FINAL REPORT - San Bernardino Superior Court

Section 5: SCLAA Bond Expenditures
5.2. Review and amend the City’s financial statements so that the loan agreement between the
City and SCLAA for the purchase of library parcels reflects the terms of the agreement.
Specifically, that the loan is placed in the City’s Development Impact Fee fund.
5.3. Direct the City Manager to conduct an evaluation of the use of SCLAA bond funds for
the Victorville 2 Power Plant project including an analysis of the amount of funds
specifically allocated to SCLAA (less the Victorville pledge) that were used for the
project. At the completion of such analysis, establish a loan agreement between the City
and SCLAA for the repayment of the amount of SCLAA bond funds expended on the
Victorville 2 Power Plant Project less the net amount 4 pledged by Victorville for
repayment of the bonds.
The SCLAA Board should:
5.4. Direct the City Manager to establish an accounting system for all expenditures of SCLAA
bond funds. Such a system should include an estimate of the amount of expenditures that
are unrelated to the redevelopment of the former GAFB and would therefore require use
of the Victorville pledge of funds from its own territory.
5.5. Direct the City Manager to establish a policy requiring the SCLAA Board of Directors to
justify the use of SCLAA bond funds when used for projects outside of GAFB parcels.
Such a policy should require a detailed justification for how the expenditures directly
benefit the redevelopment of the former GAFB before the issuance and expenditure of
future tax increment bonds.
5.6. Review current contracts for potential conflicts of interest. This would help ensure that
the SCLAA Board of Directors makes decisions in the interest of the SCLAA.
The VVEDA Commission should:
5.7. Consider a review of the delegated authority provided to the City of Victorville for
governance and administration of the SCLAA to ensure representation of each individual
jurisdiction’s interests in the governance and administration of redevelopment activities.
Costs and Benefits
The costs to the City of implementing these recommendations would include staff time and
approximately $250,000 for the revision of the loan agreement for the library parcels and up to
$76.2 million (but likely less after subtracting the amounts pledged by Victorville that would
have otherwise been allocated to its own territory) to pay back the funds expended for the
Victorville 2 Power Plant Project. The benefits of implementing the recommendations would
include improved financial health of SCLAA. Implementation of governance recommendations
would ensure that full, fair and proportionate representation of each jurisdictions’ interests would
be represented on the Board.
4 After the funds spent on the Interchange Project are considered.
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