6,948 TOTAL STREET LIGHTS 6,546 owned and maintained by Southern California Edison (SCE) 40 city-owned and maintained (i.e., overpass, etc.) 38 VMUS-owned and maintained (SCLA, Foxborough) 324 safety lights 116 TOTAL TRAFFIC SIGNALS 83 City-owned and maintained of which 17 multi-jurisdictional with San Bernardino County, Hesperia, & Adelanto which reimburse Victorville their portion of O & M costs 26 Traffic Signals are Caltrans-owned and maintained but the City pays energy costs under maintenance agreements.

2008* IS THE YEAR THAT SLAD 2 TOOK EFFECT.

The Ad Valorem Tax received increases and decreases as property values increase or decrease. Not all beneficiaries are paying for the O & M of street lighting, such as multi- residential, commercial and industrial parcels. Continuously rising electricity costs.  FY12/13 – SCE has increased their rates 7%.  Since 2004, Southern California Edison (SCE) has increased their rates.  FY09/10 - SCE with approval of the California Public Utility Commission (CPUC) increased electricity costs 11.1%.  FY10/11 - SCE increased rates 5% due to fuel costs.  98% of FY12-13’s Street Lighting Budget is electrical costs.  Electricity Costs increased 57% from 2006 ($601,420) to 2011 ($1,055,120). Due to the housing crisis and down turn in the economy over the last several years, the collection of monies has been elusive. Due to Proposition 218, the current assessment district cannot increase its administrative costs without voter approval.

PROPOSED SLAD 2 BUDGET FY12/13FY13/14 TOTAL ESTMATED EXPENDITURE TOTAL ESTIMATED REVENUE ESTIMATED BALANCE PROPOSED AD VALOREM (SLD 1) BUDGET FY12/13FY13/14 TOTAL ESTMATED EXPENDITURE TOTAL ESTIMATED REVENUE ESTIMATED BALANCE PROPOSED COMBINED BUDGET AD VALOREM (SLD 1) & SLAD 2 FY12/13FY13/14 TOTAL ESTMATED EXPENDITURE TOTAL ESTIMATED REVENUE ESTIMATED BALANCE Expenditure Changes: 7% Electricity Cost Increase Pole replacement costs Revenue Changes: 1% Property Value Increase Anticipated Expenditure Changes: 7% Electricity Cost Increase Revenue Changes: 7% Increase in per parcel assessment from $25.21 to $26.97

3,025 fewer streets lights operational $44/light – SCE charge to turn lights off ($133,100) $49/light – SCE to re-energize lights ($148,225) Additional SCE charges possibility as stated in rate disclaimer. OPTION 60% Turn Off 60% in Ad Valorem Tax Boundary (SLD 1) Only PROPOSED BUDGET SLD 1 REVENUES ONLY W/SLD 1 ELECTRICAL 40% PROPOSED FY13/14 BUDGET OPT. 1 BUDGET 1ST YEAR OPT 1 BUDGET 2ND YEAR Total Estimated Expenditures$1,067,829$427,132 $44 SCE Turn-Off ChargeN/A$133,100$0 Total Estimated Revenue*$459,045 Total Estimated Balance-$105,732$31,913 *1% Increase Projected Estimated Number of Street Lights to be Affected or Temporarily Turned-Off3,025 SCE COSTS $49 SCE Re-Energize Charge $148,225 Cost to be included when lights are turned back on.

Operational hours Dusk plus 6 hours 48% reduction in operational hours $65/light - SCE start-up fee ($327,730) PROPOSED BUDGET SLD 1 REVENUES ONLY W/SLD 1 ELECTRICAL USAGE AT A REDUCED SERVICE LEVEL PROPOSED FY13/14 BUDGET OPT. 2 BUDGET 1ST YEAR OPT 2 BUDGET 2ND YEAR Total Estimated Expenditures$555,271 $65 SCE Per Light Set-Up Charge$0$327,730$0 Total Estimated Revenue*$459,045 Total Estimated Balance-$613,329-$428,501-$96,226 *1% Increase Projected SCE COSTS Number of Lights to be Changed to SCE's Midnight Service 5,042

New District to establish fair & equitable assessment methodology for developed & vacant parcels and single- family, multi-family, commercial, & industrial parcels. No General Fund subsidy required. All parcels that receive a special benefit to participate. Ad Valorem Tax (SLD 1) to fund O & M for arterial street lighting & traffic signals that receive a general benefit. Requires voter approval & compliance with Prop 218 approved. Upon voter approval, SLAD 2 would be dissolved.

1972 Landscape & Lighting Act permits assessment districts to fund street lighting O & M Proposition 218 (“Right to Vote on Taxes Act”) enacted November 5, 1996 & became effective July 1, It established new formation & administration requirements, such as the District has the burden to demonstrate two key findings needed for an assessment:  Special benefit (A particular & distinct benefit over & above general benefits)  Proportionality General benefits to be separated before assessing the special benefit. "Special assessment": Charge levied against property, which benefits particularly & directly by the improvement in order to pay for it’s cost. A majority protest will cause a new district to fail when the majority of the weighted ballots received are in opposition to the proposed assessment.

Assessment amount to be based upon a parcel’s equivalent dwelling unit (EDU’s) factor, land use designation, & if it’s improved/developed, vacant, recorded and/or entitled. Equivalent Dwelling Unit (EDU’s) Parcel Land Use Designation Benefit Vacant Parcels Escalator

Land Use Category Basic Unit x EDU Factor =EDU Rate Total No. Lots Total Acreage Total Number EDU‘s/Land Use EDU Rate Amount Total Annual Assessment Amount/Land Use SFR Developed or SFR Vacant w/Map1 D.U.x1=1.0 EDU/DU33, , ,508.25$13.98$580, SFR Developed & Remote or SFR Vacant & Remote w/Map 1 D.U.x0.5=0.50 EDU/DU SFR Vacant w/TTM1 D.U.x0.5=0.50 EDU/DU SFR Vacant & Remote w/TTM1 D.U.x0.25=0.25 EDU/DU SFR Rural Residential w/o Street Lights, Developed or Vacant 1 D.U.x0.25=0.25 EDU/DU2, SFR Vacant Acreage not Remote1 D.U.x0.25=0.25 EDU/DU50.00 SFR Vacant Acreage Remote1 D.U.x0=0.00 EDU/DU51.00 Multi Developed or Vacant w/Map1 D.U.x0.8=0.80 EDU/DU , ,454.10$13.98$48, Multi Vacant & Remote w/Map1 D.U.x0.4=0.40 EDU/DU16.00 Multi Vacant w/TTM1 D.U.x0.4=0.40 EDU/DU0.00 Multi Vacant & Remote w/TTM1 D.U.x0.2=0.20 EDU/DU0.00 Multi Vacant Acreage not Remote1 D.U.x0.25=0.25 EDU/DU18.00 Multi Vacant Acreage Remote1 D.U.x0=0.00 EDU/DU13.00 Office Professional, Commercial & Industrial1 ACREx4=4 EDU/ACRE1, , ,944.88$13.98$292, Vacant Office Professional, Commercial & Industrial1 ACREx2=2 EDU/ACRE1, Public Property & Institutional1 ACREx4=4 EDU/ACRE , ,633.20$13.98$232, Vacant Public Property & Institutional1 ACREx2=2 EDU/ACRE Parks, Open Space, & Agriculture Developed1 ACREx1=1 EDU/ACRE , ,870.31$13.98$26, Parks, Open Space, & Agriculture Vacant1 ACREx0.5= 0.50 EDU/ACRE Exempt0 ACREx0=0 EDU/ACRE $13.98$0.00

City-Wide Street Lighting Assessment Budget =$13.98 Annual Assessment Amount Per EDU $1,180,081 84, Total Number of EDU’s for All Land-Use Types Description Estimated FY13-14 Budget Special Benefit Less City Contribution Source of City Contribution District Est. FY Budget Local Roads$855,469100%$0N/A$855,469 Arterial Roads$416,18825%$312,14175% Ad Valorem$104,047 Traffic Signals$441,13050%$220,565 25% Ad Valorem & 25% Measure I $220,565 Parking Lots & Park-N- Rides $14,1450%$14,145N/A$0 TOTAL$1,726,932 ~ $546,851 ~ * $1,180,081 * The difference between the City-Wide SLAD FY13-14 Max Assessment Amount and the Total City-Wide SLAD Budget Amount is due to rounding.

Option Description Service Level 1st Year ( Shortfall / Surplus ) 2nd Year ( Shortfall / Surplus ) 3rd Year ( Shortfall / Surplus ) 4th Year ( Shortfall / Surplus ) 5th Year ( Shortfall / Surplus ) 1 Turn Off 60% of Street Lights in SLD 1 Only w/SLD 1 Revenues 40% $105,732$31,913$63,826$95,739$127,652 2 Change Hours of Operation in SLD 1 52% $428,501$96,226$192,452$288,678$384,904 3 Establish New City-Wide SLAD 100% Should the Voters approve the establishment of the City-Wide SLAD there will not be a shortfall or surplus. The assessments collected plus the City’s contribution will cover the expenditures for Street Lighting and Traffic Signals.