Report 2014-132 Recommendation 7 Responses

Report 2014-132: Apple Valley Area Water Rates: Differences in Costs Affect Water Utilities' Rates, and One Utility May Have Spent Millions of Ratepayer Funds Inappropriately (Release Date: April 2015)

Recommendation #7 To: Victorville Water District

To ensure that it does not use revenues from ratepayers for inappropriate purposes, by October 2015, Victorville should revise its policies to prohibit transfers or loans of water fee revenue for nonwater district purposes. Victorville should also revise its investment policy that specifies the circumstances under which it can invest water revenues—setting prudent limits on its investment in assets that the Victorville city council manages.

1-Year Agency Response

Victorville did not submit a 1 year response.

  • Estimated Completion Date:
  • Response Date: May 2016

California State Auditor's Assessment of 1-Year Status: Will Not Implement

We contacted Victorville and it stated that it will not be changing its statement from the 60-day response. Please see its 60-day response and our assessment of that response below.


6-Month Agency Response

Victorville did not submit a 6-month response.

  • Estimated Completion Date:
  • Response Date: November 2015

California State Auditor's Assessment of 6-Month Status: Will Not Implement

We contacted Victorville and it stated that it will not be changing its statement from the 60-day response. Please see its 60-day response and our assessment of that response below.


60-Day Agency Response

The Victorville City Council, acting at the City Council, the Victorville Water District Board of Directors, and as the Board of Directors for other associated agencies, adopted an updated inter-fund and intra-fund loan policy on April 7, 2015. Although the California State Auditor disagrees, legal counsel for the city, district, and other associated agencies has advised this policy follows all applicable laws. Victorville has no intention of further revision of this policy.

  • Response Date: July 2015

California State Auditor's Assessment of 60-Day Status: Will Not Implement

As we indicate on page 36 and 37 of our report, Victorville should consider modifications to its investment policy. These simple revisions would strengthen protections of water district monies and help to ensure that the water district's core mission is not impaired.


All Recommendations in 2014-132

Agency responses received are posted verbatim.


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