Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Fy24 25 Midyear Budget topic
No spam. Unsubscribe anytime.
Victorville council adopts midyear budget adjustments; city reports CIP rollovers, reserve levels remain healthy
Summary
Council approved midyear budget amendments for fiscal year 2024–25, including rollovers for capital improvement projects, a roughly $558,000 shortfall in wellness center recuperative‑care bed revenue, correction of a $1.3M fire‑retiree budgeting oversight and limited personnel changes; reserves remain above policy requirements.
The Victorville City Council on Feb. 18 approved the midyear fiscal review and related budget amendments for fiscal year 2024–25, adopting Resolution No. 25‑013 and companion resolutions for city entities including the Victorville Water District and the Southern California Logistics Airport Authority.
Finance staff presented a midyear report based on actuals through Dec. 31. Citywide revised revenue was shown at roughly $361 million with actuals tracking at about 42% through December. Expenditures rose from the adopted budget largely because of capital improvement project (CIP) rollovers: the revised budget includes approximately an additional $70 million of CIP carryover from prior years. Staff noted expenditures were pacing slower than revenues due to the timing of CIP work; actual capital spending through Dec. 31 was about $129 million (roughly 28% of the revised CIP budget).
Key items highlighted by staff and discussed with council: - The city is proposing approximately $2.9 million in additional revenues and about $4.7 million in additional O&M expenditures citywide; capital projects generate the larger budget variances when rollovers are included. - Measure P funds show a revenue shortfall of about $558,000 tied to lower‑than‑expected occupancy of recuperative care beds at the Wellness Center; staff said beds not used for recuperative care have been made available for general use to maintain service. - A prior budgeting oversight left roughly $1.3 million for fire retirees (from a former Victorville Fire Department obligation) unbudgeted in the adopted plan; the midyear adjustment corrects that oversight. Fire overtime increases were also noted with partial expectation of reimbursement (strike team deployments), though some reimbursements may occur in future fiscal years. - Enterprise funds (including water and solid waste) showed positive performance overall, with water revenue increases (about $1.4 million tied to the High Desert Power Plant agreement and $417,000 in late fees/interest) and solid waste increases driven by late fees/interest. The airport's revenue decreased due to delayed occupancy of a building but staff expects occupancy before year‑end. - Personnel control changes: the midyear staff report contained position control adjustments (16 positions deleted; 9 added this fiscal year; net impact described as a reduction in ongoing personnel cost of about $129,000 after vacancies and absorption). A companion personnel item was listed elsewhere on the agenda.
Staff emphasized the city’s reserves remain well above policy minimums (staff cited a 17% reserve requirement for the general fund and Measure P and reported both are well over 50%). Staff concluded that the city is fiscally sound while monitoring cash flows and CIP timing.
The council discussed questions about the Wellness Center recuperative‑care definition and use; Deputy City Manager Scott Webb explained those beds are for ambulatory patients discharged from hospitals who still require wound care, medication management or other medical follow‑up but do not require full hospital care. Several councilmembers praised the midyear review as a useful corrective tool. The council adopted the midyear amendments and accompanying resolutions unanimously.
