Agenda packet, regular meeting, first session — Palmdale City Council, May 21, 2025

Mayor Pro Tem Bettencourt will participate via Zoom from Holiday Inn Express, 2300 West Coast Highway, Newport Beach, CA 92663.

1. CALL MEETING TO ORDER

Note: All City Council memberships are reflected in their City Council titles.

2. ROLL CALL

MAYOR LOA, MAYOR PRO TEM BETTENCOURT, COUNCILMEMBERS BISHOP,

OHLSEN, ALARC
Ó
N

COMMISSIONERS FRAGA-SAENZ, BETTS

3. PLEDGE OF ALLEGIANCE AND MOMENT OF SILENCE

4. PRESENTATIONS

4.1 Announcement of the 2025 Tom Hilzendeger Veteran of the Year.

CITY COUNCIL

ADJOURNED REGULAR MEETING

SUCCESSOR AGENCY

HOUSING AUTHORITY

INDUSTRIAL DEVELOPMENT AUTHORITY

PALMDALE AIRPORT AUTHORITY

PALMDALE CIVIC AUTHORITY

PALMDALE FINANCING AUTHORITY

CITY COUNCIL CHAMBER
38300 SIERRA HIGHWAY

SUITE B
PALMDALE, CA 93550
WEDNESDAY, MAY 21, 2025
5:00 PM
www.cityofpalmdaleca.gov

WELCOME
City Council
Wednesday, May 21, 2025

5. PUBLIC COMMENTS
The public is allotted to speak a total of three (3) minutes on each section of the agenda i.e. Consent Calendar, Joint Consent Calendar, Appointment-New Business, and Closed Session. As specified in the Brown Act, a speaker utilizing a translator will receive twice the amount of time specified. Any person who would like to address the Legislative Body on any agendized item may complete a speaker card for the City Clerk and identify the agenda item you would like to discuss.

6. CONSENT CALENDAR
All matters listed under the Consent Calendar will be enacted by one motion unless an item(s) is pulled by Council, in which case the item(s) will be removed from the Consent Calendar and will be considered separately following this portion of the Agenda.

6.1 Waive full reading of the Resolution(s) and/or Ordinance(s) to be considered and voted on at this meeting. (This allows for reading the title only in lieu of reciting the entire text).

6.2 Adopt Resolution No. CC 2025-040, a Resolution of the City Council of the City of Palmdale to accept the Los Angeles County Affordable Housing Solutions Agency (LACAHSA) Measure A Funds.

SR Reso. No. CC 2025-040.docx

Reso. No. CC 2025-040.docx

6.3 Award and approve agreement with Hathaway-Sycamores Child and Family Services for transitional mental health services in an amount not to exceed $2,175,000 for a term of 24 months for the period of July 1, 2025 through June 30, 2027.

SR Agrmt No. A-8949 with Hathaway-Sycamores.docx

Agrmt No. A-8949 with Hathaway-Sycamores.pdf

6.4 Approve the minutes from the previous meeting.

Mins 05 06 2025.pdf

7. NEW BUSINESS - JOINT BUDGET PRESENTATION CC/SA/HA/IDA/PAA/PCA/PFA

7.1 Presentation of City of Palmdale Draft Budget for Fiscal Year 2025-26.

SR FY 2026 Draft Budget.docx

Rpt. Draft Budget FY 2025-26.pdf

PPT Draft Budget FY 2025-26.pdf

8. CITY MANAGER’S REPORT

City Council
Wednesday, May 21, 2025

9. SHERIFF'S REPORT

10. NON-AGENDA PUBLIC COMMENTS
:

Now is the time for public participation on items not listed on the agenda. Each speaker is allotted three (3) minutes total.

11. COUNCIL REPORTS, ANNOUNCEMENTS AND REQUESTS FOR FUTURE AGENDA ITEMS

12. ADJOURN
meeting to June 3, 2025, at 5:00 p.m. in the City Hall Council Chamber located at 38300 Sierra Highway, Suite B, Palmdale, California.

Americans with Disabilities Act (ADA) Accommodations
In accordance with the Americans with Disabilities Act of 1990, if you require a disability- related modification or accommodation to participate in this meeting, please contact the City Clerk’s Office at (661) 267-5151 at least 48 hours prior to the meeting.

If you require oral translation, please contact the City Clerk’s Office at (661) 267-5151 at least 48 hours prior to the meeting.

City Council
Wednesday, May 21, 2025
City Council Staff Report
DATE: MAY 21, 2025
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: HOUSING DEPARTMENT
DISTRICT: ALL
SUBJECT: ADOPT RESOLUTION NO. CC 2025-040, A RESOLUTION OF THE

CITY COUNCIL OF THE CITY OF PALMDALE TO ACCEPT THE LOS

ANGELES COUNTY AFFORDABLE HOUSING SOLUTIONS

AGENCY (LACAHSA) MEASURE A FUNDS

RECOMMENDATION
Staff recommend that the City Council:

1. Adopt Resolution No. CC 2025-040, a resolution of the City Council of the City of Palmdale to accept the LACAHSA Measure A Funds; and,

2. Authorize the City Manager or their designee to execute any documents related to the application, acceptance, and implementation of approved grant programs and projects of the LACAHSA Measure A Funds.

BACKGROUND
On November 5, 2024, voters supported Measure A, a half-cent sales tax that will sunset Measure H, a quarter -cent sales tax passed by the voters in 2017 to address Homelessness. Generating over $1 billion annually, Measure A funding will be shared between Los Angeles County (County), cities , and Councils of Government, the Los Angeles County Development Authority (LACDA), and LACAHSA.

LACAHSA was created to make housing more affordable, hel p people stay in their homes, and increase housing options for people experiencing homelessness. It is a regional organization focused on County and comprised of leaders, including the County Supervisors, elected officials representing cities countywide, a nd nonprofit and community leaders.

Report to Mayor and City Council
Re: Resolution No. CC 2025-040
May 21, 2025

Page 2 ends

DISCUSSION
LACAHSA has allocated $1,964,308 to the City of Palmdale for affordable housing creation, preservation, prevention, and ownership. Activities will be identified based on guidelines to be provided by LACAHSA, including ensuring that 70% is expended within a 2-year period.

FISCAL IMPACT
$1,964,308; The LACAHSA Measure A Funds allocation is $1,964,308 for Fiscal Year 2025-26. Funding will be allocated to the City in subsequent years.

STRATEGIC PLAN
Goal II: Ensure long-term fiscal health of the City and maintain funding for services.

C. Pursue alternative financing opportunities for continued infrastructure improvements and quality community programs.

Prepared by: Sophia Reyes, Director of Housing
Certified as to availability of Funds: Janelle Samson, Director of Operations Approved by: Salvador Mendez, City Manager Pro Tem
Approved as to form: Alexandra Halfman, Acting City Attorney

ATTACHMENTS
Reso. No. CC 2025-040

CITY COUNCIL

CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. CC 2025-040

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALMDALE

TO ACCEPT THE LOS ANGELES COUNTY AFFORDABLE HOUSING

SOLUTIONS AGENCY (LACAHSA) MEASURE A FUNDS
WHEREAS, Measure A is half-cent sales tax countywide to resolve homelessness through housing with services and making housing more affordable throughout Los Angeles County; and
WHEREAS, LACAHSA receives 33.75% of Measure A funds, which amounts to approximately $385 million annually. By June 30, 2035, LACAHSA must allocate 60% of its Measure A funding toward affordable housing creation, preservation, and ownership. The remaining funds support renter protections and technical assistance, with specific allocations for different regions within Los Angeles County; and WHEREAS, The City of Palmdale will directly receive an annual allocation of the LACAHSA Measure A Funds. For the fiscal year 2025-2026, Palmdale's allocation is $1,964,308.

NOW THEREFORE, BE IT RESOLVED, THE CITY COUNCIL OF THE CITY OF

PALMDALE DOES HEREBY FIND, DETERMINE, RESOLVE AND ORDER AS FOLLOWS:

SECTION 1. The City of Palmdale authorizes the acceptance of the LACAHSA Measure A Funds of $1,964,308 for fiscal year 2025-2026 and funding allocated in subsequent years.

SECTION 2. The City Manager, or their designee, is hereby authorized to execute in the name of the City of Palmdale all documents, including but not limited to agreements, amendments, requests for payment, and reports necessary to secure LACAHSA Measure A Funds and implement the approved grant programs and projects.

SECTION 3. These authorizations are effective for five (5) years from the date of adoption of this resolution
Resolution No. CC 2025-040

Page 2 of 2 ends

SECTION 4. The City Clerk shall certify to the adoption of this resolution.

PASSED, APPROVED and ADOPTED this 21st day of May, 2025. _________________________________
Approved as to form: Richard J. Loa, Mayor
ATTEST:
___________________________ _________________________________ Alexandra Halfman Rochelle Scott, City Clerk
Acting City Attorney
I, Rochelle Scott, City Clerk of the City of Palmdale, California, do hereby certify that the foregoing resolution was duly passed, approved, and adopted by the City Council of the City of Palmdale at a regular meeting of said Council held on the 21st day of May, 2025 by the following roll call vote:

AYES:

NOES:___________________________________________________________ ABSTAIN:______________________ABSENT:___________________________ Date:

Rochelle Scott, City Clerk
City Council Staff Report
DATE: MAY 21, 2025
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT
DISTRICT: ALL
SUBJECT: AWARD AND APPROVE AGREEMENT WITH HATHAWAY-

SYCAMORES CHILD AND FAMILY SERVICES FOR TRANSITIONAL

MENTAL HEALTH SERVICES IN AN AMOUNT NOT TO EXCEED
$2,175,000 FOR A TERM OF 24 MONTHS FOR THE PERIOD OF
JULY 1, 2025 THROUGH JUNE 30, 2027

RECOMMENDATION
Staff recommend that the City Council:

1. Award and approve Agreement No. A-8949 with Hathaway-Sycamores Child and Family Services (Sycamores), for transitional mental health services in an amount not to exceed $2 ,175,000 for a term of 24 months for the period of July 1, 2025 through June 30, 2027; and,

2. Authorize the City Manager or designee to execute Agreement No. A -8949 with Sycamores, including minimal and/or non-substantial changes.

BACKGROUND
The City Council has approved a dedicated allocation of funding aimed at addressing a significant gap in the continuum of mental health services—specifically for residents who require transitional support after experiencing a mental health crisis. This funding will support the development and expansion of programs designed to assist individuals who, while not meeting the legal threshold for involuntary psychiatric hospitalization (such as a 5150 hold), are nonetheless in urgent need of stabilization, immediate care, and ongoing therapeutic support. The initiative seeks to fill the void between emergency intervention and long -term ment al health care, providing essential services that help prevent relapse, reduce repeated crises, and ease the burden on emergency rooms, law enforcement, and families navigating complex mental health challenges.

Report to Mayor and City Council
Re: Approve Agrmt No. A-8949 with Hathaway-Sycamores
May 21, 2025

Page 2 ends

DISCUSSION
An RFP was issued in September 2024, and the City received five proposals, which were reviewed by an evaluation committee. The five bidders are listed below:

Bidder Location

1. Community Development Center USA. Palmdale, CA

2. Hathaway-Sycamores Child and
Family Services
Palmdale, CA

3. Naderra Inc Los Angeles, CA

4. SALVA Palmdale, CA

5. Tele-Help, Inc. San Diego, CA
Sycamores’ scope of work includes, but is not limited to:
 Provide a 24/7 crisis support system for intensive programs;  Will have Mobile Crisis Outreach Teams (MCOT) staff in office and for field response Tuesday–Friday from 6 pm to 8 am and all day Saturday and Sunday;  Ensure that there is in-person clinical support 8 hours a week, and include some evening hours for walk-in mental health crisis support;  Sycamores will propose child and adult assessment/outcome tools for this program, which the City will approve;
 Schedule monthly sync-up meetings, including the City, Sycamores, Fire, and Sheriff Departments, at a minimum, with the option of bringing in additional referral entities as needed, such as hospitals. These meetings will be used to review data, identify successes, and implement opportunities for process improvement;  Collaborate with the City to identify the data gathered for the program, such as demographics, level of equity, services provided, linkages, length of service, and service outcomes;
 Medication management will be provided through linkage to community resources.

Sycamores will not directly provide medication management;  Sycamores will actively work with the participants and their family members/ support systems to empower them to navigate the system and learn how to access services in the future. Linkage may include finding an available provider, scheduling the appointment, or accompanying the participant to the appointment if needed; and,
 Sycamores will set the schedule of services with the City based on peak need utilizing data and provide 24/7 after-hours crisis support telephonically or virtually.

Sycamores’ demonstrated the highest level of quality and responsiveness to the requirements outlined in the RFP. They clearly addressed all required duties, Report to Mayor and City Council
Re: Approve Agrmt No. A-8949 with Hathaway-Sycamores
May 21, 2025

Page 3 ends

responsibilities, and specifications and provided detailed and relevant information in each of the following key areas:
 Provided evidence of experience delivering transitional mental health support services to similar populations;
 Presented a comprehensive plan for outreach and engagement to promote utilization of services among the target population;
 Demonstrated a deep understanding of the local community, its cultural context, and the diverse needs of its residents;
 Described a plan for continuous quality improvement, including systematic, formal, and ongoing processes to assess and enhance service outcomes;  Detailed a framework for tracking, evaluating, and reporting outcomes at the individual level; and,
 Outlined a strategy for community coordination and service integration, with an emphasis on connecting individuals to existing local resources that support recovery and long-term resilience.

Sycamores has demonstrated extensive experience supporting individuals with intensive mental health needs, with a proven track record of delivering transitional services in urban areas across Los Angeles and Palmdale. Their model includes mobile crisis response, short-term case management, peer support, and warm handoffs to long-term care— tailored specifically for voluntary participants.

FISCAL IMPACT
$2,175,000; Funds for this program are budgeted and available under Measure AV.

STRATEGIC PLAN
Goal IV: Maintain a desirable community where everyone wants to live, work and play.

B. Provide inclusive access to a variety of supportive services that build a resilient and healthy community.

Prepared by: Nardy Lopez, Deputy City Manager
Certified as to availability of Funds: Janelle Samson, Director of Operations Approved by: Salvador Mendez, City Manager Pro Tem
Approved as to form: Alexandra Halfman, Acting City Attorney

ATTACHMENTS
Agrmt No. A-8949
AGREEMENT NO. A-8949

CONTRACT FOR SERVICES

BETWEEN THE CITY OF PALMDALE AND HATHAWAY-SYCAMORES CHILD

AND FAMILY SERVICES

This CONTRACT for services (“Contract” herein) is made and entered into by and between the City of Palmdale, a public body corporate and politic, (hereinafter called “CITY”), and HATHAWAY-SYCAMORES CHILD AND FAMILY SERVICES, a PROVIDER, (hereinafter called “CONTRACTOR”). This Contract shall become effective on the date of the last signatory.

RECITALS
WHEREAS, CONTRACTOR represents that CONTRACTOR has the expertise and is qualified to perform the services described in this Contract.

NOW THEREFORE, CITY and CONTRACTOR, in consideration of the mutual covenants hereinafter set forth, agree as follows:
1 CITY PROJECT MANAGER
To provide the services required by this Contract, CONTRACTOR shall act under the authority and approval of CITY MANAGER /designee, who shall oversee this Contract, the work performed by CONTRACTOR, assist CONTRACTOR with any necessary information, audit billings, and approve payments. The CONTRACTOR shall channel all contacts and requests through the City project manager. 2 DESCRIPTION OF WORK

2.1 CONTRACTOR shall provide the following services in a manner satisfactory to CITY:
• Provider will offer high-quality intensive therapeutical transitional mental health services to individuals with a wide range of bio-psychosocial problems with a recovery-focused treatment plan accompanied by appropriate psychiatric, medical, case management, housing resources, and support.
• Increase access to care, decrease mental health symptoms, ease the stigma of mental health, and reduce the toll mental illness takes on, families, the public, organizations, and the social network of the community.

Continuous Quality Improvement (CQI) and Service Monitoring • Provide Continuous Quality Improvement (CQI) Plan which outlines the process for tracking, evaluating, and reporting outcomes at the individual and service levels.

Ensure that it is a results based performance tracking system. 1-16Concord - Document ID: generated after first signature • Schedule monthly sync up meetings including the City, Sycamores, Fire Department and Sherrif department at minimum with the option of bringing in additional referral entities as needed such as hospitals. These meetings will be used to review data, identify successes and opportunities for process improvement to be implemented. • The City and Sycamores will work together in identifying what data is gathered for the use of the program such as demographics, level of equity, services provided, linkages, length of service and outcomes of the services. • Administer outreach activities to encourage individuals and families to utilize the services in the identified areas. These strategies should include outreach activities and methods to engage people in treatment. Outreach should include contacts with community groups such as Faith-Based organizations, neighborhood associations, any law enforcement agency, the Los Angeles Sheriff Department MET, Los Angeles County Department of Mental, Palmdale Regional Medical Center, and Antelope Valley Medical Center.
• Provide a plan for working with persons from diverse cultures should include information on mental health service strategies and resources to respond to the specific needs and preferences of persons who live in the identified zip codes. • Implement transitional mental health support services, including the following elements:
a. Program Days and Hours: Services to be provided by telehealth or in-person.

Services will be no less frequent than at least 1x per month per individual, or services may be provided more often than clinically indicated. The program sites are expected to have crisis intervention capacity, including at least 24/7 off-hours telephonic availability of a clinician who can perform remote crisis intervention, information sharing, and coordination of care. All transitional client information is to be obtained from previous providers.

Sycamores will set the schedule of services with the City based on peak need utilizing data and provide 24/7 after-hours crisis support telephonically or virtually.

A triage assessment system to categorize the urgency of behavioral health needs is required, using priority levels routine, urgent, and emergent.

The mental health outpatient clinic is expected to have at least eight hours per week of open access time when individuals can walk in for an initial assessment.

The outpatient transitional mental health support clinic must provide information on proposed screening and assessment processes, including specific screening tools and instruments they plan to use with children and/or adults (it is also expected that 2-16Concord - Document ID: generated after first signature all participants in the mental health outpatient clinic will be screened regularly for substance use challenges, which include tobacco).

The City will also require that providers use specific structured screening and outcome tools for adults if required and a separate tool for children and that the impact of these structured tools be provided to the City continuously at an interval and frequency to be determined by the City.
b. Recovery and Resilience-Focused Planning: The planning process for each person receiving services should be strengths-based and collaborative. It should involve the person participating in services, family/significant others, and other interdisciplinary team members. Recovery and resilience-focused plans should be consistent with the assessment results and include behavioral plans with measurable goals and objectives.
c. Treatment: Individuals receiving services should be provided opportunities to change mental health professionals with no penalty or loss of service within reason.

Appropriate medication use when indicated, as well as responsible medication management and monitoring, are also essential. Medication management will not be provided directly through Sycamores but will instead be facilitated through linkages to community resources.

Providers are expected to describe how measures will be utilized to evaluate patient treatment progress and outcomes. This includes how progress and outcomes will be used to guide the discussion regarding any necessary modifications needed to advance the service delivery of patient services.
d. Community Coordination and Integration: Services are expected to connect people with their communities and assist them in utilizing existing community resources to support and sustain recovery and ongoing resilience. The transitional mental health support clinic is expected to assist members in learning about community resources.

As such they are expected to have resource information for relevant community organizations.

Sycamores will actively work with the participant and their family members/ support system to empower them to navigate the system and learn how to access services in the future. Linkage may include finding available provider, scheduling the appointment or accompanying the participant to the appointment if needed. e. Continuing Support Planning: Planning for continuing support should begin at the earliest possible moment after initial contact by a family member or other concerned person, law enforcement personnel, or first responder, the patient him or herself prior to program admission, be collaborative, and address areas such as but not limited to the following: living situation, employment/education plans, medication list, follow-up 3-16Concord - Document ID: generated after first signature appointments, and a crisis and continuing support plan. Additionally, there should be documentation that people were informed of the appropriate resources that promote resilience and recovery and, whenever possible, were linked to those services and/or supports.
f. Trauma: All staff must receive trauma-related training. Services must include trauma screening for all individuals and trauma-related services as needed.

2.2 CONTRACTOR shall have no claim for compensation for any services or work, which has not been authorized by CITY’s Authorization to Proceed.

2.3 CONTRACTOR shall not accept any change of scope, or change in contract provisions, to this Contract unless issued in writing, as a contract change order or amendment and signed by CITY. Any extensions of time must be mutually agreed upon in writing and executed by both parties.

2.4 CONTRACTOR shall maintain in current status all Federal, State, and local licenses and permits required for the operation of the business conducted by the CONTRACTOR as applicable to this contract.

2.5 All work supplied under this Contract shall be fully guaranteed by CONTRACTOR for a minimum period of 730 days from the date of acceptance by CITY. Any defects of design, workmanship, or materials that would result in non- compliance with the Contract specifications shall be fully corrected by CONTRACTOR (including parts and labor) without cost to CITY. The written warranty shall be included with the delivered products to the using Department.

2.6 CITY shall provide to CONTRACTOR, without charge, all data, program information, including reports, records, maps, and other information, now in CITY’s possession, which may facilitate the timely performance of the work. 3 CONTRACTOR’S KEY PERSONNEL

3.1 Key Staff. CITY reserves the right to review and approve CONTRACTOR’S staff including all subcontractors to be assigned to any project by CONTRACTOR during the term of this Contract.

This Contract has been awarded to CONTRACTOR based partially on the key personnel proposed to perform the services required herein. CONTRACTOR shall not change nor substitute any of these key staff for work on this Contract without prior written approval by CITY.

CONTRACTOR’s Team and Key Personnel are as follows:

Dr. Jana Lord, Chief Operating Officer
Chad Scott, Assistant Vice President
Assistant Director
Clincial Supervisor
4-16Concord - Document ID: generated after first signature This Services Contract has been awarded to CONTRACTOR based on its representation that those personnel and subcontractors submitted as part of its bid and listed above will perform the portions of the work listed above.

CONTRACTOR shall not deviate nor substitute any of these team members without prior written approval by CITY.

3.2 Subcontractors. During the performance of the Agreement, CONTRACTOR may engage such additional SUBCONTRACTORS as may be required for the timely completion of this Agreement. In the event of subcontracting, the sole responsibility for fulfillment of all terms and conditions of this Agreement rests with CONTRACTOR.

CONTRACTOR shall not enter into any Subcontract under this Contract for the performance of this Contract without the advance written approval of CITY. The subcontract shall incorporate by reference the terms and conditions of this Contract.

3.3 Direct Responsibility. All services required under this Contract shall be performed by CONTRACTOR, or under CONTRACTOR’s direct supervision, and all personnel shall possess the qualifications, permits and licenses required by State and local law to perform such services.

3.3.1 CONTRACTOR shall be solely responsible for the satisfactory work performance of all personnel engaged in performing services required by this Contract, and compliance with all reasonable performance standards established by CITY.

3.3.2 CONTRACTOR shall be responsible for payment of all CONTRACTOR’s employees’ and subcontractor’s wages and benefits and shall comply with all requirements pertaining to the employer’s liability, workers’ compensation, unemployment insurance, and Social Security.

3.3.3 CONTRACTOR shall indemnify and hold harmless CITY, and its respective officers, agents and employees from and against all claims, demands, damages or costs arising from CONTRACTOR’s acts or omissions with respect to any liability, damages, claims, costs and expenses of any nature arising from alleged violations of personnel practices.
4 COMMENCEMENT AND COMPLETION OF WORK

4.1 The execution of this Contract by the parties does not constitute an authorization to proceed. The services of CONTRACTOR shall commence when CITY, acting by and through its Project Manager, has issued an Authorization to Proceed. CONTRACTOR shall complete all the work described in Section 1 following CONTRACTOR’s receipt of Authorization to Proceed.

4.2 Time is of the essence. All of the time limits for Milestones, if any, and for completion of the work, are of the essence of this Contract. 5-16Concord - Document ID: generated after first signature

4.3 Failure of CONTRACTOR to perform any covenant or condition contained herein within the time periods specified therein shall constitute a material breach of this Contract, entitling CITY to terminate this Contract, unless CONTRACTOR applies for and receives an extension of time in accordance with the procedures set forth herein.
5 ACCEPTANCE AND DOCUMENTATION
Each task shall be reviewed and approved by the Contract Project Manager to determine acceptable completion.

5.1 Records. The CONTRACTOR shall retain and shall contractually require each SUBCONTRACTOR to retain all data and other “records” relating to the acquisition and performance of the Contract for a period of five years after the completion of the Contract.

5.2 Property of CITY. All materials, including reports, computer programs and other deliverables, supplied or created under this Contract are the sole property of CITY. CONTRACTOR is not entitled to a patent or copyright on those materials and may not transfer the patent or copyright to anyone else. CONTRACTOR shall not use or release these materials without the prior written consent of CITY.

5.3 Products. All equipment, materials, parts, and other components incorporated in the work or services performed pursuant to this Contract shall be new, or the latest model and of the most suitable grade for the purpose intended. All work shall be performed in a skilled and workmanlike manner. 6 PRICE
CITY shall pay to CONTRACTOR an amount not to exceed TWO MILLION, ONE HUNDRED SEVENTY FIVE THOUSAND dollars ($2175000) for the completion of all the work and services described in Section 2, which sum shall include all costs or expenses incurred by CONTRACTOR, payable as follows:

Four installment payments of $543,750. Two bi-annual payments in fiscal year 2025- 26 first payment in July 2025 and second payment in January 2026; and third in fiscal year 2026-27, in July 2026 and fourth payment in January 2027.

6.1 An application for payment form must be submitted to CITY which shall include the following: a clear, detailed invoice reflecting work being billed for, a summary sheet showing percentage of work completed to date, amount/percent billed to date and current status of all tasks within a project; any/all backup documentation supporting the above items. Work schedule updates must also be included with the payment requests.

6.2 CONTRACTOR shall maintain adequate records and shall permit inspection and audit by CITY of CONTRACTOR’s charges under this Contract. CONTRACTOR shall make such records available to CITY during normal business hours upon 6-16Concord - Document ID: generated after first signature reasonable notice. Nothing herein shall convert such records into public records, and they will be available only to CITY and any specified public agencies. Such records shall be maintained by CONTRACTOR for one (1) year following completion of the work under this Contract unless a longer period of time is required by state or federal law, in which event CONTRACTOR shall retain its records for the time required by such laws.

6.3 Payment. A separate invoice shall be issued for each shipment of material or service performed, and no payment will be issued prior to receipt of material and/or completion of specified services and receipt of a correct invoice. 7 TAXES

7.1 CONTRACTOR shall pay all sales, consumer, use, and other similar taxes required to be paid by CONTRACTOR in accordance with state and local laws.

7.2 CONTRACTOR is an independent contractor and shall have no power or authority to incur any debt, obligation, or liability on behalf of CITY. No person employed by CONTRACTOR or acting on its behalf, in connection with this Contract shall be considered the Agent or employee of CITY.

7.3 CONTRACTOR shall be required to obtain a current City of Palmdale business license, as required by the Palmdale Municipal Code, before an Authorization to Proceed is issued.

7.4 When equipment, materials or supplies generally taxable to CONTRACTOR are eligible for a tax exemption due to the nature of the work, CONTRACTOR shall assist the City in applying for and obtaining such tax credits and exemptions, which shall be paid or credited to the City.
8 PATENT FEES AND ROYALTIES
CONTRACTOR shall pay all license fees and royalties and assume all costs incident to the use, in the performance of the work or the incorporation in the work of any invention, design, process, program, product or device which is the subject of patent rights or copyrights held by others. If a particular invention, design, process, program, product or device is specified in the contract documents for use in the performance of the work and if, to the actual knowledge of CITY, its use is subject to patent rights or copyrights calling for the payment of any license fee or royalty to others, the existence of such rights shall be disclosed by CITY in the contract documents.

CONTRACTOR shall indemnify and hold harmless CITY and anyone directly or indirectly employed by CITY from and against all claims, damages, losses and expenses (including attorneys' fees) arising out of any infringement of patent rights or copyrights incident to the use in the performance of the work, or resulting from the incorporation in the work of any invention, design, process, program, product or device not specified in the contract documents, and shall defend all such claims in connection with any alleged infringement of such rights. 7-16Concord - Document ID: generated after first signature 9 INDEMNIFICATION
To the fullest extent permitted by law, CONTRACTOR and any subcontractors working on its behalf agree to indemnify CITY, its officers, employees, agents and elected and appointed boards (hereinafter “Indemnified Parties”) for any loss, claim, demand, cause of action, cost, expense, damage, obligation or liability which arises out of or is in any way connected with the performance of any work under this agreement, including any acts or omissions, willful misconduct or negligent conduct, whether active or passive, on the part of CONTRACTOR, or its subcontractors, and regardless of any acts, omissions or negligence (whether active or passive) of any person or entity indemnified hereunder. At their own expense, CONTRACTOR and, as applicable, any subcontractors working on its behalf, shall defend any suit, claim or action against the Indemnified Parties founded upon such loss, claim, demand, cause of action, cost, expense, damage, obligation or liability. CONTRACTOR shall ensure that the contract of any subcontractor working under this agreement contain an indemnity agreement, requiring the subcontractor to indemnify and defend the Indemnified Parties pursuant the terms set forth above. CONTRACTOR shall indemnify the Indemnified Parties, and save it harmless from any and all loss, damage, costs, expenses and attorney's fees suffered or incurred on account of any breach of the aforesaid obligations and covenants, and any other provision or covenant of this agreement.
10 INSURANCE

10.1 CONTRACTOR, at its expense, shall maintain in effect at all times during the performance of work under this Contract not less than the following coverage and limits of insurance, which shall be maintained with insurers listed “A” or better in the Best’s Insurance Guide and authorized to do business in the State of California.

Proof of Insurance, as identified in Section 10.8, must be reviewed and accepted by the City Attorney.

10.1.1 Workers’ Compensation and Employer’s Liability
 Workers’ Compensation -- coverage as required by the State of California  Employer’s Liability
$1,000,000 each accident
$1,000,000.00 policy limit bodily injury
$1,000,000.00 each employee bodily injury by disease

10.1.2 Commercial General Liability
 $5,000,000.00 limit on a per occurrence basis
 $10,000,000.00 general aggregate limit

10.1.3 Commercial Automobile Liability
 $5,000,000.00 combined single limit including owned, non-owned and hired automobile coverage

10.1.4 Professional Liability (Errors & Omissions)*
8-16Concord - Document ID: generated after first signature  $5,000,000.00 limit on a per occurrence basis
 $10,000,000.00 general aggregate limit

10.1.5 Medical Malpractice Liability*
 $5,000,000.00 limit on a per occurrence basis
 $10,000,000.00 general aggregate limit

10.1.6 Crime Liability (third party)*
 $2,000,000.00 limit on a per occurrence basis

10.1.7 Cyber Liability*
 $2,000,000.00 limit on a per occurrence basis

10.1.8 Pollution/Enviornmental Liability*
 $2,000,000.00 limit on a per occurrence basis

10.1.9 Sexual Abuse & Molestation Liability*
 $5,000,000.00 limit on a per occurrence basis
 $10,000,000.00 general aggregate limit

The above are minimum insurance requirements. Contract may require additional lines of coverage and/or insurance limits to be increased based on the final scope of work and services agreed upon by CITY and CONTRACTOR.

10.2 All of CONTRACTOR’s policies shall contain an endorsement providing that written notice shall be given to CITY at least thirty (30) calendar days prior to termination, cancellation, or reduction of coverage in the policy.

10.3 Policies providing for bodily injury and property damage coverage shall contain the following:

A. An endorsement extending coverage to the City as an additional insured, as respects liability arising out of the performance of any work under the Contract.

Such insurance shall be primary insurance, as respects the interest of the City, and any other insurance maintained by the City shall be considered excess coverage and not contributing insurance with the insurance required hereunder. The certificates shall state: “The City of Palmdale, Successor Agency to the Community Redevelopment Agency of the City of Palmdale, Palmdale Civic Authority, Housing Authority, Industrial Development Authority, Airport Authority, their officers, agents, employees and volunteers are named as additional insured”.

B. “Severability of Interest” Clause.

10.4 Promptly upon execution of this Contract, and prior to commencement of any work, CONTRACTOR shall deliver to CITY certificates of insurance and endorsements to all required policies demonstrating that CONTRACTOR has the 9-16Concord - Document ID: generated after first signature required coverage and showing the required named insured. Within five (5) days of written request from CITY, CONTRACTOR shall deliver to CITY full and complete copies of all insurance policies required by this Contract.

10.5 The requirements as to the types and limits of insurance to be maintained by CONTRACTOR are not intended to and shall not in any manner limit or qualify CONTRACTOR’s liabilities and obligations under this Contract.

10.6 Any policy or policies of insurance that CONTRACTOR elects to carry as insurance against loss or damage to its equipment and tools or other personal property used in the performance of this Contract shall include a provision waiving the insurer’s right of subrogation against CITY.

10.7 All insurance coverage must be maintained throughout the duration of this Contract.

10.8 Acceptable Proof of Insurance:

10.8.1 ACORD Certificate of Insurance listing all coverage, limits, deductibles and insured; and endorsements for all applicable coverage if agent has authority to issue it; or additional insured Form CG20100704 and CG20370704 or equivalent must be provided for general liability coverage. Additional insured form CA0001 must be provided for automobile liability coverage.

10.8.2 Binders of insurance for all coverage. Agents must confirm that policy endorsements have been ordered from the respective insurance companies. Upon issuance, policy endorsements and a corresponding Certificate of Insurance listing all insurers and coverage must be submitted to the City Attorney.

10.8.3 *When professional (E&O), medical malpractice, enviornmental/pollution, sexual abuse and molestation, crime, and/or cyber liability coverage is provided on a “claims made basis”, CONSULTANT will continue to renew the insurance for a period of five (5) years after this Agreement expires or is terminated. Such insurance will have the same coverage and limits as the policy that was in effect during the term of this Agreement, and will cover CONSULTANT, or its officers, employees, or agents during the time this Agreement was in effect.

10.9 Notwithstanding any other provision of this Contract, CITY may immediately terminate this Contract if, at any time CONTRACTOR fails to maintain the required insurance for any period of time or fails to comply with any of the insurance requirements listed above.

10.10 CONTRACTOR shall require any and all subcontractors working on its behalf to provide insurance coverages and limits that are based on the scope of work and nature of risk being performed by the subcontractor. Any and all subcontractors working on behalf of CONTRACTOR shall be subject to all other insurance requirements that are stated herein.
10-16Concord - Document ID: generated after first signature

Any deviation in this requirement will be CONTRACTOR's sole risk. CONTRACTOR's insurance requirements in Section 10 will not be impacted and/or limited by such deviation.

11 TERMINATION WITHOUT CAUSE
City reserves the right to terminate this Contract or any part thereof for its sole convenience with fifteen (15) days written notice. In the event of such termination, CONTRACTOR shall immediately stop all work hereunder, and shall immediately cause any of its suppliers and subcontractors to cease such work. CONTRACTOR shall also surrender to CITY all finished or unfinished documents, processes, programs and other supplies and materials, which shall be City’s property. As compensation in full for services performed to the date of such termination, the CONTRACTOR shall receive an amount equal to the value of the work completed as of the termination date in accordance with the fee schedule or as negotiated between the parties. In no event shall the amount payable upon termination exceed the total maximum compensation provided for in this Contract.
12 TERMINATION FOR CAUSE
If CITY determines that CONTRACTOR has failed to supply an adequate working force, or to provide services of proper quality, or has failed in any other respect to satisfactorily perform the services specified in this Contract, CITY shall give written notice to CONTRACTOR specifying all defaults to be remedied within thirty (30) days.

Such notice shall set forth the basis for CITY’s dissatisfaction and suggest corrective measures. If, after thirty days, CONTRACTOR has failed to implement appropriate corrective measures, CITY may elect to terminate this Contract in whole or in part.

12.1 In the event CITY terminates this Contract, in whole or in part, for cause, CITY may procure, upon such terms and in such manner, as it may deem appropriate, services similar to those terminated.

12.2 CONTRACTOR shall provide all finished or unfinished documents, data, studies, software, drawings, programs, processes, maps, photographs, reports, etc., prepared by CONTRACTOR within fifteen (15) working days after notice of termination. Upon such termination, CONTRACTOR shall be paid an amount equal to the value of the services provided and work performed as of the date of termination, taking into consideration the costs associated with hiring another CONTRACTOR to complete the services. In ascertaining the value of the work performed up to the date of termination, consideration shall be given to both completed work and work in progress, to complete and incomplete documents when such are delivered to CITY, and to authorized reimbursement expenses. The above is in addition to any other remedies available by law or equity to CITY.

12.3 If, after notice of termination of the Contract under the provisions of this Section 12, it is determined, for any reason, that CONTRACTOR was not in default, 11-16Concord - Document ID: generated after first signature or that the default was excusable, then the rights and obligations of the parties shall be the same as if the notice of termination had been issued pursuant to Section 11. 13 DISPUTE RESOLUTION
All claims, disputes, and other matters in question between CITY and CONTRACTOR arising out of or relating to this Contract or the breach thereof shall, to the extent reasonably feasible, be resolved through good faith negotiations between the parties. 14 OWNERSHIP OF PRODUCT
All product, data, documents, programs and software including, but not limited to, research, field notes, investigations, analysis, studies, processes, software, instructions for use and other manuals, whether complete or incomplete, which are prepared or produced in the performance of this Contract are to be, and remain the property of CITY and shall be delivered to or left with CITY upon the completion or termination of this Agreement. CONTRACTOR shall furnish CITY, upon its request, originals and reproducible and electronic copies of product, data reports, studies and of all other documents listed above. Electronic copies shall be provided in an unprotected format which allows CITY to copy, reproduce and makes changes as CITY deems necessary.
15 DELEGATION AND ASSIGNMENT

15.1 CONTRACTOR shall not delegate or assign its duties or rights hereunder, either in whole or in part, without the prior written consent of CITY; provided, however, that claims for money due or to become due to CONTRACTOR from CITY under this Contract may be assigned to a bank, trust company or other financial institution without such approval.

15.2 Any assignment, delegation or subcontract shall be made in the name of CONTRACTOR and shall not bind or purport to bind CITY and shall not release CONTRACTOR from any obligations under this Contract including, but not limited to, the duty to properly supervise and coordinate the work of employees, assignees, delegates and subcontractors. No such assignment, delegation or subcontract shall result in any increase in the amount of total compensation payable to CONTRACTOR under this Contract.
16 NON-DISCRIMINATION AND EQUAL EMPLOYMENT OPPORTUNITY

16.1 In performance of this Contract, CONTRACTOR shall not discriminate against any employee, subcontractor, or applicant for employment because of sex, color, race, religion, ancestry, national origin, disability, medical condition including the medical condition of Acquired Immune Deficiency Syndrome (AIDS) or any condition related thereto, marital status, sexual orientation, age, gender, gender identity, gender expression, genetic information, or military and veteran status.

CONTRACTOR will take affirmative action to ensure that applicants are employed, 12-16Concord - Document ID: generated after first signature and that employees are treated during employment, without regard to their sex, color, race, religion, ancestry, national origin, disability, medical condition including the medical condition of Acquired Immune Deficiency Syndrome (AIDS) or any condition related thereto, marital status, sexual orientation, age, gender, gender identity, gender expression, genetic information, or military and veteran status . Affirmative action relating to employment shall include, but not be limited to the following:
employment, upgrading, demotion or transfer; recruitment; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship.

16.2 The provisions of subsection 16.1 above shall be included in all solicitations or advertisements placed by or on behalf of CONTRACTOR for personnel to perform any services under this Contract. CITY shall have access to all documents, data and records of CONTRACTOR and its subcontractors for purposes of determining compliance with the equal employment opportunity and non-discrimination provisions of this Section, and all applicable provisions of Executive Order No. 11246 which is incorporated herein by this reference. A copy of Executive Order No. 11246 is available for inspection at, and on file with, the Palmdale City Clerk’s Office. 17 FINANCIAL INTEREST CERTIFICATION

17.1 CONTRACTOR warrants that no person has been employed or retained to solicit or secure this Contract upon an agreement or understanding for a commission, percentage, brokerage or contingent fee; and that no officer or employee of the CITY has any interest, financially or otherwise, in CONTRACTOR’s firm.

17.2 For breach or violation of this warranty, CITY shall have the right to annul this Contract without liability or at its discretion to deduct from the Contract Price or consideration, the full amount of such commission, percentage, brokerage or contingent fee.
18 CONFLICT OF INTEREST

18.1 CONTRACTOR stipulates that its officers and employees do not now have a conflict of interest and it further agrees for itself, its officers and its employees that it will not contract for or accept employment for the performance of any work or services with any individual business, corporation or government unit that would create a conflict of interest in the performance of its obligations pursuant to this Contract or which would cause CONTRACTOR to be “financial interested” (as provided in California Government Code Section 1090 et seq. or 87100 et seq.) in any contract or decision made by CITY on any matter.

18.2 CONTRACTOR shall not employ any City official or employee to perform any work required pursuant to this Contract.

18.3 To the extent required by the City Manager or his designee, CONTRACTOR shall complete and file with the City Clerk a Form 700 Statement of Economic 13-16Concord - Document ID: generated after first signature Interests disclosing any reportable property interests, income, gifts, investments, or business positions.
19 COMPLIANCE WITH LAW

19.1 CONTRACTOR shall comply with all state and federal laws, including but not limited to, the requirement to hire only those persons authorized by federal law to work in the United States. If CONTRACTOR uses any subcontractors to complete this Contract, this same requirement shall be included in all subcontracts and strictly enforced by CONTRACTOR.

19.2 The law of the state of California shall govern this Contract. The venue of any legal action, either formal or informal, shall be the County of Los Angeles.

19.3 If applicable, CONTRACTOR acknowledges and understands it must comply with the prevailing wage requirements as set forth in Exhibit “A” attached hereto and incorporated herein by reference, as well as the execution of a Worker’s Compensation Certificate attached hereto as Exhibit “B” and incorporated herein by reference.

20 NOTICES
Any notice required under this Contract shall be in writing, addressed to the appropriate party at its address on the signature page and given personally or by registered or certified mail postage prepaid, or by a commercial courier service. All notices shall be effective upon the date of receipt.
21 ENTIRE AGREEMENT AND AMENDMENTS

21.1 This Contract is the complete Agreement between the parties and supersedes all prior proposals, agreements, and understandings between the parties and may not be modified or terminated orally.

21.2 No attempted waiver of any of the provisions hereof, nor any modification in the nature, extent or duration of the work to be performed by CONTRACTOR hereunder, shall be binding unless in writing and signed by the party against whom the same is sought to be enforced.

21.3 The failure of any party to enforce against another party any provision of this Contract shall not constitute a waiver of that party’s right to enforce such a provision at a later time, and shall not serve to vary the terms of this Contract. 14-16Concord - Document ID: generated after first signature 22 ATTORNEY’S FEES

If any action at law or in equity is brought to enforce or interpret any provisions of this Contract, the prevailing party in such action shall be entitled to reasonable attorney’s fees, costs and necessary disbursements, in addition to such other relief as may be sought and awarded.

In Witness Whereof, the parties hereto have caused this Contract to be executed and attested by their respective officers thereunto duly authorized.

CITY OF PALMDALE: HATHAWAY-SYCAMORES CHILD AND
FAMILY SERVICES:

Salvador Mendez
City Manager Pro Tem

Debra Manners
President and CEO

ADDRESS FOR NOTICE:

CITY OF PALMDALE
38300 Sierra Highway
Palmdale, CA 93550

ADDRESS FOR NOTICE:

HATHAWAY-SYCAMORES CHILD AND

FAMILY SERVICES
840 N Avenue 66
Los Angeles, CA 90042
APPROVE AS TO FORM:

Alexandra Halfman
Acting City Attorney

ATTEST:

Roxanne Faber
City Clerk

---------------------------------------- INTERNAL USE ONLY ----------------------------------------

15-16Concord - Document ID: generated after first signature □Certificate(s) and Endorsement(s) attached
□Confirmed business name on contract with certificate(s) □Attached Agreement Checklist and met all requirements
16-16Concord - Document ID: generated after first signature 1 MINUTES

CITY COUNCIL/SA/HA/IDA/PAA/PCA/PFA

CITY HALL COUNCIL CHAMBER
38300 SIERRA HIGHWAY, SUITE B

PALMDALE, CALIFORNIA
MAY 6, 2025

www.cityofpalmdale.org

1) CALL MEETING TO ORDER

Mayor Loa called the meeting to order at 5:01 pm.

Note: All City Council memberships are reflected in their City Council titles.

2) ROLL CALL MAYOR LOA, MAYOR PRO TEM BETTENCOURT,
COUNCILMEMBERS BISHOP, OHLSEN, ALARCÓN

COMMISSIONERS FRAGA- SAENZ, BETTS

PRESENT: Richard J. Loa, Laura Bettencourt, Austin Bishop, Eric Ohlsen, Andrea Alarcón, Christina Fraga-Saenz, Dianne Betts.

ABSENT: None.

3) PLEDGE OF ALLEGIANCE AND MOMENT OF SILENCE

Mayor Pro Tem Bettencourt led the Pledge of Allegiance.

City Manager Pro Tem Mendez pulled items 4.2 and 8.1 and announced they would be heard at a later date.

4) PRESENTATIONS

4.1) Parks and Recreation Summer Highlights.

Director of Parks and Recreation Smith provided highlights and updates on the Summer programs.

4.2) Update on Fight Fentanyl Antelope Valley Campaign and Recognition of Palmdale High School Fentanyl Awareness PSA.

This item was pulled from the agenda and was not heard.

5) PUBLIC COMMENTS

None.

Councilmember Bishop pulled items 6.3, 6.11, and 6.13. Mayor Loa pulled items

6.10 and 6.12.

2 6) CONSENT CALENDAR

6.1) Waive full reading of the Resolution(s) and/or Ordinance(s) to be considered and voted on at this meeting. (This allows for reading the title only in lieu of reciting the entire text).

6.2) Receive and File the Monthly and Quarterly Investment Reports for March 2025.

6.3) Adopt Resolution No. CC 2025 -036, a Resolution of the City Council of the City of Palmdale approving the Palmdale Film Incentive Program; and Approve Memorandum of Understanding (MOU) with Visit Palmdale.

Director of Economic and Community Development Taggart presented the staff report and spoke about the film incentive program.

Mayor Pro Tem Bettencourt and Councilmember Bishop expressed their support for the item and the FAM (familiarization) tours in Palmdale.

David Halver, Film Liaison, spoke about the filming reputation that has been developed in Palmdale.

Councilmember Alarcón discussed the current permitting process and suggested exploring the implementation of an electronic permitting system.

Councilmember Ohlsen discussed the challenges filmmakers face related to insurance requirements, and Mrs. Taggart provided additional information on the matter.

Motion: Adopt Resolution No. CC 2025-036, a Resolution of the City Council of the City of Palmdale approving the Palmdale Film Incentive Program; and Approve Memorandum of Understanding (MOU) with Visit Palmdale.

Moved by Austin Bishop, seconded by Andrea Alarcón.

Vote: Motion carried (5-0)
Yes: Richard J. Loa, Laura Bettencourt, Austin Bishop, Eric Ohlsen, Andrea Alarcón.

6.4) Adopt Resolution No. CC 2025 -038, a Resolution of the City Council of the City of Palmdale to Restate the Authorized Signatory and Receive the State of California Department of Housing and Community Development Permanent Local Housing Allocation (PLHA) Program Funds.

6.5) Adopt Resolution No. CC 2025 -039, a Resolution of the City Council of the City of Palmdale to accept the Los Angeles County Measure A Local Solutions Funds.

6.6) Approve agreement with Henisey Electric to provide temporary electrical and general services for Special Events for a total not to exceed amount of $535,000 for a term of three years with the option to extend two one -year terms.
3 6.7) Approve the Second Amendment to Agreement with Applied Research Associates, Inc., for professional services for PN 711, pavement management program, increasing the ongoing Agreement by $150,000 for a total not to exceed and not guaranteed amount of $650,000.

6.8) Award agreement with All American Building Services for construction services for PN 862, Marie Kerr Park Swim Deck Expansion Project for a total not to exceed amount of $467,195 for a term of 50 working days from the date of the Notice to Proceed.

6.9) Approve agreement with RHA Landscape Architects -Planners, Inc., for design services for PN 871, Oasis Park basin upgrades project for preliminary engineering/design for a total not to exceed amount of $306,597 for a term of 12 months from the date of the Notice to Proceed.

6.10) Award agreement with JT Construction Group, Inc., for construction services for PN 887, Marie Kerr Park Best of the West Concession Stand Project for a total not to exceed amount of $321,193 for a term of 45 working days from the date of the Notice to Proceed.

Director of Public Works Torres presented the staff report.

Mayor Loa spoke about the Best of the West project.

Motion: Award agreement with JT Construction Group, Inc., for construction services for PN 887, Marie Kerr Park Best of the West Concession Stand Project.

Moved by Richard J. Loa, seconded by Austin Bishop.

Vote: Motion carried (5-0)
Yes: Richard J. Loa, Laura Bettencourt, Austin Bishop, Eric Ohlsen, Andrea Alarcón.

6.11) Award agreement with Manhole Adjusting, Inc., for construction services for PN 911, FY 2025-26 local street resurfacing project for a total not to exceed amount of $5,677,916 for a term of 90 working days from the date of the Notice to Proceed.

Councilmember Bishop addressed resident complaints concerning the quality of work completed by the contractor on a past project. Director of Public Works Torres stated that the issue would be addressed by assigning a full -time inspector to the project. Council and staff discussed penalties for contractors failing to meet established standards.

Motion: Award agreement with Manhole Adjusting, Inc., for construction services for PN 911, FY 2025-26 local street resurfacing project.

Moved by Austin Bishop, seconded by Laura Bettencourt.

Vote: Motion carried (5-0)
Yes: Richard J. Loa, Laura Bettencourt, Austin Bishop, Eric Ohlsen, Andrea Alarcón.

4 6.12) Adopt Resolution No. CC 2025 -037, a Resolution of the City Council of the City of Palmdale adopting a list of projects for FY 2025 -26 funded by Senate Bill 1: the Road Repair and Accountability Act of 2017.

Mayor Loa pointed out that Area 1 is Avenue R (25th Street East to 55th Street East) and Area 2 is Avenue R -8 (35th Street East to 45th Street East).

Director of Public Works Torres mentioned the project timeline.

Councilmember Alarcón and Mayor Pro Tem Bettencourt inquired about the public notification process, and the Director of Public Works provided an overview of the procedures involved. Discussion ensued regarding repairing roads.

Motion: Adopt Resolution No. CC 2025 -037, a Resolution of the City Council of the City of Palmdale adopting a list of projects for FY 2025 -26 funded by Senate Bill 1: the Road Repair and Accountability Act of 2017.

Moved by Austin Bishop, seconded by Andrea Alarcón.

Vote: Motion carried (5-0)
Yes: Richard J. Loa, Laura Bettencourt, Austin Bishop, Eric Ohlsen, Andrea Alarcón.

6.13) Award and approve agreement with Landscape Connection Group Inc., for turf removal and replacement projects at Marie Kerr and Desert Sands Parks for a total not to exceed amount of $167,000 for a term of six months from the date of Notice to Proceed.

Councilmember Bishop recused himself and stepped away from the dais as he had done business with Landscape Connection Group Inc.

Motion: Award and approve agreement with Landscape Connection Group Inc., for turf removal and replacement projects at Marie Kerr and Desert Sands Parks.

Moved by Andrea Alarcón, seconded by Eric Ohlsen.

Vote: Motion carried (4-0)
Yes: Richard J. Loa, Laura Bettencourt, Eric Ohlsen, Andrea Alarcón.

Councilmember Bishop returned to the dais.

6.14) Accept Notice of Completion (NOC) for PN 869 - Arterial Road Resurfacing Project on Palmdale Boulevard between 70th Street East and 90th Street East.

6.15) Approve the minutes from the previous meeting.

Motion: Approve all items listed under the Consent Calendar except items 6.3, 6.10,

6.11, 6.12, and 6.13.

Moved by Eric Ohlsen, seconded by Austin Bishop.

Vote: Motion carried (5-0)
Yes: Richard J. Loa, Laura Bettencourt, Austin Bishop, Eric Ohlsen, Andrea Alarcón.
5 7) JOINT CONSENT CALENDAR CC/SA/HA/IDA/PAA/PCA/PFA

7.1) Receive and file the Annual Comprehensive Financial Reports for the year ended June 30, 2024, for the City of Palmdale, the Housing Authority of the City of Palmdale, the Palmdale Financing Authority, and the Palmdale Community Foundation.

Public Comments: None.

Director of Operations Samson presented the staff report.

Motion: Receive and file the Annual Comprehensive Financial Reports for the year ended June 30, 2024, for the City of Palmdale, the Housing Authority of the City of Palmdale, the Palmdale Financing Authority, and the Palmdale Community Foundation.

Moved by Laura Bettencourt, seconded by Austin Bishop.

Vote: Motion carried (7-0)
Yes: Richard J. Loa, Laura Bettencourt, Austin Bishop, Eric Ohlsen, Andrea Alarcón, Christina Fraga-Saenz, Dianne Betts.

8) APPOINTMENTS

8.1) Appoint seven (7) members and two (2) alternates to the Measure AV Oversight Committee.

This item was pulled from the agenda and was not heard.

9) PUBLIC HEARING

9.1) Public Hearing to receive Public Comments on the Draft 2025 -29 Consolidated Plan and 2025-26 Action Plan; Review and Adopt Resolution No. 2025-035 A Resolution of the City Council of The City of Palmdale Approving the 2025-2029 Consolidated Plan and the 2025 -2026 Action Plan; Accepting CDBG and Home Grant Funds for Fiscal Year 2025-26; and Authorizing the City Manager to submit and execute the application for Federal Assistance, required certifications, all related documents, and agreements with sub - recipients.

Mayor Loa opened the Public Hearing

City Clerk Scott read the title of Resolution No. CC 2025-035.

Analyst Bartlett provided a detailed overview of the Consolidated Plan and 2025-26 Action Plan.

Testimony: None

Councilmember Alarcón asked questions about the carryover of CDBG and HOME grant funds and geographic distributions. Analyst Bartlett explained the carryovers, and David Munoz, LDM associates, spoke about the geographic distributions. Discussion ensued regarding the geographic distribution 6 restrictions.

Mayor Pro Tem Bettencourt spoke regarding the signature authority for documents, Analyst Bartlett provided clarification on the guidelines for signature.

Councilmember Ohlsen inquired about strategies for engaging citizens, and Analyst Bartlett outlined the process.

Councilmember Bishop spoke about the allocation and programming of CDBG funds.

Mayor Loa discussed the increase in the number of unhoused individuals and the allocation of CDBG funds. Director of Housing Reyes discussed the percentage of CDBG funds that may be allocated to support unhoused populations and outlined additional available funding sources.

Further discussion took place regarding the unhoused population, mental health challenges, and the rental assistance program.

Motion: Adopt Resolution No. CC 2025 -035 A Resolution of the City Council of The City of Palmdale Approving the 2025 -2029 Consolidated Plan and the 2025-2026 Action Plan.

Moved by Austin Bishop, seconded by Richard J. Loa.

Vote: Motion carried (5-0)
Yes: Richard J. Loa, Laura Bettencourt, Austin Bishop, Eric Ohlsen, Andrea Alarcón.

Mayor Loa closed the Public Hearing.

10) CITY MANAGER’S REPORT

City Manager Pro Tem Mendez introduced the Assistant Fire Chief, Chief Ghobani.

Chief Ghobani addressed the Council, providing a brief introduction and remarks regarding the recently held Fire Service Day.

Mayor Pro Tem Bettencourt inquired about the Fire Explorers Program, and Chief Ghobani shared information on how to access and participate in the program.

Councilmember Bishop spoke about Fire Service Day and the fire truck and equipment.

Councilmember Ohlsen thanked Chief Ghobani for his service.

Councilmember Alarcón thanked Mr. Ghobani for his service and sent regards to a member who was injured at Station 129.

Chief Ghobani announced Firefighter Andrew Pontious would be added to the LA County Firefighter memorial wall on Wednesday, May 7, 2025.

7 11) NON-AGENDA PUBLIC COMMENTS:

The following individuals provided public input: David Harris requested that the City allocate funding to the Measure AV budget to support nonprofit organizations and other community-based entities; Eugene Hernandez discussed the history of Cinco de Mayo, the Mexican Revolution, Cesar Chavez Day, celebrating Latino culture, and the housing report; Robert Romo discussed banning fireworks; Roger Soderstedt requested a sidewalk in his neighborhood at Rancho Vista and Avenida Vista Verde; Marsha Furman shared details of a graffiti incident involving her son in 1995, the options presented by the court, and spoke about his retirement after 30 years of service in the Air Force. She also announced the weekly veterans’ breakfast on Wednesdays at Scramblez.

12) COUNCIL REPORTS, ANNOUNCEMENTS AND REQUESTS FOR FUTURE

AGENDA ITEMS

Councilmember Bishop reported on his attendance at the Neighborhood Watch meeting in District 3, as well as his participation in the Southern California Association of Governments (SCAG) Regional Meeting.

Councilmember Ohlsen reported attending meetings of the Antelope Valley Transit Authority (AVTA), the North County Transportation Coalition (NCTC), and Metrolink.

He also discussed resident comments regarding budgetary concerns, the financial hardships faced by Palmdale citizens, and the importance of protecting the residents of Palmdale. He also thanked Marsha Furman and her son for their service to their country.

Councilmember Alarcón volunteered to share information about City services and resources with veterans during their weekly breakfast meetings. She also discussed the City’s emergency needs fund for veterans. Councilmember Alarcón expressed concern about the continued use of fireworks in the community and raised the possibility of transitioning community organizations currently engaged in fireworks sales to a grant funding program under Measure AV or PD, with the goal of phasing out “safe and sane” fireworks. Additionally, she addressed the importance of food security and discussed matters related to a local food pantry in addition to SAVES.

She inquired whether the Council had any interest in creating a legislative advocacy ad hoc committee. She also announced that she will host an event at Albe's Ice Cream on May 10, from 1–3 pm.

Mayor Pro Tem Bettencourt reported on her participation on the government panel for the iServe Youth Leadership Program and her attendance at the Los Angeles County Sheriff’s Department (LASD) Councilmember Academy. She expressed opposition to the use of fireworks and provided the reasons for her stance.

Additionally, she requested updates on the status of the Chimbole Cultural Center, inquired if there was interest from the Council in establishing a Recreation Center at Domenic Massari Park, and sought an update on the SAVES facility. She also congratulated Matt Wilhelm, Sage Academy, on being voted Teacher of the Year and for being a finalist for National Teacher of the Year.

Mayor Loa reported on his participation on the government panel for the iServe Youth Leadership Program, and attending the Antelope Valley Union High School District (AVUHSD) Oscar Night, and the Animal House Auction at the Antelope Valley Fair.

He also made two requests for future agenda items: 1) A report from Captain Cartmill 8 on the law enforcement activities on fireworks for 2023 and 2024 and 2) Consideration by the Council of the directly elected mayor.

13) PRESENTATION BY CITY ATTORNEY

13.1) CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) or (3) of subdivision (d) of Section 54956.9: (1 potential case – facts and circumstances unknown to potential plaintiffs)

14) ANNOUNCEMENT BY CITY ATTORNEY

Closed Session was held from 6:55 pm - 7:51 pm.

Acting City Attorney Halfman announced the following:

13.1 - There were no reportable actions.

15) ADJOURNMENT

Mayor Loa adjourned the meeting at 7:51 pm to May 21, 2025, at 5:00 p.m. in the City Hall Council Chamber located at 38300 Sierra Highway, Suite B, Palmdale, California.

PASSED, APPROVED, and ADOPTED this 21st day of May 2025.

___________________________
Richard J. Loa, Mayor

ATTEST:

___________________________
Rochelle Scott, City Clerk
Joint Staff Report
DATE: MAY 21, 2025
TO: HONORABLE MAYOR AND CITY COUNCIL

HONORABLE CHAIR AND COMMISSIONERS

HONORABLE CHAIR AND MEMBERS

HONORABLE CHAIR AND DIRECTORS
FROM: OPERATIONS DEPARTMENT

FINANCE DIVISION
DISTRICT: ALL
SUBJECT: PRESENTATION OF CITY OF PALMDALE DRAFT BUDGET FOR FISCAL YEAR 2025-26

RECOMMENDATION
Staff recommend that the Legislative Bodies:

1. Review the draft budget and provide recommendations for adoption.

BACKGROUND
The City is required to adopt a n operational budget each year that serves as the City’s financial plan for the Fiscal Year beginning July 1 through June 30; and defines the City's priorities for providing services to the community.

According to the Palmdale Municipal Code: Chapter 3.04 Budget Adoption Procedures, the City Manager shall submit a proposed budget to the City Council no later than May 31 each year. Additionally, the City Council shall conduct a public hearing on the proposed budg et before adoption and shall adopt a budget prescribing the City’s spending policy for the ensuing fiscal year annually on or before the thirtieth day of June.

DISCUSSION
In alignment with the City’s strategic plan, the draft Annual Budget for Fiscal Year 2025- 26 is presented for your review and consideration.

The draft budget represents spending plans for all City funds, including General Fund, Special Revenue Funds, Capital Project Funds, Internal Service Funds, and Enterprise Funds.

Report to Mayor and City Council
Re: Draft Budget Fiscal Year 2025-26
May 21, 2025

Page 2 ends

GENERAL FUND
Revenues

1. Property Taxes are anticipated to increase by 3% due to increases in the property tax base resulting from increased valuations and new development within the City.

2. Sales Taxes are expected to increase by 58% due to the passage of Measure PD, which implemented a 0.75% increase in sales tax, effective April 1, 2025.

3. Use of Property revenues are expected to increase by 6%, primarily due to leases of City-owned property and facility rental fees.

4. Licenses and permits are expected to increase by 8%, primarily due development activity and timing of permit issuance.

5. Development charges for services are expected to increase by 3% due to increases in plan checks and inspections anticipated in FY 2025-26.

6. Other revenues are expected to increase in FY 2025-26 due to anticipated economic development property sales.

Expenditures

1. Salaries and benefits are expected to increase by 6% year over year. This is the result of FY 2024-25 projections being reduced to account for vacancy savings that have been realized throughout the year. FY 2025-26 proposed budget would fully fund those positions that have been filled or are currently in recruitment phases. The FY 2025-26 salary and benefits include a proposed 4% increase (2% COLA and 2% wage increase) to employees.

2. The LA County Sheriff Contract is expected to increase by 4.37%. However, the cost of the contract is being covered by multiple funding sources, including the General Fund and Measure AV. The liability portion of the contract is expected to increase from 12.5% to 13%, a 0.5% increase.

3. The LA County Animal Care & Control contract is expected to increase by $800,000.

4. Transfers to Reserves for FY 2025-26 include:
a. $1 million contribution to the Pension Trust Fund to stabilize fluctuations in CalPERS rates; and
b. $500,000 to fund the ongoing capital costs relating to maintenance and improvements of Drytown Water Park.

Report to Mayor and City Council
Re: Draft Budget Fiscal Year 2025-26
May 21, 2025

Page 3 ends

MEASURE AV
Based on economic trends and projections performed by the City’s sales tax consultants, Measure AV is expected to generate approximately $23.6 million in FY 2025-26.

Proposed expenditures under Measure AV fund are outlined by project and/or program in greater detail on the attached budget sheets. Below are some highlights of programs proposed for funding:

1. Public Safety
a. Animal Care: $300,000
b. Emergency Management: $240.080
c. Public Safety: $1.3 million
d. LA County Sheriff Contract: $8.4 million

2. Beautification/Infrastructure/CIP
a. Safe and Clean Parks: $1.0 million
b. Graffiti Abatement: $2.4 million
c. CIP – Multi-Year Projects: $9.3 million

3. Community Programs
a. SAVES: $279,340
b. Unhoused Programs: $150,000
c. Mental Health Programs: $1.1 million
d. Senior Programs: $506,860
e. Community Programs:
i. Veteran support: $25,000
ii. Recreation scholarships: $20,000
iii. Community partnerships: $50,000
f. Community events: $1.1 million

4. Economic Development
a. Business retention and partnership programs: $1.1 million b. Film & Tourism: $135,000
c. Property acquisition and entitlement: $500,000

SPECIAL REVENUE FUNDS
Special Revenue and other funds consist of transportation funds, grants, and other forms of restricted funding. The use of money in certain funds is governed by memorandums of understanding, contracts, or law. Required audits are conducted each year to ensure compliance with granting agencies.

Report to Mayor and City Council
Re: Draft Budget Fiscal Year 2025-26
May 21, 2025

Page 4 ends

One of the largest sources of revenue used by the City to pay for the maintenance, repair, and improvement of streets and facilities is transportation funding. These are sales tax revenues collected by the State or County and allocated to the City based on a percentage of the population.

The table below shows the FY 2025-26 proposed Transportation fund expenditures:

Transportation Funds FY 2024-25
Multi-Year
Projects
FY 2025-26
Proposed
Additions
Gas Tax Fund $14,479,460 $8,305,410
Prop A Fund 16,097,410 4,526,970
Prop C Fund 14,773,440 3,699,600
Local Transp Fund Art 3 222,760 0
Local Transp Fund Art 8 15,039,030 10,897,890
Measure R Fund 101,215,520 500,000
Measure M Fund 9,373,580 3,000,000
Expenditure Total $171,471,200 $30,929,870
The City uses these funds specifically to fund street repair, maintenance, and improvement activities such as traffic engineering, geographical information system software, and staffing, bus stop and transportation center maintenance, and public works staffing. Depending on the funding source, balances may carry over from year to year to complete larger projects.

CAPITAL IMPROVEMENT PROGRAM
The proposed FY 2025-26 Capital Improvement budget includes various projects totaling $292.7 million. Many of the proposed projects are multi-year projects, and the total amount represents funds carried from year to year through the life of the projects and may not be fully expended in the single year shown. Capital improvement projects are funded primarily through grants and other restricted funds. The attached schedule comprehensively lists all previously approved and proposed capital improvement projects.

PERSONNEL
With the need to maintain and enhance certain services, additions to personnel are necessary. In addition to adding personnel, the City is working towards being more competitive in the tight job market we are currently encountering. As such, we are proposing to continue the following additional benefits:

Report to Mayor and City Council
Re: Draft Budget Fiscal Year 2025-26
May 21, 2025

Page 5 ends

 Deferred compensation match of $1,200 per year for all full-time employees;  Wellness incentive of $500 per Fiscal Year for all full-time employees; and,  Bilingual pay of $100 per month for eligible full-time and part-time staff.

The draft FY 2025-26 budget proposes 16 new positions, including 7 bargaining unit employees in the Public Works Maintenance division. Additional administrative positions are also proposed to support growing development demands, improve customer service, and expand programs and services.

CONCLUSION
The draft FY 2024-25 Budget reflects the City’s strong commitment to the well-being and prosperity of our community. While expenditures continue to outpace revenues, our focus on responsible fiscal management ensures that essential programs and services remain stable and sustainable.

This budget prioritizes public safety, quality of life improvements, and infrastructure investment, responding directly to the evolving needs of our residents. By focusing on these core areas, we aim to create a safe and vibrant environment for everyone.

We also recognize that a budget must remain flexible. As a living document, it will be refined as circumstances change. Through continued collaboration and thoughtful decision-making, we will adapt our financial strategies to best serve the community.

We thank all stakeholders for their input and support throughout this process. Through sound fiscal practices and forward-thinking solutions, we are prepared to meet future challenges and build a stronger, more inclusive city.

FISCAL IMPACT
$0; There is no fiscal impact associated with this action. The Fiscal Year 2025-26 Operating Budget will serve as the financial guideline for program implementation for the upcoming year. The proposed budget complies with all Financial Policies, including the General Fund Reserve Requirement. 30% General Fund reserves are being proposed for FY 2025-26. It is anticipated that revenues will be sufficient to cover the expenditures proposed.

STRATEGIC PLAN
Goal II: Ensure long-term fiscal health of the City and maintain funding for services.

A. Manage resources, costs, and liabilities to ensure the City’s long-term fiscal health.

Report to Mayor and City Council
Re: Draft Budget Fiscal Year 2025-26
May 21, 2025

Page 6 ends

Prepared by: Janelle Samson, Director of Operations
Certified as to availability of Funds: Janelle Samson, Director of Operations Approved by: Salvador Mendez, City Manager Pro Tem
Approved as to form: Alexandra Halfman, Acting City Attorney

ATTACHMENTS
Rpt. Draft Budget FY 2025-26
PPT Draft Budget FY 2025-26
Fiscal Year 2025-26
Draft Annual Operating and Capital Budget
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
FY 2023
Actuals
FY 2024
Actuals
FY 2025
Projected
FY 2026
Proposed
FY 2027
Projected
FY 2027
Projected
FY 2027
Projected
FY 2028
Projected
1 BEGINNING FUND BALANCE 73,269,500 92,576,350 102,985,207 83,412,187 83,618,397 87,115,667 87,974,917 85,826,127 2 REVENUES/TRANSFERS IN
3 Property Tax 29,208,527 31,453,857 32,418,040 33,386,390 35,055,710 36,808,500 38,648,930 40,581,380 4 Sales And Use Tax 27,808,626 27,486,027 32,581,130 51,382,740 52,410,390 53,458,600 54,527,770 55,618,330 5 Transient Occupancy Tax 4,608,941 5,096,411 5,198,340 5,302,310 5,408,360 5,516,530 5,626,860 5,739,400 6 Franchise Fees 7,595,391 8,574,370 8,914,460 9,178,100 9,269,880 9,362,580 9,456,210 9,550,770 7 Use Of Property 3,783,921 3,892,008 3,290,070 3,481,880 3,551,520 3,622,550 3,695,000 3,768,900 8 License And Permits 5,525,829 6,723,302 5,035,820 5,460,440 5,569,650 5,681,040 5,794,660 5,910,550 9 Charges For Services 1,524,521 1,344,006 1,357,530 1,388,830 1,444,380 1,502,160 1,562,250 1,624,740 10 Development Charges For Services 3,190,946 2,944,663 3,172,810 3,265,850 3,363,830 3,464,740 3,568,680 3,675,740 11 Fines And Forfeitures 784,947 1,577,663 1,153,610 1,290,750 1,316,570 1,342,900 1,369,760 1,397,160 12 Other Revenue 5,790,501 12,632,441 11,083,420 13,352,000 6,000,000 6,000,000 6,000,000 6,000,000 13 Gain (Loss) Fair Value of Investments -654,783 3,288,259 0 0 0 0 0 0 14 Transfer In 14,281,368 14,493,144 22,966,500 12,271,250 8,150,000 8,150,000 8,150,000 8,150,000 15 Total Revenues 103,448,734 119,506,150 127,171,730 139,760,540 131,540,290 134,909,600 138,400,120 142,016,970 16 EXPENDITURES/TRANSFERS OUT
17 Salaries 16,911,909 17,906,418 21,761,490 22,202,600 23,090,700 24,014,330 24,974,900 25,973,900 18 Benefits 6,226,421 7,002,022 8,699,910 9,610,140 9,994,550 10,394,330 10,810,100 11,242,500 19 Organizational Development 443,678 518,233 727,740 826,900 835,170 843,520 851,960 860,480 20 Operating 8,841,748 24,259,852 18,730,030 13,424,410 13,827,140 14,241,950 14,669,210 15,109,290 21 Contract Services 13,732,984 14,961,012 26,077,940 25,080,430 25,582,040 26,093,680 26,615,550 27,147,860 22 Capital Outlay 1,806,038 2,494,167 7,313,520 15,466,380 2,000,000 2,000,000 2,000,000 2,000,000 23 County Contracts - Law Enforcement 12,992,270 18,079,108 23,024,470 23,614,580 26,448,330 29,622,130 33,176,790 37,158,000 24 County Contracts - Liability 2,773,013 3,307,590 3,569,030 3,729,640 4,028,010 4,350,250 4,698,270 5,074,130 25 County Contracts - Animal Control 1,491,007 2,251,652 3,200,000 4,000,000 4,120,000 4,243,600 4,370,910 4,502,040 26 Utilities 2,318,811 2,259,654 3,171,070 3,112,580 3,237,080 3,366,560 3,501,220 3,641,270 27 Debt Service 6,045,840 6,181,732 4,066,930 4,006,700 4,600,000 4,600,000 4,600,000 4,600,000 28 Transfers Out/Internal Svc Alloc. 10,558,167 8,859,353 24,132,620 12,959,970 8,000,000 8,000,000 8,000,000 8,000,000 29 Transfer Out to Reserves - 1,016,500 2,270,000 1,520,000 2,280,000 2,280,000 2,280,000 2,280,000 30 Total Expenditures 84,141,884 109,097,293 146,744,750 139,554,330 128,043,020 134,050,350 140,548,910 147,589,470 31 Surplus/(Deficit) (Revenue - Expenditures) 19,306,850 10,408,857 (19,573,020) 206,210 3,497,270 859,250 (2,148,790) (5,572,500) 32 FUND BALANCE BEFORE RESERVES/RESTRICTIONS 92,576,350 102,985,207 83,412,187 83,618,397 87,115,667 87,974,917 85,826,127 80,253,627 33 20 % Reserve Requirement (30% Recommended) 16,828,377 32,729,188 44,023,425 41,866,299 38,412,906 40,215,105 42,164,673 44,276,841 34 Restricted, Nonspendable and Assigned 23,493,168 23,493,168 32,000,000 32,000,000 35,000,000 35,000,000 35,000,000 35,000,000 35 ENDING AVAILABLE BALANCE 52,254,805 46,762,851 7,388,762 9,752,098 13,702,761 12,759,812 8,661,454 976,786

CITY OF PALMDALE

FIVE YEAR GENERAL FUND AND CONSOLIDATED FUNDS PROJECTION

Page 1 of 32 ends

Fund Fund Description
FY 2025
Beginning
Available Fund
Balance
FY 2025
Revenues
FY 2025
Operating
Expenditures
FY 2025 Capital
Expenditures
Reserve
Requirement
Nonspendable,
Restricted and
Assigned
FY 2025
Projected
Ending Available
Fund Balance
101, 150,
151 General Fund 102,985,206 127,171,730 139,896,390 6,848,360 44,023,425 32,000,000 7,388,761 153 Information Technology 1,694,410 4,860,720 4,565,720 - 1,989,410 154 Fleet Maintenance 4,045,780 6,335,550 6,040,550 - 4,340,780 156 Public Art Fund 1,873,370 250,000 80,620 447,650 1,595,100 157 Measure AV 21,616,066 23,563,000 14,911,940 22,458,930 3,737,087 4,071,109 158 American Rescue Funds 2,352,603 13,500,120 2,700,120 10,405,990 2,746,613 200 PEG Fund 833,029 120,000 275,000 - 678,029 201 Gas Tax Fund 13,225,701 4,977,490 1,799,690 12,949,770 3,453,731 202 Public Safety Fund 1,911,832 732,500 150,000 - 2,494,332 203 Prop A Fund 11,383,984 4,696,690 6,845,700 9,251,710 (16,736) 204/214 Prop C Funds 17,459,839 12,406,070 579,600 14,193,840 15,092,469 205 Air Quality Improvement Fund 353,582 7,500 - 253,240 107,842 206 Local Transp Fund Art 3 2,588 223,760 - 222,760 3,588 207 Local Transp Fund Art 8 (5,163,829) 20,444,030 10,609,540 4,429,490 241,171 208/218 Measure R Funds 12,634,815 101,096,450 - 101,215,520 12,515,745 209/219 Measure M Funds 11,045,373 9,481,620 - 9,373,580 11,153,413 210 Road Maint & Rehab Acct Fund 11,060,103 4,284,220 - 13,711,990 1,632,333 211 Measure A LA County Parks (6,350) 5,937,900 - 5,931,550 - 220 Park Development Fund 3,146,241 1,350,000 269,600 3,504,170 722,471 221 Traffic Impact Fund 2,606,944 910,000 - 239,400 3,277,544 222-230 Drainage Funds 15,517,954 1,422,300 127,900 8,721,490 8,090,864 227 Fire Facilities Impact Fund 10,410,040 750,000 37,500 - 11,122,540 228 Sewer Upgrade Fund 489,594 7,500 - 424,450 72,644 229 Public Facilities Fund 2,133,681 495,000 - 940,170 1,688,511 240 Federal Funds Fund (5,557,912) 25,732,010 - 20,177,530 (3,432) 241 State Grants Fund (616,905) 2,481,320 552,480 1,515,640 (203,705) 242 Misc Grant/Developer Contrib 1,614,861 5,163,140 830,540 5,052,870 894,591 243 Federal Home Program 8,040,350 2,355,870 2,355,870 - 8,040,350 244 Federal Jobs Programs (13,069) 94,120 94,000 - (12,949) 245 HOME ARP Fund (2,141) 2,091,050 57,500 - 2,031,409 250 Park Assessments Fund 2,902,714 3,135,700 3,152,940 15,510 2,869,964 251 Landscape Maintenance Fund 15,335,247 7,598,190 9,859,810 276,580 12,797,047 252 Street Lighting Assmnt Distr 4,040,883 1,336,950 1,205,020 - 4,172,813 253 Drainage Benefit Assessment 1,551,752 156,700 49,200 - 1,659,252 254 Sewer Maint Assessment Dist 34,747,327 6,542,300 5,034,100 9,445,660 10,424,198 16,385,669 255 Street Light County District 17,471,448 3,695,370 4,357,950 - 16,808,868 256 Street Light Dist #2 Anaverde 950,221 191,320 216,850 - 924,691 257 Street Light Dist #3 Ritter 377,802 74,480 116,640 - 335,642 258 Enhanced Infrastructure Financing Dist. 716,006 300,000 135,000 - 881,006 259 CFD 2022-1 Maintenance Service Dist. 140,039 44,480 22,030 - 162,489 260 Solid Waste 1,363,455 857,970 667,770 - 1,553,655 280 CDBG Fund 2,210,856 2,775,830 2,798,290 66,000 2,122,396 281 SAVES Grant Fund (8,511) - - - (8,511) 291 Housing Authority Fund 1,501,144 195,710 219,820 - 1,477,034 292 Housing Facilities Fund (543,986) 8,613,260 7,921,020 - 148,254 293 Housing Asset Fund 48,391,721 2,045,850 12,281,110 - 38,156,461 300 Water Park 4,931,645 2,306,000 2,246,480 1,646,000 3,345,165 350 Palmdale CCA 6,983,925 73,887,040 67,804,470 - 2,034,130 11,032,365 460 Successor Agency 6,701,436 74,681,430 73,923,680 - 7,459,186 480 AD88-1 10Th St West Improv (65,786) - - - (65,786) 481 AD90-2 7Th St West Improvement 146,247 - - - 146,247 482 CFD 2003-1 Improvement Fund 13,094 - - - 13,094 483 CFD 91-1 Sierra Gateway Improv 166,304 - - - 166,304 484 CFD 93-1 Ritter Ranch Impr Fund 2,798,214 19,000 - - 2,817,214 487 CFD 2022-3 Ritter Redemption (750) 52,300 - - 51,550 525 Debt Svc-PFA 35,168,015 5,168,680 5,392,330 - 34,944,365 580 OPEB Fiduciary Trust Funds 4,738,244 325,000 315,000 - 4,748,244 710 Palmdale Community Foundation 247,238 70,500 276,420 - 41,318 730 AD 88-1 10Th St West Redemption 80,630 5,000 - - 85,630 732 AD 90-2 7Th St West Redemption (117,957) 3,000 - - (114,957) 733 AD 87-1 Rancho Vista Rdmpt Fund 134,443 2,000 - - 136,443 734 CFD 03-1 Anaverde Redemption 1,981,983 1,551,100 1,532,500 - 2,000,583 735 CFD 2005-1 Redemption Fund 1,796,022 1,076,400 977,500 - 1,894,922 736 CFD 91-1 Sierra Gateway Redempt (86,688) 87,660 116,720 - (115,748) 737 AD 91-2 52Nd St West Redemption 23,967 400 - - 24,367 738 CFD 93-1 Ritter Ranch Rdmpt Fnd 220,780 1,500 52,910 - 169,370 739 AD 2006-01 Godde Hill Rdmp Fd 286,262 139,450 137,490 - 288,222 740 CFD 16-1 Joshua Ranch Wtr Rdmp 2,490,565 855,700 874,450 - 2,471,815 741 CFD 2022-2 Ritter Ranch Improv (938) 3,040,400 10,000 - 3,029,462 Total 446,862,754 583,778,330 394,477,760 263,719,850 60,218,840 32,000,000 280,224,634

CITY OF PALMDALE

ESTIMATED FUND BALANCE
FISCAL YEAR 2025

Page 2 of 32 ends

Fund Fund Description
FY 2026
Estimated
Beginning
Available Fund
Balance
FY 2026
Revenues
FY 2026
Operating
Expenditures
FY 2026
Capital
Expenditures
Reserve
Requirement
Nonspendable,
Restricted and
Assigned
FY 2026
Projected
Ending Available
Fund Balance
101, 150,
151 General Fund 83,412,186 139,760,540 127,554,330 12,000,000 41,866,299 32,000,000 9,752,097 153 Information Technology 1,989,410 5,534,130 5,489,130 - 2,034,410 154 Fleet Maintenance 4,340,780 2,718,320 2,673,320 - 4,385,780 156 Public Art Fund 1,595,100 250,000 377,900 - 1,467,200 157 Measure AV 7,808,196 24,068,000 17,750,230 10,295,310 2,804,554 1,026,102 158 American Rescue Funds 2,746,613 - - - 2,746,613 200 PEG Fund 678,029 100,000 704,740 - 73,289 201 Gas Tax Fund 3,453,731 5,107,390 3,805,410 4,500,000 255,711 202 Public Safety Fund 2,494,332 742,000 582,000 - 2,654,332 203 Prop A Fund (16,736) 4,545,430 4,476,970 50,000 1,724 204/214 Prop C Funds 15,092,469 3,907,950 579,600 3,120,000 15,300,819 205 Air Quality Improvement Fund 107,842 7,500 - - 115,342 206 Local Transp Fund Art 3 3,588 133,630 - - 137,218 207 Local Transp Fund Art 8 241,171 8,972,410 10,897,890 - (1,684,309) 208/218 Measure R Funds 12,515,745 2,822,210 - 500,000 14,837,955 209/219 Measure M Funds 11,153,413 3,278,510 - 3,000,000 11,431,923 210 Road Maint & Rehab Acct Fund 1,632,333 4,451,390 - 6,000,000 83,723 211 Measure A LA County Parks - - - - - 220 Park Development Fund 722,471 1,550,000 269,600 200,000 1,802,871 221 Traffic Impact Fund 3,277,544 860,000 - - 4,137,544 222-230 Drainage Funds 8,090,864 1,462,550 277,900 1,500,000 7,775,514 227 Fire Facilities Impact Fund 11,122,540 775,000 37,500 - 11,860,040 228 Sewer Upgrade Fund 72,644 10,000 - - 82,644 229 Public Facilities Fund 1,688,511 515,000 - - 2,203,511 240 Federal Funds Fund (3,432) 54,870 54,870 - (3,432) 241 State Grants Fund (203,705) 4,095,120 3,645,270 - 246,145 242 Misc Grant/Developer Contrib 894,591 2,008,450 2,028,580 200,000 674,461 243 Federal Home Program 8,040,350 1,330,160 1,379,410 - 7,991,100 244 Federal Jobs Programs (12,949) 94,120 106,500 - (25,329) 245 HOME ARP Fund 2,031,409 2,091,050 2,033,550 - 2,088,909 250 Park Assessments Fund 2,869,964 3,233,200 2,985,000 300,000 2,818,164 251 Landscape Maintenance Fund 12,797,047 7,935,430 10,444,720 585,750 9,702,007 252 Street Lighting Assmnt Distr 4,172,813 1,376,790 1,292,910 - 4,256,693 253 Drainage Benefit Assessment 1,659,252 256,400 54,160 - 1,861,492 254 Sewer Maint Assessment Dist 26,809,867 6,643,520 4,846,220 - 8,042,960 20,564,207 255 Street Light County District 16,808,868 3,782,780 4,734,140 - 15,857,508 256 Street Light Dist #2 Anaverde 924,691 199,590 234,580 - 889,701 257 Street Light Dist #3 Ritter 335,642 77,230 121,010 - 291,862 258 Enhanced Infrastructure Financing Dist. 881,006 360,000 50,000 - 1,191,006 259 CFD 2022-1 Maintenance Service Dist. 162,489 46,130 22,690 - 185,929 260 Solid Waste 1,553,655 1,321,340 1,474,000 - 1,400,995 280 CDBG Fund 2,122,396 3,568,190 2,622,390 - 3,068,196 281 SAVES Grant Fund (8,511) 50,000 25,000 - 16,489 291 Housing Authority Fund 1,477,034 1,780,350 1,787,120 - 1,470,264 292 Housing Facilities Fund 148,254 8,931,130 8,420,870 - 658,514 293 Housing Asset Fund 38,156,461 1,989,630 2,647,670 - 37,498,421 300 Water Park 3,345,165 2,833,000 2,537,010 - 3,641,155 350 Palmdale CCA 13,066,495 71,030,670 70,449,410 - 2,113,480 11,534,275 460 Successor Agency 7,459,186 68,754,610 72,258,580 - 3,955,216 480 AD88-1 10Th St West Improv (65,786) - - - (65,786) 481 AD90-2 7Th St West Improvement 146,247 - - - 146,247 482 CFD 2003-1 Improvement Fund 13,094 - - - 13,094 483 CFD 91-1 Sierra Gateway Improv 166,304 - - - 166,304 484 CFD 93-1 Ritter Ranch Impr Fund 2,817,214 20,140 - - 2,837,354 487 CFD 2022-3 Ritter Redemption 51,550 53,870 - - 105,420 525 Debt Svc-PFA 34,944,365 5,168,680 5,168,510 - 34,944,535 580 OPEB Fiduciary Trust Funds 4,748,244 325,000 350,000 - 4,723,244 710 Palmdale Community Foundation 41,318 - - - 41,318 730 AD 88-1 10Th St West Redemption 85,630 5,000 - - 90,630 732 AD 90-2 7Th St West Redemption (114,957) 3,000 - - (111,957) 733 AD 87-1 Rancho Vista Rdmpt Fund 136,443 2,000 - - 138,443 734 CFD 03-1 Anaverde Redemption 2,000,583 1,551,000 1,529,320 - 2,022,263 735 CFD 2005-1 Redemption Fund 1,894,922 1,076,400 978,520 - 1,992,802 736 CFD 91-1 Sierra Gateway Redempt (115,748) 88,660 111,590 - (138,678) 737 AD 91-2 52Nd St West Redemption 24,367 500 - - 24,867 738 CFD 93-1 Ritter Ranch Rdmpt Fnd 169,370 15,000 54,050 - 130,320 739 AD 2006-01 Godde Hill Rdmp Fd 288,222 146,980 141,230 - 293,972 740 CFD 16-1 Joshua Ranch Wtr Rdmp 2,471,815 886,070 899,400 - 2,458,485 741 CFD 2022-2 Ritter Ranch Improv 3,029,462 3,131,610 11,080 - 6,149,992 Total 372,443,474 417,889,630 380,975,880 42,251,060 54,827,293 32,000,000 280,278,872

CITY OF PALMDALE

ESTIMATED FUND BALANCE
FISCAL YEAR 2026

Page 3 of 32 ends

Category 2023 Actual 2024 Actual 2025 Budget
2025 YTD
Actual
2025
Projected
2026
Proposed $ Chg % Chg
60 PROPERTY TAXES 103,684,186 102,920,260 105,721,710 16,073,437 107,476,870 102,619,000 (4,857,870) -4.5% 61 SALES & USE TAXES 63,427,168 64,072,078 69,687,620 40,460,437 70,380,160 88,509,840 18,129,680 25.8% 62 OTHER TAXES 7,931,808 8,827,064 8,931,600 7,502,929 8,981,710 9,147,780 166,070 1.8% 63 TRANSIENT OCC TAX 4,608,941 5,096,411 4,950,000 3,276,951 5,198,340 5,302,310 103,970 2.0% 64 FRANCHISE FEES 7,830,872 8,739,107 17,631,960 5,873,631 9,034,460 9,278,100 243,640 2.7% 65 SUBVENTIONS & GRANTS 29,861,992 18,905,927 179,981,560 3,595,023 182,256,030 22,532,300 (159,723,730) -87.6% 66 DEVELOPER CONTRIB 17,690 40,940 50,000 173,207 50,000 50,000 - 0.0% 67 COUNTY CONTRIB 295,903 158,083 7,571,970 223,061 6,827,900 972,450 (5,855,450) -85.8% 68 STATE CONTRIBUTIONS - - 1,000 - - 1,000 1,000 0.0% 69 OTHER AGENCY CONTRIB 522,378 75,102 4,289,330 1,426,632 4,126,750 279,000 (3,847,750) -93.2% 71 USE OF PROPERTY 16,279,987 19,628,600 14,025,670 16,882,844 15,066,680 16,104,800 1,038,120 6.9% 72 FAIR VALUE OF INVEST (1,751,064) 5,787,244 - - - - - 0.0% 75 PARK DEVELOPMENT FEE 1,339,284 677,938 1,500,000 877,561 1,300,000 1,500,000 200,000 15.4% 76 DRAINAGE FEES 1,397,889 5,085,662 867,000 618,214 870,000 900,000 30,000 3.4% 77 SEWER UPGRADE FEES 900 3,195 900 2,170 2,200 2,200 - 0.0% 78 TRAFFIC IMPACT FEES 677,674 2,025,899 950,000 886,251 900,000 850,000 (50,000) -5.6% 79 FACILITY IMPACT FEE 798,263 2,028,686 1,190,000 753,108 1,190,000 1,200,000 10,000 0.8% 80 LICENSES AND PERMITS 5,690,705 6,817,746 5,073,500 4,284,390 5,149,420 5,574,040 424,620 8.2% 81 CHRGS FOR SERVICES 33,308,633 71,489,306 75,769,070 64,602,554 77,832,040 75,462,670 (2,369,370) -3.0% 82 DEV CHRGS FOR SVCS 3,852,193 3,281,263 3,355,610 2,526,218 3,422,810 3,515,850 93,040 2.7% 83 FINES & FORFEITURES 1,148,943 1,859,321 1,298,110 5,758,987 1,492,610 1,614,950 122,340 8.2% 84 SPECIAL ASSESSMENTS 24,079,062 25,088,291 27,893,230 13,680,215 27,915,680 28,633,500 717,820 2.6% 90 OTHER - REVENUE 6,472,303 13,546,828 6,770,210 4,711,898 12,513,410 14,630,800 2,117,390 16.9% 93 BOND PROCEEDS (OFS) - 42,986,227 - - - - - 0.0% 95 GN/LS-SALE OF ASSET 113,064 82,891 15,090 80,822 80,820 - (80,820) -100.0% Grand Total 311,588,773 409,224,071 537,525,140 194,270,540 542,067,890 388,680,590 (153,387,300) -28.3%

CITY OF PALMDALE
FY 2026 DRAFT BUDGET
REVENUES-ALL FUNDS (Excluding Transfers)

Page 4 of 32 ends

Category 2023 Actual 2024 Actual 2025 Budget
2025 YTD
Actual
2025
Projected
2026
Proposed $ Chg % Chg
60 PROPERTY TAXES 29,208,527 31,453,857 31,738,000 15,791,680 32,418,040 33,386,390 968,350 3.0% 61 SALES & USE TAXES 27,808,626 27,486,027 32,436,590 16,011,776 32,581,130 51,382,740 18,801,610 57.7% 63 TRANSIENT OCC TAX 4,608,941 5,096,411 4,950,000 3,276,951 5,198,340 5,302,310 103,970 2.0% 64 FRANCHISE FEES 7,595,391 8,574,370 17,366,960 5,815,648 8,914,460 9,178,100 263,640 3.0% 65 SUBVENTIONS & GRANTS 908 25,000 - - - - - 0.0% 69 OTHER AGENCY CONTRIB 500,358 40,250 50,000 21,750 50,000 50,000 - 0.0% 71 USE OF PROPERTY 3,783,921 3,892,008 3,472,330 1,314,683 3,290,070 3,481,880 191,810 5.8% 72 FAIR VALUE OF INVEST (654,783) 1,800,460 - - - - - 0.0% 80 LICENSES AND PERMITS 5,525,829 6,723,302 4,959,900 4,185,489 5,035,820 5,460,440 424,620 8.4% 81 CHRGS FOR SERVICES 1,524,521 1,344,006 1,291,810 1,113,938 1,357,530 1,388,830 31,300 2.3% 82 DEV CHRGS FOR SVCS 3,190,946 2,944,663 3,105,610 2,289,967 3,172,810 3,265,850 93,040 2.9% 83 FINES & FORFEITURES 784,947 1,577,663 973,910 5,485,217 1,153,610 1,290,750 137,140 11.9% 90 OTHER - REVENUE 5,289,234 12,567,192 5,237,000 4,354,737 11,033,420 13,302,000 2,268,580 20.6% Grand Total 89,167,366 105,013,006 105,582,110 59,661,835 104,205,230 127,489,290 23,284,060 22.3%

CITY OF PALMDALE
FY 2026 DRAFT BUDGET
REVENUES-GENERAL FUND (Excluding Transfers)

Page 5 of 32 ends

Category 2023 Actual 2024 Actual 2025 Budget
2025 YTD
Actual
2025
Projected
2026
Proposed $ Chg % Chg
10 SALARIES 29,305,151 29,957,228 34,746,080 24,729,625 35,583,840 37,896,460 2,312,620 6.5% 11 BENEFITS 11,616,682 12,761,098 16,080,390 11,098,453 15,536,890 17,450,620 1,913,730 12.3% 15 ORG DEVELOPMENT 570,037 692,097 1,120,130 485,052 960,310 1,617,860 657,550 68.5% 20 OPERATING EXP 21,004,785 35,230,048 33,502,212 10,980,757 31,882,250 28,685,920 (3,196,330) -10.0% 21 CONTRACT SERVICES 54,813,132 85,831,578 115,420,710 72,631,177 111,565,560 115,583,570 4,018,010 3.6% 22 SOFTWARE 1,222,547 1,071,506 2,941,860 2,211,571 2,580,790 3,250,290 669,500 25.9% 23 CAPITAL OUTLAY 632,121 462,139 869,000 318,490 808,700 798,930 (9,770) -1.2% 24 COUNTY CONTRACTS 30,468,171 33,063,090 35,730,060 22,418,645 38,160,500 40,560,070 2,399,570 6.3% 25 UTILITIES 7,075,245 7,030,131 9,162,050 6,122,386 9,072,830 9,469,750 396,920 4.4% 26 PROGRAM EXP 2,256,227 2,140,048 19,469,270 388,032 13,996,170 8,750,960 (5,245,210) -37.5% 30 INTER-GOV SHARING 61,704,794 59,495,693 61,402,480 - 61,402,480 59,525,000 (1,877,480) -3.1% 40 CAPITAL 27,598,709 45,723,749 275,952,090 93,260,646 271,345,160 48,185,790 (223,159,370) -82.2% 50 DEBT SERVICE 20,669,982 26,467,892 22,196,050 6,448,075 22,341,690 22,520,020 178,330 0.8% 55 CONTINGENCY 117,289 - - - - - - 0.0% 95 GN/LS-SALE OF ASSET - 274,481 - - - - - 0.0% Grand Total 269,054,870 340,200,778 628,592,382 251,092,911 615,237,170 394,295,240 (220,941,930) -35.9%

CITY OF PALMDALE
FY 2026 DRAFT BUDGET
EXPENDITURES-ALL FUNDS (Excluding Transfers)

Page 6 of 32 ends

Category 2023 Actual 2024 Actual 2025 Budget
2025 YTD
Actual
2025
Projected
2026
Proposed $ Chg % Chg
10 SALARIES 16,900,418 17,906,418 21,173,360 14,791,683 21,761,490 22,202,600 441,110 2.0% 11 BENEFITS 6,225,867 7,002,022 9,294,570 6,366,755 8,699,910 9,610,140 910,230 10.5% 15 ORG DEVELOPMENT 443,678 518,233 842,710 395,568 727,740 1,326,900 599,160 82.3% 20 OPERATING EXP 8,838,864 23,983,264 13,706,970 6,079,825 18,727,030 13,419,410 (5,307,620) -28.3% 21 CONTRACT SERVICES 13,731,349 14,961,012 27,481,490 14,212,563 26,077,940 24,580,430 (1,497,510) -5.7% 22 SOFTWARE 1,635 2,107 3,000 2,301 3,000 5,000 2,000 66.7% 23 CAPITAL OUTLAY 103,468 93,892 453,870 57,636 326,160 270,980 (55,180) -16.9% 24 COUNTY CONTRACTS 17,256,289 23,638,350 27,964,940 17,432,099 29,793,500 31,344,220 1,550,720 5.2% 25 UTILITIES 2,318,811 2,259,654 3,214,770 2,016,172 3,171,070 3,112,580 (58,490) -1.8% 40 CAPITAL 1,721,670 2,400,275 7,340,190 6,166,438 6,987,360 15,195,400 8,208,040 117.5% 50 DEBT SERVICE 2,312,865 2,436,937 2,291,600 2,162,473 2,291,280 2,306,400 15,120 0.7% 95 GN/LS-SALE OF ASSET - 274,481 - - - - - 0.0% Grand Total 69,854,913 95,476,644 113,767,470 69,683,514 118,566,480 123,374,060 4,807,580 4.1%

CITY OF PALMDALE
FY 2026 DRAFT BUDGET
EXPENDITURES-GENERAL FUND (Excluding Transfers)

Page 7 of 32 ends

Department/Division Category 2023 Actual 2024 Actual
2025 YTD
Actual 2025 Budget
2025
Projected
2026
Proposed

1. City Council
CITY COUNCIL SALARIES 151,617 255,712 190,057 198,380 216,380 220,400 BENEFITS 114,445 153,264 110,403 210,600 210,600 196,280 ORG DEVELOPMENT 29,175 28,052 8,987 57,500 57,500 54,500 OPERATING EXP 3,029 76,944 28,336 77,700 77,720 77,800 CAPITAL OUTLAY - 243 - 1,000 1,000 1,000 UTILITIES 3,510 4,671 4,043 3,600 4,700 4,700 TRANSFERS OUT 54,450 20,477 - 81,180 75,350 90,590 CITY COUNCIL Total 356,226 539,362 341,825 629,960 643,250 645,270

1. City Council Total 356,226 539,362 341,825 629,960 643,250 645,270

2. City Attorney
CITY ATTORNEY SALARIES 245,915 72,533 - 300 - - BENEFITS 119,182 32,611 - 500 500 500 ORG DEVELOPMENT 22,784 12,249 2,093 6,500 6,500 4,500 OPERATING EXP 2,652 2,021 497 4,000 4,000 2,000 CONTRACT SERVICES 1,796,160 2,218,126 2,595,957 4,231,500 4,901,500 2,501,500 CAPITAL OUTLAY - - - 1,000 1,000 1,000 UTILITIES 1,027 873 467 300 500 500 TRANSFERS OUT 65,359 24,571 - 97,430 90,410 108,700 CITY ATTORNEY Total 2,253,078 2,362,984 2,599,013 4,341,530 5,004,410 2,618,700

2. City Attorney Total 2,253,078 2,362,984 2,599,013 4,341,530 5,004,410 2,618,700

3. City Manager
CITY CLERK SALARIES 563,624 591,563 381,687 421,750 421,750 515,400 BENEFITS 223,629 241,233 172,814 192,400 196,400 223,900 ORG DEVELOPMENT 17,093 19,292 7,221 19,450 21,570 40,900 OPERATING EXP 13,324 12,403 7,016 13,360 15,240 17,480 CONTRACT SERVICES 271,576 61,784 16,504 210,200 437,500 43,920 CAPITAL OUTLAY - 1,057 576 1,500 1,500 1,500 UTILITIES 491 498 232 500 500 500 TRANSFERS OUT 119,830 45,048 - 187,620 165,750 199,280 CITY CLERK Total 1,209,566 972,877 586,051 1,046,780 1,260,210 1,042,880 CITY MANAGER SALARIES 1,090,338 1,173,380 1,085,750 1,549,060 1,550,060 1,338,830 BENEFITS 411,168 514,320 528,963 714,920 704,420 595,240 ORG DEVELOPMENT 34,661 92,031 91,678 131,730 134,960 119,510 OPERATING EXP 1,323,327 18,608 29,486 893,150 143,150 2,241,500 CONTRACT SERVICES - 9,495 50,000 333,510 76,000 136,000 CAPITAL OUTLAY 3,978 2,261 7,154 73,760 73,760 50,000 UTILITIES 1,202 1,818 1,397 2,060 1,920 1,920 CAPITAL - 1,500,000 6,000,000 6,000,000 6,000,000 - TRANSFERS OUT 68,282 27,994 - 173,650 103,520 114,500 CITY MANAGER Total 2,932,958 3,339,907 7,794,429 9,871,840 8,787,790 4,597,500 COMMUNICATIONS SALARIES 500,989 397,577 118,051 196,910 196,910 265,060 BENEFITS 237,230 152,106 58,419 69,780 69,780 136,310 ORG DEVELOPMENT 13,606 10,962 575 5,800 1,800 523,000 OPERATING EXP 4,726 1,157 945 3,000 3,000 3,000 CONTRACT SERVICES 312,768 918,052 1,074,631 2,162,690 2,051,520 1,910,000 CAPITAL OUTLAY - 19,612 123 2,000 2,000 2,000 UTILITIES 2,252 1,041 374 600 600 600 CAPITAL - - 392 200,000 100,000 350,000 TRANSFERS OUT 65,359 24,605 - 97,430 90,410 108,700 COMMUNICATIONS Total 1,136,929 1,525,111 1,253,510 2,738,210 2,516,020 3,298,670 LEGISLATIVE AFFAIRS SALARIES 466,601 155,864 47,704 120,000 70,000 190,820 BENEFITS 122,098 32,374 13,515 64,800 32,900 99,850 ORG DEVELOPMENT 10,375 7,083 - 9,600 - 13,350 OPERATING EXP 752 - - - - - CONTRACT SERVICES 346,300 237,266 246,400 663,200 310,000 451,200 UTILITIES - - - 780 - - LEGISLATIVE AFFAIRS Total 946,125 432,588 307,619 858,380 412,900 755,220

CITY OF PALMDALE
FY 2026 DRAFT BUDGET

EXPENDITURES-ALL FUNDS-BY DEPARTMENT/DIVISION

Page 8 of 32 ends

Department/Division Category 2023 Actual 2024 Actual
2025 YTD
Actual 2025 Budget
2025
Projected
2026
Proposed

CITY OF PALMDALE
FY 2026 DRAFT BUDGET

EXPENDITURES-ALL FUNDS-BY DEPARTMENT/DIVISION
RECORDS MANAGEMENT SALARIES 70,356 61,204 56,134 98,940 98,940 98,940 BENEFITS 18,626 6,306 1,469 47,020 47,020 10,300 ORG DEVELOPMENT - - 8 1,500 1,500 3,000 OPERATING EXP 2,435 1,727 2,292 8,700 8,700 8,700 CONTRACT SERVICES 15,764 12,702 4,257 9,850 9,850 85,150 CAPITAL OUTLAY - - - 1,000 1,000 1,000 UTILITIES 12,093 10,418 12,680 14,000 14,000 15,130 RECORDS MANAGEMENT Total 119,274 92,358 76,840 181,010 181,010 222,220

3. City Manager Total 6,344,853 6,362,842 10,018,449 14,696,220 13,157,930 9,916,490

4. Operations
ASSESSMENT DIST / CFD OPERATING EXP - 500 - - - - CONTRACT SERVICES 747,524 923,543 302,963 1,124,040 1,134,040 1,159,770 DEBT SERVICE 2,354,682 2,338,858 - 2,356,950 2,356,950 2,352,760 TRANSFERS OUT 122,700 147,000 - 232,610 232,610 235,350 ASSESSMENT DIST / CFD Total 3,224,906 3,409,902 302,963 3,713,600 3,723,600 3,747,880 FINANCE SALARIES 1,171,532 1,297,914 1,087,337 1,335,200 1,335,700 1,671,090 BENEFITS 565,170 666,182 524,795 695,100 695,100 846,150 ORG DEVELOPMENT 20,206 26,672 35,323 112,100 52,860 54,720 OPERATING EXP 22,421 31,954 68,515 241,620 129,650 248,500 CONTRACT SERVICES 652,462 732,918 550,061 1,327,690 1,192,220 640,450 CAPITAL OUTLAY 19,184 5,075 8,251 117,000 12,000 12,000 UTILITIES 1,326 1,503 615 2,000 1,000 2,000 DEBT SERVICE 197,519 203,562 - 189,420 189,420 172,700 TRANSFERS OUT 5,953,879 4,879,025 1,804,996 4,893,590 4,874,870 4,923,640 GN/LS-SALE OF ASSET - 274,481 - - - - FINANCE Total 8,603,698 8,119,286 4,079,893 8,913,720 8,482,820 8,571,250 GENERAL CITY SALARIES 314,631 60,511 52,891 1,216,700 1,225,000 (420,000) BENEFITS 189,339 222,986 22,844 286,800 289,800 293,000 ORG DEVELOPMENT 93,801 105,844 99,762 152,000 152,000 150,000 OPERATING EXP 1,067,285 695,700 399,452 3,019,610 2,722,300 1,418,000 CONTRACT SERVICES 285,537 378,653 341,328 1,038,300 548,000 682,700 CAPITAL OUTLAY 2,178 - - - - - UTILITIES 91,366 65,877 64,712 101,500 76,500 76,500 CAPITAL - 197,203 28,233,223 100,000 100,000 12,100,000 DEBT SERVICE 9,749,615 15,694,560 2,386,287 9,180,160 9,403,660 9,138,910 TRANSFERS OUT 6,980,047 8,515,119 - 10,690,730 20,991,420 9,571,070 GENERAL CITY Total 18,773,798 25,936,452 31,600,498 25,785,800 35,508,680 33,010,180 HUMAN RESOURCES SALARIES 571,096 609,361 454,617 673,710 673,320 867,530 BENEFITS 231,409 276,398 223,421 314,300 314,300 482,320 ORG DEVELOPMENT 16,143 4,977 6,855 19,700 15,000 43,500 OPERATING EXP 1,906,624 1,762,079 447,824 2,265,850 2,059,000 2,046,000 CONTRACT SERVICES 1,188,812 1,270,904 999,440 1,521,400 1,299,400 1,384,700 CAPITAL OUTLAY - - - 16,060 20,000 17,780 TRANSFERS OUT 76,255 28,668 - 116,660 105,480 126,810 HUMAN RESOURCES Total 3,990,338 3,952,388 2,132,156 4,927,680 4,486,500 4,968,640 INFORMATION TECHNOLOGY SALARIES 894,645 753,711 709,362 786,400 786,400 927,980 BENEFITS 436,970 371,067 335,140 394,650 395,530 447,670 ORG DEVELOPMENT 11,684 10,623 6,381 10,000 6,500 17,000 OPERATING EXP 989,776 990,237 3,698 15,000 9,000 15,000 CONTRACT SERVICES 38,725 90,813 72,435 124,930 108,000 119,000 SOFTWARE 1,210,212 1,069,399 2,209,270 2,927,860 2,566,790 3,245,290 CAPITAL OUTLAY 416,537 176,134 130,804 155,000 175,000 210,000 UTILITIES 76,628 97,932 81,688 112,900 100,500 112,000 CAPITAL - 307,063 393,499 940,200 743,000 929,930 INFORMATION TECHNOLOGY Total 4,075,177 3,866,978 3,942,277 5,466,940 4,890,720 6,023,870 RISK MANAGEMENT SALARIES - 37,353 205,772 212,500 225,000 343,340 BENEFITS - 21,957 107,217 122,100 122,100 181,710 ORG DEVELOPMENT 535 3,277 3,670 28,460 4,300 11,500 OPERATING EXP 4,929,155 19,764,893 3,483,857 5,127,480 10,608,970 5,338,830 CONTRACT SERVICES 1,011,062 1,179,442 725,209 1,238,250 1,214,750 1,033,250 CAPITAL OUTLAY - - - 1,500 1,000 1,500 RISK MANAGEMENT Total 5,940,752 21,006,921 4,525,725 6,730,290 12,176,120 6,910,130

Page 9 of 32 ends

Department/Division Category 2023 Actual 2024 Actual
2025 YTD
Actual 2025 Budget
2025
Projected
2026
Proposed

CITY OF PALMDALE
FY 2026 DRAFT BUDGET

EXPENDITURES-ALL FUNDS-BY DEPARTMENT/DIVISION

SUCCESSOR AGENCY SALARIES - - - - - - BENEFITS 15 - - - - - OPERATING EXP 61 1,635,344 - 200 200 200 CONTRACT SERVICES 1,188,797 1,224,883 23,914 1,248,430 1,224,930 1,151,800 UTILITIES 97,506 97,520 100,000 107,100 107,100 104,450 PROGRAM EXP - - - 365,000 365,000 365,000 INTER-GOV SHARING 61,704,794 59,495,693 - 61,402,480 61,402,480 59,525,000 DEBT SERVICE 10,259,844 10,232,070 2,750,660 10,585,230 10,512,870 10,828,670 TRANSFERS OUT 477,940 - - 311,100 311,100 283,460 SUCCESSOR AGENCY Total 73,728,957 72,685,511 2,874,574 74,019,540 73,923,680 72,258,580 PALMDALE COMMUNITY FOUNDATION OPERATING EXP 45,510 69,270 42,260 276,420 276,420 - CONTINGENCY 117,289 - - - - - PALMDALE COMMUNITY FOUNDATION Total 162,799 69,270 42,260 276,420 276,420 - EIFD OPERATING EXP - - 134,163 - 135,000 50,000 EIFD Total - - 134,163 - 135,000 50,000 AMERICAN RESCUE PLAN ACT SALARIES 1,005,500 - - - - - OPERATING EXP 4,082,652 1,733,667 214,117 1,670,110 1,670,110 - CONTRACT SERVICES 385,367 208,925 152,026 410,130 410,130 - CAPITAL OUTLAY 2,862 27,216 - 19,780 19,780 - COUNTY CONTRACTS 4,500,000 2,000,000 - - - -

CAPITAL - - - - - - AMERICAN RESCUE PLAN ACT Total 9,981,636 3,971,982 366,302 2,100,120 2,100,120 -

4. Operations Total 128,482,062 143,018,689 50,000,811 131,934,110 145,703,660 135,540,530

5. Economic & Community Development
ADMIN - ECONOMIC DEVELOPMENT SALARIES 313,031 483,621 353,459 542,500 542,500 553,770 BENEFITS 111,061 206,629 134,389 252,680 252,680 243,290 ORG DEVELOPMENT 9,614 15,622 2,956 14,500 14,500 14,500 OPERATING EXP 7,372 7,578 4,105 7,500 7,500 75,000 CONTRACT SERVICES 44,107 31,362 21,330 55,630 55,630 55,630 UTILITIES - 540 374 1,300 1,300 1,300 TRANSFERS OUT 141,614 53,239 - 211,090 195,890 235,510 ADMIN - ECONOMIC DEVELOPMENT Total 626,798 798,590 516,614 1,085,200 1,070,000 1,179,000 BUILDING AND SAFETY SALARIES 1,321,488 1,418,618 1,501,952 1,485,490 1,990,260 2,043,050 BENEFITS 652,211 721,421 732,072 793,400 980,100 1,059,550 ORG DEVELOPMENT 33,684 28,144 12,898 42,700 42,700 42,700 OPERATING EXP 4,123 988 1,060 4,500 4,500 19,000 CONTRACT SERVICES 702,975 538,274 310,382 977,460 750,500 750,750 CAPITAL OUTLAY 822 3,322 441 4,000 4,000 4,000 UTILITIES 5,923 6,574 5,550 5,800 6,660 7,140

CAPITAL - - - - - - TRANSFERS OUT 209,309 106,578 - 349,460 398,230 359,400 BUILDING AND SAFETY Total 2,930,535 2,823,919 2,564,354 3,662,810 4,176,950 4,285,590 ECONOMIC DEVELOPMENT SALARIES 268,036 281,981 281,514 368,700 369,700 302,320 BENEFITS 139,568 131,838 119,613 173,300 173,100 146,960 ORG DEVELOPMENT 39,911 33,963 24,556 51,250 26,350 38,420 OPERATING EXP 585,029 274,497 805,444 4,306,860 3,202,030 1,815,260 CONTRACT SERVICES 769,674 430,609 216,540 594,220 608,000 789,000 CAPITAL OUTLAY - - 100 1,500 900 1,500 UTILITIES 632 1,110 63 1,400 70 1,400 TRANSFERS OUT 65,359 24,571 - 97,430 90,410 108,700 ECONOMIC DEVELOPMENT Total 1,868,209 1,178,569 1,447,830 5,594,660 4,470,560 3,203,560 PLANNING SALARIES 902,373 814,636 758,267 1,064,140 1,067,640 1,233,100 BENEFITS 388,266 396,518 368,808 531,300 531,300 629,170 ORG DEVELOPMENT 19,278 16,866 5,280 20,540 20,540 21,920 OPERATING EXP 8,433 5,707 1,736 17,300 12,300 17,500 CONTRACT SERVICES 87,501 72,501 103,081 231,200 243,200 328,200 CAPITAL OUTLAY 2,233 2,908 280 3,000 3,000 3,000 UTILITIES - 47 419 - - - TRANSFERS OUT 130,718 49,145 - 197,850 180,820 217,390 PLANNING Total 1,538,802 1,358,327 1,237,871 2,065,330 2,058,800 2,450,280

Page 10 of 32 ends

Department/Division Category 2023 Actual 2024 Actual
2025 YTD
Actual 2025 Budget
2025
Projected
2026
Proposed

CITY OF PALMDALE
FY 2026 DRAFT BUDGET

EXPENDITURES-ALL FUNDS-BY DEPARTMENT/DIVISION
PALMDALE FILM STAGES OPERATING EXP 4,137 45,905 59,345 125,000 90,000 180,000 UTILITIES - 16,548 14,470 27,950 18,050 21,550 PALMDALE FILM STAGES Total 4,137 62,453 73,815 152,950 108,050 201,550

5. Economic & Community Development Total 6,968,481 6,221,860 5,840,484 12,560,950 11,884,360 11,319,980

6. Public Safety
PUBLIC SAFETY SALARIES 2,286,450 2,685,189 1,642,655 3,181,320 3,178,320 3,285,940 BENEFITS 893,276 1,068,392 869,338 1,932,280 1,936,600 1,827,230 ORG DEVELOPMENT 11,375 15,683 16,588 25,500 25,500 36,000 OPERATING EXP 42,576 89,570 327,903 777,700 463,490 576,000 CONTRACT SERVICES 78,547 276,799 1,740,295 2,777,770 2,774,330 3,006,680 CAPITAL OUTLAY - 1,365 - 7,000 - 7,500 COUNTY CONTRACTS 25,968,171 31,063,090 22,418,645 35,730,060 38,160,500 40,560,070 UTILITIES 20,968 25,720 20,299 34,100 28,840 35,000 CAPITAL 57,814 583,314 - - - - DEBT SERVICE - 150,000 - - - - TRANSFERS OUT 95,418 111,862 - 778,110 428,190 189,510 PUBLIC SAFETY Total 29,454,594 36,070,983 27,035,723 45,243,840 46,995,770 49,523,930

6. Public Safety Total 29,454,594 36,070,983 27,035,723 45,243,840 46,995,770 49,523,930

7. Housing
AFFORDABLE HOUSING SALARIES 414,093 496,670 519,301 774,810 918,010 934,930 BENEFITS 189,111 228,590 246,998 398,960 459,320 466,280 ORG DEVELOPMENT 17,793 19,154 14,156 26,690 26,300 31,200 OPERATING EXP 607,816 1,342,581 327,512 3,731,442 689,330 3,390,730 CONTRACT SERVICES 4,408,504 4,298,064 3,010,860 6,132,390 4,848,450 6,159,070 CAPITAL OUTLAY 54,060 22,370 22,983 30,000 32,420 25,950

COUNTY CONTRACTS - - - - - - UTILITIES 1,272,186 1,028,315 1,034,189 1,440,430 1,474,210 1,558,820 PROGRAM EXP 2,256,227 2,140,048 388,032 18,717,500 13,178,980 6,986,020 CAPITAL 364,018 405,165 439,608 1,523,310 341,600 455,000 DEBT SERVICE 636,580 599,703 902,235 1,717,310 1,711,810 1,739,970 TRANSFERS OUT 424,842 159,718 - 633,280 587,670 706,520 AFFORDABLE HOUSING Total 10,645,229 10,740,376 6,905,873 35,126,122 24,268,100 22,454,490 CDBG SALARIES 170,258 235,265 153,060 66,300 66,300 112,660 BENEFITS 20,779 19,528 18,875 21,500 21,500 21,500 ORG DEVELOPMENT 4,552 1,743 984 7,500 7,500 7,500 OPERATING EXP 65,143 99,254 43,872 1,324,300 192,600 246,120 CONTRACT SERVICES 99,825 66,511 36,722 139,870 137,370 85,500 CAPITAL OUTLAY - - - 100 100 - UTILITIES 4,704 17,060 646 - 60,000 - PROGRAM EXP - - - 386,770 452,190 1,399,940 CAPITAL 795,275 - - - - - DEBT SERVICE 579,095 321,874 347,518 347,520 347,520 373,040 CDBG Total 1,739,631 761,235 601,677 2,293,860 1,285,080 2,246,260

7. Housing Total 12,384,859 11,501,611 7,507,550 37,419,982 25,553,180 24,700,750

8. Parks & Recreation
COMMUNITY PROGRAMS SALARIES 323,016 299,270 269,572 574,320 574,320 536,220 BENEFITS 84,876 146,926 137,532 192,250 192,250 212,240 ORG DEVELOPMENT 2,190 2,835 - 6,350 4,350 10,350 OPERATING EXP 136,932 203,770 107,141 282,990 181,500 261,500 CONTRACT SERVICES 5,921 4,070 1,582 4,500 4,500 4,500 UTILITIES 10,960 606 4,436 8,300 6,300 7,300 COMMUNITY PROGRAMS Total 563,896 657,477 520,264 1,068,710 963,220 1,032,110 EVENTS & CULTURE SALARIES 1,032,806 1,288,250 1,237,334 1,597,200 1,587,870 1,868,780 BENEFITS 314,465 392,744 347,121 395,700 395,700 446,770 ORG DEVELOPMENT 4,470 9,194 2,957 12,100 11,100 14,100 OPERATING EXP 340,722 833,969 932,943 1,323,100 1,306,720 1,493,700 CONTRACT SERVICES 810,448 872,145 1,396,750 2,188,000 1,955,550 2,384,500 SOFTWARE 1,635 2,107 2,301 3,000 3,000 5,000 CAPITAL OUTLAY 27,550 34,174 21,877 50,900 50,900 50,900 UTILITIES 80,240 76,516 61,577 102,500 102,200 122,750 CAPITAL - 31,939 2,000 38,000 38,000 30,000 EVENTS & CULTURE Total 2,612,335 3,541,038 4,004,860 5,710,500 5,451,040 6,416,500

Page 11 of 32 ends

Department/Division Category 2023 Actual 2024 Actual
2025 YTD
Actual 2025 Budget
2025
Projected
2026
Proposed

CITY OF PALMDALE
FY 2026 DRAFT BUDGET

EXPENDITURES-ALL FUNDS-BY DEPARTMENT/DIVISION
LIBRARY SALARIES 41,478 34,448 2,037 5,500 5,500 5,500 BENEFITS 2,510 2,126 64 2,000 - - OPERATING EXP 243,850 293,296 252,246 376,000 409,400 376,000 CONTRACT SERVICES 1,061,350 1,097,023 917,995 1,218,730 1,245,200 1,270,140 CAPITAL OUTLAY 789 5,955 3,393 10,000 5,000 5,000 UTILITIES 55,964 51,414 31,799 68,700 42,300 60,600 TRANSFERS OUT 130,718 49,145 - 194,850 180,820 217,390 LIBRARY Total 1,536,659 1,533,407 1,207,535 1,875,780 1,888,220 1,934,630 PARKS & FACILITIES SALARIES 2,035,422 2,287,619 1,759,659 2,347,920 2,349,420 3,023,440 BENEFITS 499,478 595,237 548,837 651,920 651,920 1,018,750 ORG DEVELOPMENT 13,794 22,209 13,648 32,860 32,500 39,460 OPERATING EXP 260,602 492,605 202,289 449,000 419,650 628,100 CONTRACT SERVICES 147,051 176,197 159,084 526,200 504,700 622,600 SOFTWARE 10,701 - - 11,000 11,000 - CAPITAL OUTLAY 28,558 88,410 93,059 148,000 146,000 221,000 UTILITIES 392,067 382,010 282,946 559,050 436,900 533,150 CAPITAL 75,603 24,430 39,261 491,540 487,540 419,300 TRANSFERS OUT 737,152 351,423 - 1,213,630 1,323,790 1,284,140 PARKS & FACILITIES Total 4,200,428 4,420,140 3,098,783 6,431,120 6,363,420 7,789,940 RECREATION SERVICES SALARIES 2,094,988 2,399,467 1,892,701 2,615,430 2,616,490 2,811,490 BENEFITS 317,621 385,060 322,306 369,370 369,370 322,060 ORG DEVELOPMENT 8,638 10,197 10,274 17,430 18,930 18,930 OPERATING EXP 180,944 188,336 145,326 224,950 222,400 232,940 CONTRACT SERVICES 171,405 182,512 128,511 259,700 211,000 245,000 CAPITAL OUTLAY 16,477 17,216 8,295 93,850 97,850 24,850 UTILITIES 73,938 64,177 59,140 79,680 81,080 104,180 CAPITAL 26,859 - - - - - RECREATION SERVICES Total 2,890,869 3,246,964 2,566,553 3,660,410 3,617,120 3,759,450 EMERGENCY MANAGEMENT SALARIES 132,460 130,218 119,976 151,000 151,000 157,000 BENEFITS 70,553 71,246 62,599 80,100 80,100 82,280 ORG DEVELOPMENT 7,639 5,981 (24) 500 10,280 10,800 OPERATING EXP 19,233 15,826 17,230 28,100 27,770 31,500 CONTRACT SERVICES 2,500 11,781 6,200 30,600 9,900 10,800 CAPITAL OUTLAY 2,495 512 741 1,000 3,750 8,400 UTILITIES 478 498 435 2,000 2,400 2,000 CAPITAL (142,237) - - - - - EMERGENCY MANAGEMENT Total 93,121 236,061 207,157 293,300 285,200 302,780

8. Parks & Recreation Total 11,897,307 13,635,087 11,605,150 19,039,820 18,568,220 21,235,410

9. Public Works
CAPITAL IMPROVEMENT PROJECTS SALARIES 371,384 351,913 262,022 - - - BENEFITS 388,331 368,291 130,349 - - - CAPITAL 26,279,139 42,476,894 56,761,436 262,593,870 259,469,850 33,251,060 CAPITAL IMPROVEMENT PROJECTS Total 27,038,854 43,197,098 57,153,806 262,593,870 259,469,850 33,251,060 ENGINEERING SALARIES 1,618,202 1,724,143 1,290,275 2,411,900 2,461,100 2,716,440 BENEFITS 722,722 831,900 607,985 1,317,000 1,313,400 1,456,230 ORG DEVELOPMENT 25,906 23,127 13,906 52,720 47,720 63,520 OPERATING EXP 165,661 266,578 341,100 544,040 540,940 585,010 CONTRACT SERVICES 194,064 406,327 107,463 1,340,430 1,190,430 1,990,330 CAPITAL OUTLAY - 2,000 2,333 15,200 12,000 16,200 UTILITIES 1,689,798 1,853,752 1,417,965 1,955,950 1,955,950 2,156,600 DEBT SERVICE 983,585 981,857 963,835 983,270 983,270 963,970 TRANSFERS OUT 559,389 612,757 - 882,460 944,140 867,500 ENGINEERING Total 5,959,327 6,702,442 4,744,862 9,502,970 9,448,950 10,815,800 ENVIRONMENTAL SALARIES 322,612 383,452 352,941 349,100 356,600 393,980 BENEFITS 147,956 185,635 147,677 197,150 195,230 205,450 ORG DEVELOPMENT - 15,282 7,747 15,850 13,850 14,580 OPERATING EXP 4,788 5,762 678 6,500 1,300 5,000 CONTRACT SERVICES 246,983 202,978 270,901 1,302,300 447,740 1,110,710 UTILITIES 53 480 360 600 500 500 ENVIRONMENTAL Total 722,392 793,589 780,304 1,871,500 1,015,220 1,730,220

Page 12 of 32 ends

Department/Division Category 2023 Actual 2024 Actual
2025 YTD
Actual 2025 Budget
2025
Projected
2026
Proposed

CITY OF PALMDALE
FY 2026 DRAFT BUDGET

EXPENDITURES-ALL FUNDS-BY DEPARTMENT/DIVISION
MAINTENANCE SALARIES 7,352,073 7,925,157 7,072,537 9,126,070 9,240,520 10,553,400 BENEFITS 4,185,402 4,432,696 3,898,445 5,019,210 5,017,210 6,077,640 ORG DEVELOPMENT 86,518 129,992 86,297 184,400 165,800 190,200 OPERATING EXP 3,926,593 4,258,914 2,541,352 5,619,680 5,511,310 6,419,300 CONTRACT SERVICES 8,350,070 8,521,439 6,915,751 14,607,000 14,352,130 14,722,890 CAPITAL OUTLAY 54,399 47,312 17,914 105,600 88,100 121,600 UTILITIES 3,173,545 3,217,817 2,918,553 4,525,050 4,544,850 4,535,300 CAPITAL 142,237 197,741 1,391,229 4,065,170 4,065,170 650,500 DEBT SERVICE 51,912 47,874 - 52,000 52,000 26,100 TRANSFERS OUT 3,397,705 3,076,712 - 7,442,740 8,337,360 5,885,650 MAINTENANCE Total 30,720,454 31,855,654 24,842,077 50,746,920 51,374,450 49,182,580 PUBLIC WORKS - ADMINISTRATION SALARIES 1,133,393 1,128,880 739,593 1,139,230 1,140,530 1,180,060 BENEFITS (235,092) (168,992) 255,786 569,700 (200,940) (363,420) ORG DEVELOPMENT 11,431 14,850 9,307 17,900 17,900 3,200 OPERATING EXP 6,794 4,900 6,940 8,800 8,800 11,000 CONTRACT SERVICES 123,742 81,047 207,413 611,620 561,620 1,540,000 CAPITAL OUTLAY - 2,597 165 4,000 4,000 6,000 UTILITIES 1,132 2,620 2,799 3,800 3,800 3,860 DEBT SERVICE 10,149 9,360 - 10,200 10,200 10,200 TRANSFERS OUT 5,835 6,840 - 14,440 26,190 11,590 PUBLIC WORKS - ADMINISTRATION Total 1,057,384 1,082,102 1,222,003 2,379,690 1,572,100 2,402,490 PALMDALE CCA SALARIES 124,743 121,749 131,408 135,300 168,300 164,990 BENEFITS 54,309 54,510 50,661 69,600 89,600 85,410 ORG DEVELOPMENT 3,181 6,194 971 37,000 20,000 25,000 OPERATING EXP 307 3,510 77 728,250 728,250 855,250 CONTRACT SERVICES 29,267,614 59,094,433 49,925,191 66,778,970 66,747,470 69,207,830 CAPITAL OUTLAY - 2,403 - 5,250 52,640 5,250 TRANSFERS OUT 10,893 4,095 - - - - PALMDALE CCA Total 29,461,048 59,286,894 50,108,308 67,754,370 67,806,260 70,343,730

9. Public Works Total 94,959,460 142,917,778 138,851,360 394,849,320 390,686,830 167,725,880 Grand Total 293,100,921 362,631,197 253,800,366 660,715,732 658,197,610 423,226,940

Page 13 of 32 ends

Department/Division Category 2023 Actual 2024 Actual
2025 YTD
Actual 2025 Budget
2025
Projected
2026
Proposed

1. City Council Total 356,226 539,362 341,825 629,960 643,250 645,270

2. City Attorney Total 2,253,078 2,362,984 2,599,013 4,341,530 5,004,410 2,618,700

3. City Manager
CITY CLERK SALARIES 563,624 591,563 381,687 421,750 421,750 515,400 BENEFITS 223,629 241,233 172,814 192,400 196,400 223,900 ORG DEVELOPMENT 17,093 19,292 7,221 19,450 21,570 40,900 OPERATING EXP 13,324 12,403 7,016 13,360 15,240 17,480 CONTRACT SERVICES 271,576 61,784 16,504 210,200 437,500 43,920 CAPITAL OUTLAY - 1,057 576 1,500 1,500 1,500 UTILITIES 491 498 232 500 500 500 TRANSFERS OUT 119,830 45,048 - 187,620 165,750 199,280 CITY CLERK Total 1,209,566 972,877 586,051 1,046,780 1,260,210 1,042,880 CITY MANAGER SALARIES 1,060,313 1,142,455 1,012,780 1,464,460 1,465,460 1,214,490 BENEFITS 396,143 498,026 490,462 673,920 663,420 541,060 ORG DEVELOPMENT 34,661 92,031 91,678 131,730 134,960 119,510 OPERATING EXP 6,316 16,708 25,841 118,150 118,150 1,116,500 CONTRACT SERVICES - 9,495 - 283,510 26,000 86,000 CAPITAL OUTLAY 3,978 2,261 7,154 73,760 73,760 50,000 UTILITIES 1,202 1,818 1,397 2,060 1,920 1,920 CAPITAL - 1,500,000 6,000,000 6,000,000 6,000,000 - TRANSFERS OUT 68,282 27,994 - 173,650 103,520 114,500 CITY MANAGER Total 1,570,897 3,290,789 7,629,312 8,921,240 8,587,190 3,243,980 COMMUNICATIONS SALARIES 500,989 397,577 118,051 196,910 196,910 265,060 BENEFITS 237,230 152,106 58,419 69,780 69,780 136,310 ORG DEVELOPMENT 13,606 10,962 575 5,800 1,800 523,000 OPERATING EXP 4,726 1,157 945 3,000 3,000 3,000 CONTRACT SERVICES 312,768 918,052 1,074,631 2,162,690 2,051,520 1,910,000 CAPITAL OUTLAY - - 123 2,000 2,000 2,000 UTILITIES 2,252 1,041 374 600 600 600 TRANSFERS OUT 65,359 24,605 - 97,430 90,410 108,700 COMMUNICATIONS Total 1,136,929 1,505,500 1,253,118 2,538,210 2,416,020 2,948,670 LEGISLATIVE AFFAIRS SALARIES 130,794 79,864 47,704 60,000 70,000 190,820 BENEFITS 43,008 31,045 13,515 32,900 32,900 99,850 ORG DEVELOPMENT 10,375 7,083 - 9,600 - 13,350 OPERATING EXP 752 - - - - - CONTRACT SERVICES 346,300 237,266 246,400 663,200 310,000 451,200 UTILITIES - - - 780 - - LEGISLATIVE AFFAIRS Total 531,228 355,258 307,619 766,480 412,900 755,220

CITY OF PALMDALE
FY 2026 DRAFT BUDGET

EXPENDITURES-GENERAL FUND-BY DEPARTMENT/DIVISION

Page 14 of 32 ends

Department/Division Category 2023 Actual 2024 Actual
2025 YTD
Actual 2025 Budget
2025
Projected
2026
Proposed

CITY OF PALMDALE
FY 2026 DRAFT BUDGET

EXPENDITURES-GENERAL FUND-BY DEPARTMENT/DIVISION
RECORDS MANAGEMENT SALARIES 70,356 61,204 56,134 98,940 98,940 98,940 BENEFITS 18,626 6,306 1,469 47,020 47,020 10,300 ORG DEVELOPMENT - - 8 1,500 1,500 3,000 OPERATING EXP 2,435 1,727 2,292 8,700 8,700 8,700 CONTRACT SERVICES 15,764 12,702 4,257 9,850 9,850 85,150 CAPITAL OUTLAY - - - 1,000 1,000 1,000 UTILITIES 12,093 10,418 12,680 14,000 14,000 15,130 RECORDS MANAGEMENT Total 119,274 92,358 76,840 181,010 181,010 222,220

3. City Manager Total 4,567,894 6,216,783 9,852,941 13,453,720 12,857,330 8,212,970

4. Operations
FINANCE SALARIES 1,171,532 1,287,183 1,059,461 1,314,700 1,315,200 1,609,180 BENEFITS 565,170 661,746 510,442 683,100 683,100 815,480 ORG DEVELOPMENT 20,206 26,672 35,323 112,100 52,860 54,720 OPERATING EXP 22,421 16,642 9,499 34,500 26,000 29,500 CONTRACT SERVICES 642,462 722,918 550,061 1,317,690 1,182,220 630,450 CAPITAL OUTLAY 19,184 5,075 8,251 117,000 12,000 12,000 UTILITIES 1,326 1,503 615 2,000 1,000 2,000 TRANSFERS OUT 174,293 87,829 - 387,790 369,070 417,840 GN/LS-SALE OF ASSET - 274,481 - - - - FINANCE Total 2,616,594 3,084,050 2,173,651 3,968,880 3,641,450 3,571,170 GENERAL CITY SALARIES 229,700 7,050 5,100 1,165,000 1,165,000 (485,000) BENEFITS 153,594 198,475 105 260,000 260,000 260,000 ORG DEVELOPMENT 93,801 105,844 99,762 152,000 152,000 150,000 OPERATING EXP 340,045 302,305 341,008 2,443,610 2,231,300 888,000 CONTRACT SERVICES 247,272 339,138 320,537 987,800 506,000 611,000 CAPITAL OUTLAY 2,178 - - - - - UTILITIES 91,366 65,877 64,712 101,500 76,500 76,500 CAPITAL - 197,203 - 100,000 100,000 12,100,000 DEBT SERVICE 5,990,312 5,980,523 2,162,473 4,011,650 4,011,330 3,970,400 TRANSFERS OUT 6,940,602 8,429,094 - 10,637,130 20,937,820 9,517,470 GENERAL CITY Total 14,088,871 15,625,508 2,993,697 19,858,690 29,439,950 27,088,370 HUMAN RESOURCES SALARIES 571,096 609,361 454,617 673,710 673,320 867,530 BENEFITS 231,409 276,398 223,421 314,300 314,300 482,320 ORG DEVELOPMENT 16,143 4,977 6,855 19,700 15,000 43,500 OPERATING EXP 1,906,624 1,762,079 447,824 2,265,850 2,059,000 2,046,000 CONTRACT SERVICES 1,188,812 1,270,904 999,440 1,521,400 1,299,400 1,384,700 CAPITAL OUTLAY - - - 16,060 20,000 17,780 TRANSFERS OUT 76,255 28,668 - 116,660 105,480 126,810 HUMAN RESOURCES Total 3,990,338 3,952,388 2,132,156 4,927,680 4,486,500 4,968,640 RISK MANAGEMENT SALARIES - 37,353 205,772 212,500 225,000 343,340 BENEFITS - 21,957 107,217 122,100 122,100 181,710 ORG DEVELOPMENT 535 3,277 3,670 28,460 4,300 11,500 OPERATING EXP 4,929,155 19,764,893 3,483,857 5,127,480 10,608,970 5,338,830 CONTRACT SERVICES 1,011,062 1,179,442 725,209 1,238,250 1,214,750 1,033,250 CAPITAL OUTLAY - - - 1,500 1,000 1,500 RISK MANAGEMENT Total 5,940,752 21,006,921 4,525,725 6,730,290 12,176,120 6,910,130

4. Operations Total 26,636,556 43,668,867 11,825,229 35,485,540 49,744,020 42,538,310

Page 15 of 32 ends

Department/Division Category 2023 Actual 2024 Actual
2025 YTD
Actual 2025 Budget
2025
Projected
2026
Proposed

CITY OF PALMDALE
FY 2026 DRAFT BUDGET

EXPENDITURES-GENERAL FUND-BY DEPARTMENT/DIVISION
BUILDING AND SAFETY SALARIES 1,321,488 1,418,618 1,501,952 1,485,490 1,990,260 2,043,050 BENEFITS 652,211 721,421 732,072 793,400 980,100 1,059,550 ORG DEVELOPMENT 33,684 28,144 12,898 42,700 42,700 42,700 OPERATING EXP 4,123 988 1,060 4,500 4,500 19,000 CONTRACT SERVICES 702,975 538,274 310,382 977,460 750,500 750,750 CAPITAL OUTLAY 822 3,322 441 4,000 4,000 4,000 UTILITIES 5,923 6,574 5,550 5,800 6,660 7,140 TRANSFERS OUT 209,309 106,578 - 349,460 398,230 359,400 BUILDING AND SAFETY Total 2,930,535 2,823,919 2,564,354 3,662,810 4,176,950 4,285,590 ECONOMIC DEVELOPMENT SALARIES 268,036 281,981 281,514 368,700 369,700 302,320 BENEFITS 139,568 131,838 119,613 173,300 173,100 146,960 ORG DEVELOPMENT 39,911 33,963 24,556 51,250 26,350 38,420 OPERATING EXP 75 154 155 260 160 260 CONTRACT SERVICES 769,674 430,609 216,540 594,220 608,000 789,000 CAPITAL OUTLAY - - 100 1,500 900 1,500 UTILITIES 632 1,110 63 1,400 70 1,400 TRANSFERS OUT 65,359 24,571 - 97,430 90,410 108,700 ECONOMIC DEVELOPMENT Total 1,283,255 904,226 642,542 1,288,060 1,268,690 1,388,560 PLANNING SALARIES 902,373 814,636 758,267 1,064,140 1,067,640 1,233,100 BENEFITS 388,266 396,518 368,808 531,300 531,300 629,170 ORG DEVELOPMENT 19,278 16,866 5,280 20,540 20,540 21,920 OPERATING EXP 8,433 5,707 1,736 17,300 12,300 17,500 CONTRACT SERVICES 87,501 72,501 103,081 231,200 243,200 328,200 CAPITAL OUTLAY 2,233 2,908 280 3,000 3,000 3,000 UTILITIES - 47 419 - - - TRANSFERS OUT 130,718 49,145 - 197,850 180,820 217,390 PLANNING Total 1,538,802 1,358,327 1,237,871 2,065,330 2,058,800 2,450,280 PALMDALE FILM STAGES OPERATING EXP 4,137 45,905 59,345 125,000 90,000 180,000 UTILITIES - 16,548 14,470 27,950 18,050 21,550 PALMDALE FILM STAGES Total 4,137 62,453 73,815 152,950 108,050 201,550

5. Economic & Community Development Total 6,383,527 5,947,516 5,035,195 8,254,350 8,682,490 9,504,980

6. Public Safety
PUBLIC SAFETY SALARIES 1,323,288 1,532,761 890,615 1,666,220 1,666,220 2,248,780 BENEFITS 559,714 635,418 508,514 890,960 894,320 1,295,860 ORG DEVELOPMENT 11,375 15,683 16,588 25,500 25,500 36,000 OPERATING EXP 41,657 88,457 285,266 392,760 388,070 525,000 CONTRACT SERVICES 73,988 145,381 1,165,818 1,884,140 1,880,700 2,120,590 CAPITAL OUTLAY - 1,365 - 7,000 - 7,500 COUNTY CONTRACTS 17,256,289 23,638,350 17,432,099 27,964,940 29,793,500 31,344,220 UTILITIES 20,968 25,720 20,299 34,100 28,840 35,000 CAPITAL 15,761 419,161 - - - - DEBT SERVICE - 150,000 - - - - TRANSFERS OUT 95,418 111,862 - 778,110 428,190 189,510 PUBLIC SAFETY Total 19,398,458 26,764,159 20,319,199 33,643,730 35,105,340 37,802,460

6. Public Safety Total 19,398,458 26,764,159 20,319,199 33,643,730 35,105,340 37,802,460

7. Housing
AFFORDABLE HOUSING SALARIES 30,552 50,860 24,539 60,100 60,100 141,400 BENEFITS 13,345 23,164 12,448 35,180 32,900 82,250 ORG DEVELOPMENT 1,477 1,037 813 3,000 3,000 4,500 OPERATING EXP 46,055 11,958 6,915 11,900 12,100 12,150 CONTRACT SERVICES 55,705 57,163 33,974 60,400 66,600 246,300 CAPITAL OUTLAY - - 21 1,500 1,100 1,250 UTILITIES 12,828 12,010 7,216 13,700 14,500 14,500 TRANSFERS OUT 424,842 159,718 - 633,280 587,670 706,520 AFFORDABLE HOUSING Total 584,804 315,909 85,926 819,060 777,970 1,208,870

7. Housing Total 584,804 315,909 85,926 819,060 777,970 1,208,870

Page 16 of 32 ends

Department/Division Category 2023 Actual 2024 Actual
2025 YTD
Actual 2025 Budget
2025
Projected
2026
Proposed

CITY OF PALMDALE
FY 2026 DRAFT BUDGET

EXPENDITURES-GENERAL FUND-BY DEPARTMENT/DIVISION

8. Parks & Recreation
COMMUNITY PROGRAMS SALARIES 102,236 114,969 102,055 104,700 104,700 186,590 BENEFITS 54,912 62,842 59,372 66,380 66,380 147,140 ORG DEVELOPMENT 2,190 2,835 - 6,350 4,350 10,350 OPERATING EXP 15,023 19,144 9,998 22,500 22,500 28,500 CONTRACT SERVICES 5,921 4,070 1,582 4,500 4,500 4,500 UTILITIES 165 498 99 - - - COMMUNITY PROGRAMS Total 180,448 204,358 173,106 204,430 202,430 377,080 EVENTS & CULTURE SALARIES 934,909 1,111,303 1,046,498 1,389,610 1,386,760 1,633,130 BENEFITS 285,795 304,353 272,587 301,360 301,360 345,000 ORG DEVELOPMENT 4,470 9,194 2,957 12,100 11,100 14,100 OPERATING EXP 125,049 239,844 223,020 456,500 453,500 423,500 CONTRACT SERVICES 801,189 869,312 1,387,588 2,133,000 1,907,550 2,329,500 SOFTWARE 1,635 2,107 2,301 3,000 3,000 5,000 CAPITAL OUTLAY 27,550 34,174 21,877 50,900 50,900 50,900 UTILITIES 80,240 76,516 61,577 102,500 102,200 122,750 CAPITAL - 31,939 2,000 38,000 38,000 30,000 EVENTS & CULTURE Total 2,260,836 2,678,743 3,020,403 4,486,970 4,254,370 4,953,880 LIBRARY SALARIES 33,384 29,386 - - - - BENEFITS 2,264 1,967 - 2,000 - - OPERATING EXP 228,967 221,055 189,277 261,500 294,900 261,500 CONTRACT SERVICES 1,061,350 1,097,023 917,995 1,218,730 1,245,200 1,270,140 CAPITAL OUTLAY 789 5,955 3,393 10,000 5,000 5,000 UTILITIES 55,964 51,414 31,799 68,700 42,300 60,600 TRANSFERS OUT 130,718 49,145 - 194,850 180,820 217,390 LIBRARY Total 1,513,435 1,455,945 1,142,464 1,755,780 1,768,220 1,814,630 PARKS & FACILITIES SALARIES 886,968 934,528 845,045 1,107,860 1,109,360 1,590,980 BENEFITS 319,849 401,587 386,961 469,850 469,850 812,500 ORG DEVELOPMENT 2,028 6,107 9,645 8,200 9,650 14,700 OPERATING EXP 36,177 247,104 36,154 106,000 89,650 283,100 CONTRACT SERVICES 3,940 4,151 20,449 111,100 98,600 271,100 CAPITAL OUTLAY 7,317 839 427 13,000 11,000 13,000 UTILITIES 67,678 47,280 13,231 48,250 57,600 51,250 CAPITAL 26,865 - - 5,000 1,000 65,400 TRANSFERS OUT 737,152 351,423 - 1,213,630 1,323,790 1,284,140 PARKS & FACILITIES Total 2,087,974 1,993,020 1,311,911 3,082,890 3,170,500 4,386,170 RECREATION SERVICES SALARIES 2,083,281 2,386,978 1,880,803 2,602,390 2,603,990 2,798,060 BENEFITS 317,075 385,060 321,747 369,370 369,370 322,060 ORG DEVELOPMENT 8,638 10,197 10,274 17,430 18,930 18,930 OPERATING EXP 179,593 186,808 144,801 218,700 219,900 226,690 CONTRACT SERVICES 171,405 182,512 128,511 259,700 211,000 245,000 CAPITAL OUTLAY 16,477 17,216 8,295 93,850 97,850 24,850 UTILITIES 73,938 64,177 59,140 79,680 81,080 104,180 CAPITAL 26,859 - - - - - RECREATION SERVICES Total 2,877,265 3,232,947 2,553,571 3,641,120 3,602,120 3,739,770

EMERGENCY MANAGEMENT BENEFITS - - - - - - ORG DEVELOPMENT 7,639 5,981 (24) 500 10,280 10,800 OPERATING EXP 19,233 15,826 17,230 28,100 27,770 31,500 CONTRACT SERVICES 2,500 11,781 6,200 30,600 9,900 10,800 CAPITAL OUTLAY 2,495 512 741 1,000 3,750 8,400 UTILITIES 478 498 435 1,200 1,200 1,200 EMERGENCY MANAGEMENT Total 32,346 34,597 24,582 61,400 52,900 62,700

8. Parks & Recreation Total 8,952,303 9,599,611 8,226,037 13,232,590 13,050,540 15,334,230

9. Public Works
CAPITAL IMPROVEMENT PROJECTS SALARIES 36,285 578 - - - - BENEFITS 59,490 794 - - - - CAPITAL 1,652,184 251,971 164,438 1,197,190 848,360 3,000,000 CAPITAL IMPROVEMENT PROJECTS Total 1,747,960 253,344 164,438 1,197,190 848,360 3,000,000

Page 17 of 32 ends

Department/Division Category 2023 Actual 2024 Actual
2025 YTD
Actual 2025 Budget
2025
Projected
2026
Proposed

CITY OF PALMDALE
FY 2026 DRAFT BUDGET

EXPENDITURES-GENERAL FUND-BY DEPARTMENT/DIVISION
ENGINEERING SALARIES 726,030 846,326 643,070 1,389,300 1,393,800 1,254,520 BENEFITS 321,729 382,919 298,502 753,900 751,150 673,140 ORG DEVELOPMENT 10,410 7,053 5,973 17,200 14,200 23,000 OPERATING EXP 5,292 7,210 3,616 10,500 9,000 10,500 CONTRACT SERVICES 78,920 283,948 34,292 361,200 361,200 861,200 CAPITAL OUTLAY - 2,000 - 3,400 3,000 4,400 UTILITIES 1,020 2,953 2,536 3,900 3,900 11,100 DEBT SERVICE 19,287 17,787 - 19,300 19,300 - TRANSFERS OUT 30,638 35,921 - 75,810 137,490 60,850 ENGINEERING Total 1,193,326 1,586,117 987,990 2,634,510 2,693,040 2,898,710 ENVIRONMENTAL SALARIES 94,242 94,784 98,181 83,400 89,900 120,000 BENEFITS 44,523 48,872 36,096 46,350 46,000 61,620 ORG DEVELOPMENT - 478 517 1,000 550 600 OPERATING EXP - 779 450 3,500 500 3,500 CONTRACT SERVICES 2,624 55,203 108,912 280,000 210,000 70,000 UTILITIES 53 480 360 600 500 500 ENVIRONMENTAL Total 141,442 200,596 244,516 414,850 347,450 256,220 MAINTENANCE SALARIES 2,014,984 2,134,353 2,094,730 2,363,070 2,388,070 2,209,810 BENEFITS 1,088,724 1,194,465 1,171,593 1,432,220 1,432,220 1,279,450 ORG DEVELOPMENT 23,154 39,784 37,659 60,200 60,200 54,700 OPERATING EXP 879,405 922,968 742,642 1,935,300 1,933,800 1,782,900 CONTRACT SERVICES 3,913,633 4,126,848 3,015,501 6,041,900 5,925,000 6,160,550 CAPITAL OUTLAY 20,446 14,369 5,791 45,900 28,400 53,400 UTILITIES 1,884,525 1,863,967 1,711,285 2,696,550 2,709,350 2,574,400 DEBT SERVICE 26,092 24,063 - 26,100 26,100 26,100 TRANSFERS OUT 203,969 239,124 - 504,710 915,310 405,080 MAINTENANCE Total 10,054,932 10,559,942 8,779,201 15,105,950 15,418,450 14,546,390 PUBLIC WORKS - ADMINISTRATION SALARIES 1,133,393 1,128,880 739,593 1,139,230 1,140,530 1,046,930 BENEFITS (235,092) (168,992) 255,786 569,700 (200,940) (435,560) ORG DEVELOPMENT 11,431 14,850 9,307 17,900 17,900 3,200 OPERATING EXP 6,794 4,900 6,940 8,800 8,800 11,000 CONTRACT SERVICES 123,742 81,047 207,413 611,620 561,620 330,000 CAPITAL OUTLAY - 2,597 165 4,000 4,000 6,000 UTILITIES 1,132 2,620 2,799 3,800 3,800 3,860 DEBT SERVICE 10,149 9,360 - 10,200 10,200 10,200 TRANSFERS OUT 5,835 6,840 - 14,440 26,190 11,590 PUBLIC WORKS - ADMINISTRATION Total 1,057,384 1,082,102 1,222,003 2,379,690 1,572,100 987,220

9. Public Works Total 14,195,043 13,682,100 11,398,149 21,732,190 20,879,400 21,688,540 Grand Total 83,327,890 109,097,292 69,683,514 131,592,670 146,744,750 139,554,330

Page 18 of 32 ends

Measure AV Category Project Description
FY 2024
Actual
FY 2025 YTD
Actual
FY 2025
Adopted
FY 2025
Projected
FY 2026
Proposed $ Chg

REVENUES
Revenue General Sales Tax 22,587,610 13,535,829 22,520,000 23,068,000 23,568,000 500,000 Interest Income 800,306 - - 495,000 500,000 5,000 Revenue Total 23,387,916 13,535,829 22,520,000 23,563,000 24,068,000 505,000

EXPENDITURES
A. Public Safety Animal Services
Independent Operation Feasibility 67,359 - - - - - Animal Health Services 143,352 36,346 300,000 300,000 300,000 - Emergency Management 201,464 182,575 231,900 232,300 240,080 7,780 Public Safety 1,336,988 971,559 2,130,520 2,104,060 1,303,330 (800,730) Public Safety Equipment - - - - - - Sheriff Contract
General Contract 1,838,470 1,262,400 1,893,600 2,051,400 2,143,710 92,310 Infrastructure/Commercial 227,380 156,133 234,200 253,720 265,140 11,420 Community Programs 4,092,650 2,810,267 4,215,400 4,566,690 4,772,190 205,500 Economic Development 1,050,600 721,400 1,082,100 1,172,280 1,225,030 52,750 A. Public Safety Total 8,958,263 6,140,680 10,087,720 10,680,450 10,249,480 (430,970) B. Infrastructure / CIP
Safe and Clean Parks
McAdam Park Cultural Art - - 150,000 150,000 - (150,000) McAdam Park Battery Storage 442,795 441,786 559,840 559,840 - (559,840) MK Park Pool Enclosure 65,925 13,444 702,530 702,530 - (702,530) MK BOTW Concession Sitework - - 500,000 500,000 - (500,000) Parks Master Plan 79,299 2,579 10,700 2,600 - (2,600) General Park Improvements 2,427,865 720,293 2,809,300 1,759,420 1,009,410 (750,010) Graffiti Abatement Vehicles 145,077 - 156,950 156,950 - (156,950) Abatement/Prevention/Maintenance Prgrms - - 285,000 47,030 2,361,830 2,314,800 Street Sweeping Signage 121,154 292,250 446,620 356,620 - (356,620) CIP Multi-Year Projects -
Sam Yellen Park 5,745,599 3,188,738 6,083,400 6,083,400 - (6,083,400) McAdam Park Renovation 125,015 202,574 3,200,000 3,200,000 7,225,000 4,025,000 Courson Revitalization Project - - 300,000 300,000 2,056,900 1,756,900 Citywide Security 364,792 88,444 500,000 500,000 - (500,000) Hammack Demolition - 20,200 166,930 166,930 - (166,930) Facility Improvements - Aero 112,020 33,981 616,000 616,000 4,000 (612,000) Chimbole/Library/City Hall Impr. - 337,609 2,200,000 2,200,000 - (2,200,000) Public Facility Energy Efficiency Projects /
Sportsfield Lighting 5,957,637 2,758,217 6,202,390 6,202,390 - (6,202,390) Memorial Honor Wall 2,275 - 10 - - - B. Infrastructure / CIP Total 15,589,453 8,100,115 24,889,670 23,503,710 12,657,140 (10,846,570) C. Community Programs
SAVES 89,609 74,048 447,090 435,090 279,340 (155,750) Unhoused Programs 135,025 62,317 150,000 100,000 150,000 50,000 Mental Health Programs - - 750,000 - 1,100,000 1,100,000 Community Partnership Programs - 50,000 50,000 50,000 50,000 - Senior Programs/Legacy Commons 343,611 274,033 416,710 401,900 506,860 104,960 Veteran Support 1,900 3,645 25,000 25,000 25,000 - Recreation Scholarships 13,232 6,132 20,000 7,000 20,000 13,000 Community Events
Community Events 844,119 907,528 1,088,150 1,116,050 1,084,720 (31,330) C. Community Programs Total 1,427,496 1,377,703 2,946,950 2,135,040 3,215,920 1,080,880 D. Economic Development
Economic Development
Business Retention 72,636 146,239 140,000 140,000 180,000 40,000 Auto Mall Partnership 33,390 447,449 567,050 567,050 500,000 (67,050) Aerospace Incentive Program 62,500 62,500 687,500 62,500 500,000 437,500 Property Acquisition & Entitlement 30,703 128,417 573,690 140,000 500,000 360,000 Film & Tourism 75,114 20,683 88,360 42,320 135,000 92,680 D. Economic Development Total 274,343 805,288 2,056,600 951,870 1,815,000 863,130 Administrative Costs
Program Administration - 5% cap 77,972 70,530 78,500 89,800 98,000 8,200 Audit Fees 10,000 - 10,000 10,000 10,000 - Administrative Costs Total 87,972 70,530 88,500 99,800 108,000 8,200 Expenditure Total 26,337,527 16,494,316 40,069,440 37,370,870 28,045,540 (9,325,330) Surplus/(Deficit) (2,949,611) (17,549,440) (13,807,870) (3,977,540) Beginning Fund Balance 24,565,678 21,616,067 21,616,067 7,808,197 Change in Fund Balance (2,949,611) (17,549,440) (13,807,870) (3,977,540) Ending Fund Balance - Before Reserves 21,616,067 4,066,627 7,808,197 3,830,657 Reserve Requirement - 10% 2,633,753 4,006,944 3,737,087 2,804,554 Ending Fund Balance - After Reserves 18,982,315 59,683 4,071,110 1,026,103

MEASURE AV
FY 2026 DRAFT BUDGET

REVENUES & EXPENDITURES BY PROGRAM

Page 19 of 32 ends

ARPA Reporting Category Project Description
FY 2022
Actual
FY 2023
Actual
FY 2024
Actual
FY 2025 YTD
Actual
FY 2025
Budget
U.S. Treasury Allocation: 35,455,019$
REVENUES 10,445,600
Revenue American Rescue Plan Act Allocation 342,808$ 12,580,662 9,416,435 - 13,200,120 Program Income - Interest 24,499 703,801 1,686,876 233,298 300,000 Revenue Total 367,307 13,284,463 11,103,311 233,298 13,500,120

EXPENDITURES

1. Public Health and Safety
Mental Health Partnerships - - - - - Oasis vaccine clinic vinyl floor covering - 14,983 - - - Public Facility Health & Safety, Energy Efficiency - - 4,900,835 65,765 - Records Digitization - - 165 9,021 500,000 Well-Being Lab - Mental Health Services - 146,300 242,367 128,333 356,330

1. Public Health Total - 161,283 5,143,367 203,119 856,330

2. Negative Economic Impacts
Affordable Housing - - - - 600,000 Business Grants - 54,966 21,000 - - Business Retention 212,142 195,000 150,000 125,000 350,000 Film Incentive Programs 30,000 49,256 - - - SAVES Facility Improvements - - - 28,865 1,618,000 Tourism - 68,993 53,829 - - Unhoused Programs - - 686,220 - 1,313,780

2. Negative Economic Impacts Total 242,142 368,215 911,049 153,865 3,881,780

3.Public Health -Negative Economic Impact: Public Sector Affordable Housing Programs - 2,000,000 - - - Community Choice Aggregate Programs - 1,754,220 745,780 - - Emergency Operations Center Relocation - - - - 3,801,830 Library Services 17,306 86,617 53,860 24,630 44,350 Park Facility Energy Improvements - - 74,786 750 - Public Parks/Facilities Improvements - - - - - SAVES Operations - - - - - Sheriff Contract - 4,500,000 2,000,000 - -

3. Services to Disproportionately Impacted Communities Total 17,306 8,340,837 2,874,426 25,380 3,846,180

4. Premium Pay
Premium Pay - 1,005,500 - - -

4. Premium Pay Total - 1,005,500 - - -

6. Revenue Replacement
Chimbole/Library/City Hall Imp. - - - - 4,298,250 Film Consultants - 59,300 59,300 - - Hammack Center Demolition - 15,050 303,023 14,200 - Multiagency Regional Resiliency Center (MARRC) - 2,500,000 - - Mutual Aid Regional Response 40,333 - - - - Park Improvements - - 111,816 5,957 196,910 Technology Infrastructure 35,500 122,832 - - -

6. Revenue Replacement Total 75,833 2,697,182 474,139 20,157 4,495,160

7. Administrative & Other
AdministrativeCosts 7,527 7,645 13,455 1,311 35,660

7. Administrative & Other Total 7,527 7,645 13,455 1,311 35,660 Expenditure Total 342,808 12,580,662 9,416,436 403,832 13,115,110 Remaining Allocation 35,455,019 35,112,211 22,531,549 13,115,113 Expenditures 342,808 12,580,662 9,416,436 13,115,110 Ending Allocation 35,112,211 22,531,549 13,115,113 3

AMERICAN RESCUE PLAN ACT
FY 2026 DRAFT BUDGET

REVENUES & EXPENDITURES BY PROGRAM

Page 20 of 32 ends

CIP Org Description Fund Fund Description
2025 Projected
Multi-Year Capital
Projects
2026 Proposed
Additions
Total Proposed
Capital
Improvement
Budget
B0004 ADA COMPLIANCE 203 PROP A FUND 395,580 - 395,580 B0004 ADA COMPLIANCE 206 LOCAL TRANSP FUND ART 3 222,760 - 222,760 B0004 Total 618,340 - 618,340 B0013 ADA COMP-AVE Q 12/10TH-12TH E 280 CDBG FUND 66,000 - 66,000 B0013 ADA COMP-AVE Q 12/10TH-12TH E 214 PROP C LOCAL RETURN 55,800 - 55,800 B0013 Total 121,800 - 121,800 D0001 AMARGOSA DRAINAGE 222 AMARGOSA DRAINAGE FUND 20,000 - 20,000 D0001 Total 20,000 - 20,000 D0002 ANAVERDE DRAINAGE 223 ANAVERDE DRAINAGE FUND 20,000 - 20,000 D0002 Total 20,000 - 20,000 D0003 PORTAL RIDGE DRAINAGE 224 PORTAL RIDGE DRAINAGE FUND 20,000 - 20,000 D0003 Total 20,000 - 20,000 D0004 PEARLAND DRAINAGE 225 PEARLAND DRAINAGE FUND 19,620 - 19,620 D0004 Total 19,620 - 19,620 D0008 AMARGOSA CRK UPPER RECHG PROJ 156 PUBLIC ART FUND 90,000 - 90,000 D0008 AMARGOSA CRK UPPER RECHG PROJ 211 MEASURE A LA COUNTY PARKS 999,660 - 999,660 D0008 AMARGOSA CRK UPPER RECHG PROJ 222 AMARGOSA DRAINAGE FUND 286,370 300,000 586,370 D0008 AMARGOSA CRK UPPER RECHG PROJ 223 ANAVERDE DRAINAGE FUND 296,920 - 296,920 D0008 AMARGOSA CRK UPPER RECHG PROJ 224 PORTAL RIDGE DRAINAGE FUND 448,700 - 448,700 D0008 AMARGOSA CRK UPPER RECHG PROJ 225 PEARLAND DRAINAGE FUND 944,200 - 944,200 D0008 AMARGOSA CRK UPPER RECHG PROJ 226 LITTLEROCK DRAINAGE FUND 50,000 - 50,000 D0008 AMARGOSA CRK UPPER RECHG PROJ 230 BIG ROCK DRAINAGE FUND 73,400 - 73,400 D0008 Total 3,189,250 300,000 3,489,250 D0118 PEARLAND DRAINAGE PLAN STUDY 225 PEARLAND DRAINAGE FUND 502,280 - 502,280 D0118 Total 502,280 - 502,280 D0119 OASIS PARK BASIN UPGRADE 225 PEARLAND DRAINAGE FUND 1,160,000 - 1,160,000 D0119 Total 1,160,000 - 1,160,000 D0120 40TH E/AVE R DRAINAGE IMPRV 225 PEARLAND DRAINAGE FUND 2,300,000 - 2,300,000 D0120 Total 2,300,000 - 2,300,000 D0171 DRNG IMPR 25 W OLIVE DR/AVE S 225 PEARLAND DRAINAGE FUND 500,000 - 500,000 D0171 Total 500,000 - 500,000 D0173 TS HILARY-BERNARDIN WALL RPR 225 PEARLAND DRAINAGE FUND 80,000 - 80,000 D0173 Total 80,000 - 80,000 F0010 EOC TENANT IMPRV 157 MEASURE AV 616,000 4,000 620,000 F0010 EOC TENANT IMPRV 158 AMERICAN RESCUE PLAN FUND 3,801,830 - 3,801,830 F0010 EOC TENANT IMPRV 229 PUBLIC FACILITIES FUND 600,000 - 600,000 F0010 EOC TENANT IMPRV 240 FEDERAL FUNDS FUND 1,312,390 - 1,312,390 F0010 Total 6,330,220 4,000 6,334,220 F0028 PTC WAYFINDING SIGNAGE 203 PROP A FUND 36,800 50,000 86,800 F0028 Total 36,800 50,000 86,800 F0047 LIBRARY IMPROVEMENTS 229 PUBLIC FACILITIES FUND - - - F0047 LIBRARY IMPROVEMENTS 241 STATE GRANTS FUND 675,620 - 675,620 F0047 Total 675,620 - 675,620 F0052 PLAYHOUSE HVAC UPGRADE 220 PARK DEVELOPMENT FUND 12,010 - 12,010 F0052 PLAYHOUSE HVAC UPGRADE 229 PUBLIC FACILITIES FUND 24,320 - 24,320 F0052 Total 36,330 - 36,330 F0060 PTC TRANSIT INFRSTR IMPR 209 MEASURE M FUND 1,660,520 - 1,660,520 F0060 Total 1,660,520 - 1,660,520 F0083 CITY WIDE SECURITY 157 MEASURE AV 500,000 - 500,000 F0083 Total 500,000 - 500,000 F0121 CITY DEV SVCS ELEVATOR REPAIR 229 PUBLIC FACILITIES FUND 118,850 - 118,850 F0121 Total 118,850 - 118,850 F0148 OASIS REC CNTR ROOF 101 GENERAL FUND 200,000 - 200,000 F0148 Total 200,000 - 200,000

CITY OF PALMDALE
FY 2026 DRAFT BUDGET

CAPITAL IMPROVEMENT PROGRAM - BY PROJECT AND FUNDING SOURCE

Page 21 of 32 ends

CIP Org Description Fund Fund Description
2025 Projected
Multi-Year Capital
Projects
2026 Proposed
Additions
Total Proposed
Capital
Improvement
Budget

CITY OF PALMDALE
FY 2026 DRAFT BUDGET

CAPITAL IMPROVEMENT PROGRAM - BY PROJECT AND FUNDING SOURCE F0156 HAMMACK CNT DEMO 157 MEASURE AV 166,930 - 166,930 F0156 Total 166,930 - 166,930 F0161 CHIMBOLE/CITY HALL/LIBRARY IMP 157 MEASURE AV 2,200,000 - 2,200,000 F0161 CHIMBOLE/CITY HALL/LIBRARY IMP 158 AMERICAN RESCUE PLAN FUND 4,289,250 - 4,289,250 F0161 Total 6,489,250 - 6,489,250 F0164 FACILITIES REPAIR P&R BLDG 229 PUBLIC FACILITIES FUND 197,000 - 197,000 F0164 Total 197,000 - 197,000 F0178 SAVES TENANT IMPR 158 AMERICAN RESCUE PLAN FUND 1,618,000 - 1,618,000 F0178 Total 1,618,000 - 1,618,000 F0188 TV LINC 158 AMERICAN RESCUE PLAN FUND 600,000 - 600,000 F0188 Total 600,000 - 600,000 G0007 PAVEMENT MANAGEMENT PROGRAM 207 LOCAL TRANSP FUND ART 8 485,650 - 485,650 G0007 PAVEMENT MANAGEMENT PROGRAM 214 PROP C LOCAL RETURN 250,000 - 250,000 G0007 Total 735,650 - 735,650 G0026 PUBLIC WORKS SOFTWARE UPGRADE 201 GAS TAX FUND 159,320 - 159,320 G0026 Total 159,320 - 159,320 G0030 GENERAL PLAN UPDATE 101 GENERAL FUND 85,320 - 85,320 G0030 GENERAL PLAN UPDATE 241 STATE GRANTS FUND 68,760 - 68,760 G0030 Total 154,080 - 154,080 G0095 PUB FAC ENERGY EFFICIENCY 101 GENERAL FUND 141,770 - 141,770 G0095 PUB FACILITY ENERGY EFFICIENCY 157 MEASURE AV 6,202,390 - 6,202,390 G0095 Total 6,344,160 - 6,344,160 G0096 BATTERY STORAGE MCADAM 157 MEASURE AV 559,840 - 559,840 G0096 BATTERY STORAGE PROJECT 205 AIR QUALITY IMPROVEMENT FUND 253,240 - 253,240 G0096 Total 813,080 - 813,080 G0157 DIGITAL EQUITY STUDY 241 STATE GRANTS FUND 297,390 - 297,390 G0157 Total 297,390 - 297,390 G0168 RECORD DIGITIZATION 158 AMERICAN RESCUE PLAN FUND 500,000 - 500,000 G0168 Total 500,000 - 500,000 G0172 DOT CHARGING FACILITY INFR 240 FEDERAL FUNDS FUND 1,844,000 - 1,844,000 G0172 Total 1,844,000 - 1,844,000 L0013 LMD DESIGN AND RENOVATION 251 LANDSCAPE MAINTENANCE FUND 276,580 - 276,580 L0013 Total 276,580 - 276,580 L0088 PALM BLVD/47TH LNDSCP 214 PROP C LOCAL RETURN 174,740 - 174,740 L0088 Total 174,740 - 174,740 L0193 LMD 24 BOLZ RANCH ROAD 251 LANDSCAPE MAINTENANCE FUND - 287,120 287,120 L0193 Total - 287,120 287,120 L0194 LMD 24 N-8 / BOLZ RANCH RD 251 LANDSCAPE MAINTENANCE FUND - 298,630 298,630 L0194 Total - 298,630 298,630 P0009 SAM YELLEN PARK 156 PUBLIC ART FUND 173,950 - 173,950 P0009 SAM YELLEN PARK 157 MEASURE AV 6,083,400 - 6,083,400 P0009 SAM YELLEN PARK 211 MEASURE A LA COUNTY PARKS 2,314,570 - 2,314,570 P0009 SAM YELLEN PARK 220 PARK DEVELOPMENT FUND 3,042,160 - 3,042,160 P0009 Total 11,614,080 - 11,614,080 P0027 DRY TOWN WP-REFURBISHMENT 250 PARK ASSESSMENTS FUND 15,510 300,000 315,510 P0027 Total 15,510 300,000 315,510 P0042 COMMUNITY PUBLIC ART PROJECTS 156 PUBLIC ART FUND 60,000 - 60,000 P0042 COMMUNITY PUBLIC ART PROJECTS 242 MISC GRANT/DEVELOPER CONTRIB 42,670 - 42,670 P0042 Total 102,670 - 102,670 P0052 MARIE KERR PARK N RIDE 203 PROP A FUND 4,728,610 - 4,728,610 P0052 MARIE KERR PARK N RIDE 211 MEASURE A LA COUNTY PARKS 1,617,320 - 1,617,320 P0052 MARIE KERR PARK N RIDE 224 PORTAL RIDGE DRAINAGE FUND 1,000,000 - 1,000,000 P0052 Total 7,345,930 - 7,345,930

Page 22 of 32 ends

CIP Org Description Fund Fund Description
2025 Projected
Multi-Year Capital
Projects
2026 Proposed
Additions
Total Proposed
Capital
Improvement
Budget

CITY OF PALMDALE
FY 2026 DRAFT BUDGET

CAPITAL IMPROVEMENT PROGRAM - BY PROJECT AND FUNDING SOURCE P0055 ARNIE QUINONES PARK 220 PARK DEVELOPMENT FUND 100,000 200,000 300,000 P0055 Total 100,000 200,000 300,000 P0105 MK PARK SWIM DECK 211 MEASURE A LA COUNTY PARKS 1,000,000 - 1,000,000 P0105 Total 1,000,000 - 1,000,000 P0109 SPORTS FIELD MAINTENANCE 157 MEASURE AV 918,620 1,009,410 1,928,030 P0109 Total 918,620 1,009,410 1,928,030 P0110 PARK MASTER PLAN 157 MEASURE AV 2,600 - 2,600 P0110 Total 2,600 - 2,600 P0117 BOTW SNACK BAR 101 GENERAL FUND 271,270 - 271,270 P0117 BOTW SNACK BAR 157 MEASURE AV 500,000 - 500,000 P0117 BOTW SNACK BAR 158 AMERICAN RESCUE PLAN FUND 196,910 - 196,910 P0117 Total 968,180 - 968,180 P0130 MCADAM PARK RENO 242 MISC GRANT/DEVELOPER CONTRIB 275,000 200,000 475,000 P0130 MCADAM PARK RENOV 157 MEASURE AV 3,200,000 7,225,000 10,425,000 P0130 MCADAM PARK RENOV 254 SEWER MAINT ASSESSMENT DIST 200,000 - 200,000 P0130 Total 3,675,000 7,425,000 11,100,000 P0131 COURSON REVITALIZATION GRNT 242 MISC GRANT/DEVELOPER CONTRIB 3,893,100 - 3,893,100 P0131 COURSON REVITALIZATION 101 GENERAL FUND 150,000 - 150,000 P0131 COURSON REVITALIZATION 157 MEASURE AV 300,000 2,056,900 2,356,900 P0131 Total 4,343,100 2,056,900 6,400,000 P0140 MK PARK POOL ENCLOSURE 157 MEASURE AV 702,530 - 702,530 P0140 Total 702,530 - 702,530 P0144 BARREL SPRINGS TRL IMPR 242 MISC GRANT/DEVELOPER CONTRIB 100,000 - 100,000 P0144 Total 100,000 - 100,000 P0151 MCADAM CULTURAL ART 156 PUBLIC ART FUND 75,000 - 75,000 P0151 MCADAM CULTURAL ART 157 MEASURE AV 150,000 - 150,000 P0151 MCADAM CULTURAL ART 220 PARK DEVELOPMENT FUND 75,000 - 75,000 P0151 Total 300,000 - 300,000 P0172 PELONA VISTA P&R LIGHTING 203 PROP A FUND 93,040 - 93,040 P0172 Total 93,040 - 93,040 P0180 PLAYHOUSE INFR MAINT 220 PARK DEVELOPMENT FUND 275,000 - 275,000 P0180 Total 275,000 - 275,000 P0181 DT LITTLE MINER REFURB 300 WATER PARK 180,000 - 180,000 P0181 Total 180,000 - 180,000 P0182 DT PATHWAY LIGHTING RETROFIT 300 WATER PARK 350,000 - 350,000 P0182 Total 350,000 - 350,000 P0183 DT SPLASH POOL REPAIR 300 WATER PARK 150,000 - 150,000 P0183 Total 150,000 - 150,000 P0184 DT TWR B MECHANICAL REFURB 300 WATER PARK 216,000 - 216,000 P0184 Total 216,000 - 216,000 P0185 DT TWR B REPAIRS 300 WATER PARK 750,000 - 750,000 P0185 Total 750,000 - 750,000 P0190 ADA SIDEWALKS 280 CDBG FUND 650,000 - 650,000 P0190 Total 650,000 - 650,000 P0191 ADA PLAYGROUND IMPR 280 CDBG FUND 500,000 - 500,000 P0191 Total 500,000 - 500,000 P0192 DRYTOWN DROPSLIDE 101 GENERAL FUND - 3,000,000 3,000,000 P0192 Total - 3,000,000 3,000,000 S0025 STREET RESURFACING PROGRAM 201 GAS TAX FUND 8,428,120 4,000,000 12,428,120 S0025 STREET RESURFACING PROGRAM 207 LOCAL TRANSP FUND ART 8 3,376,360 - 3,376,360 S0025 STREET RESURFACING PROGRAM 210 ROAD MAINT & REHAB ACCT FUND 8,274,760 6,000,000 14,274,760 S0025 STREET RESURFACING PROGRAM 214 PROP C LOCAL RETURN 5,049,220 3,000,000 8,049,220 S0025 Total 25,128,460 13,000,000 38,128,460

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CIP Org Description Fund Fund Description
2025 Projected
Multi-Year Capital
Projects
2026 Proposed
Additions
Total Proposed
Capital
Improvement
Budget

CITY OF PALMDALE
FY 2026 DRAFT BUDGET

CAPITAL IMPROVEMENT PROGRAM - BY PROJECT AND FUNDING SOURCE S0040 RANCHO VISTA GRADE SEP PH II 201 GAS TAX FUND 400,000 500,000 900,000 S0040 RANCHO VISTA GRADE SEP PH II 208 MEASURE R FUND - 500,000 500,000 S0040 Total 400,000 1,000,000 1,400,000 S0044 NO CO FORUM ITS EXPANSION 203 PROP A FUND 2,985,640 - 2,985,640 S0044 NO CO FORUMITS EXPANSION 204 PROP C FUND 4,061,850 - 4,061,850 S0044 Total 7,047,490 - 7,047,490 S0049 SR 138 PALMDALE BLVD 5TH/10TH 208 MEASURE R FUND 19,627,670 - 19,627,670 S0049 Total 19,627,670 - 19,627,670 S0050 SR 138/10TH ST W INTERCHANGE 208 MEASURE R FUND 23,577,670 - 23,577,670 S0050 SR 138/10TH W INTERCHANGE 218 MEASURE R LOCAL RETURN - - - S0050 Total 23,577,670 - 23,577,670 S0051 SR 138/PLMDL BLVD SB 14 RAMP 208 MEASURE R FUND 41,892,480 - 41,892,480 S0051 SR 138/PLMDL BLVD SB 14 RAMP 209 MEASURE M FUND 3,351,220 - 3,351,220 S0051 Total 45,243,700 - 45,243,700 S0055 SR 138 AVE N OVERCROSSING 208 MEASURE R FUND 6,256,620 - 6,256,620 S0055 Total 6,256,620 - 6,256,620 S0058 AVE R COMPLETE STRT & SAFE RTS 201 GAS TAX FUND 1,555,050 - 1,555,050 S0058 AVE R COMPLETE STRT & SAFE RTS 207 LOCAL TRANSP FUND ART 8 324,490 - 324,490 S0058 AVE R COMPLETE STRT & SAFE RTS 209 MEASURE M FUND 379,620 - 379,620 S0058 AVE R COMPLETE STRT & SAFE RTS 240 FEDERAL FUNDS FUND 2,705,900 - 2,705,900 S0058 Total 4,965,060 - 4,965,060 S0061 AVENUE R ITS SIGNAL SYNC 203 PROP A FUND 583,980 - 583,980 S0061 AVENUE R ITS SIGNAL SYNC 204 PROP C FUND 2,880,170 - 2,880,170 S0061 Total 3,464,150 - 3,464,150 S0062 COUNTY PAVEMENT PROJECT 218 MEASURE R LOCAL RETURN 365,550 - 365,550 S0062 COUNTY PAVEMENT PROJECT 219 MEASURE M LOCAL RETURN 575,090 - 575,090 S0062 COUNTY PAVEMENT PROJ CONTRIB 201 GAS TAX FUND 1,342,510 - 1,342,510 S0062 COUNTY PAVEMENT PROJ CONTRIB 254 SEWER MAINT ASSESSMENT DIST 364,800 - 364,800 S0062 COUNTY PAVEMENT PROJ 207 LOCAL TRANSP FUND ART 8 242,990 - 242,990 S0062 COUNTY PAVEMENT PROJ 210 ROAD MAINT & REHAB ACCT FUND 362,730 - 362,730 S0062 Total 3,253,670 - 3,253,670 S0066 HSIP ROUNDABOUT @ S-8 & 40TH E 208 MEASURE R FUND 60,360 - 60,360 S0066 HSIP ROUNDABOUT @ S-8 & 40TH E 240 FEDERAL FUNDS FUND 2,414,810 - 2,414,810 S0066 S8 & 40TH EST 156 PUBLIC ART FUND 48,700 - 48,700 S0066 S8 & 40TH EAST 218 MEASURE R LOCAL RETURN 1,578,010 - 1,578,010 S0066 Total 4,101,880 - 4,101,880 S0067 CIVIC CENTER COMPLETE STREETS 201 GAS TAX FUND 484,770 - 484,770 S0067 CIVIC CENTER COMPLETE STREETS 241 STATE GRANTS FUND 473,870 - 473,870 S0067 CIVIC CENTER COMPLETE STREETS 218 MEASURE R LOCAL RETURN 342,680 - 342,680 S0067 CIVIC CENTER COMPLETE STREETS 219 MEASURE M LOCAL RETURN 895,030 - 895,030 S0067 Total 2,196,350 - 2,196,350 S0072 RV AND SIERRA AT GRADE SEP 204 PROP C FUND 1,273,150 - 1,273,150 S0072 Total 1,273,150 - 1,273,150 S0075 RV BLVD SH RR SAFETY CROSSING 240 FEDERAL FUNDS FUND 3,700,250 - 3,700,250 S0075 Total 3,700,250 - 3,700,250 S0077 20TH STREET WEST BRIDGE 242 MISC GRANT/DEVELOPER CONTRIB 742,100 - 742,100 S0077 Total 742,100 - 742,100 S0125 AVE M SR14 TO 10TH PUB ART 218 MEASURE R LOCAL RETURN 255,000 - 255,000 S0125 Total 255,000 - 255,000 S0126 AVE M INTERCHG IMPRV 208 MEASURE R FUND 6,615,380 - 6,615,380 S0126 Total 6,615,380 - 6,615,380 S0142 AVE M GRADE SEPARATION 240 FEDERAL FUNDS FUND 1,500,000 - 1,500,000 S0142 AVE M GRADE SEPARATION 214 PROP C LOCAL RETURN 300,000 - 300,000 S0142 AVE M GRADE SEPARATION 219 MEASURE M LOCAL RETURN 500,000 - 500,000 S0142 Total 2,300,000 - 2,300,000

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CIP Org Description Fund Fund Description
2025 Projected
Multi-Year Capital
Projects
2026 Proposed
Additions
Total Proposed
Capital
Improvement
Budget

CITY OF PALMDALE
FY 2026 DRAFT BUDGET

CAPITAL IMPROVEMENT PROGRAM - BY PROJECT AND FUNDING SOURCE S0143 GUARDRAIL MAINTENANCE 201 GAS TAX FUND 80,000 - 80,000 S0143 Total 80,000 - 80,000 S0145 AVE R SH RR SAFETY CRS 240 FEDERAL FUNDS FUND 842,260 - 842,260 S0145 Total 842,260 - 842,260 S0146 SR138 PLMD BLVD SIDEWALK GAP C 209 MEASURE M FUND 550,000 - 550,000 S0146 Total 550,000 - 550,000 S0169 PARKING ENF/SIGNAGE/SWEEPING 157 MEASURE AV 356,620 - 356,620 S0169 Total 356,620 - 356,620 S0177 AVTA BUS STOPS 203 PROP A FUND 100,000 - 100,000 S0177 Total 100,000 - 100,000 S0186 PALMDALE BLVD ACQ 201 GAS TAX FUND 500,000 - 500,000 S0186 Total 500,000 - 500,000 S0187 AVE T DESIGN & ENVIRONMENTAL 210 ROAD MAINT & REHAB ACCT FUND 2,500,000 - 2,500,000 S0187 Total 2,500,000 - 2,500,000 T0006 TRAFFIC SIGNAL LEFT PHASING 221 TRAFFIC IMPACT FUND 100,000 - 100,000 T0006 Total 100,000 - 100,000 T0027 15 E/SR 138 INTRSCTN IMPRVMT 204 PROP C FUND 148,910 - 148,910 T0027 15 E/DR 138 INTERSCTN IMPR 214 PROP C LOCAL RETURN - 120,000 120,000 T0027 Total 148,910 120,000 268,910 T0031 AVE R 45TH ST E TRAFFIC SIGNAL 221 TRAFFIC IMPACT FUND 139,400 - 139,400 T0031 Total 139,400 - 139,400 T0032 RVB & DIVISION ST TRAFFIC 210 ROAD MAINT & REHAB ACCT FUND 745,290 - 745,290 T0032 Total 745,290 - 745,290 T0127 TRAFFIC SIGNAL M & 20TH E 219 MEASURE M LOCAL RETURN 1,462,100 - 1,462,100 T0127 Total 1,462,100 - 1,462,100 T0129 RVB & ARMFIELD SIGNAL 210 ROAD MAINT & REHAB ACCT FUND 679,210 - 679,210 T0129 Total 679,210 - 679,210 T0163 CITYWIDE SIGNAL MOD 240 FEDERAL FUNDS FUND 5,857,920 - 5,857,920 T0163 CITYWIDE SIGNAL MOD 218 MEASURE R LOCAL RETURN 644,100 - 644,100 T0163 Total 6,502,020 - 6,502,020 T0170 TECHNOLOGY DR & 3 ST E 210 ROAD MAINT & REHAB ACCT FUND 1,150,000 - 1,150,000 T0170 Total 1,150,000 - 1,150,000 U0001 STORM DRAIN UPGRADE 225 PEARLAND DRAINAGE FUND 1,000,000 1,200,000 2,200,000 U0001 STORM DRAIN UPGRADE 228 SEWER UPGRADE FUND 424,450 - 424,450 U0001 STORM DRAIN UPGRADE 254 SEWER MAINT ASSESSMENT DIST 2,700,000 - 2,700,000 U0001 STORM DRAIN UPGRADE 219 MEASURE M LOCAL RETURN - 3,000,000 3,000,000 U0001 Total 4,124,450 4,200,000 8,324,450 U0002 LIFT STATION ELIM SEWER REPAIR 254 SEWER MAINT ASSESSMENT DIST 1,931,190 - 1,931,190 U0002 Total 1,931,190 - 1,931,190 U0003 CITY WIDE SEWER REPAIRS 254 SEWER MAINT ASSESSMENT DIST 249,670 - 249,670 U0003 Total 249,670 - 249,670 U0134 FLEET MAINTENANCE BLDG 254 SEWER MAINT ASSESSMENT DIST 4,000,000 - 4,000,000 U0134 Total 4,000,000 - 4,000,000 (blank) CITY WIDE SECURITY 203 PROP A FUND 328,060 - 328,060 (blank) Total 328,060 - 328,060 Grand Total 259,469,850 33,251,060 292,720,910

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Ref Dept. Position Title Requested Status FTE
Union
(Y/N) Range Funding Source Base Salary Benefits
Annual Salary &
Benefits Amount
New Position Requests
1 Operations Manager I/II FT 1 N 40/42 General Fund 141,856 92,206 234,060 2 E&CD Technician I/II FT 1 N 26/28 General Fund 71,635 46,563 118,200 3 Public Safety Deputy Director FT 1 N 46 General Fund 48,485 31,515 80,000 4 Parks & Recreation Coordinator (Theater Operations) FT 1 N 30 General Fund 15,996 10,397 26,390 5 Public Works Superintendent FT 1 N 38 General Fund/MAV 116,709 75,861 192,570 6 Public Works Maintenance Specialist FT 1 Y 30 ISF - Fleet Maint. 79,978 51,986 131,960 7 Public Works Maintenance Specialist FT 1 Y 30 TDA 8 79,978 51,986 131,960 8 Public Works Maintenance Worker I/II FT 1 Y 23/25 TDA 8 61,880 40,222 102,100 9 Public Works Maintenance Helper (.5 FTE each) PT 0.5 Y 14 TDA 8 36,421 23,674 60,090 10 Public Works Maintenance Worker I/II FT 2 Y 23/25 Sewer Maint. Fund 123,760 80,444 204,200 11 Public Works Sr. Maintenance Specialist FT 1 Y 33 Traffic Funds 91,437 59,434 150,870 12 Public Works Maintenance Worker I/II FT 1 Y 23/25 Landscape Maint. 61,880 40,222 102,100 13 Public Works Administrative Assistant FT 1 N 27 TDA 8 / GF 68,245 44,359 112,600 13 Public Works Analyst I FT 1 N 34 TDA 8 / Sewer / GF 96,013 62,408 158,420 14 Public Works Traffic Engineer FT 1 N 44 TDA 8 / Sewer 141,856 92,206 234,060 15 Public Works Inspector I FT 1 N 31 General Fund 82,950 53,918 136,870 Reclassification Requests
1 Operations Account Clerk I FT 1 N 22 General Fund 9,838 6,395 16,230 Title Change
1 Public Works Coordinator I FT 1 N 30 General Fund - - - New Position Total 16.5 1,328,917 863,796 2,192,680

CITY OF PALMDALE
FY 2026 DRAFT BUDGET

PERSONNEL REQUESTS

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Ref Department Division / Section Quantity Funding Source Capital Outlay - Technology
1 Evolve - Saas City Manager City Clerk 1 General Fund 17,500 2 Compliance Management Software Housing Housing 1 HAF / GF 50,000 3 Distributed Network Architecture (SD-WAN/SASE) Operations Information Technology 1 ISF 100,000 4 High Power Desktops Operations Information Technology 8 General Fund 25,000 5 iPad Refresh Operations Information Technology 60 ISF 50,000 6 Computer Refresh 920% Annually) Operations Information Technology 70 ISF 140,000 7 Laptops - Emergency Operations Center Parks & Recreation Emergency Management 30 General Fund 65,000 8 EOC Equipment Parks & Recreation Emergency Management 1 General Fund 205,000 9 GraniteNet Software (CCTV Inspections) Public Works Maintenance / Sewer 1 Sewer Maint. 64,600 10 HP Designjet T2600 Printer Public Works Maintenance / Traffic 1 Traffic Funds 13,000 11 Bluebeam Software Public Works All PW Divisions 1 Various 15,000 12 Lucity - Saas Public Works Maintenance 1 Various 84,640 Subtotal 829,740
Capital Outlay - Equipment
13 Furniture - Desk / Chairs Operations Human Resources 1 General Funds 17,780 14 EOC Tenant Improvements FF&E Parks & Recreation Emergency Management 1 General Fund 4,000 15 Gymnasium Floor Covering - Oasis Rec Center Parks & Recreation Parks & Facilities 1 General Fund 48,000 16 Banquet Chairs - Legacy Commons Parks & Recreation Parks & Facilities 250 General Fund 63,000 17 Grind Lazer/Vacuum (Concrete) Public Works Maintenance / Streets 1 TDA 8 20,000 18 Mobile Lighting Trailers Public Works Maintenance / Fleet 2 ISF 60,000 19 72" Ground Seeder Attachment Public Works Maintenance / Parks 1 General Fund 10,500 Subtotal 223,280
Replacement Vehicles
20 ZEV Transit/Cargo Van High-top Parks & Recreation SAVES 1 General Fund 85,000 21 ZEV Pickup w Lift Gate Public Safety Code Enforcement 1 General Fund 90,000 22 F150 Truck or ZEV Equivalent Public Works Maintenance / Parks 1 General Fund 85,000 23 F150 Truck or ZEV Equivalent Public Works Maintenance / Sewer 1 Sewer Maint. Fund 85,000 24 F550 Dump Truck with Plow Public Works Maintenance / Streets 1 TDA 8 / Gas Tax 130,000 Subtotal 475,000
New Vehicles With Position
25 F150 Truck or ZEV Equivalent Public Works Maintenance 1 85,000 Subtotal 85,000
Total 1,613,020$

CITY OF PALMDALE
FY 2026 DRAFT BUDGET

CAPITAL OUTLAY REQUESTS

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Acronyms
AB Assembly Bill
ACA Affordable Care Act
ACFR Annual Comprehensive Financial Report
AD Assessment District
ADA Americans with Disabilities Act
AJCC America’s Job Center of California
AUMA Adult Use of Marijuana Act
AVEK Antelope Valley-Eastern Kern Water Agency
AVTA Antelope Valley Transit Authority
CC City Council
CCA Community Choice Aggregation
CDBG Community Development Block Grant
CFD Community Facilities District
CIP Capital Improvement Program
COP Certificates of Participation
CRA Community Redevelopment Agency
CSMFO California Society of Municipal Finance Officers
DAB Development Advisory Board
DDA Disposition & Development Agreement
EOC Emergency Operations Center
EPIC Energy for Palmdale’s Independent Choice
ERAF Educational Revenue Augmentation Fund
FEMA Federal Emergency Management Agency
FTE Full-Time Equivalent
FY Fiscal Year
GAAP Generally Accepted Accounting Principles
GASB Governmental Accounting Standards Board
GAVEA Greater Antelope Valley Economic Alliance
GFOA Government Finance Officers Association
GIS Geographical Information System
HSIP Highway Safety Improvement Program
HUD U.S. Department of Housing and Urban Development
HVAC Heating, Ventilation and Air Conditioning
IDA Industrial Development Authority
JAG Justice Assistance Grant
LAD Landscape Assessment District
LAIF Local Agency Investment Fund
LED Light Emitting Diode

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LMD Landscape Maintenance District
MHP Mobile Home Park
MMRSA Medical Marijuana Regulation and Safety Act
MTA Metropolitan Transportation Authority
NPDES National Pollution Discharge Elimination System
NSP Neighborhood Stabilization Program
O&M Operations and Maintenance
OPA Owner Participation Agreement
OPEB Other Post-Employment Benefits
PAA Palmdale Airport Authority
PCA Palmdale Civic Authority
PCF Palmdale Community Foundation
PERS Public Employees’ Retirement System
PFA Palmdale Financing Authority
PROP Proposition
PSO Public Security Officer
RDA Redevelopment Agency
RFP Request for Proposals
RORF Redevelopment Obligation Retirement Fund
RPTTF Redevelopment Property Tax Trust Fund
SA Successor Agency
SARC School Accountability Report Card
SAVES South Antelope Valley Emergency Services
SB Senate Bill
SCAG Southern California Association of Governments
SERAF Supplemental Educational Revenue Augmentation Fund STPL Surface Transportation Program – Local
TOT Transient Occupancy Tax
VLF Vehicle License Fee
WIA Workforce Investment Act
WIOA Workforce Innovation and Opportunity Act
Terms
Accrual Basis – The method of accounting under which revenues and expenses are recorded when they occur, regardless of the timing of related cash flows. Expenses are recorded at the time liabilities are incurred and revenues are recorded when earned.

ACFR – The Annual Comprehensive Financial Report of the City which shows the financial status of the City.

Adoption – Formal action by the City Council that sets the spending limits for the fiscal year.

Appropriation – City Council authorization permitting the City to incur obligations and expend resources during the fiscal year.

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Assessed Valuation – An official governmental value placed upon real estate or other property as a basis for levying taxes.

Assessments – Levies that pay for improvements directly benefiting the property owners.

Audit – A review of the City’s accounts by an independent auditing firm to substantiate year-end fund balances, reserves, and cash on hand.

Balanced Budget – The City’s operating revenues equal or exceed its operating expenditures.

Base Budget – Ongoing expense for personnel, contractual services, and the replacement of supplies and equipment to maintain service levels previously authorized by the City Council.

Beginning / Ending Fund Balance – Unencumbered resources available in a fund from the prior/current year after payment of the prior/current year’s expenses. This is not necessarily cash on hand.

Bond – A funding tool representing a written promise to pay a specific sum (face value or principal amount) in the future (maturity date), plus interest. In local California government, bonds are only used to finance capital improvements. There are two types of bonds:

General Obligation Bond – A bond requiring a 2/3 vote of the registered voters and backed by the full faith, credit, and taxing power of the municipality.

Revenue Bond – A bond backed by either the revenue produced by the capital improvement or by commitment of a specific revenue source.

Bond Proceeds – Debt issuances derived from the sale of bonds for the purpose of constructing major capital facilities.

Budget – A financial plan listing proposed operational expenditures and revenue estimates for a particular time period. The budget is proposed until it has been approved and adopted by the City Council. Palmdale’s budget encompasses one fiscal year (July 1 to June 30).

Budget Message – A general discussion of the proposed budget as presented in writing by the City Manager to the City Council. The message contains an explanation of principal budget items relative to the current year adopted budget.

Capital Budget – The appropriation of bonds, operating revenue, or fees for improvements to City facilities including buildings, streets, sewer lines, parks, traffic signals, drainage, etc.

Capital Improvement Program – A financial plan of proposed capital improvement projects with single and multiple-year capital expenditures. The City of Palmdale's Capital Improvement Program is a ten-year plan, which is updated annually.

Capital Improvement Projects (CIP) – A permanent addition to the City's assets, including the design, major renovation, construction, or purchase of land, buildings, or facilities. This includes physical structural improvements with a cost of $10,000 or more and a useful life of one year or more. Examples include a new park, building modifications, traffic signals, resurfacing of streets and drainage improvements.

Capital Outlay – A budget category that budgets all equipment having a unit cost of more than $5,000. Capital Outlay is budgeted in the operating budget as opposed to the capital improvement budget.

Contingency Fund – A budgetary reserve set aside for emergency or unanticipated expenditures.

Continuing Appropriation – Resources appropriated for a specific expenditure that is carried over from the prior fiscal year.

Debt Ratio – Total debt divided by total assets. Used by Finance to assess fiscal health, internal controls, etc.

Debt Service – Payments of principal and interest on an obligation resulting from the issuance of bonds, notes, or loans.

Debt Service Requirements – The amount of money required to pay principal and interest on outstanding debt or to accumulate monies for future retirement of term bonds.

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Deficit – An excess of expenditures or expenses over resources.

Department – An organizational unit comprised of divisions or programs. This basic organizational unit of government is functionally unique in its delivery of services.

Division – An organizational component of a department.

Encumbrances – Resources committed for future expenditures as a result of signing executory contracts such as purchase orders and specific contracts for goods and services.

Enterprise Fund – An accounting entity that is financed and operated in a manner similar to private business enterprises where the intent of the governing body is that the costs of providing goods and services to the general public on a continuing basis is financed or recovered primarily through user charges.

Expenditure – The actual spending of funds set aside by an appropriation.

Fiscal Year – A 12-month accounting period used by the City. The City of Palmdale’s fiscal year begins July 1 and ends June 30.

Full Time Equivalent Position (FTE) – A part-time position converted to the decimal equivalent of a full-time position based on 2,080 hours per year. For example, a part time typist working 20 hours per week would be equivalent to 0.5 of a full-time position.

Fund – An independent fiscal and accounting entity with a self-balancing set of accounts to record revenue and expenditures.

Fund Balance – The amount of financial resources available for use.

GAAP – Generally Accepted Accounting Principles. Uniform standards for financial accounting and recording, encompassing the conventions, rules and procedures that define accepted accounting principles.

GASB – Governmental Accounting Standards Board is the current standards setting board for governmental GAAP.

General Fund – The primary fund of the City used to account for all revenues and expenditures related to municipal services and maintenance. Examples of departments financed by the General Fund include the City Council, Finance, Planning and Law Enforcement.

General Obligation Bond – A bond requiring a 2/3 vote of the registered voters and backed by the full faith, credit and taxing power of the municipality. This type of bond is used to finance capital improvements in local California governments.

Goal – A statement of broad direction, purpose or intent based on the needs of the community. A goal is general and timeless; that is, it is not concerned with a specific achievement in a given time period.

Grant – A contribution by a government or other organization to support a specific purpose, activity, or facility.

Infrastructure – Facilities upon which the continuance and growth of a community depend such as roads, sewers, public buildings, parks, etc.

Interfund Transfers – The reallocation of money from one fund to another. The receiving fund must spend the transferred money in a way that complies with any restrictions placed on the money when it was originally received by the donor fund.

Investment Policy – A written, Council adopted policy delineating permitted investments of the City’s idle cash.

The City of Palmdale Investment Policy is typically updated and reaffirmed annually.

Major Fund – Any fund whose revenues or
expenditures, excluding other financing sources and uses, constitute more than 10% of the revenues or expenditures of the appropriated budget.

Modified Accrual Basis – The accrual basis of accounting adapted to the governmental fund type spending measurement focus. Under it, revenues are recognized when they become both measurable and available to finance expenditures of the current period. Expenditures are recognized when the related fund liability is incurred.

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Municipal Code – A book that contains City Council approved ordinances currently in effect. The Code defines City policy with respect to areas such as planning, business licensing, etc.

Objective – Desired output-oriented accomplishments that can be measured and achieved within a given time frame. Achievement of the objective advances the activity and organization toward a corresponding goal.

Operating Budget – Annual appropriation of funds for ongoing program costs including salaries and benefits, services and supplies, debt service, capital outlay, and capital improvements.

Operating Expenditures – Expenditures for materials, supplies, and services which are ordinarily consumed within a fiscal year and which are not included in departmental inventories.

Ordinance – A formal legislative enactment by the City Council that has the full force and effect of law within City boundaries unless preempted by a higher form of law. An ordinance has a higher legal standing than a resolution.

Palmdale Community Choice Aggregation (CCA) – The Palmdale CCA was formed in April 2019 through California Choice Energy Authority (CalChoice) via City Council resolution to purchase power on behalf of the City’s residents.

Palmdale Community Foundation – A 501(c)(3) nonprofit organization organized under the California Nonprofit Public Benefit Corporation Law for public purposes.

PERS – Public Employees Retirement System.

Personnel – A budget category used to account for employee compensation including wages, salaries and fringe benefits such as health, life, and disability insurance, retirement, and car allowance/mileage.

Program – A group of related activities performed by one or more organizational units for the purpose of accomplishing a function.

Property Tax – An ad valorem tax on real property based upon the value of the property.

Property Transfer Tax – A tax imposed whenever the ownership of real property changes.

Reimbursement – Payment of amount remitted on behalf of another party, department, or fund.

Reserve – An account used to indicate that a portion of a fund's balance is legally restricted for a specific purpose and is, therefore, not available for general appropriation.

Resolution – A special order of the City Council having a lower legal standing than an ordinance.

Resources – Total amounts available for appropriation including estimated revenues, fund transfers, and beginning fund balances.

Revenue Bonds – A bond usually issued to construct facilities that is backed by either the revenue produced by the capital improvement or by commitment of a specific revenue source.

Revenues – Money received by the City from taxes, fees, permits, licenses, interest, etc. or from other governments during the fiscal year.

Special Revenue Funds – A fund used to account for revenues that are restricted in use by the City, State, or Federal Government.

Subventions – Intergovernmental revenues paid to the City by another government, such as the State.

Transfer – A transfer is a transaction whereby the fund receiving the revenue transfers money to the fund expending the revenue. An example would be an operating transfer from a Special Revenue Fund to the Capital Projects Fund for construction expenditures.

User Fees/Charges – Charges of a voluntary nature paid by the person receiving the service in exchange for the fee.

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O F F I C E O F T H E C I T Y M A N A G E RFY 2025-26 Draft BudgetCity Council MeetingTuesday, May 21, 2025 City-wide Budget SummaryFY 2026 ProposedFY 2025 Projected$ 372,443,474$ 446,862,754Beginning Balance417,889,630583,778,330Revenues/Transfers In423,226,940658,197,610Expenditures/Transfers Out367,106,165372,443,474Estimated Ending Fund Balance – Before Reserves(54,827,293)(60,218,840)Reserve Requirement$ 312,278,872$ 312,224,634Estimated Ending Balance General Fund Budget Summary% ChAmount ChangeFY 2026 ProposedFY 2025 ProjectedGeneral Fund$ 83,412,186$ 102,982,206Beginning Balance*10%12,588,810139,760,540127,171,730Revenues/Transfers In-5%(7,190,420)139,554,330146,774,750Expenditures/Transfers Out$83,618,396$83,412,186Estimated Ending Balance (Before Reserves/Restrictions)41,866,29944,023,425Reserve Requirement32,000,00032,000,000Restricted/Assigned Funds$ 9,752,097$ 7,388,761Estimated Ending Fund Balance – After Reserves*Based on Annual Comprehensive Financial Report as of June 30, 2024 General Fund Revenues% ChAmount ChangeFY 2026 ProposedFY 2025 ProjectedDescription3%$ 968,350$ 33,386,390$ 32,418,040Property Tax58%18,801,61051,382,74032,581,130Sales & Use Tax2%103,9705,302,3105,198,340Transient Occupancy Tax3%263,6409,178,1008,914,460Franchise Fees6%191,8103,481,8803,290,070Use Of Property8%424,6205,460,4405,035,820License & Permits2%31,3001,388,8301,357,530Charges For Services3%93,0403,265,8503,172,810Development Charges 12%137,1401,290,7501,153,610Fines & Forfeitures20%2,268,58013,352,00011,083,420Other Revenue-47%(10,695,250)12,271,25022,966,500Transfer In10%($ 12,588,810)$ 139,760,540$ 127,171,730Total Revenues General Fund Expenditures% ChAmount ChangeFY 2026 ProposedFY 2025 ProjectedDescription4%$ 1,351,340$ 31,812,740$ 30,461,400Salaries & Benefits14%99,160826,900727,740Organizational Development-28%(5,305,620)13,424,41018,730,030Operating-4%997,51025,080,43026,077,940Contract Services5%1,550,72031,344,22029,793,500County Contracts-2%(58,940)3,112,5803,171,070Utilities111%8,152,86015,466,3807,313,520Capital-1%(60,230)4,006,7004,066,930Debt Service-46%(11,172,650)12,959,97024,132,620Transfers Out-33%(750,000)1,520,0002,270,000Transfers Out – Reserves-5%($ 7,190,420)$ 139,554,330$ 146,744,750Total Expenditures Measure AV% ChAmount ChangeFY 2026 ProposedFY 2025 ProjectedMeasure AV Fund$ 7,808,197$ 21,616,067Beginning Available Balance2%505,00024,068,00023,563,000Total Revenues Expenditures-4%(430,970)10,249,48010,680,450Public Safety-44%(9,846,570)12,657,14022,503,710Beautification / Infrastructure / CIP51%1,088,8803,215,9202,135,040Community Programs91%863,1301,815,000951,870Economic Development8%8,200108,00099,800Administrative-25%(9,325,330)28,045,54037,370,870Total Expenditures3,830,6577,808,197Estimated Fund Balance –Before Reserves2,804,5543,737,087Reserve Requirement (10%)$ 1,026,103$ 4,071,110Estimated Ending Fund Balance-After Reserves Other FundsFY 2026 ProposedFY 2025 ProjectedTransportation Funds$ 8,305,410$ 14,479,460Gas Tax Fund4,526,97016,097,410Prop A Fund3,699,60014,773,440Prop C Fund-222,760Local Transp Art 3 Fund10,897,89015,039,030Local Transp Art 8 Fund500,000101,215,520Measure R Fund3,000,0009,373,580Measure M Fund$ 30,929,870$ 171,471,200Total Expenditures Transportation funds are used exclusively for the repair, maintenance, or improvement of roadways and transportation.The below table shows the FY 2026 Proposed Transportation fund expenditures:

Capital Improvement ProgramFY 2026 Proposed CIPFY 2026 Proposed AdditionsFY 2025 BudgetProject Type$ 740,140$-$ 740,140Bicycle & Pedestrian8,111,150300,0007,811,150Drainage19,011,58054,00018,957,580Facilities10,947,680-10,847,680General Improvements48,343,57013,991,31034,352,260Parks & Recreation15,542,3804,785,75010,756,630Sewer and Watershed179,077,48014,000,000165,077,480Streets11,046,930120,00010,926,930Traffic$ 292,720,910$ 33,251,060$ 259,469,850Total Capital Improvement Projects Personnel$ ImpactFTETitleDivisionDepartment$ 234,0601Manager I/IIHuman ResourcesOperations118,2001Technician I/IIBuilding & SafetyE&CD26,3901Coordinator I/II*Special EventsParks & Recreation80,0001Deputy Director*Public SafetyPublic Safety263,9202SuperintendentMaintenancePublic Works408,4004Maintenance Worker I/IIMaintenancePublic Works150,8701Sr. Maintenance SpecialistMaintenancePublic Works60,0900.5Maintenance HelperMaintenancePublic Works192,5701Maintenance SpecialistMaintenancePublic Works112,6001Administrative AssistantAdministrationPublic Works158,4201Analyst I/IIAdministrationPublic Works234,0601Traffic EngineerEngineeringPublic Works 136,8701Inspector IEngineeringPublic Works$ 2,176,45016.5Total Requested

Palmdale City CouncilMay 21, 2025

Palmdale City Council
May 21, 2025