Attachment A - Resolution No. VWD 26-009 — Victorville City Council, June 2, 2026

ATTACHMENT A

RESOLUTION NO.

VWD 26-009

RESOLUTION NO. VWD-26-009

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
VICTORVILLE WATER DISTRICT ACCEPTING THE 2026 WATER COST OF SERVICE/RATE STUDY ; AUTHORIZING PREPARATION AND

MAILING OF NOTICES OF PUBLIC HEARING REGARDING THE

PROPOSED CHANGES TO WATER SERVICE RATES PURSUANT TO
PROPOSITION 218; AND SETTING THE DATE, TIME, AND LOCATION

OF THE PUBLIC HEARING ON THE PROPOSED WATER SERVICE
RATES

WHEREAS, the Victorville Water District (the “District”) is a subsidiary district of the City of Victorville (the “City”), organized and operating under the County Water District Law (California Water Code section 30000 et seq.); and

WHEREAS, Proposition 218 was adopted by the voters on November 6, 1996, adding Articles XIII C and XIII D to the California Constitution; and

WHEREAS, the Board of Directors of the District (the “ Board of Directors ”) is authorized to fix and collect rates and charges for the provision of water service under California Water Code sections 31007 and 31025 , and Chapter 10.04 of the Victorville Municipal Code; and

WHEREAS, in accordance with industry best practices and to ensure that its water rates reflect the District’s cost of providing water service to its property owners/customers, the District performs a cost of service/study of its water rates every five years; and

WHEREAS, on or about December 22, 2025, following the issuance of a Request for Proposals and the District’s evaluation of the proposals submitted in response thereto, the District General Manager authorized retention of consultant Bartle Wells Associates to perform the rate/cost of service study; and

WHEREAS, following a public workshop and collaboration among Bartle Wells Associates (BWA) and District Staff, a final BWA Water Rate Study Report, dated May 2026 (the “Study”), a copy of which is attached to this Resolution as Exhibit 1, is now being presented to the Board of Directors proposing revised rate schedules for water services to be implemented as of August 1, 2026, and thereafter on July 1st of each of the subsequent four years; and

WHEREAS, proposed revisions to and increases of the District's charges and fees for water service (Rates) are subject to the substantive and procedural requirements of part of Proposition 218 (Cal. Const. Arts. XIII C and D). Section 6 of Article XIII D sets forth standards for setting rates that reflect the proportional cost of providing water services, as well as requirements for providing notice, a public hearing, and the ability to protest such proposed revisions to and increases of charges and fees for water service; and WHEREAS, the Board of Directors wishes to consider acceptance of the attached Study and direct District staff to proceed with notice, public hearing and such other matters required by law in order to consider adoption of the proposed revised rate schedules (hereinafter the “Proposed Rates”) in compliance with the requirements of Proposition 218 and other applicable laws and District resolutions.

NOW, T HEREFORE, THE V ICTORVILLE W ATER DISTRICT BO ARD OF DIRECTORS DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. Recitals.

That the above recitals are true and correct and are incorporated herein by this reference, including any terms defined therein.

SECTION 2. Acceptance of Study.

That the Board of Directors hereby accepts the Study attached hereto as Exhibit 1 and incorporated as part of this Resolution by this reference. This acceptance does not constitute the Board of Directors’ adoption of any of the Proposed Rates set forth in the Study.

SECTION 3. Proposed Rates.

That the Proposed Rates are thos e set forth in Section 4.4, Table 14 (page 19) of the Study; and the proposed Drought Stage Surcharges are those set forth in Section 4.4, Table 15 (Page 20).

SECTION 4. Public Hearing.

That a Public H earing regarding the P roposed Rates shall be held on t he date of t he District’s regularly scheduled meeting of the Board of Directors as follows:

D
ate: Tuesday, July 21, 2026
Time: 6:00 p.m., or as soon thereafter as the matter may be heard Location: Victorville City Council Chambers, 14343 Civic Drive, Victorville, CA 92392
S
ECTION 5. Preparation and Mailing of Notices in Accordance with Proposition 218.

T
hat District Staff (in consultation with District Counsel) is directed to prepare and mail a Notice of Public Hearing containing information about the Proposed Rates; the date and time of the Public Hearing; protest procedures; and such other matters as required by the applicable provisions of Proposition 218, to the record owners of each identified parcel upon which the Proposed Rates are to be imposed. Such Public Hearing Notice shall be mailed not later than June 4, 202 6, to ensure compliance with Proposition 218’s mandated minimum advance notice of forty-five (45) days.

SECTION 6. Inclusion of Written Objection/Exhaustion Procedures in Notices.

That District Staff (in consultation with District Counsel) is further directed, pursuant to Government Code Sections 53759.1 and 53759.2, and in accordance with Resolution No.

VWD-26-011 adopted concurrently herewith, to include the Written Objection/Exhaustion of Administrative Remedies procedure in the Notice of Public Hearing.

SECTION 7. Hearing Date Notice Publication.

That the District Secretary shall also provide notice of the date, time, place and subject matter of the Public Hearing on the Proposed Rates by publishing such information in accordance with Government Code section 6062a, and by posting such information (or a copy of the Notice of Public Hearing prepared and mailed in accordance with Section 5 of this Resolution) not less than ten (10) days in advance of the date of the Public Hearing, on the City’s website and other locations customarily used by the District for the posting of public hearing notices.

SECTION 8. Effective Date.

That this Resolution shall take effect immediately upon its adoption.

SECTION 9. Certification.

That the District Secretary shall certify to the passage and adoption of this Resolution.

Exhibit 1

Water Rate Study

VICTORVILLE WATER DISTRICT

WATER RATE STUDY REPORT
M
ay 2026

Table of Contents
1 Executive Summary ....................................................................................... 1

1.1 Introduction ............................................................................................................................... 1

1.2 Rate Study Objectives .................................................................................................................. 1

1.3 Current and Proposed Water Rates ............................................................................................. 2 2 Background, Rate Study Process, and Legal Requirements ............................. 3

2.1 Background ............................................................................................................................... 3

2.2 Rate Study Process ....................................................................................................................... 4

2.3 Constitutional Requirements for Rates ........................................................................................ 5 3 Financial Plan ................................................................................................. 6

3.1 Financial Overview ....................................................................................................................... 6

3.2 Financial Plan Assumptions .......................................................................................................... 6

3.3 Key Drivers of Rate Increases ....................................................................................................... 7

3.4 Cash Flow Projections ................................................................................................................ 11 4 Cost of Service Analysis and Rate Derivation ................................................ 14

4.1 Functional Cost Allocation ......................................................................................................... 14

4.2 Customer Summary .................................................................................................................... 15

4.3 Rate Design Analysis................................................................................................................... 16

4.4 Proposed Water Rates ............................................................................................................... 19

4.5 Customer Bill Impacts ................................................................................................................ 20

4.1 Regional Water Rate Survey ....................................................................................................... 22 5 Appendix ..................................................................................................... 23

LIST OF TABLES
Table 1 – Current and Proposed Water Rates ............................................................................................................2 Table 2 – Operating and Maintenance Cost Inflation ................................................................................................8 Table 3 – 10-Year Capital Improvement Program ......................................................................................................9 Table 4 – Five Year Reserve Fund Targets ............................................................................................................... 10 Table 5 – Proposed Rate Revenue Increases ........................................................................................................... 11 Table 6 – Detailed Cash Flow Projections ................................................................................................................ 13 Table 7 –Revenue Requirement by Cost Allocation Category ................................................................................. 14 Table 8 –Water Consumption by Customer Class ................................................................................................... 15 Table 9 –Number of Customers by Meter Size and Customer Class ....................................................................... 15 Table 10 – Fixed Rate Derivation ............................................................................................................................. 17 Table 11 – Domestic and Recycled Water Volumetric Rate Derivation .................................................................. 18 Table 12 – Untreated Water Rate Derivation .......................................................................................................... 18 Table 13 – Construction/Flow and Intertie Volumetric Rate Derivation................................................................. 19 Table 14 – Proposed Water Rates ........................................................................................................................... 19 Table 15 – Drought Surcharges ............................................................................................................................... 20

LIST OF FIGURES
Figure 1 – Cost-of-Service Rate Study Process ...........................................................................................................4 Figure 2 – Operating and Maintenance Cost Projection ............................................................................................8 Figure 3 – Capital Improvements ...............................................................................................................................9 Figure 4 – Projected Reserves Funds vs. Targets..................................................................................................... 11 Figure 5 – Projected Revenue vs. Expenses ............................................................................................................ 12 Figure 6 – Single-Family Residential Water Bill Comparison ................................................................................... 20 Figure 7 – Multi-Family Residential Water Bill Comparison .................................................................................... 21 Figure 8 – Commercial Water Bill Comparison........................................................................................................ 21 Figure 9 – Single-Family Residential Regional Water Bill Comparison (Average Monthly Water Use 12 HCF) ...... 22

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1 EXECUTIVE SUMMARY

1.1 Introduction
Victorville Water District (“District”) retained Bartle Wells Associates (BWA) to prepare a comprehensive Water Rate Study (Study) for potable and reclaimed water services, to ensure the District’s rate structures are financially sustainable, fair, transparent and comply with Proposition 218. In this study, BWA worked collaboratively with District staff to develop a long-term financial plan, recommendations and an updated water rate schedule for the next five years. The rates developed in this study focus on Fiscal Year (FY) 2026/27 and the next four years, through FY 2030/31. The financial plan was prepared for the ten -year period of FY 2025/26 through FY 2034/35, which include revenue, expense, reserve fund projections and necessary rate revenue adjustments for this time period.

The revenues from the District’s water enterprise are primarily derived from charges for services. The District must establish rates and charges adequate to fund the cost of providing services, which include costs for operations and maintenance, as well as capital improvements needed to keep the District’s utility infrastructure in a safe and reliable operating condition.

The District has provided proactive financial stewardship by raising rates annually to keep revenues in line with the costs of providing water service. Those rate increases have enabled the District to maintain its financial health.

The prior rate increases strengthened the financial condition of the water enterprise and continued rate adjustments will be needed to adequate ly fund the operations, maintenance , necessary improvements, and to ensure the District maintains its strong financial position in the future.

1.2 Rate Study Objectives
Key goals and objectives of this study include developing rates that:
• Recover the costs of providing service, including operating, maintenance and capital improvement needs; • Are proportionate, fair, and equitable to all customers; • Are easy to understand and implement;
• Comply with the substantive requirements of the California Constitution, Article 13D, Section 6 (which was adopted by the voters as Proposition 218 in 1996).
• Support the long-term operational and financial stability of the District.

BWA worked closely with District staff to incorporate information and input , evaluate alternatives, and develop recommendations. This report summarizes key findings and recommendations for water rates over the next five years.

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1.3 Current and Proposed Water Rates
The District intends to implement the proposed rates on August 1, 2026 and every July 1st thereafter over the next four years. The following table shows the current and proposed water rates.

Table 1 – Current and Proposed Water Rates

Current
FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 Fixed Service Charges
3/4 inch $25.81 $24.58 $25.56 $26.59 $27.65 $28.76
1 inch $39.48 $35.74 $37.17 $38.66 $40.20 $41.81

1.5 inch $73.66 $63.64 $66.19 $68.83 $71.59 $74.45
2 inch $114.67 $97.12 $101.00 $105.04 $109.25 $113.62
3 inch $224.03 $286.84 $298.31 $310.25 $322.66 $335.56
4 inch $347.06 $498.88 $518.84 $539.59 $561.17 $583.62
6 inch $688.81 $789.04 $820.60 $853.43 $887.56 $923.07
8 inch $1,919.12 $1,570.24 $1,633.05 $1,698.37 $1,766.31 $1,836.96 10 inch $2,876.03 $2,518.84 $2,619.59 $2,724.38 $2,833.35 $2,946.69 12 inch $2,876.03 $3,076.84 $3,199.91 $3,327.91 $3,461.03 $3,599.47 Consumption Rates (per hcf)
Single-Family Residents (SFR):

Tier 1 (1 - 6 hcf) $0.80
Tier 2 (7+ hcf) $2.44
Uniform Rate (all hcf) $2.28 $2.37 $2.47 $2.56 $2.67
All Other Customers:

Standard Domestic Water (Non SFR) $2.42 $2.28 $2.37 $2.47 $2.56 $2.67 Construction Flow Meter/Intertie $4.01 $3.89 $4.04 $4.21 $4.37 $4.55 Well (Untreated) Water $0.82 $1.65 $1.71 $1.78 $1.85 $1.93 Reclaimed/Recycled Water $1.45 $1.86 $1.93 $2.01 $2.09 $2.18 Fire Fixed Service Charges
1 inch $6.45 $8.49 $8.83 $9.18 $9.55 $9.93

1.5 inch $7.59 $9.14 $9.51 $9.89 $10.28 $10.69
2 inch $8.96 $9.92 $10.32 $10.73 $11.16 $11.60
3 inch $13.30 $14.34 $14.91 $15.51 $16.13 $16.78
4 inch $21.30 $19.28 $20.05 $20.85 $21.69 $22.55
6 inch $41.86 $26.04 $27.08 $28.16 $29.29 $30.46
8 inch $69.28 $44.24 $46.01 $47.85 $49.76 $51.75
10 inch $105.84 $66.34 $68.99 $71.75 $74.62 $77.61
12 inch $105.84 $79.34 $82.51 $85.81 $89.25 $92.82
Monthly Water Rates Proposed

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2 BACKGROUND, RATE STUDY PROCESS, AND LEGAL REQUIREMENTS

2.1 Background
The Victorville Water District, a subsidiary district of the City of Victorville, serves more than 39,000 customer connections across an 85-square-mile service area, providing both potable and reclaimed water. The District relies primarily on local groundwater supplies from the Upper Mojave River Basin and has implemented ongoing infrastructure improvements to maintain system reliability and meet future demand. The District’s water system consists of potable and reclaimed water mains and related distributio n infrastructure that delivers water to residential, commercial, and industrial customers, and includes the following infrastructure:
• Over 775 miles of potable water mains
• 34 active groundwater wells
• 24 potable water storage tanks
• 4 booster stations
• 33 pressure-reducing stations
• 3 water treatment plants
• 8.5 miles of reclaimed water mains
• 1 reclaimed water storage tank
The District’s water utility is a financially self-supporting enterprise. Revenues are derived primarily from rates. As such, the District’s water rates must be set at adequate levels to fund the costs of providing service and:
• Fund ongoing operating and maintenance expenses
• Fund the capital improvement projects and associated increased operating costs • Provide funding for system maintenance and upgrades
• Address regulatory requirements

Rates were last adjusted in July 2025 in accordance with the five -year rate plan established in the District’s prior rate study, completed in May 2021. The rate increases identified in that Study helped strengthen the financial position of the District . However, current rates are no longer sufficient to support the District’s projected operating, maintenance and capital investment needs. This is due to several factors, including ongoing inflationary pressures on goods and services, escalating construction c osts, and the need to comply with evolving regulatory requirements.

This Study was developed concurrently with, and in coordination with, the District’s 2026 Water Master Plan, which is currently in draft form. The updated Master Plan identifies the capital investments required over the next ten years to maintain reliable service, address system needs, and meet regulatory standards. The scale and timing of these improvements are a primary driver of the revenue requirements evaluated in this Study and underscore the necessity of updating rates to ensure the District can continue to provide safe, reliable, and financially sustainable water service.

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2.2 Rate Study Process
The general process used for this cost-of-service rate study is summarized in the following figure.

Figure 1 – Cost-of-Service Rate Study Process

Key elements of the study include:
1) Project Initiation and Data Collection – Review financial policies ; collect financial and other relevant d ata; and review existing rate structures;
2) Demand Analysis – Analyze past customer demands and customer characteristics to forecast future demands; 3) Financial Plan – Develop financial projections to evaluate annual revenue requirement from rates and the overall level of rate increases needed to fund the cost s of providing service and support long-term financial stability;
4) Cost Allocation – Group the District’s costs in terms of the function they serve as a basis to proportionally allocate the revenue requirement from rates;
5) Cost-of-Service Rate Design – Develop rates that proportionately recover costs; and 6) Proposition 218 Implementation Process – Ensure compliance with the procedural requirements of Proposition 218 , which includes: noticing customers, collecting protests, responding to objections, and holding a public hearing prior to implementing proposed rates.

The process that BWA used for the District’s study follow ed industry standard and principles of rate making embodied in the American Water Works Association’s Principles of Water Rates, Fees and Charges (M1 Manual).

The rate study also addresses the substantive requirements of Proposition 218 that rates must not exceed the cost of providing service and that rates be proportionate to the cost of providing service for all customers.

Project
Initiation
and Data
Collection
Demand
Analysis
Financial
Plan
Cost
Allocation
Rate
Design
Prop. 218
Process

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2.3 Constitutional Requirements for Rates
The water rates proposed in this report are designed to comply with two key articles of the California Constitution:

Article 13D, as explained below.

Proposition 218 was adopted by California voters in 1996 and added Articles 13C and 13D to the California Constitution. Article 13D, Section 6 governs property-related charges. Article 13D, Section 6 establishes both a) procedural requirements for imposing or increasing property -related charges, and b) substantive requirements for those charges. Article 13D requires voter approval for new or increased property-related charges but exempts rates for water, wastewater, and garbage service from this voting requ irement if rates are adopted by the appropriate procedure and meet the substantive requirements. This study recommends water rates that are designed to comply with the requirements of Proposition 218.

The substantive requirements of Article 13D, s ection 6, require property-related charges, such as the District’s water rates, to meet the following conditions:

1) Revenues derived from the fee or charge shall not exceed the costs required to provide the property - related service.
2) Revenues derived from the fee or charge shall not be used for any purpose other than that for which the fee or charge was imposed.
3) The amount of a fee or charge imposed upon any parcel or person as an incident of property ownership shall not exceed the proportional cost of the service attributable to the parcel. 4) No fee or charge may be imposed for a service unless that service is used by or, immediately available to the property in question.
5) No fee or charge may be imposed for general governmental services, such as police or fire services, where the service is available to the public at large in substantially the same manner as it is to property owners. .

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3 FINANCIAL PLAN

3.1 Financial Overview
BWA conducted an independent evaluation of the District’s financial condition and concluded that it has historically operated in a sound financial position . However, a ging infrastructure, ongoing capital improvement needs, and sustained cost inflation are placing increasing pressure on the District’s finances. As a result, prudent and timely rate adjustments are necessary to preserve financial stability, support continued system reliability, and ensure the District can meet its operational and regulatory obligations.

Key observations of this evaluation include:
• The District relies primarily on revenues from water rates to fund the costs of providing water service.

Approximately 80 to 85 percent of revenues to the District come from water rates. As such, rates must be set at adequate levels to fund the costs of operating and maintaining the water system and to fund necessary capital improvements to keep the water system in good operating condition. • Operating and maintenance expenses are expected to total $ 40.3 million in FY 2026/27. Operating and maintenance expenses are expected to increase by approximately 3.5% overall in future years. • The District projects capital expenses of over $76 million from FY 2025/26 through FY 2035/36, which is nearly $7 million on average per year during that time period. • BWA recommends the District maintain sufficient reserve funds. Overall, the District should maintain approximately $23 to $25 million in overall reserve funds throughout the rate period. The r ecommended targets for each reserve fund are discussed later in this report.

3.2 Financial Plan Assumptions
The financial projections incorporate the latest information available and several reasonable and slightly conservative assumptions for planning purposes. Key assumptions include:

Revenue Assumptions
• Revenue to the District is based on budgeted revenues for Fiscal Year 2025/26 and 2026/27. An escalation factor is applied to estimate revenue in future years that range from 0% to 3% depending on the source of revenue.
• Customer growth and future water use from new customers is projected to increase by 1% annually. • Plan check fee revenues are projected to increase by 3% annually and operating cost recovery revenues by 3% annually.
• Rates proposed will be effective on August 1, 2026, with rate adjustments planned to become effective on July 1 of each of the subsequent four years.
• Interest earnings are projected based on the estimated annual beginning fund balance multiplied by the projected interest rate , which is 2.28%. The interest rate projections are based on the five year average

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interest rate for funds invested in the LAIF (the Local Agency Investment Fund through the California Treasurer’s office).

Expense Assumptions
• Operating and maintenance costs are primarily based on the FY 2025/26 and 2026/27 budget, with an additional 4% escalation factor applied to labor costs to account for increases to the Cost-of-Living Adjustment (COLA).
• Operating and maintenance costs are projected to escalate between 3% to 18% per year to account for cost inflation, depending on the type of expense . The cost escalation factors are in line with the District’s assumptions, and overall operating and maintenance costs are projected to increase on average by approximately 3.5% per year.
• Capital improvement costs are based on the most recent engineering cost estimates , which account for estimated construction cost inflation.

3.3 Key Drivers of Rate Increases
The District is facing several manageable financial challenges that will drive the need for rate increases in upcoming years. Key drivers of future rate increases are summarized below.

Ongoing Operating and Maintenance Cost Inflation
The District faces annual cost inflation due to annual increases in a range of expenses including water supply, utilities, labor, etc. A nnual rate increases are needed to keep revenues aligned with cost inflation and prevent rates from falling behind the cost of providing service. In general, water utility cost inflation has historically been higher than the Consumer Price Index (CPI) for consumer goods and services. Historically , cost inflation has typically remained consistently around 3%, but recently , inflation has reached forty-year highs with the CPI and Engineering News Record Construction Cost Inflation ( ENR CCI)1 exceeding 7% in 2022. It is not expected that inflation will remain at such high levels in the future . Operating cost inflation for the District is projected to vary from 3% to 18 %, depending on the type of expense , which is in line with the District’s budget inflationary projections. Table 2 below shows the cost inflation factor s used for various types of expense s to develop the projection of operating and maintenance costs in future years. In FY 2031/32 and beyond, the cost inflation factors are consistent with FY 2030/31. Figure 2 shows the overall total of estimated operating and maintenance costs through Fiscal Year 2035/36. Overall, operating and maintenance costs escalate by approximately 3.5% annually.

1 The ENR CCI measures the cost of construction using a standardized set of materials and labor across 20 U.S. cities. It includes components such as common labor, skilled labor, structural steel, portland cement, and 2x4 lumber. The index is widely used to track construction cost trends and adjust project budgets for inflation.

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Table 2 – Operating and Maintenance Cost Inflation

Figure 2 – Operating and Maintenance Cost Projection

Cost Inflation Factor FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 General 3.00% 3.00% 3.00% 3.00% 3.00%
None 0.00% 0.00% 0.00% 0.00% 0.00%
General - Travel & Meetings 3.50% 3.50% 3.50% 3.50% 3.50% Labor 4.00% 4.00% 4.00% 4.00% 4.00%
Fuel 5.00% 5.00% 5.00% 5.00% 5.00%
Utilities - Electric/Natural Gas/Sanitation 5.00% 5.00% 5.00% 5.00% 5.00% Utilities - Production Power 7.50% 7.50% 7.50% 7.50% 7.50% R-Cubed Water 4.50% 4.50% 4.50% 4.50% 4.50%
Admin & Bio Assessment1 10.11% 10.11% 10.11% 10.11% 10.11% Groundwater Replenishment & Makeup Obligation 4.00% 4.00% 4.00% 4.00% 4.00% Meter Service Installation & Changeouts 4.00% 4.00% 4.00% 4.00% 4.00% HDPP Reimbursement 8.30% 17.79% 17.83% 17.87% 17.91%

1. Admin and Bio Assessment cost inflation is equal to the historical five year average change in cost.

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Capital Improvement Funding Needs
The District takes a proactive approach to maintaining its water system, which requires ongoing repair and improvement projects. Accounting for construction cost inflation, the District anticipates funding over $42.3 million of capital improvement projects in the current year and over the next five years. For the entire eleven-year period evaluated in this study which coincides with the District’s recent Water Master Plan, the District anticipates funding nearly $76 million in capital improvement projects overall. The District’s capital improvement costs are summarized in the table below. The District’s detailed capital improvement projects and associated costs are shown in the Appendix to this report.

Table 3 – 10-Year Capital Improvement Program

The following figure visually depicts the capital improvement costs over the next ten years.

Figure 3 – Capital Improvements

CIP Project Summary FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 FY 2035 FY 2036 FY 2026 Budgeted $5,759,244 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 FY 2026 Rollover $0 $4,276,552 $1,200,000 $0 $0 $0 $0 $0 $0 $0 $0 FY 2027 Budgeted $0 $2,436,407 $432,500 $0 $0 $0 $0 $0 $0 $0 $0 Master Plan $0 $5,133,000 $7,135,000 $4,751,630 $6,528,409 $4,653,000 $8,041,492 $6,765,837 $6,650,912 $5,910,739 $6,221,341 Total $5,759,244 $11,845,959 $8,767,500 $4,751,630 $6,528,409 $4,653,000 $8,041,492 $6,765,837 $6,650,912 $5,910,739 $6,221,341

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Water Reserve Funds
The District should maintain sufficient reserve funds in order to provide a financial cushion for dealing with unanticipated expenses, revenue shortfalls, and non-catastrophic emergency capital repairs. The District’s current reserve policy requires that the following level of cash reserves are held within the District’s reserve funds:

1. Operating Reserve : 90 days of operating and maintenance expenses – less costs related to water purchases and the HD Power Plant – for the operating reserve, which is $8 million.

2. Other Post-Employment Benefits (OPEB) Reserve: $10 million.

3. Capital Rehabilitation & Replacement Reserve: equal to 3% of net assets, which is $5 million.

BWA reviewed and confirms these reserve fund targets are appropriate and in line with industry standards. The financial plan developed in this study is designed to maintain this level of reserve funds throughout the rate planning period. In developing these targets, FY 2025/26 expenses are used as the base year, and they are increased by inflation consistent with expenses in all future years. Table 4 below summarizes reserve fund targets through FY 2030/31.

Table 4 – Five Year Reserve Fund Targets

With the rate revenue adjustments proposed in this study, the District is projected to draw down its reserve funds over the next six years to fund its capital improvement program and will maintain reserve funds at recommended levels after that point. The projected balance will level off at or around the target starting in FY 2029/30. Figure 4 visually depicts the projected reserve fund balance and total minimum reserve fund target. While the District is projected to end the current fiscal year with approximately $41.7 million in reserve funds, reserve funds are projected to be at approximately $25.6 million at the end of Fiscal Year 2030/31, which would be slightly over the minimum reserve target.

Looking ahead, if the District implements the rate adjustments proposed in this study, maintains expenses at current planned levels and implements the rate increases proposed for the ten-year planning period evaluated in this Study, the District is projected to maintain its reserve funds at or close to recommended levels over this time period.

Reserve Fund Targets FYE 2026 FYE 2027 FYE 2028 FYE 2029 FYE 2030 FYE 2031 Operating $8.1 mil $8.2 mil $8.5 mil $8.8 mil $9.2 mil $9.6 mil Capital Rehabilitation & Replacement $4.9 mil $5.1 mil $5.0 mil $4.9 mil $5.0 mil $4.9 mil OPEB $10.0 mil $10.0 mil $10.0 mil $10.0 mil $10.0 mil $10.0 mil Total $23.0 mil $23.3 mil $23.5 mil $23.7 mil $24.2 mil $24.5 mil

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Figure 4 – Projected Reserves Funds vs. Targets

3.4 Cash Flow Projections
Cash flow projections were developed based on assumptions and the key drivers of future rate increases described previously. The projections were used to determine the water utility’s annual revenue requirements and project required rate revenue increases. The cash flow projections incorporate the latest information available from the District’s budget, annual reports, capital spending projections, metered water demand data, as well as several reasonable assumptions developed with input from the District. The overall rate revenue increases are designed to fund the District’s cost of providing service, maintain a balanced budget, and maintain prudent reserves. The projections indicate the need for increases to rate revenue on an annual basis and are shown in Table 5 below.

Actual impacts on customers’ water bills will vary in the first year based on meter size and water use, due to the outcome of the updated cost-of-service analysis and proposed change in rate structure.

Table 5 – Proposed Rate Revenue Increases

In future years, the District can re-evaluate its finances and revenue requirements and adjust rates as needed based on updated projections. However, while the District always has the flexibility to implement rate adjustments that are lower than adopted pursuant to Proposition 218, future rates cannot exceed adopted Fiscal Year Rate Revenue
Increase
2026/27 4.0%
2027/28 4.0%
2028/29 4.0%
2029/30 4.0%
2030/31 4.0%

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increases without going through the Proposition 218 process again. Rates adopted pursuant to Proposition 218 are essentially future rate caps.

Figure 5 presents projected expenses alongside revenues with and without the proposed rate adjustments over the next five years. While rate adjustments are recommended through FY 2030/31, the Study evaluated a ten - year planning horizon and indicates that similar annual increases are likely to be needed beyond the initial five - year period.

Consistent with statutory requirements, rates may only be adopted for a five- year term. As a result, projected rates for years six through ten are not presented, as they will be revisited and refined in future studies.

Nonetheless, the extended ten -year an alysis was performed to confirm that, based on current planning assumptions, the District can implement measured and stable rate adjustments over time while maintaining long- term financial sustainability.

Figure 5 – Projected Revenue vs. Expenses

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Detailed cash flow projections for the next five years are shown in the following table.

Table 6 – Detailed Cash Flow Projections

Water Cash Flow Projection FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Projected Demand Growth 1.0% 1.0% 1.0% 1.0% 1.0%
Rate Revenue Increases 4.0% 4.0% 4.0% 4.0% 4.0%
Beginning Reserve Balance $44,832,468 $41,671,504 $32,765,530 $28,617,478 $27,980,879 $25,661,111 Revenues
Rate Revenue
Current Rate Revenue 33,032,582$ 33,362,908$ 33,696,537$ 34,033,502$ 34,373,837$ 34,717,575$ Revenue from Rate Increases - 1,223,307 2,749,637 4,249,559 5,838,690 7,521,663 Total Revenue Required from Rates 33,032,582$ 34,586,214$ 36,446,174$ 38,283,061$ 40,212,527$ 42,239,239$ Non-Rate Revenue
Miscellaneous1 2,867,207$ 2,730,308$ 2,674,792$ 2,618,675$ 2,306,488$ 2,285,049$ Interest 2,048,091 948,360 745,678 651,277 636,789 583,996 Other Charges/Fees 2
3,562,400 4,368,338 5,836,650 5,162,302 5,209,130 5,257,181 Total Non-Rate Revenue 8,477,698$ 8,047,006$ 9,257,119$ 8,432,254$ 8,152,407$ 8,126,226$ Total Revenues 41,510,279$ 42,633,220$ 45,703,293$ 46,715,315$ 48,364,935$ 50,365,465$ Total Expenses
Operating Expenses
Total Operating Expenses 38,912,000$ 39,693,235$ 41,083,845$ 42,600,284$ 44,156,294$ 45,748,725$ Non-Operating Expenses
Rate Funded Capital 5,759,244 11,845,959 8,767,500 4,751,630 6,528,409 4,653,000 Total Expenses 44,671,244$ 51,539,194$ 49,851,345$ 47,351,914$ 50,684,703$ 50,401,725$ Revenues Less Expenses (3,160,965)$ (8,905,974)$ (4,148,052)$ (636,599)$ (2,319,768)$ (36,260)$ Ending Reserve Balance 41,671,504$ 32,765,530$ 28,617,478$ 27,980,879$ 25,661,111$ 25,624,852$ Reserve Fund Target 22,952,614 23,309,703 23,522,004 23,741,707 24,150,448 24,465,660

1. Miscellaneous revenue is primarily from a repayment by the City of Victorville's Sewer fund to the Water District and approximately $40,000 in other miscellaneous revenues.

2. Other Charges/Fees consists of revenue from various sources such as permit and plan check fees, penalty/late fees, meter installations, service calls, etc. Details for all sources of revenue can be found in the Appendix pages 4-6.

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4 COST OF SERVICE ANALYSIS AND RATE DERIVATION

4.1 Functional Cost Allocation

The first step in the cost -of-service analysis is to assign water system costs in each allocation category for revenue recovery to the cost components of readiness -to-serve and water supply. While there is no single correct approach for cost allocation, BWA’s experience has shown that costs should be allocated within a reasonable range that reflects both a) underlying cost causation, to the extent such causation can reasonably be determined or estimated, and b) the preferences of the agency in cases where a range of reasonable approaches can be justified. This process is intended to proportionately allocate costs to each functional component to determine the revenue requirement for that component. The allocations to each functional component were based on typical industry standards and input from District staff. Costs from the District’s budget organizations are allocated to the cost allocation categories and they are used to develop the proposed water rates. The cost allocation uses Fiscal Year 2026/27 as the base year.

The cost components are described as follows:
• Commodity reflects costs associated with the volume of water delivered to customers. • Capacity reflects fixed operating and capital costs related to system capacity. • Customer reflects costs associated with having customers connected to the water system such as meter reading, billing and customer service.
• Recycled reflects costs associated with the recycled water system. • Fire reflects costs associated with providing private fire protection.

The following table show s a breakdown of the utility’s expenses are allocated to the cost allocation categories, the number of units and measure used as the basis for allocating costs to components of the proposed rates and the unit cost for each cost component .

Table 7 –Revenue Requirement by Cost Allocation Category

Cost Allocation Category
FY 2026/27
Revenue
Requirement Units Units of Measure Unit Cost
Commodity $20,313,669 8,893,551 HCF of Domestic water use $2.28 Capacity 9,857,915 49,080 Equivalent Meters/month $16.74 Customer 3,642,758 38,711 Customers/month $7.84
Recycled 545,591 293,193 HCF of Recycled water use $1.86 Fire 226,281 48,362 Equivalent Meters/month $0.39
Total $34,586,214

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4.2 Customer Summary
The tables below summarizes the District’s current customer characteristics, including water consumption by class and customer count by meter size.

Table 8 –Water Consumption by Customer Class

Table 9 –Number of Customers by Meter Size and Customer Class

Customer Class FY 2026/27
Estimated1 % of Total
Single Family Residential 5,363,382 57.63%
Standard Domestic Water (Non SFR) 3,524,762 37.88%
Construction Flow Meter/Intertie 119,302 1.28%
Fire - 0.00%
Well (Untreated) Water 5,408 0.06%
Reclaimed/Recycled Water 293,193 3.15%
Total 9,306,046 100.00%

1. Any differences in water consumption by customer class compared to percentage of total are due to rounding.

Meter Size
Single
Family
Residential
All Other
Standard
Domestic
Well Recycled Fire Total
Meters
3/4'' 34,045 942 - - - 34,987 1'' 1,288 592 - - 21 1,901

1.5'' 2 497 - 2 - 501 2'' 1 520 1 1 8 531 3'' - 65 - 2 1 68 4'' - 45 - - 89 134 6'' - 22 - - 158 180 8'' - 25 2 - 330 357 10'' - 1 - - 45 46 12'' - - - 2 4 6 Total 35,336 2,709 3 7 656 38,711

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4.3 Rate Design Analysis

Fixed Meter Charges
The District charges all customer classes a fixed monthly charge based on meter size. The fixed meter charge has two components, a customer component that does not vary based on meter size, which is intended to reflect the cost of having customer connected the water system and a capacity component that reflects the capacity cost of each size meter connected to the water system and is proportional to the hydraulic capacity of each size meter that is reflected in a meter equivalent unit . Larger meters have higher system demands compared to smaller meters; therefore, the capacity component of the fixed charge is scaled based on meter size. To prov ide an example of this, a 4-inch meter has a greater capacity or potential demand than a 3/4-inch meter. Therefore, the capacity component of the fixed charge for a 4 -inch meter is higher than a 3 /4-inch meter based on their proportionate capacity requirements. A “meter equivalent unit” is calculated by dividing the maximum capacity of large meters by the capacity of the base meter size which is a 3/4-inch meter, the District’s most common residential meter size.

The hydraulic capacity factors for each meter size used in this study are based on standards established by the American Water Works Association. These factors were updated to reflect the hydraulic capacity of ultrasonic Neptune Technology Group meters, wh ich are the District’s current standard for new installations and replacement of existing customer meters. Currently, the District’s 3/4 -inch through 2 -inch meters consist of a combination of positive displacement and ultrasonic meters, while all 3-inch and larger meters are ultrasonic.

The number of meters by size is multiplied by the corresponding hydraulic capacity factor to calculate the total number of equivalent meters. The number of equivalent meters is used as a proxy for the potential demand that each customer can place on the water system which dictates the sizing of the system’s maximum capacity. A significant portion of a water system’s peak capacity and, in turn, the utility’s fixed operating and capital costs, are related to meeting system capacity requirements.

Fire service customers will still be subject to a different set of fixed charges than the other customer classes because fire service is more of a standby nature where a readiness-to-serve charge is more appropriate. Except in the event of a fire, these customers are not intended to use water on a regular basis. However, the District still needs to provide sufficient capacity for fire meters and recover other operating and maintenance costs for providing water to such properties for private fire service pro tection. Based on the cost- of-service analysis and the standby nature of fire meters, the overall cost to serve these users is less than that of a standard service; therefore, the fixed charges are less.

Table 10 shows the fixed monthly meter charges that were developed. The Customer and Capacity costs from Table 7 were used to calculate the charges for each size meter.

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Table 10 – Fixed Rate Derivation

Volumetric Charges
Currently, the District charges single -family residential customers a two -tier volumetric rate. All other customer groups are charged a uniform volumetric rate that varies by customer type, including other domestic water customers, recycled water customers , untreated well customers, construction flow meter s, and intertie connections. In this study, BWA worked with District staff and legal counsel and recommends adopting a uniform volumetric rate for all domestic water customers, while continuing to apply cu stomer-type-specific uniform volumetric rates to other customer groups, consistent with the District’s existing rate structure. The tables and descriptions that follow explain how these volumetric charges were developed.

The Domestic and Recycled water volumetric rate derivation was shown previously in Table 7 , but is restated in Table 1 1. These rates are calculated by taking the revenue requirement and dividing by the expected water consumption from Domestic and Recycled water customers for FY 2026/27.

Meter Size
Number of
Meters
3/4'' Meter
Equivalent
Total
Equivalent
Meters
Customer
Costs
($/Meter/
month)
Capacity
Costs
($/Meter/
month)
Total Fixed
Meter
Charge
($/Meter/
month)
Estimated
Revenue
from Fixed
Charges1
Formula for Calculation A B A x B C = $7.84 D = $16.74 x B E = C + D A x E x 12 Standard Meters
3/4 inch 34,987 1.00 34,987 $7.84 $16.74 $24.58 $10,319,766 1 inch 1,880 1.67 3,133 $7.84 $27.90 $35.74 806,294

1.5 inch 501 3.33 1,670 $7.84 $55.80 $63.64 382,604 2 inch 523 5.33 2,789 $7.84 $89.28 $97.12 609,525 3 inch 67 16.67 1,117 $7.84 $279.00 $286.84 230,619 4 inch 45 29.33 1,320 $7.84 $491.04 $498.88 269,395 6 inch 22 46.67 1,027 $7.84 $781.20 $789.04 208,307 8 inch 27 93.33 2,520 $7.84 $1,562.40 $1,570.24 508,758 10 inch 1 150.00 150 $7.84 $2,511.00 $2,518.84 30,226 12 inch 2 183.33 367 $7.84 $3,069.00 $3,076.84 73,844 Subtotal: Standard Meters 38,055 49,080 $13,439,338 Fire Meters
1 inch 21 1.67 35 $7.84 $0.65 $8.49 $2,139

1.5 inch - 3.33 - $7.84 $1.30 $9.14 0 2 inch 8 5.33 43 $7.84 $2.08 $9.92 952 3 inch 1 16.67 17 $7.84 $6.50 $14.34 172 4 inch 89 29.33 2,611 $7.84 $11.44 $19.28 20,591 6 inch 158 46.67 7,373 $7.84 $18.20 $26.04 49,372 8 inch 330 93.33 30,800 $7.84 $36.40 $44.24 175,190 10 inch 45 150.00 6,750 $7.84 $58.50 $66.34 35,824 12 inch 4 183.33 733 $7.84 $71.50 $79.34 3,808 Subtotal: Fire Meters 656 48,362 $288,049 Total Meters 38,711 97,441 $13,727,387

1. Slight deviation in dollar amount due to rounding.

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Table 11 – Domestic and Recycled Water Volumetric Rate Derivation Cost Allocation Category Revenue
Requirement
Estimated
Consumption
Volumetric
Rate
Commodity/Domestic Water Use $20,313,669 8,893,551 $2.28 Recycled Water 545,591 293,193 $1.86

Table 12 shows the volumetric rate derivation for customers that receive untreated well water. There are currently three meters connected to the wells that produce untreated water , two are at the Green Tree Golf Course and one is at Grady Trammel Park. Since these connections receive untreated water, only applicable costs are allocated to them which include : pumping power, personnel, maintenance and watermaster costs. These customers only pay a volumetric charge for water consumed since when the District took over operation of the three former City wells, these customers came to the system with water rights.

Table 12 – Untreated Water Rate Derivation

Table 13 shows the derivation of the volumetric rate for Construction/Flow meter customers and intertie connections. Because these customers use water on an irregular and unpredictable basis, they pay only a volumetric charge based on the amount used. This charge is set to the revenue requirement for water consumed by all customers divided by estimated water consumed by Construction/Flow meter customers to capture some of the monthly fixed charge costs not billed for these meters.

Average Annual Production 1
Water Production (in acre feet) 171.64
Biological/Administrative Fee $6.86
Watermaster Cost $1,177.45
Water Production (in gallons) 55,929,139
Water Production (in hcf) 74,766
Costs Allocated to Untreated Well Customers 1
Power - SCE $55,445
Personnel $36,500
Annual Maintenance $30,000
Watermaster Costs $1,177
Total Cost $123,123
Water Production (in hcf) 74,766
Proposed Rate ($/hcf) $1.65

1. Slight deviation in dollar amounts and units
due to rounding.
x
÷

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Table 13 – Construction/Flow and Intertie Volumetric Rate Derivation

4.4 Proposed Water Rates
The following table shows a schedule of current vs. proposed water rates for the next five years . The first rate adjustment will be effective on August 1, 2026 and all future rate adjustments will be effective July 1 in each year.

Table 14 – Proposed Water Rates

Average Cost of Water
Revenue Requirement $34,586,214
Estimated Water Consumption 8,893,551
Cost Per HCF $3.89
Current
FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 Fixed Service Charges
3/4 inch $25.81 $24.58 $25.56 $26.59 $27.65 $28.76
1 inch $39.48 $35.74 $37.17 $38.66 $40.20 $41.81

Tier 1 (1 - 6 hcf) $0.80
Tier 2 (7+ hcf) $2.44
Uniform Rate (all hcf) $2.28 $2.37 $2.47 $2.56 $2.67
All Other Customers:

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BWA developed drought surcharges as shown in Table 15 that the District can implement if needed, if it enters into various stages of drought. These surcharges are intended to be added to the volumetric rates for all customers except those receiving recycled water. These surcharge are intended to recove r the revenue that will be lost if water sales are reduced to the stated conservation targets.

Table 15 – Drought Surcharges

4.5 Customer Bill Impacts
The following figures present the monthly bill impacts for residential and commercial customers under existing rates and the proposed rates for FY 2026/27 at various usage levels, for the most common meter size in each customer class. Additional charts can be found in the Appendix for a more diverse range of customer classes and consumption levels.

Figure 6 – Single-Family Residential Water Bill Comparison

Drought Stages FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 10% Conservation $0.06 $0.07 $0.07 $0.08 $0.08
20% Conservation $0.11 $0.13 $0.13 $0.13 $0.13
30% Conservation $0.11 $0.13 $0.13 $0.14 $0.14
40% Conservation $0.22 $0.23 $0.23 $0.23 $0.24
50% Conservation $0.66 $0.68 $0.68 $0.68 $0.67

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Figure 7 – Multi-Family Residential Water Bill Comparison

Figure 8 – Commercial Water Bill Comparison

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4.1 Regional Water Rate Survey
The following figure compares the monthly water bills for a typical single -family residential home to those of other regional agencies. Currently, the District’s cost of proving water to a typical single-family residential home is the lowest in the region and with the rate ad justments proposed in this study, it will remain lower than all but one other agency. The proposed bill amount shown is for FY 2026/27.

Figure 9 – Single-Family Residential Regional Water Bill Comparison (Average Monthly Water Use 12 HCF)

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5 APPENDIX

The following pages contain the detailed tables and charts from the Water Rate Study

Table 1
Victorville Water District
Current Water Rates
Current Monthly Water Rates FYE 2025 FYE 2026
Periodic Availability Charge
3/4'' $22.96 $25.81
1'' 35.12 39.48

1.5'' 65.51 73.66
2'' 101.99 114.67
3'' 199.26 224.03
4'' 308.69 347.06
6'' 612.67 688.81
8'' 1,706.99 1,919.12
>8'' 2,558.12 2,876.03
Consumptive Rates (per hcf)
Single-Family Residents (SFR):

Tier 1 (1 - 6 hcf) $0.81 $0.80
Tier 2 (7+ hcf) 2.44 2.44
All Other Customers:

Standard Domestic Water (Non SFR) 2.47 2.42 Construction Flow Meter/Intertie/Fire 3.89 4.01 Well (Untreated) Water 0.84 0.82
Reclaimed/Recycled Water 1.48 1.45
Fire Period Availability Charge
3/4'' $4.72 $5.30
1'' 5.83 6.45

1.5'' 6.93 7.59
2'' 8.26 8.96
3'' 12.47 13.30
4'' 20.22 21.30
6'' 40.16 41.86
8'' 66.74 69.28
>8'' 102.18 105.84

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Table 2
Victorville Water District
Customer Water Usage
Annual Water Usage
1 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Total Single-Family Residential
Tier 1 187,693 191,058 192,113 188,995 188,231 183,220 188,770 179,190 175,511 181,782 190,009 188,298 2,234,870 Tier 2 321,242 386,517 386,878 308,073 268,678 182,509 216,223 139,056 122,223 158,608 263,833 268,992 3,022,832 Subtotal: Single Family Residential 508,935 577,575 578,991 497,068 456,909 365,729 404,993 318,246 297,734 340,390 453,842 457,290 5,257,702 All Other Customers
Standard Domestic Water (Non SFR):

Multi-Residential 77,376 85,074 88,421 71,779 74,512 60,358 63,806 51,019 51,095 55,379 71,344 67,126 817,289 Commercial 109,433 114,260 128,735 103,892 97,024 86,062 99,677 89,540 71,740 84,099 105,773 98,491 1,188,726 Institutional 95,538 105,728 113,561 77,067 71,572 52,904 58,018 49,511 39,239 49,880 80,821 81,873 875,712 Irrigation 20,379 20,459 23,117 24,005 19,513 13,237 12,856 7,837 8,330 11,360 16,082 19,386 196,561 Institutional Irrigation 56,024 61,915 57,055 38,475 27,768 15,203 12,450 8,046 9,548 15,184 33,881 41,473 377,022 Subtotal: Standard Domestic Water (Non-SFR) 358,750 387,436 410,889 315,218 290,389 227,764 246,807 205,953 179,952 215,902 307,901 308,349 3,455,310 Construction Flow Meter/Intertie/Fire:

Flow Meter 8,358 9,927 12,183 17,715 19,680 10,929 4,126 4,693 4,894 1,452 2,999 14,750 111,706 Institutional Flow Meter 183 161 303 183 276 863 179 1,008 761 77 137 173 4,304 Fire 233 280 400 247 199 233 315 284 235 235 335 223 3,219 Institutional Fire 12 13 13 11 10 8 7 7 6 6 8 4 105 Institutional Intertie - - - 1 - 16 32 199 - 317 255 121 941 Subtotal: Construction Flow Meter/Intertie/Fire 8,786 10,381 12,899 18,157 20,165 12,049 4,659 6,191 5,896 2,087 3,734 15,271 120,275 Well (Untreated) Water:

Well - - - - - - - - - - - - - Institutional Well 934 1,044 989 489 376 267 - 131 124 11 327 609 5,301 Subtotal: Well (Untreated)Water 934 1,044 989 489 376 267 - 131 124 11 327 609 5,301 Reclaimed/Recycled Water: -
Recycled 47,203 48,057 34,621 35,424 13,873 30,061 30,157 14,037 331 328 1,847 15,060 270,999 Institutional Recycled 3,917 2,019 2,505 1,217 819 403 479 304 297 629 1,722 2,106 16,417 Subtotal: Reclaimed/Recycled Water 51,120 50,076 37,126 36,641 14,692 30,464 30,636 14,341 628 957 3,569 17,166 287,416 Total Water Usage: 928,525 1,026,512 1,040,894 867,573 782,531 636,273 687,095 544,862 484,334 559,347 769,373 798,685 9,126,004 1 Displays annual water usage for FY 2025.

Meter Source: "VWD Meter Counts-Charges 2026" & Usage Source: "Jan-Nov 2025 Water Billing data"

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Table 3
Victorville Water District
Current Customers by Meter Size and Type
Total Customers by
Meter Size
1 Single- Family
Multi-
Family Commercial Institutional Irrigation Flow Fire Intertie Recycled Well Total 3/4'' 34,045 476 363 49 54 4 - 34,991 1'' 1,288 138 322 34 98 21 1,901

1.5'' 2 54 256 34 153 - 2 501 2'' 1 43 307 60 110 8 1 1 531 3'' 13 25 19 8 47 1 2 115 4'' 8 15 19 3 89 134 6'' 13 6 3 158 2 182 8'' 8 3 6 8 330 1 2 358 10'' 1 45 46
12'' 4 2 6
Total 35,336 753 1,297 225 434 51 656 3 7 3 38,765 1 Meter data is based on file name: NEW Water Meter and Service Data for Rate Adj for all meters except Fire.

2. Fire meter data is per Fire Services.xlsx, provided by District via email 4/22/26.

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Table 4
Victorville Water District
Revenues
Escalation Factors FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Customer Growth 1.00% 1.00% 1.00% 1.00% 1.00%
Plan Check Fee 3.00% 3.00% 3.00% 3.00% 3.00%
Operating Cost Recovery 3.00% 3.00% 3.00% 3.00% 3.00%
Other 0.00% 0.00% 0.00% 0.00% 0.00%
None 0.00% 0.00% 0.00% 0.00% 0.00%
Revenue Escalation Factor Category FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Budgeted Budgeted Projected Projected Projected Projected 4100010 - WATER - GENERAL
41280 - WATER PERMIT Customer Growth Other Charges/Fees $450,000 $350,000 $353,500 $357,035 $360,605 $364,211 42150 - PENALTY/LATE FEE Customer Growth Other Charges/Fees 720,000 804,000 812,040 820,160 828,362 836,646 44300 - PLAN CHECK FEES Plan Check Fee Other Charges/Fees 79,880 80,000 82,400 84,872 87,418 90,041 44830 - WATER SALES-RESIDENTIAL Customer Growth Rate Revenue 12,607,200 13,242,603 13,910,030 14,611,096 15,347,495 16,121,009 44840 - WATER SALES-OTHER Customer Growth Rate Revenue 1,393,240 1,463,459 1,537,218 1,614,693 1,696,074 1,781,556 44850 - WATER SALES-BUSINESS Customer Growth Rate Revenue 5,889,940 6,186,793 6,498,607 6,826,137 7,170,174 7,531,551 44860 - WATER - METERED SERVICE Customer Growth Rate Revenue 13,311,000 13,981,874 14,686,561 15,426,764 16,204,272 17,020,968 44880 - WATER - FIRE SERVICE Customer Growth Rate Revenue 440,188 462,373 485,677 510,155 535,867 562,874 44890 - WATER - SERVICE FEES Customer Growth Rate Revenue 540,000 567,216 595,804 625,832 657,374 690,506 44900 - METER INSTALLATION FEES Customer Growth Other Charges/Fees 658,920 1,000,000 1,010,000 1,020,100 1,030,301 1,040,604 44910 - SERVICE CALL FEES Customer Growth Other Charges/Fees 513,600 480,000 484,800 489,648 494,544 499,490 44940 - WATER STANDBY FEES None Other Charges/Fees 95,000 95,000 95,000 95,000 95,000 95,000 47320 - SCRAP/RECYCLABLE MATERIALS None Miscellaneous 10,000 10,000 10,000 10,000 10,000 10,000 47400 - MISCELLANEOUS REVENUE None Miscellaneous 30,000 5,000 5,000 5,000 5,000 5,000 Subtotal 4100010: 36,738,968 38,728,319 40,566,636 42,496,492 44,522,488 46,649,456 4100020 - WATER-NON-OPERATING
45110 - INTEREST INCOME Other Interest 1,959,096
45200 - LEASE OCCUPANCY Other Miscellaneous 1 1 1 1 1 1 47100 - PASS THROUGH Other Other Charges/Fees 710,000 800,000 800,000 800,000 800,000 800,000 47105 - HDPP PASS THROUGH Other Other Charges/Fees 1,285,466 1,285,466 1,285,466 1,285,466 1,285,466 1,285,466 47400 - MISCELLANEOUS REVENUE Other Miscellaneous 30,000 4,999 4,999 4,999 4,999 4,999 52380 - PASS THRU AGREEMENTS Other Other Charges/Fees (1,285,466) (1,285,466) (1,285,466) (1,285,466) (1,285,466) (1,285,466) 54010 - TRANSFERS OUT Other Miscellaneous - - - - - - 55010 - LAND Other Miscellaneous - - - - - - Subtotal 4100020: 2,699,097 805,000 805,000 805,000 805,000 805,000 4100021 - WATER CONNECTION FEE
44920 - CONNECTION FEES Customer Growth Development Charges - - - - - - 45110 - INTEREST INCOME Other Interest - - - - - - Subtotal 4100021: - - - - - - calculated based on fund balance

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OTHER REVENUE
Sewer Fund Principal Repayment None Miscellaneous 1,838,110 1,863,140 1,888,670 1,914,711 1,941,273 1,968,366 Sewer Fund Interest Repayment None Miscellaneous 959,096 847,168 766,122 683,964 345,215 296,683 Standby Assessment Revenue None Other Charges/Fees 95,000 95,000 95,000 95,000 Property Tax Revenue None Other Charges/Fees - - 1,440,000 720,000 720,000 720,000 Subtotal Other Revenue: 2,797,206 2,710,308 4,189,792 3,413,675 3,101,488 3,080,049 Total Revenues 43,307,756 43,057,403 46,375,204 47,528,944 49,242,752 51,348,281 Summary of Rate Revenues FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Water Sales 19,890,380 20,892,855 21,945,855 23,051,926 24,213,743 25,434,116 Fixed Charges 14,291,188 15,011,464 15,768,041 16,562,751 17,397,513 18,274,348 Total Rate Revenues 34,181,568 35,904,319 37,713,896 39,614,677 41,611,257 43,708,464 calculated based

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Table 5
Victorville Water District
Operating Expenses
Operating Expenses Escalation Factor FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Budgeted Budgeted Projected Projected Projected Projected 4100030 - WATER-ADMINISTRATION
51100 - FULL TIME WAGES Labor $1,010,802 $1,029,241 $1,070,411 $1,113,227 $1,157,756 $1,204,067 51110 - OVERTIME WAGES Labor 4,000 4,160 4,326 4,499 4,679 4,867 51120 - PART TIME WAGES Labor - - - - - - 51160 - XREG Labor - - - - - - 51200 - FRINGE BENEFITS-FT Labor 409,261 426,428 443,485 461,224 479,673 498,860 51201 - FRINGE BENEFITS-PT Labor - - - - - - 51220 - RETIREE EXPENSE Labor 254,685 261,882 272,357 283,251 294,582 306,365 51230 - GASB68 PENSION EXPENSE Labor - - - - - - 51300 - PAYROLL TAXES Labor 25,939 26,246 27,295 28,387 29,523 30,704 51301 - PAYROLL TAXES - PT Labor - - - - - - 52010 - UTILITIES-ELECTRICITY Utilities - Electric/Natural Gas/Sanitation 30,000 30,600 32,130 33,737 35,423 37,194 52020 - UTILITIES-WATER USAGE Utilities - Electric/Natural Gas/Sanitation 2,000 2,090 2,195 2,304 2,419 2,540 52030 - UTILITIES-NATURAL GAS Utilities - Electric/Natural Gas/Sanitation 2,500 2,575 2,704 2,839 2,981 3,130 52040 - UTILITIES-SANITATION Utilities - Electric/Natural Gas/Sanitation - - - - - - 52060 - TELEPHONE General 20,000 22,180 22,845 23,531 24,237 24,964
52110 - SUPPLIES General 7,535 8,692 8,953 9,221 9,498 9,783 52130 - SUBS /PUBLICATIONS / DUES General 9,678 9,830 10,125 10,429 10,742 11,064 52140 - TRAINING AND EDUCATION General 18,779 28,874 29,740 30,632 31,551 32,498 52150 - TRAVEL & MEETINGS General - Travel & Meetings 15,360 37,700 39,020 40,385 41,799 43,262 52160 - MARKETING & PROMOTION General - - - - - - 52165 - CITY OUTREACH EVENTS General 5,000 5,000 5,150 5,305 5,464 5,628 52170 - ADVERTISING/LEGAL NOTICES General 4,000 4,000 4,120 4,244 4,371 4,502 52180 - RECRUITMENT EXPENDITURES General 1,500 1,500 1,545 1,591 1,639 1,688 52190 - DOT/PHYSICAL TEST General - - - - - - 52201 - VEHICLE FUEL Fuel 12,500 12,500 13,125 13,781 14,470 15,194 52220 - EQUIPMENT EXPENSE General 11,000 - - - - 52230 - VEHICLE EXPENSE General 2,707 3,000 3,090 3,183 3,278 3,377 52240 - SMALL TOOLS & FURNITURE <$5000 General 1,000 5,000 1,000 1,030 1,061 1,093 52260 - COMPUTER EQUIPMENT <$5000 General - 1,500 1,545 1,591 1,639 1,688 52300 - CONTRACT SERVICES General 717,207 503,316 518,415 533,968 549,987 566,487 52340 - INSURANCE General 1,534,633 1,736,632 1,788,731 1,842,393 1,897,665 1,954,595 52350 - LEGAL General 125,000 125,000 128,750 132,613 136,591 140,689 52360 - FEDERAL/STATE /LOCAL FEES General 190,081 190,081 195,784 201,657 207,707 213,938 52410 - BUILDING MAINTENANCE General 2,000 2,000 2,060 2,122 2,185 2,251 52450 - VANDALISM/ACCIDENTS General - - - - - - 52460 - DEPRECIATION EXPENSE None - - - - - - 54020 - COST ALLOCATIONS PAID General 2,756,194 2,838,880 2,924,046 3,011,768 3,102,121 3,195,184 Anticipated Staff Increases Labor - - 183,872 191,227 198,876 206,831 Subtotal 4100030: 7,173,361 7,318,907 7,736,819 7,990,140 8,251,917 8,522,440

Page 7 of 59 ends

Table 5
Victorville Water District
Operating Expenses
Operating Expenses Escalation Factor FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Budgeted Budgeted Projected Projected Projected Projected 4100030E - WATER ADMINISTRATION EDD
51110 - OVERTIME WAGES Labor 525 650 676 703 731 760 51120 - PART TIME WAGES Labor - - - - - - 51201 - FRINGE BENEFITS-PT Labor - - - - - - 51300 - PAYROLL TAXES Labor - - - - - - 51301 - PAYROLL TAXES - PT Labor - - - - - - 52060 - TELEPHONE General 250 375 386 398 410 422 52110 - SUPPLIES General 525 550 567 583 601 619 52130 - SUBS /PUBLICATIONS / DUES General 2,375 2,425 2,498 2,573 2,650 2,729 52140 - TRAINING AND EDUCATION General 1,375 1,025 1,056 1,087 1,120 1,154 52150 - TRAVEL & MEETINGS General - Travel & Meetings 11,775 11,313 11,708 12,118 12,542 12,981 52160 - MARKETING & PROMOTION General 30,650 32,963 33,951 34,970 36,019 37,100 52165 - CITY OUTREACH EVENTS General 1,250 8,750 9,013 9,283 9,561 9,848 52170 - ADVERTISING/LEGAL NOTICES General 5,775 6,725 6,927 7,135 7,349 7,569 52180 - RECRUITMENT EXPENDITURES General 200 250 258 265 273 281 52201 - VEHICLE FUEL Fuel 375 500 525 551 579 608 52220 - EQUIPMENT EXPENSE General 375 - - - - - 52230 - VEHICLE EXPENSE General 500 500 515 530 546 563 52300 - CONTRACT SERVICES General 6,550 45,750 35,500 36,565 37,662 38,792 52340 - INSURANCE General - - - - - - 54010 - TRANSFERS OUT General - - - - - - Subtotal 4100030E: 62,500 111,775 103,579 106,762 110,043 113,426

Page 8 of 59 ends

Table 5
Victorville Water District
Operating Expenses
Operating Expenses Escalation Factor FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Budgeted Budgeted Projected Projected Projected Projected 4100500 - WATER-SUPPLY
51100 - FULL TIME WAGES Labor 1,352,686 1,405,832 1,462,065 1,520,548 1,581,370 1,644,624 51110 - OVERTIME WAGES Labor 90,500 98,800 102,752 106,862 111,137 115,582 51150 - STANDBY WAGES Labor 31,288 16,270 16,921 17,597 18,301 19,033 51160 - XREG Labor - - - - - - 51200 - FRINGE BENEFITS-FT Labor 649,620 679,955 707,154 735,440 764,857 795,452 51220 - RETIREE EXPENSE Labor - - - - - - 51230 - GASB68 PENSION EXPENSE Labor - - - - - - 51300 - PAYROLL TAXES Labor 34,742 35,849 37,283 38,774 40,325 41,938 52050 - UTILITIES-PRODUCTION POWER Utilities - Production Power 3,600,000 3,708,000 3,986,100 4,285,058 4,606,437 4,951,920 52060 - TELEPHONE General 22,512 25,000 25,750 26,523 27,318 28,138 52110 - SUPPLIES General 427,825 422,999 435,689 448,760 462,222 476,089 52130 - SUBS /PUBLICATIONS / DUES General - 390 402 414 426 439 52140 - TRAINING AND EDUCATION General 18,093 17,554 18,081 18,623 19,182 19,757 52150 - TRAVEL & MEETINGS General - Travel & Meetings 16,900 15,700 16,250 16,818 17,407 18,016 52165 - CITY OUTREACH EVENTS General 1,450 1,500 1,545 1,591 1,639 1,688 52190 - DOT/PHYSICAL TEST General 700 700 721 743 765 788 52201 - VEHICLE FUEL Fuel 100,000 100,000 105,000 110,250 115,763 121,551 52220 - EQUIPMENT EXPENSE General 40,000 20,000 20,600 21,218 21,855 22,510 52230 - VEHICLE EXPENSE General 50,000 60,000 61,800 63,654 65,564 67,531 52240 - SMALL TOOLS & FURNITURE <$5000 General 24,500 15,000 15,450 15,914 16,391 16,883 52300 - CONTRACT SERVICES General 2,642,334 2,683,516 2,764,021 2,846,942 2,932,350 3,020,321 52340 - INSURANCE General 4,236 3,001 3,091 3,184 3,279 3,378 52360 - FEDERAL/STATE /LOCAL FEES General 16,675 16,675 17,175 17,691 18,221 18,768 52420 - GROUNDS MAINTENANCE General 55,439 55,439 57,102 58,815 60,580 62,397 52440 - INFRASTRUCTURE REPAIRS General 200,640 185,640 191,209 196,945 202,854 208,939 52460 - DEPRECIATION EXPENSE None - - - - - - 53030 - PURCHASED WATER R-Cubed Water 832,000 832,000 869,440 908,565 949,450 992,175 53040 - GROUNDWATER ASSESSMENT Admin & Bio Assessment 198,240 198,240 218,278 240,342 264,636 291,385 53050 - GROUNDWATER REPLENISHMENT Groundwater Replenis hment & Makeup Obligation 6,419,049 6,688,500 6,956,040 7,234,282 7,523,653 7,824,599 Subtotal 4100500: 16,829,429 17,286,560 18,089,918 18,935,550 19,825,981 20,763,900

Page 9 of 59 ends

Table 5
Victorville Water District
Operating Expenses
Operating Expenses Escalation Factor FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Budgeted Budgeted Projected Projected Projected Projected 4100505 - WATER- SCADA
51100 - FULL TIME WAGES Labor 419,382 445,368 463,183 481,710 500,978 521,018 51110 - OVERTIME WAGES Labor 25,000 36,400 37,856 39,370 40,945 42,583 51160 - XREG Labor - - - - - - 51200 - FRINGE BENEFITS-FT Labor 179,500 192,787 200,499 208,519 216,860 225,534 51220 - RETIREE EXPENSE Labor - - - - - - 51230 - GASB68 PENSION EXPENSE Labor - - - - - - 51300 - PAYROLL TAXES Labor 10,720 11,357 11,811 12,284 12,775 13,286 52060 - TELEPHONE General 4,986 4,500 4,635 4,774 4,917 5,065 52110 - SUPPLIES General 11,510 11,000 11,330 11,670 12,020 12,381 52130 - SUBS /PUBLICATIONS / DUES General - 360 371 382 393 405 52140 - TRAINING AND EDUCATION General 14,238 13,758 14,171 14,596 15,034 15,485 52150 - TRAVEL & MEETINGS General - Travel & Meetings 11,200 12,800 13,248 13,712 14,192 14,688 52190 - DOT/PHYSICAL TEST General 500 500 515 530 546 563 52201 - VEHICLE FUEL Fuel 17,000 17,000 17,850 18,743 19,680 20,664 52230 - VEHICLE EXPENSE General 19,500 13,000 13,390 13,792 14,205 14,632 52240 - SMALL TOOLS & FURNITURE <$5000 General 18,000 12,000 12,360 12,731 13,113 13,506 52260 - COMPUTER EQUIPMENT <$5000 General 15,000 8,000 8,240 8,487 8,742 9,004 52300 - CONTRACT SERVICES General 84,000 329,500 86,520 89,116 91,789 94,543 52340 - INSURANCE General 4,236 - - - - - 52440 - INFRASTRUCTURE REPAIRS General 50,000 50,000 51,500 53,045 54,636 56,275 52460 - DEPRECIATION EXPENSE None - - - - - - 54060 - PRIOR YEAR ADJUSTMENT None - - - - - - Subtotal 4100505: 884,772 1,158,330 947,478 983,459 1,020,825 1,059,630 4100510 - WATER-HD POWER PLANT
47230 - REIMBURSEMENTS - OTHER HDPP Reimbursement (1,085,587) (1,039,673) (1,224,675) (1,443,090) (1,701,036) (2,005,762) 51100 - FULL TIME WAGES Labor 55,000 57,200 59,488 61,868 64,342 66,916 51110 - OVERTIME WAGES Labor 50,000 52,000 54,080 56,243 58,493 60,833 51150 - STANDBY WAGES Labor 15,700 16,270 16,920 17,597 18,301 19,033 51160 - XREG Labor - - - - - - 51200 - FRINGE BENEFITS-FT Labor 7,125 5,720 5,949 6,187 6,434 6,692 51300 - PAYROLL TAXES Labor 1,400 1,352 1,406 1,462 1,521 1,582 52050 - UTILITIES-PRODUCTION POWER Utilities - Production Power 539,328 550,115 591,373 635,726 683,406 734,661 52110 - SUPPLIES General 31,000 31,000 31,930 32,888 33,875 34,891 52300 - CONTRACT SERVICES General 193,200 203,200 209,296 215,575 222,042 228,703 52360 - FEDERAL/STATE /LOCAL FEES General 521 521 537 553 569 586 52420 - GROUNDS MAINTENANCE General 6,000 6,000 6,180 6,365 6,556 6,753 52440 - INFRASTRUCTURE REPAIRS General 70,000 10,000 10,300 10,609 10,927 11,255 53030 - PURCHASED WATER General - - - - - - Subtotal 4100510: (116,313) (106,296) (237,216) (398,017) (594,570) (833,858) HDPP Expense total 969,274 933,377 987,459 1,045,073 1,106,467 1,171,905 HDPP Expense % Change -3.7% 5.8% 5.8% 5.9% 5.9%

Page 10 of 59 ends

Table 5
Victorville Water District
Operating Expenses
Operating Expenses Escalation Factor FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Budgeted Budgeted Projected Projected Projected Projected 4100525 - WATER EFFICIENCY
51100 - FULL TIME WAGES Labor 385,783 331,801 345,073 358,876 373,231 388,160 51110 - OVERTIME WAGES Labor 15,000 15,600 16,224 16,873 17,548 18,250 51160 - XREG Labor - - - - - - 51200 - FRINGE BENEFITS-FT Labor 180,626 130,966 136,204 141,652 147,318 153,211 51201 - FRINGE BENEFITS-PT Labor - - - - - - 51220 - RETIREE EXPENSE Labor - - - - - - 51230 - GASB68 PENSION EXPENSE Labor - - - - - - 51300 - PAYROLL TAXES Labor 10,441 8,461 8,799 9,151 9,517 9,898 52010 - UTILITIES-ELECTRICITY Utilities - Electric/Natural Gas/Sanitation - - - - - - 52020 - UTILITIES-WATER USAGE Utilities - Electric/Natural Gas/Sanitation - - - - - - 52030 - UTILITIES-NATURAL GAS Utilities - Electric/Natural Gas/Sanitation - - - - - - 52060 - TELEPHONE General 2,772 3,465 3,569 3,676 3,786 3,900 52110 - SUPPLIES General 27,897 27,897 28,734 29,596 30,484 31,399 52130 - SUBS /PUBLICATIONS / DUES General 6,000 9,000 9,270 9,548 9,835 10,130 52140 - TRAINING AND EDUCATION General 5,575 7,100 7,313 7,532 7,758 7,991 52150 - TRAVEL & MEETINGS General - Travel & Meetings 10,680 8,400 8,694 8,998 9,313 9,639 52160 - MARKETING & PROMOTION General 155,000 132,500 136,475 140,569 144,786 149,130 52165 - CITY OUTREACH EVENTS General 30,000 30,000 30,900 31,827 32,782 33,765 52190 - DOT/PHYSICAL TEST General 600 - - - - - 52201 - VEHICLE FUEL Fuel 10,000 10,000 10,500 11,025 11,576 12,155 52230 - VEHICLE EXPENSE General 5,000 5,000 5,150 5,305 5,464 5,628 52240 - SMALL TOOLS & FURNITURE <$5000 General 3,500 3,500 3,605 3,713 3,825 3,939 52260 - COMPUTER EQUIPMENT <$5000 General 3,067 - - - - - 52300 - CONTRACT SERVICES General 225,400 228,000 234,840 241,885 249,142 256,616 52340 - INSURANCE General 16,944 9,003 9,273 9,551 9,838 10,133 52460 - DEPRECIATION EXPENSE None - - - - - - 54060 - PRIOR YEAR ADJUSTMENT None - - - - - - Subtotal 4100525: 1,094,284 960,693 994,624 1,029,779 1,066,203 1,103,944

Page 11 of 59 ends

Table 5
Victorville Water District
Operating Expenses
Operating Expenses Escalation Factor FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Budgeted Budgeted Projected Projected Projected Projected 4100530 - WATER-METER SVCS
51100 - FULL TIME WAGES Labor 861,548 749,183 779,150 810,316 842,729 876,438 51110 - OVERTIME WAGES Labor 25,000 31,200 32,448 33,746 35,096 36,500 51150 - STANDBY WAGES Labor 4,000 16,270 16,921 17,597 18,301 19,033 51160 - XREG Labor - - - - - - 51200 - FRINGE BENEFITS-FT Labor 415,931 362,880 377,396 392,492 408,191 424,519 51220 - RETIREE EXPENSE Labor - - - - - - 51230 - GASB68 PENSION EXPENSE Labor - - - - - - 51300 - PAYROLL TAXES Labor 22,059 19,104 19,868 20,663 21,490 22,349 52020 - UTILITIES-WATER USAGE Utilities - Electric/Natural Gas/Sanitation 91 112 118 123 130 136 52060 - TELEPHONE General 27,400 25,000 25,750 26,523 27,318 28,138 52110 - SUPPLIES General 9,000 9,800 10,094 10,397 10,709 11,030 52140 - TRAINING AND EDUCATION General 12,155 9,550 9,837 10,132 10,436 10,749 52150 - TRAVEL & MEETINGS General - Travel & Meetings 11,852 7,806 8,079 8,362 8,655 8,958 52201 - VEHICLE FUEL Fuel 35,000 30,000 31,500 33,075 34,729 36,465 52220 - EQUIPMENT EXPENSE General 750 750 773 796 820 844 52230 - VEHICLE EXPENSE General 18,000 14,000 14,420 14,853 15,298 15,757 52240 - SMALL TOOLS & FURNITURE <$5000 General 4,500 4,500 4,635 4,774 4,917 5,065 52260 - COMPUTER EQUIPMENT <$5000 General 2,000 2,000 2,060 2,122 2,185 2,251 52300 - CONTRACT SERVICES General 149,415 117,200 120,716 124,337 128,068 131,910 52340 - INSURANCE General - 9,003 9,273 9,551 9,838 10,133 52440 - INFRASTRUCTURE REPAIRS General 50,000 50,000 51,500 53,045 54,636 56,275 52445 - METER SVC INSTALLATION General 150,000 150,000 154,500 159,135 163,909 168,826 52446 - METER SVC CHANGEOUTS General 600,000 600,000 618,000 636,540 655,636 675,305 52460 - DEPRECIATION EXPENSE None - - - - - - 54060 - PRIOR YEAR ADJUSTMENT None - - - - - - 2,398,700 2,208,358 2,287,037 2,368,578 2,453,089 2,540,681

Page 12 of 59 ends

Table 5
Victorville Water District
Operating Expenses
Operating Expenses Escalation Factor FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Budgeted Budgeted Projected Projected Projected Projected 4100535 - WATER-FIELD SVCS
51100 - FULL TIME WAGES Labor 1,355,615 1,573,787 1,636,738 1,702,208 1,770,296 1,841,108 51110 - OVERTIME WAGES Labor 70,000 72,800 75,712 78,740 81,890 85,166 51150 - STANDBY WAGES Labor 16,000 33,476 34,815 36,207 37,655 39,162 51160 - XREG Labor - - - - - - 51200 - FRINGE BENEFITS-FT Labor 648,995 771,733 802,603 834,707 868,095 902,819 51220 - RETIREE EXPENSE Labor - - - - - - 51230 - GASB68 PENSION EXPENSE Labor - - - - - - 51300 - PAYROLL TAXES Labor 34,851 44,326 46,099 47,943 49,860 51,855 52003 - GASB96-CONTRA-EXP-OP Labor - - - - - - 52060 - TELEPHONE General 12,450 15,000 15,450 15,914 16,391 16,883 52110 - SUPPLIES General 38,950 40,775 41,998 43,258 44,556 45,893 52140 - TRAINING AND EDUCATION General 25,200 22,500 23,175 23,870 24,586 25,324 52150 - TRAVEL & MEETINGS General - Travel & Meetings 6,750 6,750 6,986 7,231 7,484 7,746 52190 - DOT/PHYSICAL TEST General 2,000 2,000 2,060 2,122 2,185 2,251 52201 - VEHICLE FUEL Fuel 125,000 125,000 131,250 137,813 144,703 151,938 52220 - EQUIPMENT EXPENSE General 65,000 80,000 82,400 84,872 87,418 90,041 52230 - VEHICLE EXPENSE General 25,000 25,000 25,750 26,523 27,318 28,138 52240 - SMALL TOOLS & FURNITURE <$5000 General 22,000 22,000 22,660 23,340 24,040 24,761 52260 - COMPUTER EQUIPMENT <$5000 General 3,000 3,000 3,090 3,183 3,278 3,377 52300 - CONTRACT SERVICES General 109,219 112,219 115,585 119,053 122,625 126,303 52340 - INSURANCE General 12,708 9,003 9,273 9,551 9,838 10,133 52420 - GROUNDS MAINTENANCE General - - - - - - 52440 - INFRASTRUCTURE REPAIRS General 560,000 570,000 587,100 604,713 622,854 641,540 52460 - DEPRECIATION EXPENSE None - - - - - - 52465 - GASB87/96 AMORTIZATION None - - - - - - 54051 - INVENTORY-WRITE-OFFS None - - - - - - 54060 - PRIOR YEAR ADJUSTMENT None - - - - - - 54160 - GASB 87/96 INTEREST EXPENSE None - - - - - - Subtotal 4100535: 3,132,738 3,529,368 3,662,744 3,801,246 3,945,074 4,094,436

Page 13 of 59 ends

Table 5
Victorville Water District
Operating Expenses
Operating Expenses Escalation Factor FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Budgeted Budgeted Projected Projected Projected Projected 4100540 - WATER - WID 2
52010 - UTILITIES-ELECTRICITY Utilities - Electric/Natural Gas/Sanitation 10,176 10,380 10,899 11,444 12,016 12,617 52020 - UTILITIES-WATER USAGE Utilities - Electric/Natural Gas/Sanitation 2,652 2,772 2,911 3,056 3,209 3,369 52030 - UTILITIES-NATURAL GAS Utilities - Electric/Natural Gas/Sanitation - - - - - - 52040 - UTILITIES-SANITATION Utilities - Electric/Natural Gas/Sanitation 6,719 6,700 7,035 7,387 7,756 8,144 52060 - TELEPHONE General - - - - - - 52110 - SUPPLIES General 500 500 515 530 546 563 52112 - SUPPLIES - SANITARY General 500 500 515 530 546 563 52140 - TRAINING AND EDUCATION General - - - - - - 52201 - VEHICLE FUEL Fuel - - - - - - 52230 - VEHICLE EXPENSE General - - - - - - 52240 - SMALL TOOLS & FURNITURE <$5000 General 37,360 40,000 41,200 42,436 43,709 45,020 52300 - CONTRACT SERVICES General - - - - - - 52410 - BUILDING MAINTENANCE General 19,080 29,500 30,385 31,297 32,235 33,203 52415 - BUILDING - DEMOLITION General - - - - - 74513 - DEMO OF OLD BALDY MESA OFFICE BLDNG General - - - - - - 52440 - INFRASTRUCTURE REPAIRS General - - - - - - 74513 - DEMO OF OLD BALDY MESA OFFICE BLDNG General 60,000 - - - - - Subtotal 4100540: 136,987 90,352 93,460 96,680 100,018 103,479 4100541 - WATER - WID 1
51100 - FULL TIME WAGES Labor 138,949 144,775 150,566 156,589 162,852 169,366 51110 - OVERTIME WAGES Labor - - - - - - 51160 - XREG Labor - - - - - - 51200 - FRINGE BENEFITS-FT Labor 75,699 73,436 76,373 79,428 82,605 85,909 51300 - PAYROLL TAXES Labor 3,543 3,692 3,839 3,993 4,153 4,319 52010 - UTILITIES-ELECTRICITY Utilities - Electric/Natural Gas/Sanitation 29,000 26,000 27,300 28,665 30,098 31,603 52020 - UTILITIES-WATER USAGE Utilities - Electric/Natural Gas/Sanitation 4,450 5,000 5,250 5,513 5,788 6,078 52030 - UTILITIES-NATURAL GAS Utilities - Electric/Natural Gas/Sanitation 3,220 2,475 2,599 2,729 2,865 3,008 52040 - UTILITIES-SANITATION Utilities - Electric/Natural Gas/Sanitation 17,000 15,900 16,695 17,530 18,406 19,327 52060 - TELEPHONE General - - - - - - 52110 - SUPPLIES General 10,000 17,150 17,665 18,194 18,740 19,302 52112 - SUPPLIES - SANITARY General 500 500 515 530 546 563 52140 - TRAINING AND EDUCATION General 1,000 2,198 2,264 2,332 2,402 2,474 52150 - TRAVEL & MEETINGS General 750 3,400 3,502 3,607 3,715 3,827 52201 - VEHICLE FUEL Fuel 100 200 210 221 232 243 52230 - VEHICLE EXPENSE General 500 500 515 530 546 563 52300 - CONTRACT SERVICES General 8,000 8,760 9,023 9,293 9,572 9,859 52410 - BUILDING MAINTENANCE General 5,050 5,540 5,706 5,877 6,054 6,235 52420 - GROUNDS MAINTENANCE General - - - - - - Subtotal 4100541: 297,762 309,525 322,022 335,031 348,575 362,676

Page 14 of 59 ends

Table 5
Victorville Water District
Operating Expenses
Operating Expenses Escalation Factor FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Budgeted Budgeted Projected Projected Projected Projected 4100543 - WATER LINE LOCATING
51100 - FULL TIME WAGES Labor 95,895 145,464 151,282 157,334 163,627 170,172 51200 - FRINGE BENEFITS-FT Labor 48,205 47,704 49,612 51,596 53,660 55,807 51300 - PAYROLL TAXES Labor 2,467 1,319 1,371 1,426 1,483 1,543 52060 - TELEPHONE General 285 1,150 1,185 1,220 1,257 1,295 52110 - SUPPLIES General 1,000 4,318 4,447 4,581 4,718 4,860 Subtotal 4100543: 147,852 199,954 207,898 216,157 224,746 233,676 4100545 - WATER-CUSTOMER SVCS
51100 - FULL TIME WAGES Labor 1,523,436 1,521,861 1,582,736 1,646,045 1,711,887 1,780,362 51110 - OVERTIME WAGES Labor 8,500 7,410 7,706 8,015 8,335 8,669 51120 - PART TIME WAGES Labor 56,000 113,175 117,702 122,410 127,306 132,399 51160 - XREG Labor - - - - - - 51200 - FRINGE BENEFITS-FT Labor 600,050 696,855 724,729 753,719 783,867 815,222 51201 - FRINGE BENEFITS-PT Labor - 1,460 1,519 1,579 1,642 1,708 51220 - RETIREE EXPENSE Labor - - - - - - 51230 - GASB68 PENSION EXPENSE Labor - - - - - - 51300 - PAYROLL TAXES Labor 22,000 38,807 40,360 41,974 43,653 45,399 51301 - PAYROLL TAXES - PT Labor - 1,641 1,707 1,775 1,846 1,920 52010 - UTILITIES-ELECTRICITY Utilities - Electric/Natural Gas/Sanitation 13,200 11,625 12,206 12,817 13,457 14,130 52020 - UTILITIES-WATER USAGE Utilities - Electric/Natural Gas/Sanitation 525 3,875 4,069 4,272 4,486 4,710 52030 - UTILITIES-NATURAL GAS Utilities - Electric/Natural Gas/Sanitation 750 750 788 827 868 912 52060 - TELEPHONE General 169 63 65 67 69 71 52110 - SUPPLIES General 217,219 200,400 206,412 212,604 218,982 225,552 52140 - TRAINING AND EDUCATION General 1,725 1,125 1,159 1,194 1,229 1,266 52150 - TRAVEL & MEETINGS General - Travel & Meetings - - - - - - 52170 - ADVERTISING/LEGAL NOTICES General - - - - - - 52180 - RECRUITMENT EXPENDITURES General 2,205 2,250 2,318 2,387 2,459 2,532 52240 - SMALL TOOLS & FURNITURE <$5000 General 750 3,075 3,167 3,262 3,360 3,461 52260 - COMPUTER EQUIPMENT <$5000 General - - - - - - 52300 - CONTRACT SERVICES General 346,568 246,825 254,230 261,857 269,712 277,804 52350 - LEGAL General 750 750 773 796 820 844 52360 - FEDERAL/STATE /LOCAL FEES General 19,500 19,500 20,085 20,688 21,308 21,947 52365 - BANK/CC PROCESSING FEES General 514,400 257,200 264,916 272,863 281,049 289,481 52410 - BUILDING MAINTENANCE General - - - - - - 54050 - UNCOLLECTABLE WRITE-OFFS None 100,000 100,000 100,000 100,000 100,000 100,000 54060 - PRIOR YEAR ADJUSTMENT None - - - - - - Subtotal 4100545: 3,427,747 3,228,648 3,346,644 3,469,150 3,596,338 3,728,389

Page 15 of 59 ends

Table 5
Victorville Water District
Operating Expenses
Operating Expenses Escalation Factor FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Budgeted Budgeted Projected Projected Projected Projected 4100710 - WATER - WW TREATMENT
52300 - CONTRACT SERVICES General - - - - - - Subtotal 4100710: - - - - - - 4101510 - WATER-INFO TECHNOLOGY
52260 - COMPUTER EQUIPMENT <$5000 General 10,000 30,000 30,900 31,827 32,782 33,765 52300 - CONTRACT SERVICES General 225,260 36,585 37,683 38,813 39,977 41,177 Subtotal 4101510: 235,260 66,585 68,583 70,640 72,759 74,942 4101515 - WATER-IT GIS
51100 - FULL TIME WAGES Labor 94,946 100,648 104,674 108,861 113,216 117,744 51110 - OVERTIME WAGES Labor 118 - - - - - 51160 - XREG Labor - - - - - - 51200 - FRINGE BENEFITS-FT Labor 40,990 47,522 49,422 51,399 53,455 55,593 51300 - PAYROLL TAXES Labor 2,424 2,567 2,669 2,776 2,887 3,002 52003 - GASB96-CONTRA-EXP-OP General - - - - - - 52060 - TELEPHONE General 1,500 2,500 2,575 2,652 2,732 2,814 52110 - SUPPLIES General 25 - - - - - 52140 - TRAINING AND EDUCATION General 3,000 10,250 10,558 10,874 11,200 11,536 52150 - TRAVEL & MEETINGS General - Travel & Meetings 3,300 6,050 6,262 6,481 6,708 6,943 52180 - RECRUITMENT EXPENDITURES General - - - - - - 52201 - VEHICLE FUEL Fuel 3,000 3,000 3,150 3,308 3,473 3,647 52230 - VEHICLE EXPENSE General 2,000 2,000 2,060 2,122 2,185 2,251 52260 - COMPUTER EQUIPMENT <$5000 General 4,500 13,246 13,643 14,053 14,474 14,908 52300 - CONTRACT SERVICES General 36,400 61,679 63,529 65,435 67,398 69,420 52460 - DEPRECIATION EXPENSE None - - - - - - 52465 - GASB87/96 AMORTIZATION None - - - - - - 54160 - GASB 87/96 INTEREST EXPENSE None - - - - - - Subtotal 4101515: 192,203 249,462 258,543 267,961 277,729 287,859

Page 16 of 59 ends

Table 5
Victorville Water District
Operating Expenses
Operating Expenses Escalation Factor FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Budgeted Budgeted Projected Projected Projected Projected 4104000 - WATER - CODE ENFORCEMENT
51001 - CONTRA-EXP-WAGES Labor - - - - - - 51100 - FULL TIME WAGES Labor 324,228 380,804 396,036 411,877 428,352 445,486 51110 - OVERTIME WAGES Labor - 2,600 2,704 2,812 2,925 3,042 51160 - XREG Labor - - - - - - 51200 - FRINGE BENEFITS-FT Labor 146,434 179,392 186,567 194,030 201,791 209,863 51220 - RETIREE EXPENSE Labor - - - - - - 51230 - GASB68 PENSION EXPENSE Labor - - - - - - 51300 - PAYROLL TAXES Labor 8,275 9,710 10,099 10,503 10,923 11,360 54060 - PRIOR YEAR ADJUSTMENT None - - - - - - Subtotal 4104000: 478,937 572,506 595,406 619,222 643,991 669,751 4104500 - WATER-ENGINEERING SVCS
51100 - FULL TIME WAGES Labor 1,220,756 1,347,848 1,401,762 1,457,832 1,516,145 1,576,791 51110 - OVERTIME WAGES Labor 4,000 5,200 5,408 5,624 5,849 6,083 51120 - PART TIME WAGES Labor - - - - - - 51160 - XREG Labor - - - - - - 51200 - FRINGE BENEFITS-FT Labor 532,652 569,753 592,543 616,245 640,895 666,530 51220 - RETIREE EXPENSE Labor 33,455 36,799 38,271 39,802 41,394 43,050 51230 - GASB68 PENSION EXPENSE Labor - - - - - - 51300 - PAYROLL TAXES Labor 31,266 34,370 35,745 37,175 38,662 40,208 52010 - UTILITIES-ELECTRICITY Utilities - Electric/Natural Gas/Sanitation 24,000 12,000 12,600 13,230 13,892 14,586 52020 - UTILITIES-WATER USAGE Utilities - Electric/Natural Gas/Sanitation 900 750 788 827 868 912 52030 - UTILITIES-NATURAL GAS Utilities - Electric/Natural Gas/Sanitation 1,300 800 840 882 926 972 52060 - TELEPHONE General 6,000 4,500 4,635 4,774 4,917 5,065 52110 - SUPPLIES General 14,500 11,500 11,845 12,200 12,566 12,943 52130 - SUBS /PUBLICATIONS / DUES General - 500 515 530 546 563 52140 - TRAINING AND EDUCATION General 14,250 5,050 5,202 5,358 5,518 5,684 52150 - TRAVEL & MEETINGS General - Travel & Meetings 5,600 3,650 3,778 3,910 4,047 4,188 52165 - CITY OUTREACH EVENTS General 1,500 2,500 2,575 2,652 2,732 2,814 52170 - ADVERTISING/LEGAL NOTICES General 1,500 1,000 1,030 1,061 1,093 1,126 52180 - RECRUITMENT EXPENDITURES General 500 500 515 530 546 563 52201 - VEHICLE FUEL Fuel 18,000 8,000 8,400 8,820 9,261 9,724 52230 - VEHICLE EXPENSE General 10,000 4,000 4,120 4,244 4,371 4,502 52240 - SMALL TOOLS & FURNITURE <$5000 General 800 800 824 849 874 900 52260 - COMPUTER EQUIPMENT <$5000 General - - - - - - 52300 - CONTRACT SERVICES General 360,152 190,000 195,700 201,571 207,618 213,847 52350 - LEGAL General 25,000 30,000 30,900 31,827 32,782 33,765 52410 - BUILDING MAINTENANCE General - - - - - - 52440 - INFRASTRUCTURE REPAIRS General - - - - - - 52460 - DEPRECIATION EXPENSE None - - - - - - 54010 - TRANSFERS OUT None - - - - - - 54055 - GAIN/LOSS DISPOSAL OF ASSETS None - - - - - - 54060 - PRIOR YEAR ADJUSTMENT None - - - - - - Subtotal 4104500: 2,306,130 2,269,520 2,357,994 2,449,943 2,545,503 2,644,816

Page 17 of 59 ends

Table 5
Victorville Water District
Operating Expenses
Operating Expenses Escalation Factor FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Budgeted Budgeted Projected Projected Projected Projected 4105001 - WATER ASPHALT
51100 - FULL TIME WAGES Labor 138,232 145,637 151,463 157,521 163,822 170,375 51110 - OVERTIME WAGES Labor 500 520 541 562 585 608 51160 - XREG Labor - - - - - - 51200 - FRINGE BENEFITS-FT Labor 63,757 65,518 68,138 70,864 73,698 76,646 51300 - PAYROLL TAXES Labor 3,563 3,714 3,862 4,017 4,177 4,345 52110 - SUPPLIES General 1,500 1,500 1,545 1,591 1,639 1,688 52201 - VEHICLE FUEL Fuel - - - - - - 52202 - EQUIPMENT FUEL Fuel - - - - - - 52240 - SMALL TOOLS & FURNITURE <$5000 General 100 100 103 106 109 113 52440 - INFRASTRUCTURE REPAIRS General 22,000 22,000 22,660 23,340 24,040 24,761 54010 - TRANSFERS OUT None - - - - - - Subtotal 4105001: 229,652 238,988 248,312 258,001 268,071 278,536 4110020 - WID #2 - NON-OPERATING
52455 - UTILITY ASSISTANCE General - - - - - - 54050 - UNCOLLECTABLE WRITE-OFFS General - - - - - - 54120 - DEBT SERVICE INTEREST None - - - - - - Subtotal 4110020: - - - - - - 4110201 - WID #2 - 98 BALDY MESA COP
54120 - DEBT SERVICE INTEREST None - - - - - - 54130 - BOND ISSUANCE FEE None - - - - - - 54140 - TRUSTEE SERVICE FEE None - - - - - - Subtotal 4110201: - - - - - - 4110202 - WID #2 - 06 BALDY MESA COP
52360 - FEDERAL/STATE /LOCAL FEES General - - - - - - 54130 - BOND ISSUANCE FEE None - - - - - - 54140 - TRUSTEE SERVICE FEE None - - - - - - Subtotal 4110202: - - - - - -

Page 18 of 59 ends

Table 5
Victorville Water District
Operating Expenses
Operating Expenses Escalation Factor FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Budgeted Budgeted Projected Projected Projected Projected 4130520 - RECLAIMED WATER
51100 - FULL TIME WAGES Labor 181,957 172,506 179,406 186,582 194,045 201,807 51110 - OVERTIME WAGES Labor 500 1,560 1,622 1,687 1,755 1,825 51160 - XREG Labor - - - - - - 51200 - FRINGE BENEFITS-FT Labor 78,475 72,231 75,120 78,125 81,250 84,500 51230 - GASB68 PENSION EXPENSE Labor - - - - - - 51300 - PAYROLL TAXES Labor 4,708 4,399 4,575 4,758 4,948 5,146 52050 - UTILITIES-PRODUCTION POWER Utilities - Production Power 8,000 8,160 8,772 9,430 10,137 10,897 52060 - TELEPHONE General 3,600 3,300 3,399 3,501 3,606 3,714 52110 - SUPPLIES General 10,675 7,500 7,725 7,957 8,195 8,441 52140 - TRAINING AND EDUCATION General 6,505 8,349 8,599 8,857 9,123 9,397 52150 - TRAVEL & MEETINGS General - Travel & Meetings 3,600 4,200 4,347 4,499 4,657 4,820 52190 - DOT/PHYSICAL TEST General 200 200 206 212 219 225 52201 - VEHICLE FUEL Fuel 9,000 7,500 7,875 8,269 8,682 9,116 52230 - VEHICLE EXPENSE General 5,000 3,000 3,090 3,183 3,278 3,377 52240 - SMALL TOOLS & FURNITURE <$5000 General 3,000 3,000 3,090 3,183 3,278 3,377 52300 - CONTRACT SERVICES General 219,800 221,200 227,836 234,671 241,711 248,963 52360 - FEDERAL/STATE/LOCAL FEES General 75 75 77 80 82 84 52420 - GROUNDS MAINTENANCE General - - - - - - 52440 - INFRASTRUCTURE REPAIRS General 64,119 38,000 39,140 40,314 41,524 42,769 52460 - DEPRECIATION EXPENSE None - - - - - - 53030 - PURCHASED WATER General - - - - - - 54010 - TRANSFERS OUT None - - - - - - 54020 - COST ALLOCATIONS PAID General 74,819 77,064 79,376 81,757 84,210 86,736 54060 - PRIOR YEAR ADJUSTMENT None - - - - - - Subtotal 4130520: 674,032 632,243 654,256 677,065 700,700 725,194 4131510 - REC - INFO TECHNOLOGY
52300 - CONTRACT SERVICES General 3,099 3,192 3,288 3,386 3,488 3,593 Subtotal 4131510: 3,099 3,192 3,288 3,386 3,488 3,593 Total Operating Expenses: 39,589,132 40,328,670 41,741,388 43,280,735 44,860,482 46,477,512

Page 19 of 59 ends

Table 5
Victorville Water District
Operating Expenses
Summary of Operating Expenses by Organization FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Budgeted Budgeted Projected Projected Projected Projected 4100030 - WATER-ADMINISTRATION $7,173,361 $7,318,907 $7,736,819 $7,990,140 $8,251,917 $8,522,440 4100030E - WATER ADMINISTRATION EDD 62,500 111,775 103,579 106,762 110,043 113,426 4100500 - WATER-SUPPLY 16,829,429 17,286,560 18,089,918 18,935,550 19,825,981 20,763,900 4100505 - WATER- SCADA 884,772 1,158,330 947,478 983,459 1,020,825 1,059,630 4100510 - WATER-HD POWER PLANT (116,313) (106,296) (237,216) (398,017) (594,570) (833,858) 4100525 - WATER EFFICIENCY 1,094,284 960,693 994,624 1,029,779 1,066,203 1,103,944 4100530 - WATER-METER SVCS 2,398,700 2,208,358 2,287,037 2,368,578 2,453,089 2,540,681 4100535 - WATER-FIELD SVCS 3,132,738 3,529,368 3,662,744 3,801,246 3,945,074 4,094,436 4100540 - WATER - WID 2 136,987 90,352 93,460 96,680 100,018 103,479 4100541 - WATER - WID 1 297,762 309,525 322,022 335,031 348,575 362,676 4100543 - WATER LINE LOCATING 147,852 199,954 207,898 216,157 224,746 233,676 4100545 - WATER-CUSTOMER SVCS 3,427,747 3,228,648 3,346,644 3,469,150 3,596,338 3,728,389 4100710 - WATER - WW TREATMENT - - - - - - 4101510 - WATER-INFO TECHNOLOGY 235,260 66,585 68,583 70,640 72,759 74,942 4101515 - WATER-IT GIS 192,203 249,462 258,543 267,961 277,729 287,859 4104000 - WATER - CODE ENFORCEMENT 478,937 572,506 595,406 619,222 643,991 669,751 4104500 - WATER-ENGINEERING SVCS 2,306,130 2,269,520 2,357,994 2,449,943 2,545,503 2,644,816 4105001 - WATER ASPHALT 229,652 238,988 248,312 258,001 268,071 278,536 4110020 - WID #2 - NON-OPERATING - - - - - - 4110201 - WID #2 - 98 BALDY MESA COP - - - - - - 4110202 - WID #2 - 06 BALDY MESA COP - - - - - - 4130520 - RECLAIMED WATER 674,032 632,243 654,256 677,065 700,700 725,194 4131510 - REC - INFO TECHNOLOGY 3,099 3,192 3,288 3,386 3,488 3,593 Total Operating Expenses Total Operating Expenses: $39,589,132 $40,328,670 $41,741,388 $43,280,735 $44,860,482 $46,477,512 - - - - - - Summary of Operating Expenses by Fund FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 410 38,912,000 39,693,235 41,083,845 42,600,284 44,156,294 45,748,725 411 - - - - - - 413 677,132 635,435 657,543 680,451 704,188 728,787 Total Operating Expenses: 39,589,132 40,328,670 41,741,388 43,280,735 44,860,482 46,477,512

Page 20 of 59 ends

Table 5
Victorville Water District
Operating Expenses
Cost Inflation Factor FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 General per budget 3.00% 3.00% 3.00% 3.00% 3.00%
None per budget 0.00% 0.00% 0.00% 0.00% 0.00%
General - Travel & Meetings per budget 3.50% 3.50% 3.50% 3.50% 3.50% Labor per budget 4.00% 4.00% 4.00% 4.00% 4.00%
Fuel per budget 5.00% 5.00% 5.00% 5.00% 5.00%
Utilities - Electric/Natural Gas/Sanitation per budget 5.00% 5.00% 5.00% 5.00% 5.00% Utilities - Production Power per budget 7.50% 7.50% 7.50% 7.50% 7.50% R-Cubed Water per budget 4.50% 4.50% 4.50% 4.50% 4.50%
Admin & Bio Assessment per budget 10.11% 10.11% 10.11% 10.11% 10.11% Groundwater Replenishment & Makeup Obligation per budget 4.00% 4.00% 4.00% 4.00% 4.00% Meter Service Installation & Changeouts per budget 4.00% 4.00% 4.00% 4.00% 4.00% HDPP Reimbursement per budget 8.30% 17.79% 17.83% 17.87% 17.91%

1. Admin and Bio Assessment cost inflation is equal to the historical five year average change in cost.

Page 21 of 59 ends

Table 6
Victorville Water District
Capital Improvement Program
Project Description FY 2026
1 FY 20272
FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 FY 2035 FY 2036

WATER ADMIN
New Door for Access to City Hall $6,631
SUBTOTAL: WATER ADMIN 6,631

CUSTOMER SERVICE
Cubicles 64,093
SUBTOTAL: CUSTOMER SERVICE 64,093

WATER PRODUCTION
Replace Chlorine Truck (27747) 26,042
Replace Chlorine Truck (27748) 26,042
New Forklift 49,707
Well 203 - Block Wall/Electric Gate 167,245
La Mesa Treatment Plant - Block Wall/Electric Gate Well 207 422,250 El Evado Treatment Plant - Block Wall/Electric Gate 617,687 Coat Concrete El Evado 75,000
Spare Flow Meters 37,303
Spare Motor for Turnout 6 50,000
Spare Booster Motor for White Rd 10,000
Upgrade & Outfit Booster Station at 395 119,188
D2 Roof 85,250
John Deere 650 P-Tier Dozer 80,668
White Rd Roofing 28,303
La Mesa Roofing 28,600
Burning Tree Roofing 17,359
Camelback Roofing 17,359
395 Booster Station Roof 28,303
New 30" Butterfly Valve at El Evado TP 50,000
SUBTOTAL: WATER PRODUCTION 1,936,306
SCADA
Radio Replacements 618,321
Scada Gas Pipeline 2,550
New Vehicle for Electrical Technician Assistant 7,218
SUBTOTAL: SCADA 628,089

METER SERVICES
Advance Metering Inrastrcture (AMI) 1,004,101
Tow Behind Vactor Trailer 69,013
SUBTOTAL: METER SERVICES 1,073,114

FIELD SERVICES
Replacement Vehicle 63207 156,693
Replacement Vehicle 23409 116,037
Turnout #5 - Amyethst/ Le Mesa 110,662
Replace V#87088 52,551
Leak Detection Sounding Equipment 20,986
SUBTOTAL: FIELD SERVICES 456,929

Page 22 of 59 ends

Table 6
Victorville Water District
Capital Improvement Program
Project Description FY 2026
1 FY 20272
FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 FY 2035 FY 2036

ENGINEERING DEPARTMENT
Svc Pipeline Rpmt, Areas 4, 5, 8, 9, 10, 11, & 12 Design Contract 225,000 Service Pipeline Replacement, Area 7 1,312,211
Mojave Drive Water Infrastructure 94
Ridgecrest Rd Pavement BV to Pahute 24,904
Roy Rodgers Pavement Amargosa to I-15 12,598
Turnout #5 - Amyethst/ Le Mesa 592
Cannon Colorwave Plotter 18,685
SUBTOTAL: ENGINEERING DEPARTMENT 1,594,083
2026 WATER MASTER PLAN CIP
Pipelines - Mojave Dr (Phase 3) 125,000
Pipelines - BVR Pvmt Imp Project 15,000
Rezoning
Supply - Generators 246,500 254,000 261,500
Reservoirs (R&R; 2-3 per yr) 4,035,000 4,081,000 1,912,000 1,827,000 1,342,000 1,530,000 17,000 Reservoirs - Annual Maintenance 68,000 70,000 72,000 74,000 76,000 78,000 81,000 83,000 85,000 88,000 Wells (R&R; 2-3 per yr) 120,000 153,000 186,000 219,000 252,000 388,000 421,000 457,000 496,000 535,000 Booster Stations (R&R) 210,000 217,000 224,000 245,000 252,000 259,000 275,000 Meter Replacements (small) 1,312,000 1,351,000 1,392,000 1,433,000 1,476,000 1,521,000 1,566,000 Meter Replacements (large) 41,000 44,000 47,000 49,000
Service Line Replacements (350/yr) 700,000 721,000 742,630 764,909 0 811,492 835,837 860,912 886,739 913,341 Site Security Upgrades 432,500 756,000 0 2,204,000 2,336,000 2,036,000 1,447,000 903,000 Equipment/Vehicles 889,000 916,000 944,000 972,000 1,001,000 1,031,000 1,062,000 1,094,000 1,127,000 ROW/Utility Relocations 52,000 54,000 55,000 57,000 58,000 60,000 62,000 64,000 66,000 SCADA 258,000 266,000 274,000 282,000 290,000 299,000 308,000 317,000 327,000 Planning Documents 321,000 372,000
SUBTOTAL: 2026 WATER MASTER PLAN CIP 5,133,000 7,135,000 4,751,630 6,528,409 4,653,000 8,041,492 6,765,837 6,650,912 5,910,739 6,221,341 FY27 BUDGETED CIP
Pipelines - Mojave Dr 341,907
Block Wall - 395 Booster Station 200,000 200,000
Block Wall - Well 123 95,000 95,000
Block Wall Well - 127 137,500 137,500
Pump to Waste - Balsam TP 190,000
Auma Valve Actuators 80,000
Cl2 Analyzing Equipment 50,000
Data Logger 17,000
Ground Penetrating Radar 35,000
Equipment/Vehicles 1,240,000
ROW/Utility Relocations 50,000
SUBTOTAL: FY27 BUDGETED CIP 2,436,407 432,500

Page 23 of 59 ends

Table 6
Victorville Water District
Capital Improvement Program
Project Description FY 2026
1 FY 20272
FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 FY 2035 FY 2036 FY26 CIP ROLLOVER
City Hall Iron Fence 252,800
Well 109 Replacement 1,200,000 1,200,000
AMI Project Completion 200,000
Supply- Generators 776,250
Block Wall - Well 201 164,000
Block Walls - Wells 109, 128 & 131 616,000
Block Wall - Hesperia Rd Yard 75,000
Pipelines - Hesperia Rd Yard 100,000
Large Meter Replacements 150,000
Replace Flowmeters - El Evado TP 80,000
Spare Air Scour Motor - El Evado TP 50,000
Pipe Coating - R3 Turnouts 3 & 6 50,000
SCADA Hardware Upgrade 172,243
Equipment/Vehicles 390,259
SUBTOTAL: FY26 CIP ROLLOVER 4,276,552 1,200,000
Grand Total: CIP Costs $5,759,244 $11,845,959 $8,767,500 $4,751,630 $6,528,409 $4,653,000 $8,041,492 $6,765,837 $6,650,912 $5,910,739 $6,2 21,341 1 Data source for FY 2025/26 CIP costs is: Fund 410 YE CIP Projection.xlsx 2 Data source for remaining years CIP costs is: 10-Year CIP_4-23-26.xlsx

Page 24 of 59 ends

Table 7
Victorville Water District
Cash Flow Projection
Water Cash Flow Projection FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Projected Demand Growth 1.0% 1.0% 1.0% 1.0% 1.0%
Rate Revenue Increases 4.0% 4.0% 4.0% 4.0% 4.0%
Beginning Reserve Balance $44,832,468 $41,671,504 $32,765,530 $28,617,478 $27,980,879 $25,661,111 Revenues
Rate Revenue
Current Rate Revenue 33,032,582 $ 33,362,908 $ 33,696,537 $ 34,033,502 $ 34,373,837 $ 34,717,575 $ Revenue from Rate Increases -
1,223,307 2,749,637 4,249,559 5,838,690 7,521,663 Total Revenue Required from Rates 33,032,582$ 34,586,214 $ 36,446,174 $ 38,283,061 $ 40,212,527 $ 42,239,239 $ Non-Rate Revenue
Miscellaneous1 2,867,207$ 2,730,308 $ 2,674,792 $ 2,618,675 $ 2,306,488 $ 2,285,049 $ Interest 2,048,091 948,360 745,678 651,277 636,789 583,996 Other Charges/Fees 2
3,562,400 4,368,338 5,836,650 5,162,302 5,209,130 5,257,181 Total Non-Rate Revenue 8,477,698 $ 8,047,006 $ 9,257,119 $ 8,432,254 $ 8,152,407 $ 8,126,226 $ Total Revenues 41,510,279 $ 42,633,220 $ 45,703,293 $ 46,715,315 $ 48,364,935 $ 50,365,465 $ Total Expenses
Operating Expenses
Total Operating Expenses 38,912,000 $ 39,693,235 $ 41,083,845 $ 42,600,284 $ 44,156,294 $ 45,748,725 $ Non-Operating Expenses
Rate Funded Capital 5,759,244 11,845,959 8,767,500 4,751,630 6,528,409 4,653,000 Total Expenses 44,671,244 $ 51,539,194 $ 49,851,345 $ 47,351,914 $ 50,684,703 $ 50,401,725 $ Revenues Less Expenses (3,160,965)$ (8,905,974) $ (4,148,052) $ (636,599) $ (2,319,768)$ (36,260) $ Ending Reserve Balance 41,671,504$ 32,765,530 $ 28,617,478 $ 27,980,879 $ 25,661,111 $ 25,624,852 $ Reserve Fund Target 22,952,614 23,309,703 23,522,004 23,741,707 24,150,448 24,465,660

1. Miscellaneous revenue is primarily from a repayment by the City of Victorville's Sewer fund to the Water District and approximately $40,000 in other miscellaneous revenues.

Page 25 of 59 ends

Table 8
Victorville Water District
Functional Allocation
Revenue Reqt.

Operating Expense FY 2027 Commodity Capacity Customer Recycled Fire Commodity Capacity Customer Recycled Fire 4100030 - WATER-ADMINISTRATION
51100 - FULL TIME WAGES $1,029,241 0% 98% 0% 0% 1.69% $0 $1,011,800 $0 $0 $17,442 51110 - OVERTIME WAGES 4,160 0% 98% 0% 0% 1.69% - 4,090 - - 70 51120 - PART TIME WAGES - 0% 98% 0% 0% 1.69% - - - - - 51160 - XREG - 0% 98% 0% 0% 1.69% - - - - - 51200 - FRINGE BENEFITS-FT 426,428 0% 98% 0% 0% 1.69% - 419,201 - - 7,226 51201 - FRINGE BENEFITS-PT - 0% 98% 0% 0% 1.69% - - - - - 51220 - RETIREE EXPENSE 261,882 0% 98% 0% 0% 1.69% - 257,444 - - 4,438 51230 - GASB68 PENSION EXPENSE - 0% 98% 0% 0% 1.69% - - - - - 51300 - PAYROLL TAXES 26,246 0% 98% 0% 0% 1.69% - 25,801 - - 445 51301 - PAYROLL TAXES - PT - 0% 98% 0% 0% 1.69% - - - - - 52010 - UTILITIES-ELECTRICITY 30,600 0% 98% 0% 0% 1.69% - 30,081 - - 519 52020 - UTILITIES-WATER USAGE 2,090 0% 98% 0% 0% 1.69% - 2,055 - - 35 52030 - UTILITIES-NATURAL GAS 2,575 0% 98% 0% 0% 1.69% - 2,531 - - 44 52040 - UTILITIES-SANITATION - 0% 98% 0% 0% 1.69% - - - - - 52060 - TELEPHONE 22,180 0% 98% 0% 0% 1.69% - 21,804 - - 376 52110 - SUPPLIES 8,692 0% 98% 0% 0% 1.69% - 8,545 - - 147 52130 - SUBS /PUBLICATIONS / DUES 9,830 0% 98% 0% 0% 1.69% - 9,663 - - 167 52140 - TRAINING AND EDUCATION 28,874 0% 98% 0% 0% 1.69% - 28,385 - - 489 52150 - TRAVEL & MEETINGS 37,700 0% 98% 0% 0% 1.69% - 37,061 - - 639 52160 - MARKETING & PROMOTION - 0% 98% 0% 0% 1.69% - - - - - 52165 - CITY OUTREACH EVENTS 5,000 0% 98% 0% 0% 1.69% - 4,915 - - 85 52170 - ADVERTISING/LEGAL NOTICES 4,000 0% 98% 0% 0% 1.69% - 3,932 - - 68 52180 - RECRUITMENT EXPENDITURES 1,500 0% 98% 0% 0% 1.69% - 1,475 - - 25 52190 - DOT/PHYSICAL TEST - 0% 98% 0% 0% 1.69% - - - - - 52201 - VEHICLE FUEL 12,500 0% 98% 0% 0% 1.69% - 12,288 - - 212 52220 - EQUIPMENT EXPENSE - 0% 98% 0% 0% 1.69% - - - - - 52230 - VEHICLE EXPENSE 3,000 0% 98% 0% 0% 1.69% - 2,949 - - 51 52240 - SMALL TOOLS & FURNITURE <$5000 5,000 0% 98% 0% 0% 1.69% - 4,915 - - 85 52260 - COMPUTER EQUIPMENT <$5000 1,500 0% 98% 0% 0% 1.69% - 1,475 - - 25 52300 - CONTRACT SERVICES 503,316 0% 98% 0% 0% 1.69% - 494,787 - - 8,529 52340 - INSURANCE 1,736,632 0% 98% 0% 0% 1.69% - 1,707,203 - - 29,429 52350 - LEGAL 125,000 0% 98% 0% 0% 1.69% - 122,882 - - 2,118 52360 - FEDERAL/STATE /LOCAL FEES 190,081 0% 98% 0% 0% 1.69% - 186,860 - - 3,221 52410 - BUILDING MAINTENANCE 2,000 0% 98% 0% 0% 1.69% - 1,966 - - 34 52450 - VANDALISM/ACCIDENTS - 0% 98% 0% 0% 1.69% - - - - - 52460 - DEPRECIATION EXPENSE - 0% 98% 0% 0% 1.69% - - - - - 54020 - COST ALLOCATIONS PAID 2,838,880 0% 98% 0% 0% 1.69% - 2,790,772 - - 48,108 Allocation to Reclaimed Water - 0% 98% 0% 0% 1.69% - - - - - Anticipated Staff Increases - 0% 98% 0% 0% 1.69% - - - - - SUBTOTAL: WATER-ADMINISTRATION 7,318,907 0% 98% 0% 0% 2% - 7,194,880 - - 124,027 4100030E - WATER ADMINISTRATION EDD
51110 - OVERTIME WAGES 650 0% 98% 0% 0% 1.69% - 639 - - 11 51120 - PART TIME WAGES - 0% 98% 0% 0% 1.69% - - - - - 51201 - FRINGE BENEFITS-PT - 0% 98% 0% 0% 1.69% - - - - - 51300 - PAYROLL TAXES - 0% 98% 0% 0% 1.69% - - - - - 51301 - PAYROLL TAXES - PT - 0% 98% 0% 0% 1.69% - - - - - 52060 - TELEPHONE 375
0% 98% 0% 0% 1.69% - 369 - - 6 52110 - SUPPLIES 550 0% 98% 0% 0% 1.69% - 541 - - 9 52130 - SUBS /PUBLICATIONS / DUES 2,425 0% 98% 0% 0% 1.69% - 2,384 - - 41 52140 - TRAINING AND EDUCATION 1,025 0% 98% 0% 0% 1.69% - 1,008 - - 17 Functional Allocation (%) Functional Allocation ($)

Page 26 of 59 ends

Table 8
Victorville Water District
Functional Allocation
Revenue Reqt.

Operating Expense FY 2027 Commodity Capacity Customer Recycled Fire Commodity Capacity Customer Recycled Fire Functional Allocation (%)
Functional Allocation ($)
52150 - TRAVEL & MEETINGS 11,313 0% 98% 0% 0% 1.69% - 11,121 - - 192 52160 - MARKETING & PROMOTION 32,963 0% 98% 0% 0% 1.69% - 32,404 - - 559 52165 - CITY OUTREACH EVENTS 8,750 0% 98% 0% 0% 1.69% - 8,602 - - 148 52170 - ADVERTISING/LEGAL NOTICES 6,725 0% 98% 0% 0% 1.69% - 6,611 - - 114 52180 - RECRUITMENT EXPENDITURES 250 0% 98% 0% 0% 1.69% - 246 - - 4 52201 - VEHICLE FUEL 500 0% 98% 0% 0% 1.69% - 492 - - 8 52220 - EQUIPMENT EXPENSE - 0% 98% 0% 0% 1.69% - - - - - 52230 - VEHICLE EXPENSE 500 0% 98% 0% 0% 1.69% - 492 - - 8 52300 - CONTRACT SERVICES 45,750 0% 98% 0% 0% 1.69% - 44,975 - - 775 52340 - INSURANCE - 0% 98% 0% 0% 1.69% - - - - - 54010 - TRANSFERS OUT - 0% 98% 0% 0% 1.69% - - - - - SUBTOTAL: WATER-ADMINISTRATION EDD 111,775 0% 98% 0% 0% 2% - 109,881 - - 1,894 4100500 - WATER-SUPPLY
51100 - FULL TIME WAGES 1,405,832 100% 0% 0% 0% 0% 1,405,832 - - - - 51110 - OVERTIME WAGES 98,800 100% 0% 0% 0% 0% 98,800 - - - - 51150 - STANDBY WAGES 16,270 100% 0% 0% 0% 0% 16,270 - - - - 51160 - XREG - 100% 0% 0% 0% 0% - - - - - 51200 - FRINGE BENEFITS-FT 679,955 100% 0% 0% 0% 0% 679,955 - - - - 51220 - RETIREE EXPENSE - 100% 0% 0% 0% 0% - - - - - 51230 - GASB68 PENSION EXPENSE - 100% 0% 0% 0% 0% - - - - - 51300 - PAYROLL TAXES 35,849 100% 0% 0% 0% 0% 35,849 - - - - 52050 - UTILITIES-PRODUCTION POWER 3,708,000 100% 0% 0% 0% 0% 3,708,000 - - - - 52060 - TELEPHONE 25,000 100% 0% 0% 0% 0% 25,000 - - - - 52110 - SUPPLIES 422,999 100% 0% 0% 0% 0% 422,999 - - - -
52130 - SUBS /PUBLICATIONS / DUES 390 100% 0% 0% 0% 0% 390 - - - - 52140 - TRAINING AND EDUCATION 17,554 100% 0% 0% 0% 0% 17,554 - - - - 52150 - TRAVEL & MEETINGS 15,700 100% 0% 0% 0% 0% 15,700 - - - - 52165 - CITY OUTREACH EVENTS 1,500 100% 0% 0% 0% 0% 1,500 - - - - 52190 - DOT/PHYSICAL TEST 700 100% 0% 0% 0% 0% 700 - - - - 52201 - VEHICLE FUEL 100,000 100% 0% 0% 0% 0% 100,000 - - - - 52220 - EQUIPMENT EXPENSE 20,000 100% 0% 0% 0% 0% 20,000 - - - - 52230 - VEHICLE EXPENSE 60,000 100% 0% 0% 0% 0% 60,000 - - - - 52240 - SMALL TOOLS & FURNITURE <$5000 15,000 100% 0% 0% 0% 0% 15,000 - - - - 52300 - CONTRACT SERVICES 2,683,516 100% 0% 0% 0% 0% 2,683,516 - - - - 52340 - INSURANCE 3,001 100% 0% 0% 0% 0% 3,001 - - - - 52360 - FEDERAL/STATE /LOCAL FEES 16,675 100% 0% 0% 0% 0% 16,675 - - - - 52420 - GROUNDS MAINTENANCE 55,439 100% 0% 0% 0% 0% 55,439 - - - - 52440 - INFRASTRUCTURE REPAIRS 185,640 100% 0% 0% 0% 0% 185,640 - - - - 52460 - DEPRECIATION EXPENSE - 100% 0% 0% 0% 0% - - - - - 53030 - PURCHASED WATER 832,000 100% 0% 0% 0% 0% 832,000 - - - - 53040 - GROUNDWATER ASSESSMENT 198,240 100% 0% 0% 0% 0% 198,240 - - - - 53050 - GROUNDWATER REPLENISHMENT 6,688,500 100% 0% 0% 0% 0% 6,688,500 - - - - Allocation to Reclaimed Water - 100% 0% 0% 0% 0% - - - - - SUBTOTAL: WATER-SUPPLY 17,286,560 100% 0% 0% 0% 0% 17,286,560 - - - -

Page 27 of 59 ends

Table 8
Victorville Water District
Functional Allocation
Revenue Reqt.

Operating Expense FY 2027 Commodity Capacity Customer Recycled Fire Commodity Capacity Customer Recycled Fire Functional Allocation (%)
Functional Allocation ($)
4100505 - WATER- SCADA
51100 - FULL TIME WAGES 445,368 0% 98% 0% 0% 1.69% - 437,821 - - 7,547 51110 - OVERTIME WAGES 36,400 0% 98% 0% 0% 1.69% - 35,783 - - 617 51160 - XREG - 0% 98% 0% 0% 1.69% - - - - - 51200 - FRINGE BENEFITS-FT 192,787 0% 98% 0% 0% 1.69% - 189,520 - - 3,267 51220 - RETIREE EXPENSE - 0% 98% 0% 0% 1.69% - - - - - 51230 - GASB68 PENSION EXPENSE - 0% 98% 0% 0% 1.69% - - - - - 51300 - PAYROLL TAXES 11,357 0% 98% 0% 0% 1.69% - 11,164 - - 192 52060 - TELEPHONE 4,500 0% 98% 0% 0% 1.69% - 4,424 - - 76 52110 - SUPPLIES 11,000 0% 98% 0% 0% 1.69% - 10,814 - - 186 52130 - SUBS /PUBLICATIONS / DUES 360 0% 98% 0% 0% 1.69% - 354 - - 6 52140 - TRAINING AND EDUCATION 13,758 0% 98% 0% 0% 1.69% - 13,525 - - 233 52150 - TRAVEL & MEETINGS 12,800 0% 98% 0% 0% 1.69% - 12,583 - - 217 52190 - DOT/PHYSICAL TEST 500 0% 98% 0% 0% 1.69% - 492 - - 8 52201 - VEHICLE FUEL 17,000 0% 98% 0% 0% 1.69% - 16,712 - - 288 52230 - VEHICLE EXPENSE 13,000 0% 98% 0% 0% 1.69% - 12,780 - - 220 52240 - SMALL TOOLS & FURNITURE <$5000 12,000 0% 98% 0% 0% 1.69% - 11,797 - - 203 52260 - COMPUTER EQUIPMENT <$5000 8,000 0% 98% 0% 0% 1.69% - 7,864 - - 136 52300 - CONTRACT SERVICES 329,500 0% 98% 0% 0% 1.69% - 323,916 - - 5,584 52340 - INSURANCE - 0% 98% 0% 0% 1.69% - - - - - 52440 - INFRASTRUCTURE REPAIRS 50,000 0% 98% 0% 0% 1.69% - 49,153 - - 847 52460 - DEPRECIATION EXPENSE - 0% 98% 0% 0% 1.69% - - - - - 54060 - PRIOR YEAR ADJUSTMENT - 0% 98% 0% 0% 1.69% - - - - - Allocation to Reclaimed Water - 0% 98% 0% 0% 1.69% - - - - - SUBTOTAL: WATER-SCADA 1,158,330 0% 98% 0% 0% 2% - 1,138,701 - - 19,629 4100510 - WATER-HD POWER PLANT
47230 - REIMBURSEMENTS - OTHER (1,039,673) 0% 98% 0% 0% 1.69% - (1,022,055) - - (17,618) 51100 - FULL TIME WAGES 57,200 0% 98% 0% 0% 1.69% - 56,231 - - 969 51110 - OVERTIME WAGES 52,000 0% 98% 0% 0% 1.69% - 51,119 - - 881 51150 - STANDBY WAGES 16,270 0% 98% 0% 0% 1.69% - 15,994 - - 276 51160 - XREG - 0% 98% 0% 0% 1.69% - - - - - 51200 - FRINGE BENEFITS-FT 5,720 0% 98% 0% 0% 1.69% - 5,623 - - 97 51300 - PAYROLL TAXES 1,352 0% 98% 0% 0% 1.69% - 1,329 - - 23 52050 - UTILITIES-PRODUCTION POWER 550,115 0% 98% 0% 0% 1.69% - 540,792 - - 9,322 52110 - SUPPLIES 31,000 0% 98% 0% 0% 1.69% - 30,475 - - 525 52300 - CONTRACT SERVICES 203,200 0% 98% 0% 0% 1.69% - 199,757 - - 3,443

52360 - FEDERAL/STATE /LOCAL FEES 521 0% 98% 0% 0% 1.69% - 512 - - 9 52420 - GROUNDS MAINTENANCE 6,000 0% 98% 0% 0% 1.69% - 5,898 - - 102 52440 - INFRASTRUCTURE REPAIRS 10,000 0% 98% 0% 0% 1.69% - 9,831 - - 169 53030 - PURCHASED WATER - 0% 98% 0% 0% 1.69% - - - - - SUBTOTAL: WATER-HD POWER PLANT (106,296) 0% 98% 0% 0% 2% - (104,494) - - (1,801)

Page 28 of 59 ends

Table 8
Victorville Water District
Functional Allocation
Revenue Reqt.

Operating Expense FY 2027 Commodity Capacity Customer Recycled Fire Commodity Capacity Customer Recycled Fire Functional Allocation (%)
Functional Allocation ($)
4100525 - WATER EFFICIENCY
51100 - FULL TIME WAGES 331,801 100% 0% 0% 0% 0% 331,801 - - - - 51110 - OVERTIME WAGES 15,600 100% 0% 0% 0% 0% 15,600 - - - - 51160 - XREG - 100% 0% 0% 0% 0% - - - - - 51200 - FRINGE BENEFITS-FT 130,966 100% 0% 0% 0% 0% 130,966 - - - - 51201 - FRINGE BENEFITS-PT - 100% 0% 0% 0% 0% - - - - - 51220 - RETIREE EXPENSE - 100% 0% 0% 0% 0% - - - - - 51230 - GASB68 PENSION EXPENSE - 100% 0% 0% 0% 0% - - - - - 51300 - PAYROLL TAXES 8,461 100% 0% 0% 0% 0% 8,461 - - - - 52010 - UTILITIES-ELECTRICITY - 100% 0% 0% 0% 0% - - - - - 52020 - UTILITIES-WATER USAGE - 100% 0% 0% 0% 0% - - - - - 52030 - UTILITIES-NATURAL GAS - 100% 0% 0% 0% 0% - - - - - 52060 - TELEPHONE 3,465 100% 0% 0% 0% 0% 3,465 - - - - 52110 - SUPPLIES 27,897 100% 0% 0% 0% 0% 27,897 - - - - 52130 - SUBS /PUBLICATIONS / DUES 9,000 100% 0% 0% 0% 0% 9,000 - - - - 52140 - TRAINING AND EDUCATION 7,100 100% 0% 0% 0% 0% 7,100 - - - - 52150 - TRAVEL & MEETINGS 8,400 100% 0% 0% 0% 0% 8,400 - - - - 52160 - MARKETING & PROMOTION 132,500 100% 0% 0% 0% 0% 132,500 - - - - 52165 - CITY OUTREACH EVENTS 30,000 100% 0% 0% 0% 0% 30,000 - - - - 52190 - DOT/PHYSICAL TEST - 100% 0% 0% 0% 0% - - - - - 52201 - VEHICLE FUEL 10,000 100% 0% 0% 0% 0% 10,000 - - - - 52230 - VEHICLE EXPENSE 5,000 100% 0% 0% 0% 0% 5,000 - - - - 52240 - SMALL TOOLS & FURNITURE <$5000 3,500 100% 0% 0% 0% 0% 3,500 - - - - 52260 - COMPUTER EQUIPMENT <$5000 - 100% 0% 0% 0% 0% - - - - - 52300 - CONTRACT SERVICES 228,000 100% 0% 0% 0% 0% 228,000 - - - - 52340 - INSURANCE 9,003 100% 0% 0% 0% 0% 9,003 - - - - 52460 - DEPRECIATION EXPENSE - 100% 0% 0% 0% 0% - - - - - 54060 - PRIOR YEAR ADJUSTMENT - 100% 0% 0% 0% 0% - - - - - SUBTOTAL: WATER EFFICIENCY 960,693 100% 0% 0% 0% 0% 960,693 - - - -

Page 29 of 59 ends

Table 8
Victorville Water District
Functional Allocation
Revenue Reqt.

Operating Expense FY 2027 Commodity Capacity Customer Recycled Fire Commodity Capacity Customer Recycled Fire Functional Allocation (%)
Functional Allocation ($)
4100530 - WATER-METER SVCS
51100 - FULL TIME WAGES 749,183 0% 10% 90% 0% 0% - 74,918 674,265 - - 51110 - OVERTIME WAGES 31,200 0% 10% 90% 0% 0% - 3,120 28,080 - - 51150 - STANDBY WAGES 16,270 0% 10% 90% 0% 0% - 1,627 14,643 - - 51160 - XREG - 0% 10% 90% 0% 0% - - - - - 51200 - FRINGE BENEFITS-FT 362,880 0% 10% 90% 0% 0% - 36,288 326,592 - - 51220 - RETIREE EXPENSE - 0% 10% 90% 0% 0% - - - - - 51230 - GASB68 PENSION EXPENSE - 0% 10% 90% 0% 0% - - - - - 51300 - PAYROLL TAXES 19,104 0% 10% 90% 0% 0% - 1,910 17,194 - - 52020 - UTILITIES-WATER USAGE 112 0% 10% 90% 0% 0% - 11 101 - - 52060 - TELEPHONE 25,000 0% 10% 90% 0% 0% - 2,500 22,500 - - 52110 - SUPPLIES 9,800 0% 10% 90% 0% 0% - 980 8,820 - - 52140 - TRAINING AND EDUCATION 9,550 0% 10% 90% 0% 0% - 955 8,595 - - 52150 - TRAVEL & MEETINGS 7,806 0% 10% 90% 0% 0% - 781 7,025 - - 52201 - VEHICLE FUEL 30,000 0% 10% 90% 0% 0% - 3,000 27,000 - - 52220 - EQUIPMENT EXPENSE 750 0% 10% 90% 0% 0% - 75 675 - - 52230 - VEHICLE EXPENSE 14,000 0% 10% 90% 0% 0% - 1,400 12,600 - - 52240 - SMALL TOOLS & FURNITURE <$5000 4,500 0% 10% 90% 0% 0% - 450 4,050 - - 52260 - COMPUTER EQUIPMENT <$5000 2,000 0% 10% 90% 0% 0% - 200 1,800 - - 52300 - CONTRACT SERVICES 117,200 0% 10% 90% 0% 0% - 11,720 105,480 - - 52340 - INSURANCE 9,003 0% 10% 90% 0% 0% - 900 8,103 - - 52440 - INFRASTRUCTURE REPAIRS 50,000 0% 10% 90% 0% 0% - 5,000 45,000 - - 52445 - METER SVC INSTALLATION 150,000 0% 10% 90% 0% 0% - 15,000 135,000 - - 52446 - METER SVC CHANGEOUTS 600,000 0% 10% 90% 0% 0% - 60,000 540,000 - - 52460 - DEPRECIATION EXPENSE - 0% 10% 90% 0% 0% - - - - - 54060 - PRIOR YEAR ADJUSTMENT - 0% 10% 90% 0% 0% - - - - - Allocation to Reclaimed Water - 0% 10% 90% 0% 0% - - - - - SUBTOTAL: WATER-METER SVS 2,208,358 0% 10% 90% 0% 0% - 220,836 1,987,522 - -

Page 30 of 59 ends

Table 8
Victorville Water District
Functional Allocation
Revenue Reqt.

Operating Expense FY 2027 Commodity Capacity Customer Recycled Fire Commodity Capacity Customer Recycled Fire Functional Allocation (%)
Functional Allocation ($)
4100535 - WATER-FIELD SVCS
51100 - FULL TIME WAGES 1,573,787 98% 0% 0% 0.02% 1.69% 1,546,833 - - 285 26,670 51110 - OVERTIME WAGES 72,800 98% 0% 0% 0.02% 1.69% 71,553 - - 13 1,234 51150 - STANDBY WAGES 33,476 98% 0% 0% 0.02% 1.69% 32,902 - - 6 567 51160 - XREG - 98% 0% 0% 0.02% 1.69% - - - - - 51200 - FRINGE BENEFITS-FT 771,733 98% 0% 0% 0.02% 1.69% 758,516 - - 140 13,078 51220 - RETIREE EXPENSE - 98% 0% 0% 0.02% 1.69% - - - - - 51230 - GASB68 PENSION EXPENSE - 98% 0% 0% 0.02% 1.69% - - - - - 51300 - PAYROLL TAXES 44,326 98% 0% 0% 0.02% 1.69% 43,567 - - 8 751 52003 - GASB96-CONTRA-EXP-OP - 98% 0% 0% 0.02% 1.69% - - - - - 52060 - TELEPHONE 15,000 98% 0% 0% 0.02% 1.69% 14,743 - - 3 254 52110 - SUPPLIES 40,775 98% 0% 0% 0.02% 1.69% 40,077 - - 7 691 52140 - TRAINING AND EDUCATION 22,500 98% 0% 0% 0.02% 1.69% 22,115 - - 4 381 52150 - TRAVEL & MEETINGS 6,750 98% 0% 0% 0.02% 1.69% 6,634 - - 1 114 52190 - DOT/PHYSICAL TEST 2,000 98% 0% 0% 0.02% 1.69% 1,966 - - 0 34 52201 - VEHICLE FUEL 125,000 98% 0% 0% 0.02% 1.69% 122,859 - - 23 2,118 52220 - EQUIPMENT EXPENSE 80,000 98% 0% 0% 0.02% 1.69% 78,630 - - 14 1,356 52230 - VEHICLE EXPENSE 25,000 98% 0% 0% 0.02% 1.69% 24,572 - - 5 424 52240 - SMALL TOOLS & FURNITURE <$5000 22,000 98% 0% 0% 0.02% 1.69% 21,623 - - 4 373 52260 - COMPUTER EQUIPMENT <$5000 3,000 98% 0% 0% 0.02% 1.69% 2,949 - - 1 51 52300 - CONTRACT SERVICES 112,219 98% 0% 0% 0.02% 1.69% 110,297 - - 20 1,902 52340 - INSURANCE 9,003 98% 0% 0% 0.02% 1.69% 8,849 - - 2 153 52420 - GROUNDS MAINTENANCE - 98% 0% 0% 0.02% 1.69% - - - - - 52440 - INFRASTRUCTURE REPAIRS 570,000 98% 0% 0% 0.02% 1.69% 560,238 - - 103 9,659 52460 - DEPRECIATION EXPENSE - 98% 0% 0% 0.02% 1.69% - - - - - 52465 - GASB87/96 AMORTIZATION - 98% 0% 0% 0.02% 1.69% - - - - - 54051 - INVENTORY-WRITE-OFFS - 98% 0% 0% 0.02% 1.69% - - - - - 54060 - PRIOR YEAR ADJUSTMENT - 98% 0% 0% 0.02% 1.69% - - - - - 54160 - GASB 87/96 INTEREST EXPENSE - 98% 0% 0% 0.02% 1.69% - - - - - Allocation to Reclaimed Water - 98% 0% 0% 0.02% 1.69% - - - - - SUBTOTAL: WATER-FIELD SVS 3,529,368 98% 0% 0% 0% 2% 3,468,921 - - 638 59,809 4100540 - WATER - WID 2
52010 - UTILITIES-ELECTRICITY 10,380 0% 98% 0% 0% 1.69% - 10,204 - - 176 52020 - UTILITIES-WATER USAGE 2,772 0% 98% 0% 0% 1.69% - 2,725 - - 47 52030 - UTILITIES-NATURAL GAS - 0% 98% 0% 0% 1.69% - - - - - 52040 - UTILITIES-SANITATION 6,700 0% 98% 0% 0% 1.69% - 6,586 - - 114

52060 - TELEPHONE - 0% 98% 0% 0% 1.69% - - - - - 52110 - SUPPLIES 500 0% 98% 0% 0% 1.69% - 492 - - 8 52112 - SUPPLIES - SANITARY 500 0% 98% 0% 0% 1.69% - 492 - - 8 52140 - TRAINING AND EDUCATION - 0% 98% 0% 0% 1.69% - - - - - 52201 - VEHICLE FUEL - 0% 98% 0% 0% 1.69% - - - - - 52230 - VEHICLE EXPENSE - 0% 98% 0% 0% 1.69% - - - - - 52240 - SMALL TOOLS & FURNITURE <$5000 40,000 0% 98% 0% 0% 1.69% - 39,322 - - 678 52300 - CONTRACT SERVICES - 0% 98% 0% 0% 1.69% - - - - - 52410 - BUILDING MAINTENANCE 29,500 0% 98% 0% 0% 1.69% - 29,000 - - 500 52415 - BUILDING - DEMOLITION - 0% 98% 0% 0% 1.69% - - - - - 74513 - DEMO OF OLD BALDY MESA OFFICE BLDNG - 0% 98% 0% 0% 1.69% - - - - - 52440 - INFRASTRUCTURE REPAIRS - 0% 98% 0% 0% 1.69% - - - - - 74513 - DEMO OF OLD BALDY MESA OFFICE BLDNG - 0% 98% 0% 0% 1.69% - - - - - SUBTOTAL: WATER - WID 2 90,352 0% 98% 0% 0% 2% - 88,821 - - 1,531

Page 31 of 59 ends

Table 8
Victorville Water District
Functional Allocation
Revenue Reqt.

Operating Expense FY 2027 Commodity Capacity Customer Recycled Fire Commodity Capacity Customer Recycled Fire Functional Allocation (%)
Functional Allocation ($)
4100541 - WATER - WID 1
51100 - FULL TIME WAGES 144,775 0% 98% 0% 0% 1.69% - 142,322 - - 2,453 51110 - OVERTIME WAGES - 0% 98% 0% 0% 1.69% - - - - - 51160 - XREG - 0% 98% 0% 0% 1.69% - - - - - 51200 - FRINGE BENEFITS-FT 73,436 0% 98% 0% 0% 1.69% - 72,191 - - 1,244 51300 - PAYROLL TAXES 3,692 0% 98% 0% 0% 1.69% - 3,629 - - 63 52010 - UTILITIES-ELECTRICITY 26,000 0% 98% 0% 0% 1.69% - 25,559 - - 441 52020 - UTILITIES-WATER USAGE 5,000 0% 98% 0% 0% 1.69% - 4,915 - - 85 52030 - UTILITIES-NATURAL GAS 2,475 0% 98% 0% 0% 1.69% - 2,433 - - 42 52040 - UTILITIES-SANITATION 15,900 0% 98% 0% 0% 1.69% - 15,631 - - 269 52060 - TELEPHONE - 0% 98% 0% 0% 1.69% - - - - - 52110 - SUPPLIES 17,150 0% 98% 0% 0% 1.69% - 16,859 - - 291 52112 - SUPPLIES - SANITARY 500 0% 98% 0% 0% 1.69% - 492 - - 8 52140 - TRAINING AND EDUCATION 2,198 0% 98% 0% 0% 1.69% - 2,161 - - 37 52150 - TRAVEL & MEETINGS 3,400 0% 98% 0% 0% 1.69% - 3,342 - - 58 52201 - VEHICLE FUEL 200 0% 98% 0% 0% 1.69% - 197 - - 3 52230 - VEHICLE EXPENSE 500 0% 98% 0% 0% 1.69% - 492 - - 8 52300 - CONTRACT SERVICES 8,760 0% 98% 0% 0% 1.69% - 8,612 - - 148 52410 - BUILDING MAINTENANCE 5,540 0% 98% 0% 0% 1.69% - 5,446 - - 94 52420 - GROUNDS MAINTENANCE - 0% 98% 0% 0% 1.69% - - - - - Allocation to Reclaimed Water - 0% 98% 0% 0% 1.69% - - - - - SUBTOTAL: WATER - WID 1 309,525 0% 98% 0% 0% 2% - 304,280 - - 5,245 4100543 - WATER LINE LOCATING
51100 - FULL TIME WAGES 145,464 100% 0% 0% 0% 0% 145,464 - - - - 51200 - FRINGE BENEFITS-FT 47,704 100% 0% 0% 0% 0% 47,704 - - - -
51300 - PAYROLL TAXES 1,319 100% 0% 0% 0% 0% 1,319 - - - - 52060 - TELEPHONE 1,150 100% 0% 0% 0% 0% 1,150 - - - - 52110 - SUPPLIES 4,318 100% 0% 0% 0% 0% 4,318 - - - - SUBTOTAL: WATER LINE LOCATING 199,954 100% 0% 0% 0% 0% 199,954 - - - - 4100545 - WATER-CUSTOMER SVCS
51100 - FULL TIME WAGES 1,521,861 30% 0% 70% 0% 0% 456,558 - 1,065,303 - - 51110 - OVERTIME WAGES 7,410 30% 0% 70% 0% 0% 2,223 - 5,187 - - 51120 - PART TIME WAGES 113,175 30% 0% 70% 0% 0% 33,952 - 79,222 - - 51160 - XREG - 30% 0% 70% 0% 0% - - - - - 51200 - FRINGE BENEFITS-FT 696,855 30% 0% 70% 0% 0% 209,057 - 487,799 - - 51201 - FRINGE BENEFITS-PT 1,460 30% 0% 70% 0% 0% 438 - 1,022 - - 51220 - RETIREE EXPENSE - 30% 0% 70% 0% 0% - - - - - 51230 - GASB68 PENSION EXPENSE -
30% 0% 70% 0% 0% - - - - - 51300 - PAYROLL TAXES 38,807 30% 0% 70% 0% 0% 11,642 - 27,165 - - 51301 - PAYROLL TAXES - PT 1,641 30% 0% 70% 0% 0% 492 - 1,149 - - 52010 - UTILITIES-ELECTRICITY 11,625 30% 0% 70% 0% 0% 3,488 - 8,138 - - 52020 - UTILITIES-WATER USAGE 3,875 30% 0% 70% 0% 0% 1,163 - 2,713 - - 52030 - UTILITIES-NATURAL GAS 750 30% 0% 70% 0% 0% 225 - 525 - - 52060 - TELEPHONE 63 30% 0% 70% 0% 0% 19 - 44 - - 52110 - SUPPLIES 200,400 30% 0% 70% 0% 0% 60,120 - 140,280 - - 52140 - TRAINING AND EDUCATION 1,125 30% 0% 70% 0% 0% 338 - 788 - - 52150 - TRAVEL & MEETINGS - 30% 0% 70% 0% 0% - - - - - 52170 - ADVERTISING/LEGAL NOTICES - 30% 0% 70% 0% 0% - - - - - 52180 - RECRUITMENT EXPENDITURES 2,250 30% 0% 70% 0% 0% 675 - 1,575 - - 52240 - SMALL TOOLS & FURNITURE <$5000 3,075 30% 0% 70% 0% 0% 923 - 2,153 - - 52260 - COMPUTER EQUIPMENT <$5000 - 30% 0% 70% 0% 0% - - - - -

Page 32 of 59 ends

Table 8
Victorville Water District
Functional Allocation
Revenue Reqt.

Operating Expense FY 2027 Commodity Capacity Customer Recycled Fire Commodity Capacity Customer Recycled Fire Functional Allocation (%)
Functional Allocation ($)
52300 - CONTRACT SERVICES 246,825 30% 0% 70% 0% 0% 74,048 - 172,778 - - 52350 - LEGAL 750 30% 0% 70% 0% 0% 225 - 525 - - 52360 - FEDERAL/STATE /LOCAL FEES 19,500 30% 0% 70% 0% 0% 5,850 - 13,650 - - 52365 - BANK/CC PROCESSING FEES 257,200 30% 0% 70% 0% 0% 77,160 - 180,040 - - 52410 - BUILDING MAINTENANCE - 30% 0% 70% 0% 0% - - - - - 54050 - UNCOLLECTABLE WRITE-OFFS 100,000 30% 0% 70% 0% 0% 30,000 - 70,000 - - 54060 - PRIOR YEAR ADJUSTMENT - 30% 0% 70% 0% 0% - - - - - SUBTOTAL: WATER-CUSTOMER SVCS 3,228,648 30% 0% 70% 0% 0% 968,594 - 2,260,053 - - 4101510 - WATER-INFO TECHNOLOGY
52260 - COMPUTER EQUIPMENT <$5000 30,000 0% 98% 0% 0% 1.69% - 29,492 - - 508 52300 - CONTRACT SERVICES 36,585 0% 98% 0% 0% 1.69% - 35,965 - - 620 SUBTOTAL: WATER-INFO TECHNOLOGY 66,585 0% 98% 0% 0% 2% - 65,457 - - 1,128 4101515 - WATER-IT GIS
51100 - FULL TIME WAGES 100,648 0% 98% 0% 0% 1.69% - 98,943 - - 1,706

51110 - OVERTIME WAGES - 0% 98% 0% 0% 1.69% - - - - - 51160 - XREG - 0% 98% 0% 0% 1.69% - - - - - 51200 - FRINGE BENEFITS-FT 47,522 0% 98% 0% 0% 1.69% - 46,716 - - 805 51300 - PAYROLL TAXES 2,567 0% 98% 0% 0% 1.69% - 2,523 - - 43 52003 - GASB96-CONTRA-EXP-OP - 0% 98% 0% 0% 1.69% - - - - - 52060 - TELEPHONE 2,500 0% 98% 0% 0% 1.69% - 2,458 - - 42 52110 - SUPPLIES - 0% 98% 0% 0% 1.69% - - - - - 52140 - TRAINING AND EDUCATION 10,250 0% 98% 0% 0% 1.69% - 10,076 - - 174 52150 - TRAVEL & MEETINGS 6,050 0% 98% 0% 0% 1.69% - 5,947 - - 103 52180 - RECRUITMENT EXPENDITURES - 0% 98% 0% 0% 1.69% - - - - - 52201 - VEHICLE FUEL 3,000 0% 98% 0% 0% 1.69% - 2,949 - - 51 52230 - VEHICLE EXPENSE 2,000 0% 98% 0% 0% 1.69% - 1,966 - - 34 52260 - COMPUTER EQUIPMENT <$5000 13,246 0% 98% 0% 0% 1.69% - 13,022 - - 224 52300 - CONTRACT SERVICES 61,679 0% 98% 0% 0% 1.69% - 60,634 - - 1,045 52460 - DEPRECIATION EXPENSE - 0% 98% 0% 0% 1.69% - - - - - 52465 - GASB87/96 AMORTIZATION - 0% 98% 0% 0% 1.69% - - - - - 54160 - GASB 87/96 INTEREST EXPENSE - 0% 98% 0% 0% 1.69% - - - - - SUBTOTAL: WATER-IT GIS 249,462 0% 98% 0% 0% 2% - 245,234 - - 4,227

Page 33 of 59 ends

Table 8
Victorville Water District
Functional Allocation
Revenue Reqt.

Operating Expense FY 2027 Commodity Capacity Customer Recycled Fire Commodity Capacity Customer Recycled Fire Functional Allocation (%)
Functional Allocation ($)
4104000 - WATER - CODE ENFORCEMENT
51001 - CONTRA-EXP-WAGES - 98% 0% 0% 0.02% 1.69% - - - - - 51100 - FULL TIME WAGES 380,804 98% 0% 0% 0.02% 1.69% 374,282 - - 69 6,453 51110 - OVERTIME WAGES 2,600 98% 0% 0% 0.02% 1.69% 2,555 - - 0 44 51160 - XREG - 98% 0% 0% 0.02% 1.69% - - - - - 51200 - FRINGE BENEFITS-FT 179,392 98% 0% 0% 0.02% 1.69% 176,319 - - 32 3,040 51220 - RETIREE EXPENSE - 98% 0% 0% 0.02% 1.69% - - - - - 51230 - GASB68 PENSION EXPENSE - 98% 0% 0% 0.02% 1.69% - - - - - 51300 - PAYROLL TAXES 9,710 98% 0% 0% 0.02% 1.69% 9,544 - - 2 165 54060 - PRIOR YEAR ADJUSTMENT - 98% 0% 0% 0.02% 1.69% - - - - - SUBTOTAL: WATER - CODE ENFORCEMENT 572,506 98% 0% 0% 0% 2% 562,700 - - 104 9,702 4104500 - WATER-ENGINEERING SVCS
51100 - FULL TIME WAGES 1,347,848 0% 98% 0% 0% 1.69% - 1,325,007 - - 22,841 51110 - OVERTIME WAGES 5,200 0% 98% 0% 0% 1.69% - 5,112 - - 88 51120 - PART TIME WAGES - 0% 98% 0% 0% 1.69% - - - - - 51160 - XREG - 0% 98% 0% 0% 1.69% - - - - - 51200 - FRINGE BENEFITS-FT 569,753 0% 98% 0% 0% 1.69% - 560,098 - - 9,655 51220 - RETIREE EXPENSE 36,799 0% 98% 0% 0% 1.69% - 36,175 - - 624 51230 - GASB68 PENSION EXPENSE - 0% 98% 0% 0% 1.69% - - - - - 51300 - PAYROLL TAXES 34,370 0% 98% 0% 0% 1.69% - 33,788 - - 582 52010 - UTILITIES-ELECTRICITY 12,000 0% 98% 0% 0% 1.69% - 11,797 - - 203 52020 - UTILITIES-WATER USAGE 750 0% 98% 0% 0% 1.69% - 737 - - 13 52030 - UTILITIES-NATURAL GAS 800 0% 98% 0% 0% 1.69% - 786 - - 14 52060 - TELEPHONE 4,500 0% 98% 0% 0% 1.69% - 4,424 - - 76 52110 - SUPPLIES 11,500 0% 98% 0% 0% 1.69% - 11,305 - - 195 52130 - SUBS /PUBLICATIONS / DUES 500 0% 98% 0% 0% 1.69% - 492 - - 8 52140 - TRAINING AND EDUCATION 5,050 0% 98% 0% 0% 1.69% - 4,964 - - 86 52150 - TRAVEL & MEETINGS 3,650 0% 98% 0% 0% 1.69% - 3,588 - - 62 52165 - CITY OUTREACH EVENTS 2,500 0% 98% 0% 0% 1.69% - 2,458 - - 42 52170 - ADVERTISING/LEGAL NOTICES 1,000 0% 98% 0% 0% 1.69% - 983 - - 17 52180 - RECRUITMENT EXPENDITURES 500 0% 98% 0% 0% 1.69% - 492 - - 8 52201 - VEHICLE FUEL 8,000 0% 98% 0% 0% 1.69% - 7,864 - - 136 52230 - VEHICLE EXPENSE 4,000 0% 98% 0% 0% 1.69% - 3,932 - - 68 52240 - SMALL TOOLS & FURNITURE <$5000 800 0% 98% 0% 0% 1.69% - 786 - - 14 52260 - COMPUTER EQUIPMENT <$5000 - 0% 98% 0% 0% 1.69% - - - - - 52300 - CONTRACT SERVICES 190,000 0% 98% 0% 0% 1.69% - 186,780 - - 3,220 52350 - LEGAL 30,000 0% 98% 0% 0% 1.69% - 29,492 - - 508 52410 - BUILDING MAINTENANCE - 0% 98% 0% 0% 1.69% - - - - - 52440 - INFRASTRUCTURE REPAIRS - 0% 98% 0% 0% 1.69% - - - - - 52460 - DEPRECIATION EXPENSE - 0% 98% 0% 0% 1.69% - - - - - 54010 - TRANSFERS OUT - 0% 98% 0% 0% 1.69% - - - - - 54055 - GAIN/LOSS DISPOSAL OF ASSETS - 0% 98% 0% 0% 1.69% - - - - - 54060 - PRIOR YEAR ADJUSTMENT - 0% 98% 0% 0% 1.69% - - - - - SUBTOTAL: WATER-ENGINEERING SVCS 2,269,520 0% 98% 0% 0% 2% - 2,231,060 - - 38,459

Page 34 of 59 ends

Table 8
Victorville Water District
Functional Allocation
Revenue Reqt.

Operating Expense FY 2027 Commodity Capacity Customer Recycled Fire Commodity Capacity Customer Recycled Fire Functional Allocation (%)
Functional Allocation ($)
4105001 - WATER ASPHALT
51100 - FULL TIME WAGES 145,637 100% 0% 0% 0% 0% 145,637 - - - - 51110 - OVERTIME WAGES 520 100% 0% 0% 0% 0% 520 - - - - 51160 - XREG - 100% 0% 0% 0% 0% - - - - - 51200 - FRINGE BENEFITS-FT 65,518 100% 0% 0% 0% 0% 65,518 - - - - 51300 - PAYROLL TAXES 3,714 100% 0% 0% 0% 0% 3,714 - - - - 52110 - SUPPLIES 1,500 100% 0% 0% 0% 0% 1,500 - - - - 52201 - VEHICLE FUEL - 100% 0% 0% 0% 0% - - - - - 52202 - EQUIPMENT FUEL - 100% 0% 0% 0% 0% - - - - - 52240 - SMALL TOOLS & FURNITURE <$5000 100 100% 0% 0% 0% 0% 100 - - - - 52440 - INFRASTRUCTURE REPAIRS 22,000 100% 0% 0% 0% 0% 22,000 - - - - 54010 - TRANSFERS OUT - 100% 0% 0% 0% 0% - - - - - SUBTOTAL: WATER ASPHALT 238,988 100% 0% 0% 0% 0% 238,988 - - - - 4110020 - WID #2 - NON-OPERATING
52455 - UTILITY ASSISTANCE - 0% 100% 0% 0% 0% - - - - - 54050 - UNCOLLECTABLE WRITE-OFFS - 0% 100% 0% 0% 0% - - - - - 54120 - DEBT SERVICE INTEREST - 0% 100% 0% 0% 0% - - - - - SUBTOTAL: WID #2 - NON-OPERATING - 0% 0% 0% 0% 0% - - - - - 4110201 - WID #2 - 98 BALDY MESA COP
54120 - DEBT SERVICE INTEREST - 0% 100% 0% 0% 0% - - - - - 54130 - BOND ISSUANCE FEE - 0% 100% 0% 0% 0% - - - - - 54140 - TRUSTEE SERVICE FEE - 0% 100% 0% 0% 0% - - - - - SUBTOTAL: WID #2 - 98 BALDY MESA COP - 0% 0% 0% 0% 0% - - - - - 4110202 - WID #2 - 06 BALDY MESA COP
52360 - FEDERAL/STATE /LOCAL FEES - 0% 100% 0% 0% 0% - - - - - 54130 - BOND ISSUANCE FEE - 0% 100% 0% 0% 0% - - - - - 54140 - TRUSTEE SERVICE FEE - 0% 100% 0% 0% 0% - - - - - SUBTOTAL: WID #2 - 06 BALDY MESA COP - 0% 0% 0% 0% 0% - - - - -

Page 35 of 59 ends

Table 8
Victorville Water District
Functional Allocation
Revenue Reqt.

Operating Expense FY 2027 Commodity Capacity Customer Recycled Fire Commodity Capacity Customer Recycled Fire Functional Allocation (%)
Functional Allocation ($)
4130520 - RECLAIMED WATER
51100 - FULL TIME WAGES 172,506 0% 0% 0% 100% 0% - - - 172,506 - 51110 - OVERTIME WAGES 1,560 0% 0% 0% 100% 0% - - - 1,560 - 51160 - XREG - 0% 0% 0% 100% 0% - - - - - 51200 - FRINGE BENEFITS-FT 72,231 0% 0% 0% 100% 0% - - - 72,231 - 51230 - GASB68 PENSION EXPENSE - 0% 0% 0% 100% 0% - - - - - 51300 - PAYROLL TAXES 4,399 0% 0% 0% 100% 0% - - - 4,399 - 52050 - UTILITIES-PRODUCTION POWER 8,160 0% 0% 0% 100% 0% - - - 8,160 - 52060 - TELEPHONE 3,300 0% 0% 0% 100% 0% - - - 3,300 - 52110 - SUPPLIES 7,500 0% 0% 0% 100% 0% - - - 7,500 - 52140 - TRAINING AND EDUCATION 8,349 0% 0% 0% 100% 0% - - - 8,349 - 52150 - TRAVEL & MEETINGS 4,200 0% 0% 0% 100% 0% - - - 4,200 - 52190 - DOT/PHYSICAL TEST 200 0% 0% 0% 100% 0% - - - 200 - 52201 - VEHICLE FUEL 7,500 0% 0% 0% 100% 0% - - - 7,500 - 52230 - VEHICLE EXPENSE 3,000 0% 0% 0% 100% 0% - - - 3,000 - 52240 - SMALL TOOLS & FURNITURE <$5000 3,000 0% 0% 0% 100% 0% - - - 3,000 - 52300 - CONTRACT SERVICES 221,200 0% 0% 0% 100% 0% - - - 221,200 - 52360 - FEDERAL/STATE/LOCAL FEES 75 0% 0% 0% 100% 0% - - - 75 - 52420 - GROUNDS MAINTENANCE - 0% 0% 0% 100% 0% - - - - - 52440 - INFRASTRUCTURE REPAIRS 38,000 0% 0% 0% 100% 0% - - - 38,000 - 52460 - DEPRECIATION EXPENSE - 0% 0% 0% 100% 0% - - - - - 53030 - PURCHASED WATER - 0% 0% 0% 100% 0% - - - - - 54010 - TRANSFERS OUT - 0% 0% 0% 100% 0% - - - - - 54020 - COST ALLOCATIONS PAID 77,064 0% 0% 0% 100% 0% - - - 77,064 - 54060 - PRIOR YEAR ADJUSTMENT - 0% 0% 0% 100% 0% - - - - - SUBTOTAL: RECLAIMED WATER 632,243 0% 0% 0% 100% 0% - - - 632,243 - 4131510 - REC - INFO TECHNOLOGY
52300 - CONTRACT SERVICES 3,192 0% 0% 0% 100% 0% - - - 3,192 - SUBTOTAL: REC - INFO TECHNOLOGY 3,192 0% 0% 0% 100% 0% - - - 3,192 - Total Operating Expenses: 40,328,670 59% 29% 11% 2% 1% 23,686,411 11,494,656 4,247,576 636,177 263,851

Page 36 of 59 ends

Table 8
Victorville Water District
Functional Allocation
Revenue Reqt.

Operating Expense FY 2027 Commodity Capacity Customer Recycled Fire Commodity Capacity Customer Recycled Fire Functional Allocation (%)
Functional Allocation ($)
Revenue Reqt.

Summary of Functional Allocation by Organization FYE 2027 Commodity Capacity Customer Recycled Fire Commodity Capacity Customer Recycled F ire 4100030 - WATER-ADMINISTRATION 7,318,907 0.0% 98.3% 0.0% 0.000% 1.69% $0 $7,194,880 $0 $0 $124,027 4100030E - WATER ADMINISTRATION EDD 111,775 0.0% 98.3% 0.0% 0.000% 1.69% - 109,881 - - 1,894 4100500 - WATER-SUPPLY 17,286,560 100.0% 0.0% 0.0% 0.000% 0.00% 17,286,560 - - - - 4100505 - WATER- SCADA 1,158,330 0.0% 98.3% 0.0% 0.000% 1.69% - 1,138,701 - - 19,629 4100510 - WATER-HD POWER PLANT (106,296) 0.0% 98.3% 0.0% 0.000% 1.69% - (104,494) - - (1,801) 4100525 - WATER EFFICIENCY 960,693 100.0% 0.0% 0.0% 0.000% 0.00% 960,693 - - - - 4100530 - WATER-METER SVCS 2,208,358 0.0% 10.0% 90.0% 0.000% 0.00% - 220,836 1,987,522 - - 4100535 - WATER-FIELD SVCS 3,529,368 98.3% 0.0% 0.0% 0.018% 1.69% 3,468,921 - - 638 59,809 4100540 - WATER - WID 2 90,352 0.0% 98.3% 0.0% 0.000% 1.69% - 88,821 - - 1,531 4100541 - WATER - WID 1 309,525 0.0% 98.3% 0.0% 0.000% 1.69% - 304,280 - - 5,245 4100543 - WATER LINE LOCATING 199,954 100.0% 0.0% 0.0% 0.000% 0.00% 199,954 - - - - 4100545 - WATER-CUSTOMER SVCS 3,228,648 30.0% 0.0% 70.0% 0.000% 0.00% 968,594 - 2,260,053 - - 4101510 - WATER-INFO TECHNOLOGY 66,585 0.0% 98.3% 0.0% 0.000% 1.69% - 65,457 - - 1,128 4101515 - WATER-IT GIS 249,462 0.0% 98.3% 0.0% 0.000% 1.69% - 245,234 - - 4,227 4104000 - WATER - CODE ENFORCEMENT 572,506 98.3% 0.0% 0.0% 0.018% 1.69% 562,700 - - 104 9,702 4104500 - WATER-ENGINEERING SVCS 2,269,520 0.0% 98.3% 0.0% 0.000% 1.69% - 2,231,060 - - 38,459 4105001 - WATER ASPHALT 238,988 100.0% 0.0% 0.0% 0.000% 0.00% 238,988 - - - - 4110020 - WID #2 - NON-OPERATING - 0.0% 0.0% 0.0% 0.000% 0.00% - - - - - 4110201 - WID #2 - 98 BALDY MESA COP - 0.0% 0.0% 0.0% 0.000% 0.00% - - - - - 4110202 - WID #2 - 06 BALDY MESA COP - 0.0% 0.0% 0.0% 0.000% 0.00% - - - - - 4130520 - RECLAIMED WATER 632,243 0.0% 0.0% 0.0% 100.0% 0.00% - - - 632,243 - 4131510 - REC - INFO TECHNOLOGY 3,192 0.0% 0.0% 0.0% 100.0% 0.00% - - - 3,192 - Total Operating Expenses: 40,328,670 23,686,411 11,494,656 4,247,576 636,177 263,851 Allocation of Revenue Requirements 59% 28.5% 10.5% 2% 0.65% Average Functional Allocation (%) Functional Allocation ($)

Page 37 of 59 ends

Victorville Water District
Proposed Rate Derivation
Table 9
Summary of Revenue Requirements, Fiscal Year 2026/27:

Cost Allocation Category
FY 2026/27
Revenue Reqt. Units Unit Cost
Commodity $20,313,669 8,893,551 $2.28 HCF of Domestic water use Capacity 9,857,915 49,080 $16.74 Equivalent Meters/month Customer 3,642,758 38,711 $7.84 Customers/month
Recycled 545,591 293,193 $1.86 HCF of Recycled water use Fire 226,281 48,362 $0.39 Equivalent Meters/month
Total $34,586,214
Table 10
Water Consumption Estimate
Customer Class FY 2024/25
Actual
FY 2025/26
Estimated
FY 2026/27
Estimated
1 % of Total
Single Family Residential 5,257,702 5,310,279 5,363,382 57.63% Standard Domestic Water (Non SFR) 3,455,310 3,489,863 3,524,762 37.88% Construction Flow Meter/Intertie 116,951 118,121 119,302 1.28% Fire 3,324 3,357 - 0.00% Well (Untreated) Water 5,301 5,354 5,408 0.06% Reclaimed/Recycled Water 287,416 290,290 293,193 3.15% Total 9,126,004 9,217,264 9,306,046 100.00% Units of Measure

1. Any differences in water consumption by customer class compared to percentage of total are due to rounding.

Page 38 of 59 ends

Victorville Water District
Proposed Rate Derivation
Table 11
Meter Count by Customer Class1
Meter Size Single Family
Residential
All Other
Standard
Domestic
Well Recycled Fire Total Meters
3/4'' 34,045 942 - - - 34,987 1'' 1,288 592 - - 21 1,901

1.5'' 2 497 - 2 - 501 2'' 1 520 1 1 8 531 3'' - 65 - 2 1 68 4'' - 45 - - 89 134 6'' - 22 - - 158 180 8'' - 25 2 - 330 357 10'' - 1 - - 45 46 12'' - - - 2 4 6 Total 35,336 2,709 3 7 656 38,711 % of Total 91.3% 7.0% 0.0% 0.0% 1.7% 100.0%
1 Meter data is based on file name: NEW Water Meter and Service Data for Rate Adj

Page 39 of 59 ends

Victorville Water District
Proposed Rate Derivation
Table 12
Meter Capacity Factors
3/4 inch 30 1.00 30 1.00
1 inch 50 1.67 50 1.67

1.5 inch 100 3.33 100 3.33
2 inch 160 5.33 160 5.33
3 inch 500 16.67 500 16.67
4 inch 880 29.33 880 29.33
6 inch 1,400 46.67 1,400 46.67
8 inch 2,800 93.33 2,800 93.33
10 inch 4,500 150.00 4,500 150.00
12 inch 5,500 183.33 5,500 183.33
Meter Size
1 Standard Meters
Displacement & Ultrasonic II
1 Per 2026 AWWA M-1 Table C-2 (page 340).

Fire Service Meters
Meter
Capacity
Equivalency
to 3/4-inch
Meter
Capacity
Equivalency
to 3/4-inch
Displacement & Ultrasonic II

Page 40 of 59 ends

Victorville Water District
Proposed Rate Derivation
Table 13
Calculation of Monthly Fixed Meter Service Charges
Meter Size
Number of
Meters
3/4'' Meter
Equivalent
Total
Equivalent
Meters
Customer
Costs
($/Meter/
month)
Capacity
Costs
($/Meter/
month)
Tota
l Fixed
Meter
Charge
($/Meter/
month)
Estimated
Revenue
from Fixed
Charges1
Formula for Calculation A B A x B C = $7.84 D = $16.74 x B E = C + D A x E x 12 Standard Meters
3/4 inch 34,987 1.00 34,987 $7.84 $16.74 $24.58 $10,319,766 1 inch 1,880 1.67 3,133 $7.84 $27.90 $35.74 806,294

1. Slight deviation in dollar amount due to rounding.

Page 41 of 59 ends

Victorville Water District
Proposed Rate Derivation
Table 14
Construction Flow Meter/Intertie Rate
Average Cost of Water
Revenue Requirement $34,586,214
Estimated Water Consumption 8,893,551
Cost Per HCF $3.89
Table 15
Untreated Water Rates
Average Annual Production
1 Water Production (in acre feet) 171.64
Biological/Administrative Fee $6.86
Watermaster Cost $1,177.45
Water Production (in gallons) 55,929,139
Water Production (in hcf) 74,766
Costs Allocated to Untreated Well Customers 1
Power - SCE $55,445
Personnel $36,500
Annual Maintenance $30,000
Watermaster Costs $1,177
Total Cost $123,123
Water Production (in hcf) 74,766
Proposed Rate ($/hcf) $1.65

1. Slight deviation in dollar amounts and units
due to rounding.
x
÷

Page 42 of 59 ends

Victorville Water District
Proposed Drought Surcharge Calculations
Table 16
Source of Supply Rates Applicable to Drought Surcharges Source of Supply Rates Cost Per Acre
Foot Cost Per HCF
Replacement and Makeup Assessment Rates
FY 2024/25 (6/1/26 Invoice Date) $565 $1.30
FY 2025/26 (6/1/27 Invoice Date) $622 $1.43
FY 2026/27 (6/2/28 Invoice Date) $634 $1.46
Administrative and Biological Assessment Rates
Administrative Rate (FY 2026/27) $6.35 $0.015
Biological Rate (FY 2026/27) $1.23 $0.0028
Purchased Water Cost, FY 2026/27
HDPP/City of Victorville $565 $1.30
Table 17
Source of Supply Rate Cost Escalation
Cost Inflation (from Table 5) FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 R-Cubed Water 7.50% 7.50% 7.50% 7.50% 7.50%
Admin & Bio Assessment 4.50% 4.50% 4.50% 4.50% 4.50%
Groundwater Replenishment & Makeup Obligation 4.00% 4.00% 4.00% 4.00% 4.00% Utilities - Production Power 7.50% 7.50% 7.50% 7.50% 7.50%

Page 43 of 59 ends

Victorville Water District
Proposed Drought Surcharge Calculations
Table 18
Source of Supply Rate Projection
Water Supply Cost Projection FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Administrative Rate ($/AF) $6.35 $6.64 $6.93 $7.25 $7.57 Biological Rate ($/AF) $1.23 $1.29 $1.34 $1.40 $1.47
Replacement and Makeup Assessment ($/AF) $634 $659 $686 $713 $742 R3 Water Cost ($/AF) $180 $194 $208 $224 $240
Administrative Rate ($/HCF) $0.015 $0.015 $0.016 $0.017 $0.017 Biological Rate ($/HCF) $0.003 $0.003 $0.003 $0.003 $0.003 Replacement and Makeup Assessment ($/HCF) $1.46 $1.51 $1.57 $1.64 $1.70 Table 19
Water Production
Historical Production 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 5-Year Average
AF 24,096 22,463 20,523 20,982 21,902 21,993 HCF 10,496,074 9,784,820 8,939,651 9,139,738 9,540,628 9,580,182 Free Production Allowance
14,652 14,274 14,689 13,262 13,651 14,106 Table 20
Water Production and Consumption Estimates
Production/Consumption Statistic FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Estimated Production (af) 21,993 22,213 22,435 22,659 22,886 Estimated Consumption (af) 20,291 20,494 20,698 20,905 21,114 Free Production Allowance (af) 13,305 13,305 13,305 13,305 13,305 Production Over FPA (af) 8,688 8,908 9,130 9,354 9,581 Estimated Production (hcf) 9,580,182 9,675,984 9,772,744 9,870,471 9,969,176 Estimated Consumption (hcf) 8,838,588 8,926,974 9,016,244 9,106,406 9,197,470 Free Production Allowance (hcf) 5,795,658 5,795,658 5,795,658 5,795,658 5,795,658 Production Over FPA (hcf) 3,784,524 3,880,326 3,977,086 4,074,813 4,173,518 Estimated Water Loss 8% 8% 8% 8% 8%
Estimated R3 Water Purchases (AF) 4,622 4,493 4,368 4,246 4,127 Estimated R3 Water Purchases (hcf) 2,013,440 1,957,251 1,902,630 1,849,533 1,797,918

Page 44 of 59 ends

Victorville Water District
Proposed Drought Surcharge Calculations
Table 21
Base Water Supply Cost, Production and Consumption
Water Supply Costs FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Groundwater Replenishment 5,508,238 $ 5,873,581 $ 6,260,846 $ 6,671,279 $ 7,106,194 $ Administrative Assessment 139,656 $ 147,400 $ 155,573 $ 164,200 $ 173,305 $ Biological Assessment 27,051 $ 28,551 $ 30,135 $ 31,806 $ 33,569 $ Utilities - Production Power 3,151,800 $ 3,388,185 $ 3,642,299 $ 3,915,471 $ 4,209,132 $ Chemicals 277,950 $ 286,289$ 294,877$ 303,723$ 312,835$ Total 9,104,695 $ 9,724,006 $ 10,383,730 $ 11,086,479 $ 11,835,034 $ Production (hcf) 9,580,182 9,675,984 9,772,744 9,870,471 9,969,176 Production Over FPA (hcf) 3,784,524 3,880,326 3,977,086 4,074,813 4,173,518 Consumption (hcf) 8,838,588 8,926,974 9,016,244 9,106,406 9,197,470 Rate Revenue Requirement 34,586,214 $ 36,446,174 $ 38,283,061 $ 40,212,527 $ 42,239,239 $ Table 22
Drought Surcharge Development - 10% Conservation
Water Supply Costs FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Groundwater Replenishment 4,113,877 $ 4,408,944 $ 4,722,392 $ 5,055,287 $ 5,408,755 $ Administrative Assessment 125,690 $ 132,660 $ 140,016 $ 147,780 $ 155,974 $ Biological Assessment 24,346 $ 25,696 $ 27,121 $ 28,625 $ 30,212 $ Utilities - Production Power 2,836,620 $ 3,049,367 $ 3,278,069 $ 3,523,924 $ 3,788,218 $ Chemicals 250,155 $ 257,660 $ 265,389 $ 273,351 $ 281,552 $ Total 7,350,689 $ 7,874,327 $ 8,432,987 $ 9,028,967 $ 9,664,712 $ Change in Cost from Full Production (1,754,007) $ (1,849,679) $ (1,950,743) $ (2,057,512) $ (2,170,322) $ Revised Revenue Requirement 32,832,208 $ 34,596,495 $ 36,332,319 $ 38,155,015 $ 40,068,916 $ Production (hcf) 8,622,164 8,708,386 8,795,469 8,883,424 8,972,258 Production Over FPA (hcf) 2,826,506 2,912,728 2,999,811 3,087,766 3,176,600 Consumption (hcf) 7,954,729 8,034,276 8,114,619 8,195,765 8,277,723 Fixed Rate Revenue 13,727,387 $ 14,419,247 $ 15,145,977 $ 15,909,335 $ 16,711,165 $ Variable Rate Revenue (10% Conservation) 18,664,043 $ 19,604,711 $ 20,592,788 $ 21,630,665 $ 22,720,850 $ Total Rate Revenue (Standard Rates) 32,391,430 $ 34,023,958 $ 35,738,766 $ 37,540,000 $ 39,432,015 $ Drought Condition Shortfall (440,777) $ (572,537) $ (593,553) $ (615,016) $ (636,901) $ Drought Surcharge $0.06 $0.07 $0.07 $0.08 $0.08
% Change in Fixed Revenue 5.0% 5.0% 5.0% 5.0%
% Change in variable revenue 5.0% 5.0% 5.0% 5.0%
0% Conservation
10% Conservation

Page 45 of 59 ends

Victorville Water District
Proposed Drought Surcharge Calculations
Table 23
Drought Surcharge Development - 20% Conservation
Water Supply Costs FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Groundwater Replenishment 2,719,516 $ 2,944,308 $ 3,183,938 $ 3,439,295 $ 3,711,317 $ Administrative Assessment 111,725 $ 117,920 $ 124,459 $ 131,360 $ 138,644 $ Biological Assessment 21,641 $ 22,841 $ 24,108 $ 25,445 $ 26,855 $ Utilities - Production Power 2,521,440 $ 2,710,548 $ 2,913,839 $ 3,132,377 $ 3,367,305 $ Chemicals 222,360 $ 229,031 $ 235,902 $ 242,979 $ 250,268 $ Total 5,596,682 $ 6,024,648 $ 6,482,245 $ 6,971,455 $ 7,494,390 $ Change in Cost from Full Production (3,508,013) $ (3,699,358) $ (3,901,485) $ (4,115,025) $ (4,340,645) $ Revised Revenue Requirement 31,078,201 $ 32,746,816 $ 34,381,576 $ 36,097,503 $ 37,898,594 $ Production (hcf) 7,664,146 7,740,787 7,818,195 7,896,377 7,975,341 Production Over FPA (hcf) 1,868,488 1,945,129 2,022,537 2,100,719 2,179,683 Consumption (hcf) 7,070,870 7,141,579 7,212,995 7,285,125 7,357,976 Fixed Rate Revenue 13,727,387 $ 14,419,247 $ 15,145,977 $ 15,909,335 $ 16,711,165 $ Variable Rate Revenue (20% Conservation) 16,590,261 $ 17,426,410 $ 18,304,701 $ 19,227,258 $ 20,196,312 $ Total Rate Revenue (Standard Rates) 30,317,648 $ 31,845,657 $ 33,450,678 $ 35,136,592 $ 36,907,477 $ Drought Condition Shortfall (760,554) $ (901,159) $ (930,898) $ (960,910) $ (991,117) $ Drought Surcharge $0.11 $0.13 $0.13 $0.13 $0.13
% Change in Fixed Revenue 5.0% 5.0% 5.0% 5.0%
% Change in variable revenue 5.0% 5.0% 5.0% 5.0%
20% Conservation

Page 46 of 59 ends

Victorville Water District
Proposed Drought Surcharge Calculations
Table 24
Drought Surcharge Development - 30% Conservation
Water Supply Costs FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Groundwater Replenishment 1,325,155 $ 1,479,671 $ 1,645,483 $ 1,823,302 $ 2,013,879 $ Administrative Assessment 97,759 $ 103,180 $ 108,901 $ 114,940 $ 121,313 $ Biological Assessment 18,936 $ 19,986 $ 21,094 $ 22,264 $ 23,498 $ Utilities - Production Power 2,206,260 $ 2,371,730 $ 2,549,609 $ 2,740,830 $ 2,946,392 $ Chemicals 194,565 $ 200,402 $ 206,414 $ 212,606 $ 218,985 $ Total 3,842,676 $ 4,174,969 $ 4,531,502 $ 4,913,942 $ 5,324,067 $ Change in Cost from Full Production (5,262,020) $ (5,549,037) $ (5,852,228) $ (6,172,537) $ (6,510,967) $ Revised Revenue Requirement 29,324,195 $ 30,897,137 $ 32,430,833 $ 34,039,990 $ 35,728,272 $ Production (hcf) 6,706,128 6,773,189 6,840,921 6,909,330 6,978,423 Production Over FPA (hcf) 910,470 977,531 1,045,263 1,113,672 1,182,765 Consumption (hcf) 6,187,012 6,248,882 6,311,371 6,374,484 6,438,229 Fixed Rate Revenue 13,727,387 $ 14,419,247 $ 15,145,977 $ 15,909,335 $ 16,711,165 $ Variable Rate Revenue (30% Conservation) 14,898,215 $ 15,649,085 $ 16,437,799 $ 17,266,264 $ 18,136,484 $ Total Rate Revenue (Standard Rates) 28,625,602 $ 30,068,333 $ 31,583,777 $ 33,175,599 $ 34,847,649 $ Drought Condition Shortfall (698,592) $ (828,804) $ (847,057) $ (864,391) $ (880,622) $ Drought Surcharge $0.113 $0.133 $0.134 $0.136 $0.137
% Change in Fixed Revenue 5.0% 5.0% 5.0% 5.0%
% Change in variable revenue 5.0% 5.0% 5.0% 5.0%
30% Conservation

Page 47 of 59 ends

Victorville Water District
Proposed Drought Surcharge Calculations
Table 25
Drought Surcharge Development - 40% Conservation
Water Supply Costs FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Groundwater Replenishment - $ 15,035$ 107,029 $ 207,310 $ 316,440 $ Administrative Assessment 83,794 $ 88,440 $ 93,344 $ 98,520 $ 103,983 $ Biological Assessment 16,231 $ 17,131 $ 18,081 $ 19,083 $ 20,142 $ Utilities - Production Power 1,891,080 $ 2,032,911 $ 2,185,379 $ 2,349,283 $ 2,525,479 $ Chemicals 166,770 $ 171,773 $ 176,926 $ 182,234 $ 187,701 $ Total 2,157,874 $ 2,325,289 $ 2,580,760 $ 2,856,430 $ 3,153,745 $ Change in Cost from Full Production (6,946,821) $ (7,398,716) $ (7,802,971) $ (8,230,049) $ (8,681,290) $ Revised Revenue Requirement 27,639,393 $ 29,047,458 $ 30,480,091 $ 31,982,478 $ 33,557,949 $ Production (hcf) 5,748,109 5,805,590 5,863,646 5,922,283 5,981,506 Production Over FPA (hcf) - 9,932 67,988 126,625 185,848 Consumption (hcf) 5,303,153 5,356,184 5,409,746 5,463,844 5,518,482 Fixed Rate Revenue 13,727,387 $ 14,419,247 $ 15,145,977 $ 15,909,335 $ 16,711,165 $ Variable Rate Revenue (40% Conservation) 12,769,899 $ 13,413,502 $ 14,089,542 $ 14,799,655 $ 15,545,558 $ Total Rate Revenue (Standard Rates) 26,497,286 $ 27,832,749 $ 29,235,520 $ 30,708,990 $ 32,256,723 $ Drought Condition Shortfall (1,142,108) $ (1,214,709) $ (1,244,571) $ (1,273,488) $ (1,301,226) $ Drought Surcharge $0.22 $0.23 $0.23 $0.23 $0.24
% Change in Fixed Revenue 5.0% 5.0% 5.0% 5.0%
% Change in variable revenue 5.0% 5.0% 5.0% 5.0%
40% Conservation

Page 48 of 59 ends

Victorville Water District
Proposed Drought Surcharge Calculations
Table 26
Drought Surcharge Development - 50% Conservation
Water Supply Costs FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Groundwater Replenishment - $ - $ - $ - $ - $ Administrative Assessment 69,828 $ 73,700 $ 77,787 $ 82,100 $ 86,652 $ Biological Assessment 13,526 $ 14,276 $ 15,067 $ 15,903 $ 16,785 $ Utilities - Production Power 1,575,900 $ 1,694,093 $ 1,821,149 $ 1,957,736 $ 2,104,566 $ Chemicals 138,975 $ 143,144 $ 147,439 $ 151,862 $ 156,418 $ Total 1,798,229 $ 1,925,212 $ 2,061,442 $ 2,207,600 $ 2,364,420 $ Change in Cost from Full Production (7,306,466) $ (7,798,793) $ (8,322,288) $ (8,878,879) $ (9,470,614) $ Revised Revenue Requirement 27,279,748 $ 28,647,381 $ 29,960,773 $ 31,333,648 $ 32,768,625 $ Production (hcf) 4,790,091 4,837,992 4,886,372 4,935,236 4,984,588 Production Over FPA (hcf) - - - - - Consumption (hcf) 4,419,294 4,463,487 4,508,122 4,553,203 4,598,735 Fixed Rate Revenue 13,727,387 $ 14,419,247 $ 15,145,977 $ 15,909,335 $ 16,711,165 $ Variable Rate Revenue (50% Conservation) 10,641,582 $ 11,177,918 $ 11,741,285 $ 12,333,046 $ 12,954,632 $ Total Rate Revenue (Standard Rates) 24,368,969 $ 25,597,165 $ 26,887,263 $ 28,242,381 $ 29,665,797 $ Drought Condition Shortfall (2,910,778) $ (3,050,215) $ (3,073,510) $ (3,091,268) $ (3,102,828) $ Drought Surcharge $0.66 $0.68 $0.68 $0.68 $0.67
% Change in Fixed Revenue 5.0% 5.0% 5.0% 5.0%
% Change in variable revenue 5.0% 5.0% 5.0% 5.0%
Table 27
Summary of Drought Surcharges
Drought Stages FY 2026/27 FY 2027/ 28 FY 2028/29 FY 2029/30 FY 2030/31 10% Conservation $0.06 $0.07 $0.07 $0.08 $0.08
20% Conservation $0.11 $0.13 $0.13 $0.13 $0.13
30% Conservation $0.11 $0.13 $0.13 $0.14 $0.14
40% Conservation $0.22 $0.23 $0.23 $0.23 $0.24
50% Conservation $0.66 $0.68 $0.68 $0.68 $0.67
50% Conservation

Page 49 of 59 ends

Table 25
Victorville Water District
Proposed Water Rates
Current
FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 Fixed Service Charges
3/4 inch $25.81 $24.58 $25.56 $26.59 $27.65 $28.76
1 inch $39.48 $35.74 $37.17 $38.66 $40.20 $41.81

Tier 1 (1 - 6 hcf) $0.80
Tier 2 (7+ hcf) $2.44
Uniform Rate (all hcf) $2.28 $2.37 $2.47 $2.56 $2.67
All Other Customers:

Page 50 of 59 ends

Victorville Water District
Sample Water Bill Comparisons
Figure 1
Single Family Residential Bill Comparison, 3/4-inch Meter Figure 2
Single Family Residential Bill Comparison, 1-inch Meter $29.81
$35.49
$45.25
$55.01
$64.77
$76.97
$35.98
$42.82
$51.94
$61.06
$70.18
$81.58
$0
$20
$40
$60
$80
$100
5 8 12 16 20 25
Monthly Bill
Monthly Water Consumption (HCF)
Single-Family Residential Water Bill Comparison
Current vs. Proposed 2026/27 (3/4'' Meter)
Current Rates
Proposed Rates
AverageLow Month
Peak
Month
$43.48
$51.60
$61.36
$73.56
$78.44
$90.64
$47.14
$56.26
$65.38
$76.78
$81.34
$92.74
$0
$20
$40
$60
$80
$100
5 9 13 18 20 25
Monthly Bill
Monthly Water Consumption (HCF)
Single-Family Residential Water Bill Comparison
Current vs. Proposed 2026/27 (1'' Meter)
Current Rates
Proposed Rates AverageLow Month
Peak
Month

Page 51 of 59 ends

Victorville Water District
Sample Water Bill Comparisons
Figure 3
Multi-Family Residential Bill Comparison, 3/4-inch Meter Figure 4
Multi-Family Residential Bill Comparison, 1-inch Meter
$37.91
$52.43
$59.69
$66.95
$74.21
$35.98
$49.66
$56.50
$63.34
$70.18
$0
$20
$40
$60
$80
5 1 11 41 72 0
Monthly Bill
Monthly Water Consumption (HCF)
Multi-Family Residential Water Bill Comparison
Current vs. Proposed 2026/27 (3/4'' Meter)
Current Rates
Proposed Rates AverageLow Month
Peak
Month
$75.78
$107.24
$126.60
$148.38
$184.68
$69.94
$99.58
$117.82
$138.34
$172.54
$0
$50
$100
$150
$200
15 28 36 45 60
Monthly Bill
Monthly Water Consumption (HCF)
Multi-Family Residential Water Bill Comparison
Current vs. Proposed 2026/27 (1'' Meter)
Current Rates
Proposed Rates AverageLow Month
Peak
Month

Page 52 of 59 ends

Victorville Water District
Sample Water Bill Comparisons
Figure 5
Commercial Bill Comparison, 3/4-inch Meter
Figure 6
Commercial Bill Comparison, 1-inch Meter
$40.33
$45.17
$50.01
$74.21
$86.31
$38.26
$42.82
$47.38
$70.18
$81.58
$0
$20
$40
$60
$80
$100
6 8 10 20 25
Monthly Bill
Monthly Water Consumption (HCF)
Commercial Water Bill Comparison
Current vs. Proposed 2026/27 (3/4'' Meter)
Current Rates
Proposed Rates
AverageLow Month
Peak
Month
$54.00
$75.78
$83.04
$92.72
$99.98
$49.42
$69.94
$76.78
$85.90
$92.74
$0
$20
$40
$60
$80
$100
$120
6 1 51 82 22 5
Monthly Bill
Monthly Water Consumption (HCF)
Commercial Water Bill Comparison
Current vs. Proposed 2026/27 (1'' Meter)
Current Rates
Proposed Rates AverageLow Month
Peak
Month

Page 53 of 59 ends

Victorville Water District
Sample Water Bill Comparisons
Figure 7
Institutional Bill Comparison, 3/4-inch Meter
Figure 8
Institutional Bill Comparison, 2-inch Meter
$37.91
$47.59
$52.43
$57.27
$62.11
$35.98
$45.10
$49.66
$54.22
$58.78
$0
$10
$20
$30
$40
$50
$60
$70
5 9 11 13 15
Monthly Bill
Monthly Water Consumption (HCF)
Institutional Water Bill Comparison
Current vs. Proposed 2026/27 (3/4'' Meter)
Current Rates
Proposed Rates AverageLow Month
Peak
Month
$163.07
$211.47
$330.05
$460.73
$501.87
$142.72
$188.32
$300.04
$423.16
$461.92
$0
$100
$200
$300
$400
$500
$600
20 40 89 143 160
Monthly Bill
Monthly Water Consumption (HCF)
Institutional Water Bill Comparison
Current vs. Proposed 2026/27 (2'' Meter)
Current Rates
Proposed Rates
Average
Low Month
Peak
Month

Page 54 of 59 ends

Victorville Water District
Sample Water Bill Comparisons
Figure 9
Irrigation Bill Comparison, 1 1/2-inch Meter
Figure 10
Irrigation Bill Comparison, 2-inch Meter
$122.06
$143.84
$226.12
$310.82
$364.06
$109.24
$129.76
$207.28
$287.08
$337.24
$0
$100
$200
$300
$400
20 29 63 98 120
Monthly Bill
Monthly Water Consumption (HCF)
Irrigation Water Bill Comparison
Current vs. Proposed 2026/27 (1.5'' Meter)
Current Rates
Proposed Rates
Average
Low Month
Peak
Month
$187.27
$296.17
$579.31
$852.77
$1,082.67
$165.52
$268.12
$534.88
$792.52
$1,009.12
$0
$200
$400
$600
$800
$1,000
$1,200
30 75 192 305 400
Monthly Bill
Monthly Water Consumption (HCF)
Irrigation Water Bill Comparison
Current vs. Proposed 2026/27 (2'' Meter)
Current Rates
Proposed Rates
Average
Low Month
Peak
Month

Page 55 of 59 ends

Victorville Water District
Sample Water Bill Comparisons
Figure 11
Irrigation Bill Comparison, 3-inch Meter
Figure 12
Irrigation Bill Comparison, 4-inch Meter
$708.03
$957.29
$1,426.77
$2,464.95
$2,644.03
$742.84
$977.68
$1,420.00
$2,398.12
$2,566.84
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
200 303 497 926 1000
Monthly Bill
Monthly Water Consumption (HCF)
3'' Meter Water Bill Comparison
Current vs. Proposed 2026/27
Current Rates
Proposed Rates AverageLow Month
Peak
Month
$710.06
$1,012.56
$1,426.38
$2,179.00
$2,283.06
$840.88
$1,125.88
$1,515.76
$2,224.84
$2,322.88
$0
$500
$1,000
$1,500
$2,000
$2,500
150 275 446 757 800
Monthly Bill
Monthly Water Consumption (HCF)
4'' Meter Water Bill Comparison
Current vs. Proposed 2026/27
Current Rates
Proposed Rates AverageLow Month
Peak
Month

Page 56 of 59 ends

Victorville Water District
Sample Water Bill Comparisons
Figure 13
Bill Comparison, 6-inch Meter
Figure 14
Bill Comparison, 8-inch Meter
$4,318.81
$5,250.51
$7,297.83
$11,215.81
$11,578.81
$4,209.04
$5,086.84
$7,015.72
$10,707.04
$11,049.04
$0
$5,000
$10,000
$15,000
1500 1885 2731 4350 4500
Monthly Bill
Monthly Water Consumption (HCF)
6'' Meter Water Bill Comparison
Current vs. Proposed 2026/27
Current Rates
Proposed Rates AverageLow Month
Peak
Month
$3,129.12
$4,542.40
$6,037.96
$8,825.80
$9,179.12
$2,710.24
$4,041.76
$5,450.80
$8,077.36
$8,410.24
$0
$2,000
$4,000
$6,000
$8,000
$10,000
500 1084 1702 2854 3000
Monthly Bill
Monthly Water Consumption (HCF)
8'' Meter Water Bill Comparison
Current vs. Proposed 2026/27
Current Rates
Proposed Rates AverageLow Month
Peak
Month

Page 57 of 59 ends

Victorville Water District
Sample Water Bill Comparisons
Figure 15
Bill Comparison, 10-inch Meter
$14,976.03
$27,695.55
$37,249.71
$56,633.91
$63,376.03
$13,918.84
$25,902.52
$34,903.96
$53,166.76
$59,518.84
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
5000 10256 14204 22214 25000
Monthly Bill
Monthly Water Consumption (HCF)
10'' Meter Water Bill Comparison
Current vs. Proposed 2026/27
Current Rates
Proposed Rates AverageLow Month
Peak
Month

Page 58 of 59 ends

Victorville Water District
Regional Water Bill Comparison
Figure 16
$45.25 $51.24 $51.94 $52.20 $53.52
$64.05 $67.20 $71.43 $73.14
$83.92
$90.32 $91.80 $93.98
$110.80
$120.07
$187.15
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
Monthly Bill
Single-Family Residential Regional Water Bill Comparison (3/4'' meter & 12 hcf consumption)
Volumetric Fixed
* Shows proposed rates for 7/1/2026.

Page 59 of 59 ends

Victorville City CouncilJune 2, 2026

Victorville City Council
June 2, 2026