Victorville, CA — According to a State of California Audit, the City of Victorville is under a microscope for unethical and unlawful decisions with regards to the Water District, a water District that is run by the City and not privately owned.
In 2009 the Victorville Water District (water district) loaned nearly $21.9 million in ratepayer revenues in two loans to the city of Victorville (city), during a time the city was experiencing financial difficulties. While the loaned money was ultimately repaid, the loans resulted in harm to the ratepayers. Although it is not unlawful for a water district to loan ratepayer money or otherwise invest it in a prudent manner, it cannot do so if loaning that money impairs its ability to perform the functions for which the ratepayer revenue was collected. While the loans were outstanding, the district deferred maintenance on the water delivery system and borrowed $20 million from another entity — the Southern California Logistics Airport Authority (Airport Authority) — at a significantly higher rate of interest than it received on the money it loaned to the city.