado)This increase is partially offset by $1,253,109 decrease due to Schedule A adjustment.Measure P expenditures are projected to rise by $556,631 driven mainly by the following:•$565,597 - Cost allocation adjustment•$97,078 - 2 new positionsThis increase is partially offset by $121,434 in police savings from vacant positions andcontract services for planning. 22 1
HIGHLIGHTS OF OTHER GOVERNMENTAL FUNDS EXPENDITURE ADJUSTMENTSOther Governmental Funds - Special Revenue Fund expenditures are projected to increase by $1,792,049, including $1,409,666 for the following capital projects: •$475,000 - Third Avenue Road Improvement project•$412,590 - Fire Hydrant Installation•$288,914 - Installation of Streetlights•$142,410 - Police Station Design Services•$90,752 - Fire Station Capacity Improvement 23 1
HIGHLIGHTS OF PROPRIETARY FUNDS EXPENDITURE ADJUSTMENTSProprietary fund expenditures are projected to increase by $17,094,540 mainly due to the following factors:Water (Fund 410-414, 416) proposed expenditures include:•$2,128,500 - IWWTP expansion•$400,000 - IWWTP direct connections•$305,051 - Mojave Drive improvement project•$120,000 - Third Avenue road project•$102,443 - Security at City Hall•$100,000 - On-Call Water Feasibility Studies•$(1,056,936) - Cost allocation reduction 24VMUS (Fund 419-423) proposed expenditures include:•$930,000 - Design and construction of a centralized warehouse•$126,200 - Cost associated with the proposed 230 kV interconnection project
1 HIGHLIGHTS OF PROPRIETARY FUNDS EXPENDITURE ADJUSTMENTS (CONT.)Sanitary/Solid Waste (Fund 425-428) proposed expenditures include:•$9,947,798 - Sewer payment to fund 412 for wastewater treatment•$2,500,000 - Land acquisition for the HHW Recycling Consolidated Center•$650,000 - Sewer capacity projects C2 and C3•$75,000 - New hybrid SUVSouthern California Logistics Airport (Funds 450-457) proposed expenditures include:•$592,577 - Insurance funding 25 AmountReserve Level PercentGeneral Fund$19,460,82117%Reserve Requirement$92,644,18281%Reserve ProjectionGENERAL FUND & MEASURE PCASH RESERVE LEVELSAmountReserve Level PercentMeasure P$8,286,53717%Reserve Requirement$43,701,01390%Reserve Projection26 Financial ImpactNumber of PositionsPersonnel Changes$387,6546Positions Added$8,7421Title/Range Changes-2Title Change Only$396,3966Net ImpactSUMMARY OF PERSONNEL CHANGES 27 IMPACT OF ADJUSTMENTS•Support Strategic Goals: Ensures that resources are aligned to meet the City’sStrategic goals efficiently and effectively.•Align with Operational Needs: Adjusts the budget to reflect the current operationalneeds of various departments, promoting smoother day-to-day operations.•Address Increased Service Demands: Allows the City to meet the growing demandfor services and programs, ensuring continued responsiveness to the community. •Maintain Fiscal Balance: Keeps revenues and expenditures on track to achieve theCity's budgetary goals, helping to maintain financial stability throughout the year.28
CONCLUSION The Mid-Year Review Report highlights the City’s continued commitment to public safetyas a top priority and its ongoing investment in improving local infrastructure.Overall, the City’s financial position remains strong, with the General Fund expected toclose the fiscal year with an estimated surplus of $3.9 million, as revenues are projected toexceed expenditures.While using fund reserves is necessary to address deficits in other funds, ongoingmonitoring and potential adjustments throughout the remainder of the fiscal year will becritical to maintain long-term financial sustainability.The City also remains proactive in pursuing new revenue sources to support thecommunity, preserve fiscal stability, and ensure adequate resources for future needs.29 THANK YOUQUESTIONS?
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