REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
SAN BERNARDINO COUNTY FLOOD CONTROL DISTRICT
BOARD GOVERNED COUNTY SERVICE AREAS
AND RECORD OF ACTION
REPORT/RECOMMENDATION TO THE BOARD OF DIRECTORS
OF THE SAN BERNARDINO COUNTY FIRE PROTECTION DISTRICT
AND RECORD OF ACTION
November 4, 2025
FROM
LUTHER SNOKE, Chief Executive Officer, County Administrative Office
SUBJECT
Title
Subordination of Statutory Pass-Through of Property Taxes Within the Victor Valley Redevelopment Project Area
End
RECOMMENDATION(S)
Recommendation
Acting as the governing body of San Bernardino County, Board Governed County Service Areas, the San Bernardino County Fire Protection District, and the San Bernardino County Flood Control District:
1. Approve the subordination of the statutory pass-through tax payments for the proposed Southern California Logistics Airport Authority refinancing bond issuance.
2. Authorize the Chief Executive Officer to sign the Consent to Subordination of Pass-Through Payments.
3. Direct the County Chief Financial Officer to transmit the executed Consent to Subordination of Pass-Through Payments to the Clerk of the Board of Supervisors within 30 days of execution.
(Presenter: Matthew Erickson, County Chief Financial Officer, 387-5423)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
Provide for the Safety, Health and Social Service Needs of County Residents.
FINANCIAL IMPACT
Approval of this item will not result in the use of additional Discretionary General Funding (Net County Cost). Based on the financial projections provided, there is no anticipated fiscal impact to the County. If property tax revenues within the redevelopment area decline and become insufficient to meet all obligations, debt service payments would take priority over the County’s pass-through tax payments from the Victor Valley Redevelopment Project area. However, current projections demonstrate adequate revenues to fully cover both debt service and County pass-through obligations.
BACKGROUND INFORMATION
San Bernardino County receives a share of property tax revenues generated from the incremental assessment within the Victor Valley Redevelopment Project area which includes the cities of Adelanto, Apple Valley, Hesperia, and Victorville. The redevelopment area was established to redevelop the former George Air Force Base property into the Southern California Logistics Airport and to support economic revitalization across the region.
The Southern California Logistics Airport Authority (Authority), operating under the Victor Valley Economic Development Authority, has requested that the County subordinate its pass-through property tax payments in connection with a proposed bond refinancing until the bonds are paid off. Approval of this request would prioritize bond debt service payments over the County’s pass-through payments.
Under California Health and Safety Code section 34177.5(c), such a request may only be denied if substantial evidence shows the Authority will be unable to pay both debt service and the County’s pass-through obligations. The County Administrative Office reviewed the Authority’s financial projections and found that sufficient revenues are projected to meet both obligations. Accordingly, approval of the subordination request is recommended.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Daniella Hernandez, Deputy County Counsel, 387-5455) on October 7, 2025; Auditor-Controller/Treasurer/Tax Collector (Franciliza Zyss, Chief Deputy, 382-3176) on October 21, 2025; and County Finance and Administration (Amanda Trussell, Principal Administrative Analyst, 387-4773) on October 14, 2025.