Attachment A
Activity Report for the
Second Quarter
FINANCE DEPARTMENT
QUARTERLY REPORT
FY 2026 – Q2
FINANCE:
53 Positions
6 Divisions
1 Team
City Manager
Keith C. Metzler
Deputy City Manager
Jenele Davidson
Director of Finance
Carmen Cun
Assistant Director of Finance
Asdghik Keyvanian
October 1, 2025 – December 31,2025
Finance Projects Completed:
• City Annual Audit completed • SBCTA / Measure I Audit • AB-1600 Report • User Fee and DIF Fee Updates
• Cost Allocation Plan • Annual Street Report
• CalPERS Audit
• Southern California Logistics Airport Authority Bond Refunding • Purchasing Contracts Completed for New Projects:
o SCADA Site Alarms
o City Hall Security Camera Expansion
o John Deere Backhoes and Dozer Purchase
o Hook Park Soccer Field Lighting Installation
o Citywide Pavement Preservation & Maintenance Project, Phase II o VMUS Gas Improvement Project, Phase 5
• Regulatory reporting to:
o Quarterly State & Fed tax payment for CNG, diesel, & underground tanks. o US Census survey of non-property taxes (F73)
o Quarterly state payroll taxes
o Quarterly PERMA wage report
o Quarterly SMP (seismic fees) processed
Projects In Progress:
• Mid-Year Budget
• Single Audit
• Preparation for issuance of
W-2s and 1099
• IVR Re-Implementation
• Citywide Amazon Business
Account
Department Statistics by Division
Q2 General Fund Revenues and Expenditures Comparison FY25 vs. FY26 The General Fund is the City’s primary operating fund and supports day -to-day operations and essential services.
During the second quarter, the General Fund revenues totaled $34.3 million in FY 2025– 26, compared to $28.4 million in FY 2024– 25. This represents an increase of approximately $6.0 million year over year.
The increase is largely attributable to timing differences in revenue recognition between the two fiscal years, which are a significant driver of the variance. General Pass -Through revenues totaling $3.6 million were recorded in May 2025 in FY 2024– 25, whereas these revenues were recorded in December 2025 in FY 2025– 26, resulting in higher reported revenues in FY 2025–
26. Similarly, Police personnel credits totaling $1.4 million were recorded in December 2025, compared to January 2025 in the prior fiscal year, further contributing to the year -over-year variance. In addition to these timing-related impacts, higher sales tax revenue also contributed to the increase, with collections totaling $7.7 million in FY 2025– 26 compared to $6.9 million in FY 2024–25, an increase of $0.8 million.
Additionally, lower interest rates in FY 2025– 26 compared to FY 2024– 25 resulted in reduced interest-related revenue, contributing to a $193,758 variance between the two periods. $0.00
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Oct Nov Dec Q2 Total
FY 2025 $6.00 $5.82 $16.54 $28.36
FY 2026 $6.30 $5.80 $22.23 $34.33
Amounts are in millions
Q2 General Fund Revenue Comparison
FY25 vs FY26
FY 2025 FY 2026
The General Fund expenditures totaled $22.8 million in the second quarter of the current fiscal year, compared to $30.7 million in the same period of the prior fiscal year, a decrease of approximately $8.0 million. This variance is primarily due to the timing of expenditure recognition related to the San Bernardino County Sheriff’s Department (SBCSD) contract for sheriff’s services. In FY 2024–25, six months of sheriff’s service costs, totaling $17.7 million for the period from July through December 2024, w ere recorded in the second quarter. In contrast, only $9.2 million of these costs were recorded in the second quarter of FY 2025–26. As a result of this timing difference, FY 2024–25 reflects higher reported expenditures, driving most of the year-over-year variance.
Q2 Measure P Revenues and Expenditure Comparison FY25 vs. FY26
Measure P is a one- percent General Transaction and Use Tax that took effect April 1, 2021, increasing Victorville's sales tax rate from 7.75% to 8.75% to support the expansion of essential services such as police, fire, and code compliance for the City’s growing community.
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Oct Nov Dec Q2 Total
FY 2025 $15.85 $7.76 $7.13 $30.74
FY 2026 $6.52 $9.47 $6.76 $22.75
Amounts are in millions
Q2 General Fund Expenditures Comparison
FY25 vs FY26
FY 2025 FY 2026
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Oct Nov Dec Q2 Total
FY 2025 $2.40 $2.68 $4.27 $9.36
FY 2026 $2.81 $2.26 $2.58 $7.65
Amounts are in millions
Q2 Measure P Revenue Comparison
FY25 vs FY26
FY 2025 FY 2026
Second Quarter FY 2025–26 Measure P revenues totaled $7.7 million, a decrease of $1.7 million compared to $9.4 million reported in FY 2024–25. The most significant driver of this decline is the elimination of City bed revenues from the Symba Center. In the second quarter of FY 2024, $1.09 million in City bed revenue was recorded; however, no such revenue was received in FY 2025– 26 as this revenue source has been discontinued.
The decrease is also attributable to the timing of sales tax revenue recognition. In addition, interest income has not yet been allocated in FY 2025–26, resulting in no interest revenue reported year to date, compared to $610,809 recorded in FY 2024- 25. Lastly, during FY 2024-25, $66,658 of revenue was miscoded and subsequently reclassified from Measure P Fire Prevention to Measure P Building Fire.
Measure P expenditures totaled $4.4 million in the current fiscal year, compared to $5.9 million in the prior fiscal year, representing a decrease of approximately $1.5 million. This variance is primarily attributable to the timing of expenditure recognition for the SBCSD contract for sheriff’s services, resulting in a variance of $880,149.
The remaining decrease is related to one-time capital and equipment expenditures incurred in FY 2024–25, including $540,071 for construction of the animal shelter, $133,885 for design services of the new police station, and $181,179 for the purchase of Stryker gurneys.
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Oct Nov Dec Q2 Total
FY 2025 $2.13 $2.07 $1.66 $5.86
FY 2026 $1.54 $1.47 $1.35 $4.37
Amounts are in millions
Q2 Measure P Expenditures
Comparison FY25 vs FY26
FY 2025 FY 2026
Q2 Citywide Revenues and Expenditures Comparison FY25 vs. FY26
Citywide revenues increased from $90.6 million in the second quarter of FY 2024– 25 to approximately $111.7 million in FY 2025–26, representing a $21.1 million year-over-year increase.
The largest variance is due to the timing of a $14.5 million payment from the Victor Valley Economic Development Authority, which was recorded on November 20, 2025, in FY 2025 –26, compared to February 4, 2025, in FY 2024–25.
Another significant contributor to the revenue increase is approximately $1.6 million recorded in a newly established account during FY 2025– 26 for non -industrial sewer treatment charges, created to align with the sewer rate study.
The Successor Agency also recorded $997,628 more in property tax revenue during the second quarter of FY 2025–26 compared to the same period in FY 2024–25. Gas tax revenue increased by $48,230 in FY 2025– 26. Further contributing to the revenue growth, $682,268 was recorded in a new account to capture credits received under the 25- year Renewable Energy Electricity Future contract. DIF fee revenues increased by $732,813 during FY 2025 –26, primarily due to reimbursements from the Statewide Community Infrastruc ture program; 37 customers were refunded in December 2024. The City also received $229,837 in State Grant AB 3229 funding for the San Bernardino County Citizens’ Option for Public Safety (COPS) program during the second quarter of FY 2025– 26. Lastly, connection fee revenue totaled $333,379 in FY 2025– 26, compared to only $2,195 in FY 2024–25, resulting in a variance of $331,184.
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Oct Nov Dec Q2 Total
FY 2025 $23.86 $23.41 $43.34 $90.61
FY 2026 $24.50 $40.11 $47.08 $111.69
Amount are in millions
Q2 Citywide Revenue Comparison
FY25 vs FY26
FY 2025 FY 2026
Overall, Citywide expenditures totaled $65.7 million in FY 2025– 26, representing a decrease of $20.7 million from the $86.4 million reported in FY 2024–25. This variance is primarily attributable to the timing of expenditure recognition across all funds, a ccounting for more than $14.5 million of the difference.
In addition, several capital projects incurred expenditures during the second quarter of FY 2024– 25 that did not recur in FY 2025– 26, including $951,232 for the Highway Safety Improvement Program (HSIP) 7th Street Signal and Roadway Improvements, $1,202,318 for construction of the new library, $716,310 for the Kern River Interconnection, $1,788,240 for Runway 17 reconstruction and $1.1 million of sewer treatment cost.
Note: Transactions in progress are not included. Revenues and expenditures may include prior quarter adjustments.
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Oct Nov Dec Q2 Total
FY 2025 $31.69 $20.42 $34.33 $86.44
FY 2026 $22.42 $20.68 $22.62 $65.71
Amount are in millions
Q2 Citywide Expenditures Comparison
FY25 vs FY26
FY 2025 FY 2026