SCLA, city utility deficit hits $130 million; Water district funds nearly depleted
February 12, 2010 5:08 PM
Brooke Edwards

VICTORVILLE • For the second time in a matter of days, officials have expressed doubt about the city’s ability to stay solvent in the coming year.

City Manager Jim Cox told the council Tuesday that Victorville won’t survive the 2010-11 fiscal year unless it trims millions from its budget, with impending layoffs and cuts to services for residents.

Now a new independent audit report warns that massive deficits and recurring losses in the city’s general, airport and utility funds “should raise substantial doubt about the city’s ability to continue as a going concern.”

If this sounds familiar, that’s because it’s the same warning auditors Mayer Hoffman McCann P.C. gave Victorville when its last audit was finally released in September.

Though the firm offered a clean opinion on the reliability of the city’s financial statements, the 2008-09 audit report shows Victorville’s current financial problems stem from years of spending more money than many of its funds have taken in.

Southern California Logistics Airport and the city’s utility fund alone posted a combined $130 million deficit as of December, according to the report, having relied on uncertain future revenue streams, bonding and interfund loans to operate.

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The audit report will be reviewed at the council meeting starting at 7 p.m. Tuesday in City Hall, at 14343 Civic Drive.

Brooke Edwards may be reached at (760) 955-5358 or at bedwards@VVDailyPress.com.