Palmdale City Council
June 2, 2026

BACKGROUND

On May 12, 2022 , the Planning Commission adopted Resolution No. PC-2022-020 approving Minor Site Plan Review (MSPR) 22 -002 for the development of the 48-unit affordable housing project and recommending City Council approval of a form of AGR 22-002 for the associated Density Bonus Agreement. On May 17, 2022, the Director of Economic and Community Development approved MSPR 22-002, which established an expiration date of May 18, 2023. On May 18, 2022, the City Council adopted Resolution No. CC 2022-059, approving a form of Agreement (AGR) 22-002 (A-7912). On May 18, 2023, MSPR 22-002 expired, requiring submittal of a new application. Subsequently, the Director of Economic and Community Development approved MSPR 25 -0005 on September 17, 2025, which established an expiration date of September 17, 2028. On March 30, 2026, an application was filed with the City to amend the previously approved Agreement (AGR) 22-002 (A-7912).

FIGURE 1 - AERIAL MAP

Report to Mayor and City Council
Adopt Reso. No. CC 2026-028
June 2, 2026

DISCUSSION

The application proposes to amend the Density Bonus Agreement to add one concession, as set forth in Exhibit E of Resolution No. CC 2026-028 for the approved affordable housing project pursuant to Density Bonus Law (Government Code Section 65915) and Palmdale Municipal Code (PMC) Section 17.25.020.I.

The approved project includes 48 dwelling units with 100 percent of the units designated for households with incomes not exceeding the low-income threshold established by the California Department of Housing and Community Development (HCD). In accordance with the State Density Bonus Law , the applicant can request an unlimited number of waivers of development standards that would preclude the development and a maximum of three concessions from the City’s development standards to facilitate the provision of affordable housing.

A density bonus is a request to increase the overall number of housing units that a developer may build on a site in exchange for providing affordable housing. State Density Bonus Law, pursuant to Section 65915 et seq of the California Government Code, offers incentives that are intended to encourage the development of affordable housing.

A Minor Site Plan Review and Density Bonus Agreement were required to allow the proposed development. The project was reviewed for consistency with applicable design standards and policies related to density, site planning, circulation, landscaping, and building form and related standards. At the time of approval, the applicant did not request incentives or concessions, but did request the use of the density bonus parking ratio.

The proposed amendment to the previously approved Density Bonus Agreement includes a request for one concession as follows:

A concession to the Palmdale Transit Area Specific Plan (PTASP) Figure 5.4. (Development Standards Table), which requires residential ground-floor heights of at least 18 feet and typical upper -floor heights of at least 10 feet in the Urban Center (T5) zone. Instead, the ground-floor height will be 12 feet, and the upper - floor heights will be 9.5 feet.

The requested concession reduces development costs by eliminating the need for manlifts during construction, which would be required if the building height exceeds 60 feet, and would cost approximately $1.7 million. The additional cost would create a hardship for the project and would make the affordable housing project infeasible.

Report to Mayor and City Council
Adopt Reso. No. CC 2026-028
June 2, 2026

This requested concession is intended to facilitate the construction of high -quality, affordable housing while accommodating the construction costs and design needs. The project complies with all other applicable zoning regulations and supports the City’s goals for housing production and affordability.

Staff has determined that granting the additional concession listed above will result in actual and identifiable cost reductions to provide affordable housing. In addition, the proposed project will help meet the City’s Regional Housing Needs Assessment (RHNA) allocation.

FISCAL IMPACT

$4,013.89; The applicant paid the application processing fee specified within the City’s fee resolution (Resolution No. CC 2026-028), and the project will improve an undeveloped site by providing utilities infrastructure, curb, gutters, sidewalks, and will provide additional housing.

STRATEGIC PLAN

Goal III: Invest in infrastructure to improve community livability.

E. Transform housing inventory to meet the changing lifestyle and market demands.

Prepared by: Megan Taggart, Director of Economic and
Community Development
Certified as to availability of Funds: Janelle Samson, Deputy City Manager Approved by: Salvador Mendez, City Manager
Approved as to form: Alexandra Severino, City Attorney

ATTACHMENTS

Reso. No. CC 2026-028

CITY COUNCIL

CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. CC 2026-028

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALMDALE, APPROVING MOD 26 -0009 AMENDING A PREVIOUSLY APPROVED
DENSITY BONUS AGREEMENT 22 -002 (A-7912), TO FACILITATE THE CONSTRUCTION OF A 48 -UNIT MULTI -FAMILY RESIDENTIAL

DEVELOPMENT ON ONE VACANT PARCEL TOTALING
APPROXIMATELY ONE ACRE LOCATED EAST OF 9 th STREET EAST, APPROXIMATELY 100 FEET SOUTH OF EAST AVENUE Q; A ND,

AUTHORIZE THE CITY MANAGER OR HIS DESIGNEE TO EXERCISE

THE OPTION TO AMEND THE AGREEMENT AS NECESSARY,
INCLUDING MINIMAL AND/OR NONSUBSTANTIVE CHANGES ( APN:
3008-040-012)

WHEREAS, Milare Housing Investments, Inc. (Applicant), has filed an application requesting the City Council appro ve an amendment, Modification (MOD) 26-0009, to a previously approved Density Bonus Agreement (AGR) 22-002 (A-7912), described herein (hereinafter “Application”); and

WHEREAS, The Application applies to one vacant parcel located east of 9th Street East, approximately 100 feet south of East Avenue Q, indicated on the Los Angeles County Assessor roll as Assessor Parcel Number 3008-040-012, legally described in Exhibit A hereto and shown on the map attached as Exhibit B; and,

WHEREAS, The Application relates to MSPR 25 -0005, which proposes the development of an affordable housing project, and under Government Code Section 65915 et seq. and Palmdale Municipal Code (“PMC”), Section 17.25.020, the City must, upon the request of an applicant, grant a density bonus and/or certain incentives/concessions or waivers/modifications for any applicant that seeks and agrees to construct a housing development that will contain at least the minimum number of required affordable housing units; and,

WHEREAS, On May 12, 2022, the Planning Commission of the City of Palmdale conducted a duly noticed public hearing on AGR 22-002 and recommended City Council approval on that date; and,

WHEREAS, On May 18, 2022, the City Council of the City of Palmdale conducted a duly noticed public hearing on AGR 22-002, concluded said hearing on that date and approved AGR 22 -002. Evidence, both written and oral, was duly presented and considered by the City Council at the aforesaid public hearing, including but not limited to, the staff report dated May 18, 2022; and,
Resolution No. CC 2026-028

WHEREAS, the Applicant subsequently submitted MOD 26-0009, an amendment to AGR 22-002 to request one concession, in addition to the previously approved use of the state density bonus law parking ratios; and,

WHEREAS, on June 2, 2026, the City Council of the City of Palmdale conducted a duly noticed public hearing on the Application and concluded said hearing on that date.

Evidence, both written and oral, was duly presented and considered by the City Council at the aforesaid public hearing, including but not limited to, the staff report dated June 2, 2026; and,

WHEREAS, All legal prerequisites to the adoption of this Resolution have occurred.

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 foregoing recitals are true and correct.

SECTION 2. The City Council hereby finds as follows with respect to the documents prepared for the project:

A The custodian of records for all other materials which constitute the record of proceedings upon which the City Council’s decision is based, is the Planning Manager of the City of Palmdale. These documents are available for public review in the Planning Division of the City of Palmdale located at 38250 Sierra Highway, Palmdale, California 93550, telephone (661) 267 - 5200.

SECTION 3. Based upon substantial evidence presented to the City Council during the above -referenced June 2, 2026, public hearing, including public testimony, and written and oral staff report s, the City Council specifically finds pursuant to PMC Sections 17.25.020.G and 17.25.020.I. as follows:

A The proposed density bonus agreement is consistent with the maps and policies of the General Plan and any applicable Specific Plan.

The proposed Density Bonus Agreement, as amended, is consistent with the Specific Plan - Palmdale Transit Area General Plan land use designation and the Urban Center (T5) zone of the Palmdale Transit Area Specific Plan (PTASP), as demonstrated in Exhibits C and D, which allow for high -density residential development on the project site. The project meets applicable land use, density, and development standards and no General Plan amendments or zone changes are required. Additionally, the Resolution No. CC 2026-028

project supports the City’s goals for increasing affordable housing and promoting compact, infill development in areas served by existing infrastructure and transit, further aligning with General Plan and PTASP objectives. As demonstrated in Exhibit D, the proposed project meets the density, lot size, height, and setback requirements of the T5 zone, and the site is therefore suitable for the type and density of the proposed development.

B The proposed density bonus agreement complies with the requirements of California Government Code Section 65915 et seq.

The proposed amended Density Bonus Agreement complies with the requirements of California Government Code Section 65915 et seq (Density Bonus Law) by providing th e required percentage of affordable housing units in exchange for density bonuses and development incentives. The project includes deed -restricted affordable units for lower- income households, consistent with state -mandated eligibility thresholds.

In accordance with Density Bonus Law, the Applicant has requested an amendment to allow for one concession, and the City has verified that the additional request meets the statutory criteria. As such, the amended agreement fully aligns with the provisions and intent of Density Bonus Law.

Pursuant to PMC Section 17.25.020, approval of the amended density bonus agreement is required to allow the proposed development. The project has been reviewed for consistency with applicable design standards and policies related to density, site planning, circulation, landscaping, and building form.

Pursuant to Government Code Section 65915(p), the project is required to provide no more than 24 residential parking spaces, and the project complies with this requirement. Pursuant to Section 65915(p)(8) of the Government Code, Applicant’s request for reduced parking ratios does not reduce the number of concessions to which Applicant is entitled and does not constitute a waiver under Section 65915(e).

The proposed amendment to the Density Bonus Agreement includes a request for one concession pursuant to the Density Bonus Law and PMC Section 17.25.020 as follows and as set forth in Exhibit E:

1 A concession to the PTASP Figure 5.4. (Development Standards Table), which requires residential ground-floor heights of at least 18 feet and typical upper-floor heights of at least 10 feet in the T5 zone.

Instead, the ground -floor height will be 12 feet, and the upper -floor heights will be 9.5 feet.

Resolution No. CC 2026-028

The Applicant proposes reducing the ground-floor height to 12 feet, and the upper-floor heights to 9.5 feet based on the justification that manlifts would be required during construction due to the building’s overall height exceeding 60 feet, which would increase the cost of construction beyond the funds available for the development by nearly $1.7 million. The Applicant has demonstrated that compliance with the minimum ground and upper floor height requirements would result in increased construction costs and that the requested concession will provide identifiable and actu al cost reductions necessary to facilitate the development of the affordable units.

This requested concession is intended to facilitate the construction of high- quality affordable housing while accommodating the construction costs and design needs. The p roject complies with all other applicable zoning regulations and supports the City’s goals for housing production and affordability.

Staff has determined that granting the additional concession listed above will result in actual and identifiable cost redu ctions to provide affordable housing. In addition, the proposed project will contribute to satisfying the City’s Regional Housing Needs Assessment (RHNA) allocation.

SECTION 4. The project is exempt from the California Environmental Quality Act (CEQA) as a ministerial project pursuant to Government Code Section 15268, as it consists of an amendment to an approved Density Bonus Agreement to grant a concession to facilitate the development of a previously approved 100-percent affordable multifamily residential development. The amendment does not introduce new environmental impacts beyond those previously analyzed.

SECTION 5. Based on the findings and conclusions set forth in Sections 1, 2, 3 and 4 above, the City Council approves MOD 26-0009, an amendment to a previously approved Density Bonus Agreement, AGR 22-002 (A-7912) as set forth in Exhibits A through E, and authorize s the City Manager or his designee to exercise the option to amend the agreement as necessary.

SECTION 6. The City Clerk shall certify to the adoption of this resolution.

PASSED, APPROVED and ADOPTED this 2nd day of June, 2026.

Resolution No. CC 2026-028

_________________________________
Approved as to form: Eric Ohlsen, Mayor

ATTEST:

___________________________ _________________________________ Alexandra Severino Rochelle Scott, City Clerk
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 2nd day of June, 2026, by the following roll call vote:

AYES:

NOES:___________________________________________________________

ABSTAIN:______________________ABSENT:___________________________

Date:

Rochelle Scott, City Clerk

EXHIBIT A

LEGAL DESCRIPTION FOR MOD 26-0009

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF

PALMDALE, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS:

THE SOUTH 135.00 FEET OF BLOCK 27, IN THE TOWN AND SUBURBS OF

PALMDALE, IN THE CITY OF PALMDALE, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, IN BOOK 52, PAGES 55 AND 56 OF MISCELLANEOUS RECORDS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

EXCEPT THE EAST 361.00 FEET OF SAID LAND

APN: 3008-040-012

EXHIBIT B

AERIAL MAP FOR MOD 26-0009

East Avenue Q
10th Street East
9th Street East
Project Site
N

EXHIBIT C

GENERAL PLAN AND SPECIFIC PLAN CONSISTENCY FOR MOD 26-0009 Element Goal, Objective, or
Policy
Standard
Met?
Justification*
Land Use
and
Community
Design
LUD-4.1. Quality
Construction. Use
simple, urban building
forms made with
permanent materials
with high-quality
detailing that stands
the test of time.

LUD-4.3. Long-Lasting
Building Materials.

Convey façade
articulation through the
strength, depth, and
permanence of
building materials.

Thinner cladding
materials, such as
stucco, masonry
veneers, and wood or
simulated wood, may
be used when finished
to appear as durable
and authentic as the
materials they
simulate.

Yes

Yes

The proposed project
incorporates durable, high-
quality materials, including
multi-tone stucco in white
and deep blue hues,
elastomeric-coated concrete,
and painted metal railings,
forming a cohesive
contemporary palette. The
design employs simple urban
building forms with clean
lines and balanced massing,
consistent with LUD-4.1.

High-quality detailing and
permanent finishes are
selected to ensure longevity
and minimize long-term
maintenance. Façade
articulation reflects LUD-4.3
through variations in depth,
material transitions, and
strong horizontal and vertical
elements that convey
permanence. Stucco is
detailed to appear durable
and authentic, enhanced by
shadow lines and framed
volumes. The buildings
include projecting and
partially recessed balconies
that extend outward while
remaining partially covered,
adding visual depth.

Articulated corners, inset wall
planes, varied parapet
rooflines, and clearly defined
ground-floor entries further
enhance scale, and visual
interest along the street
frontage.

Exhibit C

GENERAL PLAN AND SPECIFIC PLAN CONSISTENCY FOR MOD 26-0009 - CONTINUED Element Goal, Objective, or
Policy
Standard
Met?
Justification*
Land Use
and
Community
Design
LUD-5.1 New
Complete
Neighborhoods.

Require new
development to
provide multiple
amenities, a beautiful
public realm, and be
consistent with the
City’s vision for
complete
neighborhoods.

Yes The proposed project will
facilitate the development of
an affordable housing project
that provides on-site
amenities for residents in
well-designed buildings, two
community rooms, laundry
facilities, and shaded picnic
areas with picnic tables
barbecue grills, private open
space, and a retail
component.

Land Use
and
Community
Design
LUD-5.3. Public
Services in New
Neighborhoods.

Require new
developments to be
designed for and
provided with
adequate public
services and
infrastructure. Require
that these public
facilities and services
be provided
concurrently with
development to ensure
a high quality of life for
residents.

Yes The project is located within
the Palmdale Water District
and the Los Angeles County
Sanitation District. Both
agencies have reviewed the
project and provided
conditions of approval to
ensure the project can be
adequately served by
existing water and
wastewater facilities upon
approval of development
plans. Additionally, the
project has been conditioned
by the Engineering Division
to provide curbs, gutters, and
sidewalks to adequately
serve future residents.

Exhibit C

GENERAL PLAN AND SPECIFIC PLAN CONSISTENCY FOR MOD 26-0009 - CONTINUED Element Goal, Objective, or
Policy
Standard
Met?
Justification*
Land Use
and
Community
Design
LUD-10.6. Pedestrian-
Oriented Design.

Implement urban
design guidelines and
features that
encourage pedestrian
activity and reduce
automobile use.

Yes The proposed project
incorporates urban design
features that promote
walkability and reduce car
dependency. The project
includes pedestrian
pathways, shade trees, and
long-term bike parking,
further enhancing pedestrian
comfort and supporting
alternative transportation.

The site’s location within the
PTASP, proximity to transit,
and its compact, connected
layout align with the City’s
vision for transit-oriented,
pedestrian-friendly
development.

Land Use
and
Community
Design
LUD-22.5. Varying
Housing Types.

Encourage and allow
a variety of housing
types developed at a
range of densities to
serve varying
household types,
including, but not
limited to, single-
family attached and
detached, accessory
dwelling units,
multifamily
apartments,
townhomes, duplexes,
triplexes, quadplexes,
and condominiums.

Yes

The proposed project is
located on a vacant site and
will provide a new multifamily
development for low-income
individuals. The site is within
a half mile of the existing
Palmdale Transportation
Center and the future multi-
modal high-speed rail
station, which provides
alternative transportation for
residents. The proposal
meets this land-use goal by
providing a different type of
housing than is currently in
the immediate vicinity and by
serving the need for
multifamily development.

Exhibit C

*Justification is based on a review of the plans date stamped September 17, 2025.

GENERAL PLAN AND SPECIFIC PLAN CONSISTENCY FOR MOD 26-0009 - CONTINUED Element Goal, Objective, or
Policy
Standard
Met?
Justification*
Economic
Development
ED-5.2. Supply and
diversity of housing.

Increase the supply
and diversity of
housing options to
support different types
of households,
including seniors,
young adults, families,
empty nesters,
individuals or families
with special needs,
and multigenerational
families.

Yes The proposed project
increases the supply and
diversity of housing options
by offering a mix of unit sizes
ranging from two to three
bedrooms to accommodate a
wide range of household
types and ensures more
inclusive and flexible housing
opportunities within the
community.

Housing H1. Promote the
construction of a
variety of residential
development
opportunities for all
income groups
Yes The proposed project will
increase the supply of
housing, specifically housing
that will provide deed
restricted affordable housing
units, and will be located in
an area that is accessible to
transit, employment and
services.

Specific Plan Objective 2.2. Locate
housing, employment
and services close to
transit.

Yes The proposed project will
facilitate the development of
multi-family residential and a
commercial component to
support local employment
within a half mile of the
existing Palmdale
Transportation Center and
the future multi-modal high-
speed rail station.

EXHIBIT D

PMC AND SPECIFIC PLAN STANDARDS FOR MOD 26-0009
Standard Standard
Met?
Justification*
Density Minimum Density: 30
dwelling units per acre
Maximum Density: 50
dwelling units per acre
Yes The proposed project would
accommodate the development
of 48 multifamily residential
units on an approximately one-
acre site, resulting in a
residential density of
approximately 48 dwelling units
per acre.

Lot Size Minimum: 20,000 square
feet
Yes The proposed project is
situated on an approximately
one-acre, or 43,560-square-
foot site, which exceeds the
minimum requirement.

Setbacks Front: up to 5 feet where
allowed
Interior: 0 feet where
allowed
Rear: 5 feet
Yes The applicant proposes that
buildings be setback a
minimum of five feet from all
property lines.

Building
Height
Maximum Height: 65 feet Yes The proposed project was
approved at 62 feet and four
inches in height, but will be
reduced to 54 feet and four
inches in height.

Ground
Floor Height
Minimum residential
ground floor height: 18
feet
Minimum typical upper
floor height: 10 feet
No The proposed ground floor
height will be 12 feet, and the
typical upper floor height will be

9.5 feet. The requested
concession reduces
development costs by
eliminating the need for
manlifts during construction
which would be required if the
building height exceeds 60
feet, and would cost
approximately $1.7 million. The
additional cost would create a
hardship for the project and
would make the affordable
housing project infeasible.

Exhibit D

PMC AND SPECIFIC PLAN STANDARDS FOR MOD 26-0009 - CONTINUED Standard Standard
Met?
Justification*
Building
Separation
Minimum of 30 feet
open-to-the-sky building
break.

Yes The applicant proposes a 38-
foot open-to-the-sky
separation between the
structures.

Parking The project is subject to
the state density bonus
parking ratio standards,
which require 0.5 space
per unit, for a total of 24
spaces for the residential
component. The 250-
square-foot commercial
space requires one
space.

Yes The proposed project includes
50 parking spaces, exceeding
the total required parking
based on the state density-
bonus parking ratio for the
residential units and the PMC
requirements for the
commercial space.

Electric
Vehicle
Charging
Electric vehicle
infrastructure
requirements set forth in
PMC Section

17.87.050.C and Title 24,
Part 11 (California Green
Building Standards Code
2022), Section 4.106.4,
as adopted by the
Palmdale Municipal
Code, which requires
that 40 percent of all
parking stalls be “EV
Ready” with an available
240-volt outlet at each
stall and an additional 10
percent of stalls have an
EV Charger
Yes The proposed project includes
4 EV parking spaces,
consisting of 2 standard and 2
accessible.

Common
Open Space
Three amenities are
required for the 48
residential unit project.

Yes Three amenities are provided,
including two community
rooms and an outdoor
common area with patio
furniture and barbecue grills.

Exhibit D

PMC AND SPECIFIC PLAN STANDARDS FOR MOD 26-0009 - CONTINUED Standard Standard
Met?
Justification*
Private Open
Space
Ground Floor Units: 50-
100 square feet per
dwelling unit.

Upper Floor Units: 50
square feet per dwelling
unit.

Minimum Dimensions: 6
feet.

Yes Adequate private open space
is provided: 56 square feet for
all 2-bedroom ground and
upper floor units, and 129
square feet for all 3-bedroom
ground and upper floor units.
*Justification is based on a review of the plans date stamped September 17, 2025.

OFFICIAL BUSINESS
Document entitled to free
Recording per Government
Code Section 27383

RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:

City of Palmdale
38300 Sierra Highway, Suite C
Palmdale, CA 93550
Attn: City Clerk
______________________________________________________________________ SPACE ABOVE THIS LINE IS FOR RECORDER’S USE

APN: 3008-040-012

DENSITY BONUS HOUSING AGREEMENT
(Bana At Palmdale Apartments)
(A-7912)

THIS DENSITY BONUS HOUSING AGREEMENT (“Agreement”) dated as of __________________, 2026, is entered into by and between the City of Palmdale, a municipal corporation of the State of California (“City”), and 9th Street E. Housing, LP, a California limited partnership, located at 313 E. Broadway #10777, Glendale, CA 91209 and/or its assigns (“Owner”), as follows:

RECITALS

A. Owner is the owner of a fee interest in certain real property located in the City of Palmdale, County of Los Angeles, State of California, identified as APN 3008-040- 012, located at 38732 9 th Street E., Palmdale, CA and legally described in Exhibit “A” attached hereto and incorporated by reference (“Property”).

B. Owner will construct a 48-unit affordable housing development, with three residential building s, included amenities , and retail units (collectively, the “Residential Development”). The Residential Development provides for units of varying types, two - and three -bedroom flats. The Residential Development will provide 50 parking stalls onsite.

Density Bonus Housing Agreement Agreement No. A-7912
Bana at Palmdale Apartments Page 2
APN: 3008-040-012

C. The residential portion of the Residential Development will consist of 48 residential units for very low-income and low -income individuals and families . One hundred percent (100%) of the units , with the exception of the manager’s unit , will be available to and occupied by households whose incomes do not exceed the maximum income of low income households in Los Angeles County as determined by the California Department of Housing and Community Development.

D. Under Government Code Sectio n 65915, et seq. and Palmdale Municipal Code, Section 17.25.110, the City must, upon the request of an applicant, grant a density bonus and/or certain incentives/concessions or waivers/modifications for any development applicant that seeks and agrees to construct a minimum number of housing units that are affordable to low or very low-income households (“Density Bonus Law”).

E. The subject site has a General Plan Land Use Designation of SP (Palmdale Transit Area Specific Plan) and T-5 (Urban Center) zone, with a density of 30-50 dwelling units per acre . The Property is 1.02 acres allowing 48 units to be developed on the Property. The Residential Development does not require a density bonus. Density Bonus Law requires that because 100% of the resident units in the Residential Development will be affordable to “lower -income households” per section 50079.5 of the California Health and Safety Code, Government Code section 65915(d)(2)(D) entitles the Residential Development to four incentives or concessions. Density Bonus Law requires the City to grant to the Residential Development parking ratios that do not exceed 1 space per studio or one-bedroom unit, 1.5 spaces per two -bedroom or three- bedroom unit, or 2.5 spaces per four -bedroom unit. Therefore, Density Bonus Law requires the City to permit the Residential Developmen t’s proposed parking ratio of 1.5 spaces per unit for the two- and three-bedroom flats.

F. The subject site has a General Plan Land Use Designation of SP (Palmdale Transit Area Specific Plan) and T5 (Urban Center) zone, with a ground floor height of 18 feet and a typical upper floor at 10 feet. Density Bonus Law allows the City to provide a concession to allow the Residential Development’s proposed ground level garage height of 12 feet with a typical upper floor height of 9.5 feet.

G. City and Owner enter into t his Agreement purs uant to and in accordance with Government Code Section 65915, et seq., and Section 17.25.110 of the Palmdale Municipal Code, in order to provide housing for lower-income households.

H. The City finds that permitting the parking ratio under Section E, above, will result in actual and identifiable cost reductions to provide for affordable housing cost, will not have an adverse impact upon public health and safety , the physical environment, or Density Bonus Housing Agreement Agreement No. A-7912
Bana at Palmdale Apartments Page 3
APN: 3008-040-012

any property that is listed in the California Register of Historical Resources, and is consistent with state and federal law. The City also finds that the Residential Development is consistent with the General Plan.

NOW, THEREFORE , in consideration of the mutual covenants and provisions contained herein, the parties agree as follows:

AGREEMENT

1. Recitals. The Recitals set forth above are true and correct, and incorporated herein.

2. Definitions. For purposes of this Agreement, the terms listed below shall have the meanings thereafter specified:

a. “Adjusted for Household Size Appropriate for the Unit” means a household of two persons in the case of a one-bedroom unit, three persons in the case of a two -bedroom unit, and four persons in the case of a three -bedroom unit.
b. “Affordable Rent” means a rent that, when added to the Utility Allowance, does not exceed thirty (30) percent of sixty (60) percent of the Los Angeles County median income as determined annually by the California Department of Housing and Community Development, Adjusted for Household Size Appropriate for the Unit.

c. “Affordable Units” means a dwelling unit that will be offered for rent exclusively to an Income Eligible Household at an Affordable Rent pursuant to this Agreement.

d. “Director” means City’s Department of Housing Director, or their designee.

e. “Income Eligible Household” means a Low-Income Household which is eligible to rent a particular Affordable Unit.

f. “Low-Income Household” shall have the meaning ascribed to “lower-income households” under California Health and Safety Code Section 50079.5. The upper income limit for Low Income Households shall be the income limits Density Bonus Housing Agreement Agreement No. A-7912
Bana at Palmdale Apartments Page 4
APN: 3008-040-012

for such households published annually by the California Department of Housing and Community Development with adjustments for household size.

g. “Management Plan” means a plan prepared by the Owner and approved by the Director describing in detail the management of the Affordable Units, including marketing of the Affordable Units, tenant selection criteria and process, waiting list management, application of Utility Allowances in setting Affordable Rents, and similar details of the operation, annual monitoring inspections and file review, and a schedule of initial rents.

h. “Occupancy Date” means the earlier to occur of (i) issuance of a Certificate of Occupancy by the City or (ii) issuance of a Temporary Certificate of Occupancy by the City.

i. “Owner” means the person or entity defined as such in the introductory paragraph of this Agreement and includes all successors and assigns of that person or entity.

j. “Property” s hall have the meaning defined in Recital “A,” as more particularly described in Exhibit “A” attached hereto and incorporated herein.

k. “Residential Development” shall have the meaning given in Recital “B”.

l. “Utility Allowance” means an amount designated annually by the City as a reasonable estimate of the cost of utilities for the Affordable Unit , for purposes of calculating the applicable Affordable Rent.

3. Approvals. The Residential Development shall be developed in accordance with all applicable provisions of the Palmdale Municipal Code.

4. Affordable Units. Owner hereby covenants and agrees that one hundred percent (100%) of the units in the Residential Development shall be rented exclusively to Low Income Households, at an Affordable Rent.

5. Affordable Rents. Affordable Rents for Affordable Units, including Utility Allowances, shall be based on the Los Angeles County Area Median Income published in Title 25, California Code of Regulations, Section 6932 by the California Department of Housing and Commun ity Development , as may be amended from time to time.

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Affordable Rents may not be increased more frequently than annually to reflect increases in Area Median Income.

6. Term of Affordability Covenants. The covenants to restrict the rental of the Affordable Units in accordance with this Agreement shall remain in effect for a term commencing on the Occupancy Date and continuing for fifty-five (55) years (“Term”).

Prior to recording of this Agreement, Owner must deliver to the City a Lenders Consent and Subordination Agreement (“Lender Consent”), in the form appended to this Agreement, from each lender that will hold a security interest in the Property. Such Lender Consents shall be recorded as a substantive part of this Agreement.

7. Management Plan. The Owner shall submit the Management Plan for the Director’s consideration and approval at least one hundred eighty (180) days prior to the date that the Owner applies for a certificate of occupancy for the Residenti al Development. Such approval shall not be unreasonably withheld. In addition to other components, the Management Plan shall contain the following:

a. Selection of Tenants.

i. Whenever an Affordable Unit becomes available, the Director shall be notified promptly in writing.
ii. Owner shall conduct affirmative marketing of the Affordable Units, as they become available from time to time, including wide circulation of information and public notice of the availability of Affordable Units for rent during the marketing period required by the Management Plan. iii. Owner shall determine the eligibility of Low -Income Households to lease the Affordable Units in accordance with the Management Plan.

8. Changes in Tenant Income. A tenant who initially qualified as a Low Income Household, but who, due to an increase in income, no longer qualifies as a Low Income Household shall pay as rent an amount that is the least of the amount that would be payable by the tenant under (i) low-income housing tax credit regulation s, (ii) State or local law or (iii) thirty percent (30%) of the household’s adjusted gross income.

9. Utilization of Affordable Rental Units. All Affordable Units required by this Agreement shall be leased or rented and fully utilized in accordance with this Agreement; notwithstanding any other provision of law to the contrary, no Affordable Unit shall be withdrawn from the market or otherwise held vacant.

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10. No Sublease. A tenant occupying an Affordable Unit may not sublet the unit without the written permission of both Owner and City. The City shall not grant permission to lease, rent, or sublet the unit if it finds that the prospective tenan t or occupant is not an Income Eligible Household. Any individual who subleases an Affordable Unit in violation of the provisions of this Agreement shall be required to forfeit to City all monetary amounts so obtained.

11. Lease Agreement. A fully executed c opy of the lease agreement for each Affordable Unit, which shall comply with the provisions of this Agreement, shall be delivered to the City’s Department of Neighborhood Services, Housing Division within ten (10) days after the date of its execution.

12. Maintenance of Units . Owner shall: (a) maintain and operate all units on the Property so as to provide decent, safe and sanitary housing consistent with federal housing quality standards and the Palmdale Municipal Code ; (b) make any required repairs or provi de any required cleanup ; and (c) provide the Affordable Units with the same levels of services and maintenance as are provided to any of the other dwelling units on the Property.

13. Annual Report . Owner shall maintain complete and accurate records pertaining to the Affordable Units, and shall prepare and provide the Director with a written annual report commencing one year after the Occupancy Date and continuing every year for fifty-five (55) years , regarding the rental status of the units . The repo rt shall include information regarding the name, address and income of each resident of the Affordable Units, identify the number of bedrooms of the unit and the monthly rent paid by the tenant . Concurrently with the submittal of each annual report to the City, Owner shall pay a monitoring fee to the City in the amount of Three Thousand Dollars ($3,000) with a maximum increase of 2% per year to defray the City’s cost of monitoring Owner’s compliance with this Agreement. Owner’s failure to make such payment will be a default under this Agreement.

14. Right of First Refusal. In accordance with Palmdale Municipal Code Section 17.25.020(D)(5)(b), the Owner hereby grants the City the continuing right of first refusal to purchase or lease any or all of the Affordable Units at their fair market value upon the terms and conditions set forth in Exhibit “B”, attached hereto and incorporated herein by this reference

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15. Federal and State Laws . Notwithstanding the above provisions, nothing contained herein shall require Owner or City to do anything contrary to or refrain from doing anything required by Federal and State laws and regulations promulgated thereunder applicable to the construction, management, maintenance, and rental of Affordable Units in the City of Palmdale.

16. Prohibition Against Discrimination. Owner shall not discriminate against any tenant or potential tenant on the basis of sex, color, race, ethnicity, religion, ancestry, national origin, age, pregnancy, marital status, family composition, sexual orientation, or the potential or actual occupancy of minor children. Owner further agrees to take affirmative action to ensure that no such person is discriminated against for any of the above-mentioned reasons.

17. Indemnification. Owner shall defend, indemnify and hold harmless the City of Palmdale and its officers, agents, employees, representatives and volunteers from and against any loss, liability, claim or judgment relating solely to this Agreement, including those Claims that arise out of either: (a) a breach of this Agreement by Owner; (b) related in any manner to the Owner’s administration of this Agreement; or (c) arising out of the City’s interest in this Agreement or Affordable Units. This indemnification shall not apply to Claim s arising out of the negligence or willful misconduct of the City, its officers, agents, employees, representatives or volunteers.

18. City’s Right to Inspect Units and Documents. The City may inspect the Affordable Units (subject to the tenant’s privacy rights and lease provisions) and any documents or records relating thereto, at any reasonable time to determine Owner’s compliance with this Agreement.

19. Successors and Assigns. This Agreement and its covenants and conditions shall run with the land and b e binding upon and inure to the benefit of City and Owner, and their respective successors, owners by deed, deed-in-lieu of foreclosure, foreclosure or otherwise, and assigns. Ci ty reserves the right to designate another public agency within the City of Palmdale to perform City’s obligations or to exercise City’s rights under this Agreement.

20. Notices. All notices required herein shall be sent by certified mail, return receipt requested or express delivery service with a delivery receipt and shall be deemed to be effective on the date received or the date delivery was refused as indicated on the return receipt, as follows:

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To Owner: 9th Street E. Housing, LP
313 E. Broadway #10777
Glendale, CA 91209
Attention: Ali Milani

With a copy to: Bergman and Allderdice
1200 Wilshire Blvd., Suite 610
Los Angeles, CA 90017
Attention: Beth S. Bergman, Esq.

With a copy to:

To City: City of Palmdale
38250 Sierra Highway
Palmdale, California 93550-4798
Attn: Director of Housing
with a copy to: City of Palmdale
38300 Sierra Highway
Palmdale, California 93550-4798
Attn: City Attorney

The parties may subsequently change addresses by providing written notice of the change in address to the other parties in accordance with this Section.

21. Governing Law. The laws of the State of California shall govern this Agreement. Any legal action brought under this Agreement must be instituted in the Superior Court of the C ounty of Los Angeles, State of California, in an appropriate municipal court in that County, or in Federal District Court in the Central District of California.

22. Default. Failure or delay by either party to perform any term or provision of this Agreement, which is not cured within thirty (30) days after receipt of written notice from the other party, constitutes a default under this Agreement. The party who so fails or delays must immediately commence to cure, correct or remedy such failure or delay, and shall complete such cure, correction or remedy with due diligence. The injured party shall give written notice of default to the party in default specifying the default complained of by the injured party. Except as required to protect against further damages, the injured party may not initiate proceedings against the party in default until thirty (30) days after receipt of such written notice. Failure or delay in giving such notice shall not constitute a waiver of any default, nor shall it change the time of default. City agrees to accept cures Density Bonus Housing Agreement Agreement No. A-7912
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tendered by the Investor Limited Partner of Owner within the cure periods provided in this Agreement.

23. Remedies.

a. Any individual who rents (including subleasing) an Affordable Unit in violation of the provisions of this Agreement shall be required to forfeit to City all monetary amounts so obtained.

b. City may institute any appropriate legal actions or proceedings necessary to ensure compliance with this Agreement, including but not limited to actions for injunctive relief or damages.

c. It is agreed and understood that the covenants to maintain the Affordable Units as set forth herein are a requirement of the Palmdale Municipal Code and as a condition to receiving zoning and parking concessions/incentives under the Palmdale Municipal Code, Owner agrees that a breach of the covenants to maintain the Affordable Units as affordable housing for the Term specified herein constitutes a violation of the Palmdale Municipal Code, subject to enforcement by all legally available means.

24. Attorney’s Fees. In any action brought to declare the rights granted herein or to enforce or to interpret any of the terms of this Agreement, the prevailing party shall be entitled to an award of reasonable attorney’s fees and costs in an amount determined by the court.

25. Non-Waiver. Failure to exercise any right either Party may hav e or be entitled to, in the event of default hereunder shall not constitute a waiver of such right or any other right in the event of a subsequent default.

26. Further Assurances and Recordation . The parties shall cause this Agreement to be recorded in the O fficial Records of the County of Los Angeles. Owner shall execute any further documents consistent with the terms of this Agreement, including documents in recordable form and do such further acts as may be necessary, desirable or proper as City shall from time to time find necessary or appropriate to effectuate its purpose in entering into this Agreement.

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27. Entire Agreement. This Agreement, including any Lender’s Consent and Subordination Agreements, and all attached Exhibits, constitutes the entire agreem ent between the parties. This Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein, and that any other agreement, statement or promise not contained in this Agreement shall not be valid or binding. This Agreement may be amended only by written instrument signed by both City and Owner.

28. Third Party Beneficiaries. There are no third-party beneficiaries of or to this Agreement.

29. Amendment of This Agreement.

a. Generally. This Agreement may be amended from time to time in whole or in part by mutual consent of the original parties or their successors in interest, in accordance with this Agreement, the Palmdale Municipal Code and the State Density Bonus Law.

b. Administrative Amendments. Notwithstanding subdivision (a) of this Section, any amendment to this Agreement, whether requested by Owner or City, which does not relate to the Term; the number, percentage or type of Affordable Units; or the number or type of any incentives or concessions given by the City, may be determined by the Director to be an Administrative Amendment and if so, the Director shall approve the Administrative Amendment without notice or hearing, and this Agreement and its pertinent exhibits shall be automatically amended without further action by the parties. A memorandum of the amendment shall be executed and recorded to reflect such Administrative Amendment.

30. Counterparts. This Agreement may be execu ted by each party on a separate signature page, and when the executed signature pages are combined, shall constitute one single instrument.

[signatures follow on next page]

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IN WITNESS WHEREOF, City and Owner have signed this Agreement as of the date set forth above.

CITY

THE CITY OF PALMDALE, CALIFORNIA,
a municipal corporation

By:________________________________
Salvador Mendez
City Manager

Dated:_____________________________

ATTEST:

By: __________________________
Rochelle Scott
City Clerk

APPROVED AS TO FORM:

By:___________________________
Alexandra Severino
City Attorney

KANE, BALLMER & BERKMAN

By: _______________________________
Susan Apy
City Special Counsel

OWNER
9th Street E. Housing, LP, a California
limited partnership

By: 9th Street E. Investor LLC,
a California limited liability company,
its Administrative General Partner

By: _______________
Name: Fred Khachekian
Its: Manager

By: Deep Green Housing and
Development, a California nonprofit
public benefit corporation, its Managing
General Partner

By: _______________
Name: JoAnne Yokota
Its: President

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LENDER'S CONSENT AND SUBORDINATION AGREEMENT

NOTICE: THIS LENDER'S CONSENT AND SUBORDINATION RESULTS IN YOUR

SECURITY INTERESTS IN THE PROPERTY BECOMING SUBJECT TO AND OF A

LOWER PRIORITY THAN THIS DENSITY BONUS HOUSING AGREEMENT

The undersigned (“Lender” ), as owner and holder of security interests (“Security Interests”) evidenced by that certain Deed of Trust With Absolute Assignment of Leases and Rents, Security Agreement and Fixture Filing made by Borrower as trustor in favor of ____________________________ as beneficiary, dated as of ________________ and recorded on _______________ as Instrument No._____________ in the Official Records of the County of Los Angeles, State of California, hereby acknowledges its consent t o the terms and provisions of this Density Bonus Housing Agreement. The undersigned further agrees that its Security Interests are and shall unconditionally be and remain at all times junior, subordinate and subject to the terms, covenants, conditions and restrictions of this Density Bonus Housing Agreement, provided that in consideration of Lender ’s covenants and agreements contained in this Agreement, City and its designated agencies hereby agree for the benefit of Lender that concurrently with any notice from City to the Owner that a default or breach exists under the terms of the Density Bonus Housing Agreement, City shall send a copy of such notice to Lender and Lender shall have the right, but not the obligation to cure any defaults within thirty (30) days after the expiration of any cure period set forth in the notice from City to Borrower regarding such Owner default. The provisions of this Section are intended to supplement, and not to limit, waive, modify or replace, those provisions of law pertai ning to notice and cure rights of junior lenders including, without limitations, those set forth in California Civil Code Sections 2924b and 2924c. Lender intentionally and unconditionally waives, relinquishes and subordinates the lien or charge of the Security Interests in favor of the Density Bonus Housing Agreement.

AGREED AND ACKNOWLEDGED:

Dated as of: ____________, 2026 “LENDER”

CITI COMMUNITY CAPITAL

______________________________
Name: ________________________
Title: _________________________

[notarized signature required]
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EXHIBIT A
Legal Description of Property
Real property in the City of Palmdale, County of Los Angeles, State of California, described as follows:

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS:

THE SOUTH 135.00 FEET OF BLOCK 27, IN THE TOWN AND SUBURBS OF

PALMDALE, IN THE CITY OF PALMDALE, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, IN BOOK 52, PAGES 55 AND 56 OF MISCELLANEOUS RECORDS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

EXCEPT THE EAST 361.00 FEET OF SAID LAND.

APN: 3008-040-012

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EXHIBIT “B”

Terms and Conditions of Right of First Refusal

a. Right of First Refusal. The Owner hereby grants to the City a right of first refusal to purchase or lease any or all of the Affordable Units from the Owner (the “Right of First Refusal”) under the following terms and conditions. In the event of a proposed sale of any or all of the Affordable Units, the City shall have the right, at its option, but not the obligation, to exercise the Right of First Refusal and purchase or lease such Affordable Unit(s) for fair market value.

b. Notice of Sale. In the event that the Own er intends to sell any or all of the Affordable Units, the Owner shall notify the City in writing not less than 30 days prior to such proposed sale (the “Notice of Proposed Sale”). The Notice of Proposed Sale shall specify all the terms of such proposed s ale, and the Owner shall provide promptly such information as the City shall reasonably request regarding the proposed sale. The Notice of Proposed Sale shall also state the street address(es) of the Affordable Unit(s), the name(s) and existing address(es ) of the proposed purchaser(s), and the terms of the proposed transaction(s). The Notice of Proposed Sale, together with the City -required information shall be personally delivered or deposited into the U.S. mail, postage prepaid, first class, certified mail, return receipt requested, addressed to:

City of Palmdale
38250 Sierra Highway, 2nd Floor
Palmdale, California 93550-3609
Attention: Director of Housing

c. Exercise of Right of First Refusal . The Right of First Refusal may be exercised by the City delivering to the Owner written notice of such exercise. Upon the City’s receipt of a Notice of Proposed Sale from the Owner, the City shall have 45 days to give written notice to the Owner (the “ City’s Notification”) of its decision to exercise the Right of First Refusal.

d. Escrow. Promptly following the exercise of the City’s Right of First Refusal, the City shall either (i) enter into a fair market value lease for the Affordable Unit(s) or (ii) open an escrow with a title insurance company or such other escrow agent selected by the City (the “Escrow Agent”) and the parties agree to execute escrow instructions with the Escrow Agent as may be required by the Escrow Agent, or to implement or give effect to the terms and conditions of this Agreement. If the parties disagree as to the fair market value of the Affordable Unit(s), then all lease or sale deadlines shall be paused while the value is determined by an independent residential appraiser selected (and paid for) by the Owner and reasonable acceptable to the City. The parties agree to the following escrow terms and conditions:

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(i) The escrow shall be for a period of 90 days or sooner if mutually agreed by the parties;

(ii) The City agrees that it will pay the fair market value upon th e close of escrow or as otherwise mutually agreed to by the parties;

(iii) The Owner agrees that it shall pay the premium for a standard C.L.T.A. policy of owner’s title insurance issued by the Escrow Agent or title insurance company reasonably acceptable to the City, insuring title to the Affordable Unit(s) in the City’s name, subject only to those matters approved by the City in writing. In the event the City requests an A.L.T.A. policy of owner’s insurance and/or any title endorsements, the additional costs associated with the issuance of an A.L.T.A policy or the endorsements shall be paid by the City;

(iv) The Owner and the City agree that all costs and fees charged in connection with the closing and escrow shall be borne by the Owner;

(v) The Owner agrees that it shall deposit in escrow for delivery to the City an executed grant deed to the City (in such form as may be reasonably acceptable to the City Manager in his or her sole discretion);

(vi) Taxes and assessments shall be prorated at the close of escrow with the Owner paying all such taxes and assessments due and payable prior to the close of escrow and the City paying all such taxes and assessments due and payable following the close of escrow;

(vii) The Owner agrees that title shall be conveyed by the Owner at the close of escrow to the City free and clear of all mortgages, deeds of trust, liens and encumbrances. The Owner agrees that any costs to remove or satisfy any mortgages, deeds of trusts, liens or encumbrances shall be the responsibility of the Owner, at the Owner’s sole cost and expense; and

(viii) Any other terms or conditions mutually agreed to by the parties.

e. Sale of the Affordable Unit(s) . If the City fails to provide the City’s Notification within the period provided above for exercise of its Right of First Refusal, then the Owner may consummate a sale of the Affordable Unit(s). In the event the Owner does not consummate a sale of the Affordable Unit(s) in accordance with this paragraph within a reasonable time, then the Notice of Proposed Sale shall be void and deemed never given and the Owner shall again be subject to the City’s Right of First Refusal and the Owner’s notice obligations. Any attempted sale of the Affordable Unit(s) in breach of this Agreement shall be void and of no force and effect.

City Council Staff Report

DATE: JUNE 2, 2026

TO: HONORABLE MAYOR AND CITY COUNCIL

FROM: HUMAN RESOURCES DEPARTMENT

DISTRICT: ALL

SUBJECT: RECEIVE AND FILE THE FISCAL YEAR 2026 -27 ANNUAL

EMPLOYEE VACANCY REPORT, IN ACCORDANCE WITH
ASSEMBLY BILL 2561

RECOMMENDATION

Staff recommend that the City Council:

A. Hold a public hearing to accept public testimony; and,

B. Receive and file the Fiscal Year (FY) 2026-27 Annual Employee Vacancy Report, in accordance with Assembly Bill 2561.

BACKGROUND

On September 22, 2024, Governor Newsom signed Assembly Bill 2561 (AB 2561) into law, which became effective on January 1, 2025. AB 2561 requires public agencies to address the status of vacancies. The California Legislature recognized that vacancies in the public sector pose challenges that can and negatively impact the delivery of public services.

DISCUSSION

AB 2561 requires the City to present the status of vacancies, recruitment efforts, and retention efforts at a public hearing held at least once each fiscal year prior to adoption of the final budget. Specifically, the statute requires public agencies to:

 Report job vacancies, recruitment, and retention efforts;  Identify policies or practices that may lead to obstacles or negatively impact the hiring process;
 Provide recognized bargaining units an opportunity to participate in the public hearing; and,
 If the number of job vacancie s within a single bargaining unit meets or exceeds 20% of the total number of authorized full-time positions in a particular bargaining unit, provide additional data upon request of the recognized employee organization, including the total number of job va cancies within a bargaining unit, Report to Mayor and City Council
Re: FY 2026-27 Annual Employee Vacancy Report
June 2, 2026

the total number of applicants for vacant positions within the bargaining unit, the average number of days to complete the hiring process from when a position is posted and opportunities to improve compensation and other working conditions.

Vacancies

As of July 1, 2025, the City had 318 City Council-approved, authorized full-time equivalent (FTE) budgeted positions. Two (2) new positions were requested as part of the FY 2025- 26 mid-year budget adjustment process and approved at the March 3, 2026, City Council Meeting, bringing the total of authorized full -time budgeted positions to 320. Out of the 320 budgeted positions, 101 are represented by the Teamsters Union Local 986 bargaining unit. As of May 12, 2026, the City of Palmdale has 28 vacant positions. Of these 28 positions, 8 are represented by the bargaining unit. This resulted in the following:

 Overall vacancy rate is 8.75%; and,
 a bargaining unit vacancy rate of 7.92%.

Because the Teamsters Local 986 bargaining unit vacancy rate does not meet or exceed 20% of the total authorized full-time positions, the additional reporting provisions outlined in Government Code section 3502.3(c) are not triggered. Vacancies within the bargaining unit are attributable to retirements, resignations, terminations, and lateral transfers.

Recruitment Activity

 3 positions have been filled; 2 are bargaining unit positions.  1 position onboarding.
 9 positions have closed and are currently in the interview phase; 1 is a bargaining unit position.
 3 positions are in active open recruitment; 1 is a bargaining unit position.  11 positions are pending posting; 5 are bargaining unit positions.  1 position will be unfunded in FY 2026-27.

Since July 1, 2025, the City has hired 49 new full -time employees, 15 of whom are bargaining unit employees.

Retention
The City is proactively addressing compensation, workplace conditions, and motivational factors, including growth and purpose, to foster a workforce that feels valued, supported, and invested in a long-term career with the City of Palmdale.  Professional Development Programs : Build ing a leadership development program and other staff development opportunities to support continuing education and/or skill set expansion. Promoting the continuing educational endeavors of employees through the City’s Tuition Assistance Program, available for full -time City employees.

Report to Mayor and City Council
Re: FY 2026-27 Annual Employee Vacancy Report
June 2, 2026

 Employee Recognition & Incentives : Formal employee engagement programs and merit -based benefits tied to years of service to acknowledge performance, milestones, and long-term commitment.
 Competitive Benefits Package: City launched a comprehensive RFP in 2025 and successfully implemented the enhanced dental and vision health benefits for 2026.  Flexible Work Arrangements: 4/10 Alternative working schedules.

As of May 12, 2026, 292 of the 320 City Council-approved authorized full-time equivalent (FTE) budgeted positions were filled. Of these 292 positions, 93 were represented by the Teamsters Local 986 bargaining unit. Retention rates are as follows:
 Overall retention rate is 91.25%; and,
 Bargaining union retention rate is 92.08%.

Organizational Self-Assessment

The City is looking to update its advertising and outreach strategies for harder-to-fill positions by engaging more with professional networks and associations, as well as by mastering the technical applications of its applicant tracking system, NeoGov. These efforts are intended to improve the quality of the applicant pool and reduce time-to-fill for hard-to-recruit classifications.

FISCAL IMPACT

$0; There is no fiscal impact associated with this action.

STRATEGIC PLAN

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

C. Involve and expand engagement to enhance public oversight and transparency.

Prepared by: Yvette Barrios, Director of Human Resources Certified as to availability of Funds: Janelle Samson, Deputy City Manager Approved by: Salvador Mendez, City Manager
Approved as to form: Alexandra Severino, City Attorney

ATTACHMENTS

None

City Council Staff Report

DATE: JUNE 2, 2026

TO: HONORABLE MAYOR AND CITY COUNCIL

FROM: CITY MANAGER DEPARTMENT
CITY MANAGER’S OFFICE

DISTRICT: ALL

SUBJECT: APPROVE ECONOMIC DEVELOPMENT SUBSIDY AGREEMENTS

WITH PALMDALE AUTO MALL DEALERSHIPS

RECOMMENDATION

Staff recommend that the City Council:

1. Hold a public hearing to accept public testimony;

2. Approve Economic Development Subsidy Agreements; and,

3. Authorize the City Manager or his designee to execute Agreements, including minimal and/or non-substantial changes.

BACKGROUND

The City continues to pursue economic development initiatives that support local businesses, retain jobs, and generate additional revenue for the City. Local automobile dealerships are a significant component of the City’s sales tax base and contribute to the community’s economic vitality.

To evaluate potential strategies to support and retain the City’s automobile dealership sector, the City Council established an ad -hoc committee consisting of two City Councilmembers appointed by a majority of the City Council. The ad-hoc committee met with staff and discussed the economic conditions affecting the local automotive retail sector, as well as potential strategies to encourage continued investment and business activity in the City. Following these discussions and the review of available options, the ad hoc committee directed staff to draft an economic subsidy agreement with participating automobile dealerships to support local business activity and maintain a strong sales tax base. At the May 5, 2026, City Council meeting, the City Council voted to direct staff to bring forward the draft agreement for discussion and consideration at the June 2, 2026, meeting.

The attached Economic Development Subsidy Agreement has been developed and is now being presented to the City Council for discussion and consideration.

Report to Mayor and City Council
Re: Approve Economic Development Subsidy Agreements
June 2, 2026

DISCUSSION

Pursuant to California Government Code Section 53083, prior to approving an economic development subsidy, the City is required to provide written information available to the public and on its internet website, and to conduct a public hearing.

The following information is provided in compliance with Government Code Section 53083:

Description and Total Estimated Value of Subsidy

The estimated total value of the subsidy is $7,000,000, consisting of seven individual loan agreements totaling $1,000,000 per entity/location. This is the maximum potential amount of public funds to be expended by the City under the agreement(s)

Identification of Beneficiaries

The beneficiaries of the proposed economic development subsidy are the following business entities operating automobile dealerships within the City of Palmdale:

 Diamond Hyundai, Dalia H. Autos, Inc., located at 421 Auto Center Dr., Palmdale, CA 93551
 AV GMC Cadillac, Inc., located at 39012 Carriage Way, Palmdale, CA 93551  Antelope Valley Nissan, Inc., located at 451 Auto Center Dr., Palmdale, CA 93551
 Trust Palmdale Kia, TAG Palmdale KI, LLC, located at 438 Auto Vista Dr., Palmdale, CA, 93551
 Trust Palmdale Honda, TAG Palmdale HON, LLC, located at 455 Auto Vista Dr., Palmdale, CA 93551
 Camacho Mitsubishi, GGC Auto Group 1, Inc., located at 412 Auto Vista Dr., Palmdale, CA 93551
 Antelope Valley Harley Davidson, Southern California Cycles, Inc., located at 401 Auto Vista Dr., Palmdale, CA 93551

Terms of the Subsidy

The agreement includes a defined repayment schedule and performance period, which is summarized as follows:

 Loan Amount: $1,000,000 per entity
 Loan Disbursement Date(s):
o Phase I: July 15, 2026
o Phase II: July 15, 2027
 Repayment Term: 7 Years
 Repayment Start Date:
o Phase I: June 1, 2026
Report to Mayor and City Council
Re: Approve Economic Development Subsidy Agreements
June 2, 2026

o Phase II: June 1, 2027
 Final Repayment Date:
o Phase I: March 1, 2033
o Phase II: March 1, 2034
 Interest Rate: 3%
 Conditional Forgiveness as set forth in Section 4 of the agreement

Statement of Public Purpose

The City Council finds that the economic development subsidy serves the following public purposes:

 Supporting the retention and stability of existing local businesses;  Promoting continued private investment within the City;  Maintaining and enhancing the City’s sales tax base;
 Supporting employment opportunities for residents; and  Strengthening the overall economic vitality of the community.

The subsidy is intended to produce long-term fiscal and economic benefits that outweigh the initial public investment.

Projected Tax Revenue

Based on current estimates, the participating dealerships are expected to generate approximately:

 Annual Sales Tax Revenue: $2,750,000
 Total Projected Revenue Over Term: $20,175,000

These projections are based on historical sales data, anticipated business activity, and reasonable economic assumptions. Actual revenues may vary due to market conditions and other factors outside the City’s control.

Employment Impact

While Government Code Section 53083 requires disclosure of the estimated number of jobs created, the primary purpose of the proposed economic development subsidy is the retention of existing jobs within the City’s automobile dealership sector. The participating dealerships currently provide a significant number of local employment opportunities, and the subsidy is intended to support ongoing operations, maintain competitiveness, and prevent potential job loss due to market conditions and regional competition.

The proposed loan is primarily intended to support ongoing business operations and retention of existing employment opportunities. The applicant (s) did not provide an estimate of new jobs anticipated to be created.

Report to Mayor and City Council
Re: Approve Economic Development Subsidy Agreements
June 2, 2026

Public Hearing

In accordance with Government Code Section 53083, the City Council will conduct a public hearing before approving the economic development subsidy. Notice of this hearing has been provided through the posting of this item on the City Council agenda in the Public Hearing section. This staff report and accompanying agreement have been made available to the public and posted on the City’s website in compliance with statutory requirements.

FISCAL IMPACT

$7,000,000; This represents the total subsidy amount. In accordance with the terms of the agreement(s), it is anticipated that repayments to the City, comprised of principal and interest, will total $7,786,828.

STRATEGIC PLAN

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

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

C. Involve and expand engagement to enhance public oversight and transparency.

Prepared by: Janelle Samson, Deputy City Manager
Certified as to availability of Funds: Janelle Samson, Deputy City Manager Approved by: Salvador Mendez, City Manager
Approved as to form: Alexandra Severino, City Attorney

ATTACHMENTS

Agrmt Economic Development Loan Agreement
Atch Loan Amortization Schedules
AGREEMENT NO. A-XXXX

LOAN AGREEMENT

THIS LOAN AGREEMENT (“Agreement”) is made and entered into as of __________, 2026, by and between the City of Palmdale, a municipal corporation and chartered city (“City”), and _______________ [Borrower Name ], a California [corporation/LLC/partnership] authorized to operate as an automobile dealer (“Borrower”).

RECITALS

WHEREAS, The City has determined that providing a loan to Borrower for the continued operation of an auto dealership within the City serves a valid public purpose of stimulating economic development within the City as required by Government Code 53083, including maintenance and creation of local employment, continuity of commercial activity, reduction of blight, revitalization of underutilized areas, and preservation and increase of the local tax base;

WHEREAS, Borrower is an owner of an automobile dealership located at the Palmdale Auto Mall;

WHEREAS, in consideration of the new and addit ional local sales tax revenues, employment benefits, revitalization of blighted areas, and other tangible and intangible benefits that are expected to be received by City arising from Borrower’s long term lease and continued operation at the Palmdale Auto Mall, City finds that it is in the public interest to provide certain payments to Borrower to assist with the continued operation of Borrower’s business within the City;

WHEREAS, the incentives provided in this Agreement are intended to ensure that Borrower remains at the Auto Mall for 10 years and pursues improvements to the location of Borrower’s auto dealership that reduce blight and underutilization of the area;

WHEREAS, the City has further determined that the covenanted operation of Borrower’s property serves the additional public purpose of fostering a business and civic environment that may attract additional businesses and investment in the community due to the availability of the increased public and private services and economic activity resulting therefrom. Accordingly, the City has also determined that its entry into this Agreement serves a primary and significant public purpose, while providing only incidental benefits to a private party; and

WHEREAS, on June 2, 2026, the City has complied with the requirements of California Government Code § 53083, including public notice and a public hearing regarding the economic development subsidy provided herein.

WHEREAS, the City requires adequate security for repayment of the Loan, including a loan repayment performance bond.

NOW THEREFORE, in consideration of the mutual promises contained herein, and for such other good and valuable consideration, the receipt of which is hereby acknowledged, the City and Borrower agree as follows:

1. Loan

Subject to the terms and conditions of this Agreement, the City agrees to loan to Borrower, and Borrower agrees to borrow from the City, the principal sum of One Million Dollars ($1,000,000) (“Loan”).

2. Purpose

Borrower shall use the proceeds of the Loan exclusively for the lawful ongoing operations of Borrower ’s auto dealership business located within the City of Palmdale, including ordinary operating expenses directly related to the sale, leasing, servicing, and administration of motor vehicles. Loan proceeds shall not be used for any other purpose without the prior written consent of the City. The qualifications and identity of Borrower are of particular concern to the City, and it is because of such qualifications and identity that the City has entered into this Agreement with Borrower. No voluntary or involuntary successor- in-interest of Borrower shall acquire any rights or powers und er this Agreement except as expressly set forth herein.

3. Interest Rate

The outstanding principal balance of the Loan shall accrue interest at a fixed rate of three percent (3%) per annum, calculated on the basis of a 365-day year.

4. Term and Repayment

The Loan shall have a term of Seven (7) years from the date of disbursement. Borrower shall repay the Loan in quarterly installments of principal and interest, due on the 1 day of every third month, beginning October 2026. Payments shall be made at such place as the City may designate. Notwithstanding repayment of the Loan, this Agreement shall remain in full force and effect for the duration of the Location Covenant Period described in Section 10, and all obligations that expressly survive repaymen t shall continue for the full ten (10)‑year covenant period unless otherwise stated herein.

5. Use of Property

Borrower covenants and agrees that the property located at __________Palmdale, California (“Property”) shall be put to no use other than those uses specified in the City’s General Plan, the Specific Plan, zoning ordinances, and this Agreement as the same may be amended from time to time. Nothing in this Section shall limit, expand, modify or otherwise affect any right of the Borrower to continue any legal nonconforming use upon the Property following changes in the City ’s General Plan or zoning ordinances. For the term of this Agreement, the Borrower may use the Property only for the purposes of the operation of Borrower’s auto dealership. Borrower covenants and agrees that, for the term of this Agreement, Borrower shall maintain, or cause to be maintained, the Borrower’s auto dealership and the Property in good condition, ordinary wear and tear excepted, and free from the unreasonable accumulation of trash or other debris and agrees to promptly remove, or cause the removal of, all graffiti upon the Property.

Borrower shall also maintain or cause to be maintained the landscaping upon the Property in a good condition. Borrower shall maintain such licenses and permits as may be required by any governmental agency to conduct Borrower’s auto dealership.

6. Loan Repayment Bond Requirement

Borrower shall, at its sole cost and expense, obtain and maintain a Performance Bond in favor of the City in the penal sum of One Million Dollars ($1,000,000), representing 100% of the Loan amount (“Bond”). The Bond shall be issued by a surety company authorized to do business in the State of California and acceptable to the City and City Attorney. The City of Palmdale shall be named as the sole obligee. The Bond shall remain continuously in effect until all obligations under this Agreement are fully satisfied. The Bond may not be canceled, reduced, or modified without at least ninety (90) days’ prior written notice to the City and the City’s written consent. Failure to maintain the Bond constitutes an Event of Default.

7. Conditions Precedent to Disbursement

The City’s obligation to disburse Loan funds is subject to satisfaction of all of the following:

a. Execution of this Agreement;
b.
c. Delivery of the fully executed Bond;

d. Evidence of required insurance in Section 20; and

e. Evidence the Borrower is the owner of the auto dealership operating at the Property.

8. Representations and Warranties

City represents and warrants to Borrower that:

a. The City is a public body, corporate and politic, exercising governmental functions and powers and organized and existing under the Charter of the City of Palmdale and, as authorized by the charter, laws of the State of California;

b. The City has taken all actions required by law to approve the execution of this Agreement;
c. The City ’s entry into this Agreement and/or the performance of the City ’s obligations under this Agreement does not violate any contract, agreement or other recognized and/or enforceable legal obligations of the City;

d. The City ’s entry into this Agreement and/or the performance of the City ’s obligations under this Agreement does not constitute a violation of any state or federal statute or judicial decision to which the City is subject;

e. The individual executing this Agreement is authorized to execute this Agreement on behalf of the City.

f. There are no pending lawsuits or other actions or proceedings which would prevent or impair the timely performance of the City ’s obligations under this Agreement; and

g. The City has the legal right, power and authority to enter into this Agreement and to consummate the transactions contemplated hereby, and the execution, delivery and performance of this Agreement has been duly authorized and no other action by the City is requisite to the valid and binding execution, delivery and performance of this Agreement, except as otherwise expressly set forth herein.

Borrower represents and warrants that:

a. Borrower is a duly formed California limited liability corporation, qualified and in good standing to do business under the laws of the State of California;

b. The individual(s) executing this Agreement is/are authorized to execute this Agreement on behalf of Borrower;

c. Borrower has taken all actions required by law to approve the execution of this Agreement;

d. Borrower’s entry into this Agreement and/or the performance of its obligations under this Agreement does not violate any contract, agreement or other legal obligation of the Borrower;

e. Borrower’s entry into this Agreement and/or the performance of its obligations under this Agreement does not constitut e a violation of any state or federal statute or judicial decision to which Borrower is subject;

f. There are no pending lawsuits or other actions or proceedings which would prevent or impair the timely performance of Borrower’s obligations under this Agreement;

g. No officer, official, employee, or agent of the City of Palmdale has any prohibited financial interest, as defined by California Government Code section 1090 or the Political Reform Act, in this Agreement or in the proceeds of the Loan. Borrower further represents that it has not paid, given, or agreed to give any compensation, gift, or thing of value to any City officer, official, or employee in connection with this Agreement;

h. Borrower has not employed or retained any person or entity to solicit or secure this Agreement upon any agreement for a commission, percentage, brokerage, or contingent fee, except for bona fide employees or licensed professionals retained in the ordinary course of business; and

i. Borrower has the legal right, power and authority to enter into this Agreement and to consummate the transactions contemplated hereby, and the execution, delivery and performance of this Agreement have been duly authorized and no other action by Borrower is requisite to the valid and binding execution, delivery and performance of this Agreement, except as otherwise expressly set forth herein.

9. Covenants

Borrower shall:

a. Maintain its auto dealership operations at the Property in compliance with all applicable laws;

b. Provide financial statements upon reasonable request by the City;

c. Notify the City promptly of any material adverse change , including but not limited to a change in the use of the Loan funds;

d. Comply strictly with the Auto Mall Location Covenant set forth in Section 10.

e. Provide the City, upon reasonable request and no more frequently than annually, documentation reasonably necessary to confirm the continued operation of Borrower ’s auto dealership within the Palmdale Auto Mall, including evidence of business operations, employment levels, or sales activity reasonably related to the public benefits described in this Agreement.

10. Auto Mall Location Covenant; Acceleration; Bond Enforcement

For a period of ten (10) years from the date of initial disbursement of the Loan (“Location Covenant Period ”), Borrower shall continuously operate its auto dealership solely and exclusively at the City-designated auto mall located at Palmdale Auto Mall, Auto Vista Dr, Palmdale, CA 93551 (“Auto Mall ”). Borrower shall not, d irectly or indirectly, relocate, assign, transfer, sublease, cease operations at, or otherwise remove its dealership operations from the Auto Mall during the Location Covenant Period without the City’s prior written consent, which may be granted or withhel d in the City ’s sole discretion. Any violation of this Section constitutes a material, non-curable Event of Default, and the entire unpaid principal balance of the Loan, together with all accrued interest and any other amounts owing, shall be automatically and immediately due and payable, without notice or demand . Borrower expressly agrees that any violation of this Section constitutes a covered default under the Bond. Borrower expressly waives any right to notice of acceleration and agrees that upon the oc currence of any non ‑curable Event of Default, all amounts owed under this Agreement may be declared immediately due and payable without further notice or demand. Upon such violation, the City may immediately enforce and make claim against the Bond for all accelerated amounts, without first pursuing any other remedy. The City’s remedies are cumulative and may be exercised concurrently or successively, including enforcement of the Bond, and any remedy available under California law. This Section shall survive any change in ownership or control of Borrower unless expressly released in writing by the City.

11. Sales Tax Reporting and Verification

Annual Reporting Requirement. During the term of this Agreement and the Location Covenant Period described in Section 10, Borrower shall provide the City with an annual written report confirming Borrower ’s continued operation of its automobile dealership at the Property and summarizing the total taxable sales generated by the dealership during the preceding calendar year.

Authorization to Verify Sales Tax Allocation. Borrower shall execute and maintain any necessary authorizations required by the City to permit the City to obtain and review sales and use tax allocation information attributable to Borrower’s dealership location from the California Department of Tax and Fee Administration, including any successor agency responsible for administering the Bradley-Burns Uniform Local Sales and Use Tax.

Purpose of Reporting. The parties acknowledge that the City is providing the Loan pursuant to its economic development authority and in reliance upon the anticipated public benefits arising from Borrower’s continued operation within the Palmdale Auto Mall, including the genera tion of local sales tax revenues, retention of employment opportunities, and maintenance of commercial activity within the City.

Failure to Provide Reports. Borrower’s failure to provide the required annual report or maintain the required authorization for sales tax verification after written notice and a reasonable opportunity to cure shall constitute a breach of Borrower ’s covenants under this Agreement.

12. Curable Events of Default

Borrower agrees that any breach of Section 10 constitutes a material, non-curable Event of Default. The following are Curable Events of Default:

a. Failure to make any payment when due as required by Section 4;

b. Failure to maintain the Bond;

c. Any assignment by Borrower of the rights or duties in this Agreement without prior written approval of City;

d. Sale of the Property; or

e. Breach of any Borrower’s covenants or representations contained in this Agreement.

13. Default

City shall provide Borrower with written notice of Borrower’s failure (“Borrower Default”) to strictly abide by any material provision of this Agreement . Borrower shall have thirty (30) days from the date of such notice to either cure such Borrower Default, or, if such Borrower Default cannot be reasonably cured during such thirty (30) day period, to commence to cure within said thirty (30) day period and diligently prosecute such cure to completion thereafter. Upon Borrower Default, after expiration of all applicable notice and grace periods, City shall have the right to seek all available legal and equitable remedies, including but not limited to the enforcement of the Bond , to recover the entire unpaid principal balance of the Loan, together with all accr ued interest and any other amounts owed by Borrower. Unless prohibited by law or otherwise provided by a specific term of this Agreement, the rights and remedies of the City under this Agreement are nonexclusive and all remedies hereunder may be exercised individually or cumulatively, and City may simultaneously pursue inconsistent and/or alternative remedies. City may, upon Borrower Default, after expiration of all applicable notice and grace periods, and in addition to pursuing all remedies otherwise avai lable to it, terminate this Agreement and all its obligations hereunder without cost, expense or liability to itself. Notwithstanding the foregoing, any violation of Section 10 shall constitute a non-curable Event of Default.

14. Notices

All notices or other communications required or permitted between the City and Borrower under this Agreement shall be in writing, and may be (i) personally delivered, (ii) sent by United States registered or certified mail, postage prepaid, return receipt requested, (iii) sent by telecopier, or (iv) sent by nationally recognized overnight courier service (e.g., Federal Express), addressed to the Parties at the addresses provided below, subject to the right of either party to designate a different address for itself by notice similarly given.

Any notice so given by registered or certified United States mail shall be deemed to have been given on the second business day after the same is deposited in the United States mail. Any notice not given by registered or certified mail, such as notices delivered by telecopier or courier service (e.g., Federal Express), shall be deemed given upon receipt of the same by the party to whom the notice is given.

City Notice:

Attention: City Manager
38300 Sierra Highway
Palmdale, CA 93550

Borrower Notice:

Attention:
_______________
Palmdale, CA 93550

15. Taxes

Borrower acknowledges that it may experience tax consequences as a result of its receipt of the payments provided for in this Agreement and agrees that it shall bear any and all responsibility, liability, costs, and expenses connected in any way therewith.

16. Rights Not Granted

This Agreement is not, and shall not be construed to be, a Development Agreement under Government Code Section 65864 et seq. This Agreement is not, and shall not be construed to be, an approval or an agreement to issue permits or a granting of any right or entitlement by the City concerning the Property or any other project, development, or construction by the Borrower in the City. This Agreem ent does not, and shall not be construed to exempt Borrower from the application and/or exercise of the City’s or City’s power of eminent domain or its police power, including, but not limited to, the regulation of land uses and the taking of any actions n ecessary to protect the health, safety, and welfare of its citizenry.

17. Administrative Remedies

Borrower must exhaust the administrative remedies set forth in this Section before initiating any judicial action challenging any decision, interpretation, or enforcement action taken by the City under this Agreement. Failure to do so shall constitute a waiver of any such claim. Any decision made by the City Manager, or their designee, regarding the interpretation, enforcement, or administration of this Agre ement shall be final unless timely appealed as provided in this Section. Borrower shall have thirty (30) days from the date of the City Manager’s written decision to file a written appeal with the City Clerk. The appeal shall state the grounds for the appeal and include any supporting documentation.

The appeal shall be deemed filed on the date it is received by the City Clerk. Failure to file an appeal timely constitutes a failure to exhaust administrative remedies. The appeal shall be scheduled for conside ration by the City Council. The City Council may affirm, modify, or reverse the decision. The City Council’s decision shall constitute the City’s final administrative action. Any judicial challenge to the City Council ’s final decision must be brought in accordance with Code of Civil Procedure section 1094.8. Failure to timely seek judicial review constitutes a waiver of any further challenge.

18. Records

Borrower acknowledges and agrees that the California Department of Tax and Fee Administration sales and use tax reporting and payment information related to sales and use taxes attributable to business activities by the Borrower may become a public record to the extent permitted by law as a result of this Agreement. Borrower hereby authorizes the City to use the sales and use tax reporting and payment information to allow the City to perform its obligations under this Agreement . Notwithstanding any other provision of this Agreement, the City shall not disclose any sales or use tax information obtained from the California Department of Tax and Fee Administration, except as expressly permitted by Revenue and Taxation Code section 7056. Borrower acknowledges that such information is confidential and may only be used by the City for purposes authorized b y law.

19. Insurance

Borrower, at its expense, shall maintain in effect at all times during the performance of this Agreement not less than the following coverage and limits of insurance, which shall be maintained with insurers listed “A” or better in th e 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.

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

Commercial General Liability
- $2,000,000.00 limit on a per occurrence basis
- $5,000,000.00 general aggregate limit

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

Promptly upon execution of this Agreement, Borrower shall deliver to City certificates of insurance and endorsements to all required policies demonstrating that Borrower has the required coverage and showing the required named insured. Within five (5) days of written request from City, Borrower shall deliver to City full and complete copies of all insurance policies required by this Agreement. The requirements as to the types and limits of insurance to be maintained by Borrower are not intended to and shall not in any manner limit or qualify Borrower’s liabilities and obligations under this Agreement. Any policy or policies of insurance that Borrower elects to carry as insurance against loss or damage in the performance of this Agreement shall include a provision waiving the insurer’s right of subrogation against City. All insurance coverage must be maintained throughout the duration of this Agreement.

All insurance coverage shall be issued on an 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. 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. Notwithstanding any other provision of this Agreement, City may immediately terminate this Agreement if, at any time Borrower fails to maintain the required insurance for any period of time or fails to comply with any of the insurance requirements listed above. Borrower 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 Borrower shall be subject to all other insurance requirements that are stated herein. Any deviation in this requirement will be Borrower’s sole risk. Borrower’s insurance requirements in this Section will not be impacted and/or limited by such deviation.

20. Indemnification

To the fullest extent permitted by law, Borrower agrees 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 this Agreement, including any acts or omissions, willful misconduct o r negligent conduct, whether active or passive, on the part of Borrower. At their own expense, Borrower and, as applicable, any subcontractors working on its behalf, shall defend any suit, claim or action against the Indemnified Parties founded upon such l oss, claim, demand, cause of action, cost, expense, damage, obligation or liability. Borrower 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.

21. No Excuse Due to Economic Changes

Borrower expressly assumes the risk of unforeseeable changes in economic circumstances and/or market demand/conditions and waives, to the greatest legal extent, any defense, claim, or cause of action based in whole or in part on economic necessity, impracticability, frustration of purpose, changed economic circumstances, or similar theories. Borrower expressly agrees that adverse changes in economic conditions, either of Borrower specifically or the economy generally, or changes in market conditions or demands, shall not operate to excuse or delay the strict observance of each and every obligation, covenant, condition, and requirement of this Agreement. Borrower expressly assumes the risk of such adverse economic or market changes, whether or not foreseeable as of Borrower’s execution of this Agreement.

22. Assignment

Borrower shall not delegate or assign its duties, rights, or obligations hereunder, either in whole or in part, without the prior written consent of City. Any assignment in violation of this Section shall be considered an event of Default pursuant to Section 14. The terms, covenants and conditions of this Agreement shall be binding upon and inure to the benefit of the Parties hereto and their successors and assigns.

23. Prevailing Party

If any action at law or in equity is brought to enforce or interpret any pro visions of this Agreement, 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.

24. Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action or proceeding arising out of or relating to this Agreement shall be brought exclusively in the Superior Court of the State of California, County of Los Angeles.

25. Modification and Waiver

This Agreement constitutes the entire agreement and entire understanding between the Parties relating to the obligations of the Parties described in this Agreement. All prior or contemporaneous agreements, understandings, representations, and statements, oral or written, are merge d into this Agreement and shall be of no further force or effect. This Agreement may be executed in duplicate originals, each of which is deemed to be an original, but when taken together shall constitute but one and the same instrument. This Agreement may be amended only in writing signed by both parties . City shall not be deemed to have waived any provision of this Agreement or the exercise of any rights held under this Agreement unless such waiver is made expressly and in writing. The written modification requirement cannot be waived. Waiver by City of a breach or violation of any provision of this agreement shall not constitute a waiver of any other subsequent breach or violation. In the event that any of the provisions of this Agreement are held to be invalid or unenforceable in whole or part, the remaining provisions shall not be affected and shall continue to be valid and enforceable as though the invalid or unenforceable parts had not been included in this Agreement.

26. Cumulative Remedies

All rights and remedies of the City under this Agreement are cumulative and may be exercised independently or concurrently. No failure or delay by the City in exercising any right or remedy shall operate as a waiver of that right or remedy, nor shall any single or partial exercise of any right or remedy preclude any other or further exercise of that right or remedy or the exercise of any other right or remedy. The City ’s rights and remed ies under this Agreement are in addition to, and not in limitation of, any rights or remedies available at law or in equity.

27. No Third-Party Beneficiary

This Agreement is entered into solely for the benefit of the City and Borrower. No person or entity other than the City and Borrower shall have any rights or remedies under this Agreement, and no third party is intended to be a beneficiary of this Agreement. The surety under any bond required by this Agreement shall not be deemed a third ‑party beneficiary of this Agreement, and no person or entity other than the City shall have any right to enforce any bond issued pursuant to this Agreement.

28. Conflict of Interest

No board member, official, contractor, consultant, attorney or employee of the City or the City shall have any personal interest, direct or indirect, in this Agreement nor shall any such board member, official or employee participate in any decision relati ng to this Agreement which affects their personal interests or the interests of any corporation, partnership or association in which they are directly or indirectly interested. Borrower shall not knowingly take any action, or permit any action to be taken, that would cause a City officer, official, or employee to violate California Government Code section 1090, the Political Reform Act, or any applicable conflict -of-interest law in connection with this Agreement. Borrower shall promptly disclose in writing to the City any actual or potential conflict of interest that arises during the term of this Agreement, including any change in ownership, control, or financial interest that could implicate California conflict -of-interest laws.

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

CITY OF PALMDALE BORROWER
_______________________ _______________________
Salvador Mendez Name
City Manager Title

APPROVED AS TO FORM: ATTEST:

_______________________ _______________________
Alexandra Severino Rochelle Scott
City Attorney City Clerk

Loan Amortization Schedule (Phase I Disbursements)Loan Information Loan Summary $1,000,000.00

3.00%
7 4
7/1/2026
$0.00
Payment NumberPayment
Date
Beginning
Balance
Scheduled
Payment
Extra
Payment
Total
Payment Principal Interest Ending
Balance
Cumulative
Interest
1 07/01/26 $1,000,000.00 $39,728.71 $0.00 $39,728.71 $32,228.71 $7,500.00 $967,771.29 $7,500.00 2 10/01/26 $967,771.29 $39,728.71 $0.00 $39,728.71 $32,470.43 $7,258.28 $935,300.86 $14,758.28 3 01/01/27 $935,300.86 $39,728.71 $0.00 $39,728.71 $32,713.96 $7,014.76 $902,586.90 $21,773.04 4 04/01/27 $902,586.90 $39,728.71 $0.00 $39,728.71 $32,959.31 $6,769.40 $869,627.59 $28,542.44 5 07/01/27 $869,627.59 $39,728.71 $0.00 $39,728.71 $33,206.51 $6,522.21 $836,421.09 $35,064.65 6 10/01/27 $836,421.09 $39,728.71 $0.00 $39,728.71 $33,455.55 $6,273.16 $802,965.53 $41,337.81 7 01/01/28 $802,965.53 $39,728.71 $0.00 $39,728.71 $33,706.47 $6,022.24 $769,259.06 $47,360.05 8 04/01/28 $769,259.06 $39,728.71 $0.00 $39,728.71 $33,959.27 $5,769.44 $735,299.79 $53,129.49 9 07/01/28 $735,299.79 $39,728.71 $0.00 $39,728.71 $34,213.96 $5,514.75 $701,085.83 $58,644.24 10 10/01/28 $701,085.83 $39,728.71 $0.00 $39,728.71 $34,470.57 $5,258.14 $666,615.26 $63,902.38 11 01/01/29 $666,615.26 $39,728.71 $0.00 $39,728.71 $34,729.10 $4,999.61 $631,886.16 $68,902.00 12 04/01/29 $631,886.16 $39,728.71 $0.00 $39,728.71 $34,989.57 $4,739.15 $596,896.60 $73,641.15 13 07/01/29 $596,896.60 $39,728.71 $0.00 $39,728.71 $35,251.99 $4,476.72 $561,644.61 $78,117.87 14 10/01/29 $561,644.61 $39,728.71 $0.00 $39,728.71 $35,516.38 $4,212.33 $526,128.23 $82,330.20 15 01/01/30 $526,128.23 $39,728.71 $0.00 $39,728.71 $35,782.75 $3,945.96 $490,345.48 $86,276.17 16 04/01/30 $490,345.48 $39,728.71 $0.00 $39,728.71 $36,051.12 $3,677.59 $454,294.36 $89,953.76 17 07/01/30 $454,294.36 $39,728.71 $0.00 $39,728.71 $36,321.50 $3,407.21 $417,972.85 $93,360.96 18 10/01/30 $417,972.85 $39,728.71 $0.00 $39,728.71 $36,593.92 $3,134.80 $381,378.94 $96,495.76 19 01/01/31 $381,378.94 $39,728.71 $0.00 $39,728.71 $36,868.37 $2,860.34 $344,510.57 $99,356.10 20 04/01/31 $344,510.57 $39,728.71 $0.00 $39,728.71 $37,144.88 $2,583.83 $307,365.68 $101,939.93 21 07/01/31 $307,365.68 $39,728.71 $0.00 $39,728.71 $37,423.47 $2,305.24 $269,942.21 $104,245.18 22 10/01/31 $269,942.21 $39,728.71 $0.00 $39,728.71 $37,704.15 $2,024.57 $232,238.07 $106,269.74 23 01/01/32 $232,238.07 $39,728.71 $0.00 $39,728.71 $37,986.93 $1,741.79 $194,251.14 $108,011.53 24 04/01/32 $194,251.14 $39,728.71 $0.00 $39,728.71 $38,271.83 $1,456.88 $155,979.31 $109,468.41 25 07/01/32 $155,979.31 $39,728.71 $0.00 $39,728.71 $38,558.87 $1,169.84 $117,420.44 $110,638.26 26 10/01/32 $117,420.44 $39,728.71 $0.00 $39,728.71 $38,848.06 $880.65 $78,572.38 $111,518.91 27 01/01/33 $78,572.38 $39,728.71 $0.00 $39,728.71 $39,139.42 $589.29 $39,432.97 $112,108.20 28 04/01/33 $39,432.97 $39,728.71 $0.00 $39,432.97 $39,137.22 $295.75 $0.00 $112,403.95 Start date of loan
Optional extra payments
Total interest $112,403.95
Lender name City of Palmdale
Loan period in years Actual number of payments 0
Total early payments $0.00Number of payments per year
Scheduled payment $39,728.71
Scheduled number of payments 28
Loan amount
Annual interest rate
Loan Amortization Schedule (Phase II Disbursements)
Loan Information Loan Summary
$1,000,000.00

3.00%
7 4
7/1/2027
$0.00
Payment NumberPayment
Date
Beginning
Balance
Scheduled
Payment
Extra
Payment
Total
Payment Principal Interest Ending
Balance
Cumulative
Interest
1 07/01/27 $1,000,000.00 $39,728.71 $0.00 $39,728.71 $32,228.71 $7,500.00 $967,771.29 $7,500.00 2 10/01/27 $967,771.29 $39,728.71 $0.00 $39,728.71 $32,470.43 $7,258.28 $935,300.86 $14,758.28 3 01/01/28 $935,300.86 $39,728.71 $0.00 $39,728.71 $32,713.96 $7,014.76 $902,586.90 $21,773.04 4 04/01/28 $902,586.90 $39,728.71 $0.00 $39,728.71 $32,959.31 $6,769.40 $869,627.59 $28,542.44 5 07/01/28 $869,627.59 $39,728.71 $0.00 $39,728.71 $33,206.51 $6,522.21 $836,421.09 $35,064.65 6 10/01/28 $836,421.09 $39,728.71 $0.00 $39,728.71 $33,455.55 $6,273.16 $802,965.53 $41,337.81 7 01/01/29 $802,965.53 $39,728.71 $0.00 $39,728.71 $33,706.47 $6,022.24 $769,259.06 $47,360.05 8 04/01/29 $769,259.06 $39,728.71 $0.00 $39,728.71 $33,959.27 $5,769.44 $735,299.79 $53,129.49 9 07/01/29 $735,299.79 $39,728.71 $0.00 $39,728.71 $34,213.96 $5,514.75 $701,085.83 $58,644.24 10 10/01/29 $701,085.83 $39,728.71 $0.00 $39,728.71 $34,470.57 $5,258.14 $666,615.26 $63,902.38 11 01/01/30 $666,615.26 $39,728.71 $0.00 $39,728.71 $34,729.10 $4,999.61 $631,886.16 $68,902.00 12 04/01/30 $631,886.16 $39,728.71 $0.00 $39,728.71 $34,989.57 $4,739.15 $596,896.60 $73,641.15 13 07/01/30 $596,896.60 $39,728.71 $0.00 $39,728.71 $35,251.99 $4,476.72 $561,644.61 $78,117.87 14 10/01/30 $561,644.61 $39,728.71 $0.00 $39,728.71 $35,516.38 $4,212.33 $526,128.23 $82,330.20 15 01/01/31 $526,128.23 $39,728.71 $0.00 $39,728.71 $35,782.75 $3,945.96 $490,345.48 $86,276.17 16 04/01/31 $490,345.48 $39,728.71 $0.00 $39,728.71 $36,051.12 $3,677.59 $454,294.36 $89,953.76 17 07/01/31 $454,294.36 $39,728.71 $0.00 $39,728.71 $36,321.50 $3,407.21 $417,972.85 $93,360.96 18 10/01/31 $417,972.85 $39,728.71 $0.00 $39,728.71 $36,593.92 $3,134.80 $381,378.94 $96,495.76 19 01/01/32 $381,378.94 $39,728.71 $0.00 $39,728.71 $36,868.37 $2,860.34 $344,510.57 $99,356.10 20 04/01/32 $344,510.57 $39,728.71 $0.00 $39,728.71 $37,144.88 $2,583.83 $307,365.68 $101,939.93 21 07/01/32 $307,365.68 $39,728.71 $0.00 $39,728.71 $37,423.47 $2,305.24 $269,942.21 $104,245.18 22 10/01/32 $269,942.21 $39,728.71 $0.00 $39,728.71 $37,704.15 $2,024.57 $232,238.07 $106,269.74 23 01/01/33 $232,238.07 $39,728.71 $0.00 $39,728.71 $37,986.93 $1,741.79 $194,251.14 $108,011.53 24 04/01/33 $194,251.14 $39,728.71 $0.00 $39,728.71 $38,271.83 $1,456.88 $155,979.31 $109,468.41 25 07/01/33 $155,979.31 $39,728.71 $0.00 $39,728.71 $38,558.87 $1,169.84 $117,420.44 $110,638.26 26 10/01/33 $117,420.44 $39,728.71 $0.00 $39,728.71 $38,848.06 $880.65 $78,572.38 $111,518.91 27 01/01/34 $78,572.38 $39,728.71 $0.00 $39,728.71 $39,139.42 $589.29 $39,432.97 $112,108.20 28 04/01/34 $39,432.97 $39,728.71 $0.00 $39,432.97 $39,137.22 $295.75 $0.00 $112,403.95 Start date of loan Total interest $112,403.95
Optional extra payments Lender name City of Palmdale
Loan period in years Actual number of payments 0
Number of payments per year Total early payments $0.00
Loan amount Scheduled payment $39,728.71
Annual interest rate Scheduled number of payments 28

Joint Staff Report

DATE: JUNE 2, 2026

TO: HONORABLE MAYOR AND CITY COUNCIL

COMMISSIONERS

FROM: OPERATIONS DEPARTMENT

FINANCE DIVISION

DISTRICT: ALL

SUBJECT: ADOPT JOINT RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALMDALE NO. CC 2026-033, SUCCESSOR AGENCY TO THE

COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF
PALMDALE NO. SA 2026-005, HOUSING AUTHORITY OF THE CITY OF PALMDALE NO. HA 202 6-001, INDUSTRIAL DEVELOPMENT
AUTHORITY NO. IDA 2026-001, PALMDALE AIRPORT AUTHORITY
NO. PAA 2026-001, PALMDALE FINANCING AUTHORITY NO. PFA
2026-001, COLLECTIVELY THE APPROVING LEGISLATIVE
BODIES (ALB) ADOPTING THE CITY OF PALMDALE’S ANNUAL
BUDGET FOR FISCAL YEAR 2026-27 AND APPROVING REVENUE
AND EXPENDITURE ADJUSTMENTS TO FISCAL YEAR 202 5-26;
ADOPT RESOLUTION NO. CC 2026 -032, A RESOLUTION OF THE

CITY COUNCIL OF THE CITY OF PALMDALE APPROVING THE

PUBLICLY AVAILABLE PAY SCHEDULE FOR GENERAL

EMPLOYEE CLASSIFICATIONS TO ENSU RE COMPLIANCE WITH
THE PUBLIC EMPLOYEES’ RETIREMENT SYSTEM (CALPERS)
PENSIONABLE COMPENSATION REQUIREMENTS; AND, ADOPT
RESOLUTION NO. CC 2026 -035, A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF PALMDALE APPROVING THE

PUBLICLY AVAILABLE PAY SCHEDULE FOR PA RKS AND

RECREATION UNBENEFITED EMPLOYEE CLASSIFICATIONS TO
ENSURE COMPLIANCE WITH THE PUBLIC EMPLOYEES’

RETIREMENT SYSTEM (CALPERS) PENSIONABLE
COMPENSATION REQUIREMENTS.

RECOMMENDATION

Staff recommend that the City Council , Chairs, Commissioners, Members, and Directors:

1. Hold a public hearing to accept public testimony;

Report to Mayor and City Council
Re: Adopt Joint Resolution No. CC 2026-033, SA 2026-005, HA 2026-001, IDA 2026- 001, PAA 202 6-001, PFA 202 6-001 Approving FY 202 6-27 Budget, and Adopt Resolution Nos. CC 202 6-032 and 2 026-035, amending the City of Palmdale Classification and Pay Plans
June 2, 2026

2. Adopt Joint Resolution of the City Council of the City of Palmdale (No. CC 2026- 033), the Successor Agency to the Community Redevelopment Agency of the City of Palmdale (No. SA 2026-005), the Housing Authority of the City of Palmdale (No. HA 202 6-001), the Industrial Development Authority (No. IDA 2026-001), the Palmdale Airport Authority of the City of Palmdale (No. PAA 2026- 001), and the Palmdale Financing Authority (No. PFA 20 26-001) adopting the City of Palmdale's Annual Budget for Fiscal Year 202 6-27, and approving revenue and expenditure adjustments to Fiscal Year 2025-26;

3. Adopt Resolution No. CC 202 6-032, a Resolution of the City Council of the City of Palmdale approving the publicly available pay schedule for general employee classifications to ensure compliance with the Public Employees’ Retirement System (CalPERS) pensionable compensation requirements; and

4. Adopt Resolution No. CC 202 6-035, a Resolution of the City Council of the City of Palmdale approving the publicly available pay schedule for Parks and Recreation unbenefited employee classifications to ensure compliance with the Public Employees’ Retirement System (CalPERS) pensionable compensation requirements.

BACKGROUND

Each year the City is required to adopt a budget for its operation. The budget serves as the City’s financial plan for the Fiscal Year beginning July 1 through June 30. It defines City priorities for the provision of 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 of each year. The proposed budget was brought before the City Council on May 5, 2026. Additionally, the City Council shall conduct a public hearing on the proposed budget before adoption and shall adopt a budget prescribing the spending policy of the City for the ensuing fiscal year on or before the thirtieth day of June of each year.

DISCUSSION

Staff are bringing forth the Proposed Budget for Fiscal Year 2026-27 for your review and consideration.

The Citywide budget represents all City funds, including the General Fund, Measure AV Fund, Special Revenue, Enterprise, Debt Service, and Capital Funds.

The following table summarizes the proposed Fiscal Year 2026-27 Citywide Budget:

Report to Mayor and City Council
Re: Adopt Joint Resolution No. CC 2026-033, SA 2026-005, HA 2026-001, IDA 2026- 001, PAA 202 6-001, PFA 202 6-001 Approving FY 202 6-27 Budget, and Adopt Resolution Nos. CC 202 6-032 and 2 026-035, amending the City of Palmdale Classification and Pay Plans
June 2, 2026

Expenditures by Category FY 2027 Proposed
Beginning Balance $ 368,085,028
Revenue/Transfers In 471,313,960
Expenditures/Transfers Out 471,199,820
Surplus/(Deficit) (4,885,860)
Estimated Ending Fund Balance-Before Reserves 363,199,168 Reserve Requirement 59,126,026
Estimated Ending Fund Balance $304,073,141

Revenues
Estimating revenues for the upcoming fiscal year and forecasting out -years is essential to the budget development process. Revenue projections are formed by analyzing prior- year actual receipts, trends, new revenue sources, grant opportunities, service fees, and the State economic outlook. Citywide revenues are estimated to be $471,313,960.

The General Fund is the City’s primary source of unrestricted revenue, with projected resources totaling $128,080,100. These resources are comprised of property tax, sales tax, other local taxes, fees, and charges for services. In November 2024, voters approved Measure PD, which increased the local sales tax rate by ¾ cent. This measure is expected to generate approximately $23.8 million in Fiscal Year 2026-27 and is included in the General Fund. Additionally, Measure AV , a general sales tax, is projected to generate $ 23.8 million in Fiscal Year 202 6-27. While not required, the City reports Measure AV revenue separately from the General Fund to ensure transparency and accountability to the Measure AV Oversight Committee.

Operating Appropriations
The proposed FY 2026-27 operating budget includes $403,521,790 across all City funds.

Of this total, $127,182,550 represents the General Fund operating budget. The proposed budget reflects a balanced and strategic approach to funding City operations and capital projects. It maintains core service levels while addressing key areas such as public safety, infrastructure, maintenance, and community programs. The proposed level of funding ensures the City can continue delivering high -quality services to residents while advancing long -term goals. The supporting schedules provide additional details on appropriations.

Capital Improvement Program
The proposed Capital Improvement Budget totals $305,760,110 and includes previously approved appropriations of $233,082,080 along with proposed additions of $72,678,030.

As capital projects often span multiple years, budgeted amounts may not be fully expended within a single f iscal year. The attached schedules detail all previously approved and proposed capital improvement projects.

Report to Mayor and City Council
Re: Adopt Joint Resolution No. CC 2026-033, SA 2026-005, HA 2026-001, IDA 2026- 001, PAA 202 6-001, PFA 202 6-001 Approving FY 202 6-27 Budget, and Adopt Resolution Nos. CC 202 6-032 and 2 026-035, amending the City of Palmdale Classification and Pay Plans
June 2, 2026

Conclusion
The proposed FY 202 6-27 Operating and Capital Budget maintains essential services and programs that reflect community needs and City Council priorities, while preserving healthy reserve levels. It presents a balanced approach to ongoing revenues and expenditures, reinforcing the City’s commitment to long -term fiscal sustainability and responsible planning for the future.

FISCAL IMPACT

The Fiscal Year 2026-27 Operating and Capital Budget includes revenues totaling $422.1 million, and expenditures totaling $425.5 million. The proposed budget is compliant with all financial policies.

STRATEGIC PLAN

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

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

C. Involve and expand engagement to enhance public oversight and transparency.

Prepared by: Janelle Samson, Deputy City Manager
Certified as to availability of Funds: Janelle Samson, Deputy City Manager Approved by: Salvador Mendez, City Manager
Approved as to form: Alexandra Severino, City Attorney

ATTACHMENTS

Reso. No. CC 202 6-033, SA 202 6-005, HA 202 6-001, IDA 202 6-001, PAA 202 6-001, PFA 2026-001 approving the Fiscal Year 2026-27 Budget
Atch FY 2026-27 Proposed Operating and Capital Budget
Reso. No. CC 2026-032 General Positions
Exh A Reso. No. CC 2026-032
Exh B Reso. No. CC 2026-032
Reso. No. CC 2026-035 P&R Unbenefited Positions
Exh A Reso. No. CC 2026-035
Exh B Reso. No. CC 2026-034
PPT Proposed Budget FY 2026-27
A JOINT RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALMDALE (NO.

CC 2026-033)

SUCCESSOR AGENCY TO THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALMDALE (NO. SA 2026-005)
HOUSING AUTHORITY (NO. HA 2026-001)
INDUSTRIAL DEVELOPMENT AUTHORITY (NO. IDA 2026-001)
PALMDALE AIRPORT AUTHORITY (NO. PAA 2026-001)
PALMDALE FINANCING AUTHORITY (NO. PFA 2026-001)
COLLECTIVELY THE APPROVING LEGISLATIVE BODIES (‘ALB’)

A JOINT RESOLUTION OF THE APPROVING LEGISLATIVE BODIES APPROVING AND ADOPTING THE CITY OF PALMDALE’S ANNUAL BUDGET FOR FISCAL YEAR 2026-27, AND APPROVING REVENUE AND EXPENDITURE ADJUSTMENTS TO FISCAL YEAR 2025-26.

Intent of the Approving Legislative Bodies:

1. In accordance with the City of Palmdale Municipal Code Section 3.04.020, the City Manager shall submit a proposed budget to the City Council no later than May 31st of each year; and,

2. The City Manager has submitted a proposed budget to the Approving Legislative Bodies for the Fiscal Year 2026-27 for review, consideration and adoption; and,

3. The City Council has caused a public hearing to be held on said budget, as amended, on June 2, 2026, with public notice of the hearing published at least fourteen (14) days prior to said hearing, has further considered the proposed budget, and has made revisions therein; and,

4. Section 2.04.060 and 3.04.101 of the Palmdale Municipal Code require that the City Manager oversee and accomplish, with the professional staff’s assistance, a budget prescribing the spending policy of the City for the ensuing fiscal year , be adopted on or before the thirtieth day of June each year; and,

5. After consideration and analysis, the Approving Legislative Bodies, each separately, find it is in the interest of the health, welfare, and safety of the City and each entity, its citizens and businesspersons, to adopt the financial plan within the budget for the receipt and exp enditure of public monies in Fiscal Year 202 6-27; and,

6. The City Council has approved a General Fund Operating Reserve Policy of 20% of operating expenditures, and that this Reserve Policy may fall below 20% in an emergency situation, such as economic downturns or natural disasters.

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

PALMDALE, THE SUCCESSOR AGENCY TO THE COMMUNITY REDEVELOPMENT

AGENCY OF THE CITY OF PALMDALE, THE HOUSING AUTHORITY OF THE CITY Joint Resolution No. CC 2026-033, SA 2026-005, HA 2026-0012, IDA 2026-001, PAA 2026-001, and PFA 2026-001

OF PALMDALE, THE INDUSTRIAL DEVELOPMENT AUTHORITY OF THE CITY OF

PALMDALE, THE PALMDALE AIRPORT AUTHORITY OF THE CITY OF PALMDALE ,

AND THE PALMDALE FINANCING AUTHORITY OF THE CITY OF PALMDALE (COLLECTIVELY THE ‘ALB’) DO HEREBY FIND, DETERMINE, RESOLVE AND ORDER AS FOLLOWS:

SECTION 1. The Approving Legislative Bodies, and each of them, find in all respects as set forth in Section A -Intent of the Approving Legislative Bodies and hereby incorporate that Section A herein. Further, the Approving Legislative Bodies, and each of them, fin d that all lawfully required condition precedents to the adoption of this Joint Resolution have occurred as required by law.

SECTION 2. The original of the Budget of the Approving Legislative Bodies for the fiscal year 2026-27, as finally adopted by the Approving Legislative Bodies, shall be placed on file in the office of the City Clerk and shall be open to public inspection.

SECTION 3. The Approving Legislative Bodies, separately and on each entity's own sole behalf, are approving all adjustments to the fiscal year 2025-26 revenues and expenditures as presented in the fiscal year 2026-27 Annual Budget document.

SECTION 4. The Budget of the Approving Legislative Bodies for fiscal year 2026- 27, as amended, modified, revised, and corrected by each of the approving legislative bodies, on its own sole behalf, is hereby approved and adopted. The Budget is subject to the requirements of Article XIII B of the California Constitution.

SECTION 5. The Authorized Positions and Classification and Pay Plans , as amended and incorporated in the budget document, are hereby approved and adopted.

The City Council recognizes and directs the City Manager to undertake all necessary or desirable revisions, reorgani zations, hiring, not hiring, wage, classification, budget, and all matters directly or indirectly related to personnel, Human Resources, negotiations, and employee management decisions, without further action by, or presentation to, the City Council pursuant to Palmdale Municipal Code Section 2.04.060 and the City of Palmdale City Charter.

SECTION 6. The Chief Financial Officer/City Treasurer or Deputy City Manager is authorized to expend in accordance with the laws of the State of California and the law and Charter of the City of Palmdale on behalf of the Approving legislative Bodies new appropriations as stated in the “Adopted Annual Budget for Fiscal Year 202 6-27,” attached hereto and incorporated herein by reference.

SECTION 7. The Chief Financial Officer/City Treasurer or Deputy City Manager is authorized to validate, sign , and pay all legal and contractual obligations of the City, including City Departments and agencies, with check warrants up to the amounts appropriated in this budget.

Joint Resolution No. CC 2026-033, SA 2026-005, HA 2026-0012, IDA 2026-001, PAA 2026-001, and PFA 2026-001

SECTION 8. The Director of Operations/City Treasurer or Deputy City Manager shall have the authority to receive any and all donations on behalf of the City and make the appropriate entries into the City's financial records to enable the City to spend the donation on the purpose for which it was intended without presenting each item to the City Council for approval. These donations, received throughout the fiscal year by various departments from members of the community for a variety of purposes, are obligated and not discretionary. All donations more than such amount shall be approved by the appropriate Approving Legislative Body.

SECTION 9. At the conclusion of the fiscal year ending June 30, 202 6, certain purchase orders will remain outstanding as encumbrances, representing contractual obligations of previously budgeted funds. In addition, budgeted funds for certain items or projects at various stages of acquisition or development have previously been approved or will be approved by the City Council for carry -forward to fiscal year 202 6-27 as Continuing Appropriations. The Outstanding Encumbrances and Continuing Appropriations shall be deemed to be re-budgeted as an addition to the budget amounts previously set forth in the Resolution.

SECTION 10. The Successor Agency to the Community Redevelopment Agency of the City of Palmdale and the Housing Authority of the City of Palmdale, in its capacity as the entity assuming the housing functions of the former Redevelopment Agency, find and determine that the planning and administrative expenses set forth in the Budget to be paid from the Authority’s Low and Moderate Income Housing Asset Fund, which was established pursuant to Section 9 of Assembly Bill 1484 (Health and Safety Code section 34176(d)), are necessary for the production, improvement or preservation of low -and moderate-income housing.

SECTION 11. Without prior approval of the Approving Legislative Bodies and each of them, the City Manager/Executive Director/Secretary shall have authority to transfer within the same fund and category, but not from fund to fund, except for shifts in personnel appropriations. A transfer from fund to fund in any amount, except as relates to personnel, shall be likewise approved by the respective Legislative Body of the Approving Legislative Bodies.

SECTION 12. The City Council hereby approves the Capital Improvement Plan for Fiscal Year 2026 -27. The Planning Commission has determined that the Fiscal Year 2026-27 capital projects are consistent with the General Plan of the City of Palmdale. If a project is deemed inconsistent, it will be deleted from the Capital Improvement Project.

SECTION 13. The City Clerk shall certify to the adoption of this resolution.

Joint Resolution No. CC 2026-033, SA 2026-005, HA 2026-0012, IDA 2026-001, PAA 2026-001, and PFA 2026-001

PASSED, APPROVED and ADOPTED this 2nd day of June, 2026.

_________________________________
Approved as to form: Eric Ohlsen, Mayor
Chair

ATTEST:

___________________________ _________________________________ Alexandra Severino, City Attorney, Rochelle Scott, City Clerk General Council/Authority Attorney Agency Secretary/Authority Secretary

I, Rochelle Scott, City Clerk of Palmdale, California, do hereby certify that the for egoing 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 2nd day of June, 2026, by the following roll call vote:

AYES:

NOES:___________________________________________________________

ABSTAIN:______________________ABSENT:___________________________

Date:

Rochelle Scott, City Clerk
Annual
Budget

FISCAL YEAR
26-27
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
FY 2024
Actuals
FY 2025
Actuals
FY 2026 YTD
Actuals
FY 2026
Projected
FY 2027
Proposed
FY 2028
Projected
FY 2029
Projected
FY 2030
Projected
FY 2031
Projected
1 BEGINNING FUND BALANCE 92,576,350 102,985,207 105,804,528 105,804,528 97,206,778 98,104,328 104,325,508 104,325,508 110,335,548 2 REVENUES/TRANSFERS IN
3 Property Tax 31,453,857 32,877,163 17,549,735 33,387,890 34,468,920 36,192,370 38,001,990 38,001,990 39,902,090 4 Sales And Use Tax 27,486,027 32,637,257 30,295,960 50,384,610 51,726,520 53,278,320 54,876,670 54,343,890 55,974,200 5 Transient Occupancy Tax 5,096,411 4,888,140 2,923,221 5,302,310 5,350,000 5,457,000 5,566,140 5,566,140 5,677,460 6 Franchise Fees 8,574,370 9,415,496 8,517,599 9,731,100 9,683,100 9,876,760 10,074,300 10,275,790 10,481,310 7 Use Of Property 3,892,008 1,947,369 1,577,018 3,388,130 3,319,300 3,385,690 3,453,400 3,522,470 3,592,920 8 License And Permits 6,723,302 5,523,479 4,565,995 5,466,440 5,470,040 5,579,440 5,691,030 5,804,850 5,920,950 9 Charges For Services 1,344,006 1,463,929 1,217,660 1,602,550 1,613,650 1,678,200 1,745,330 1,815,140 1,887,750 10 Development Charges For Services 2,944,663 3,051,516 2,348,089 3,278,700 3,091,850 3,184,610 3,280,150 3,378,550 3,479,910 11 Fines And Forfeitures 1,577,663 6,297,864 205,148 823,750 942,420 989,540 1,029,120 1,070,280 1,113,090 12 Other Revenue 12,632,441 11,408,521 9,619,156 10,712,050 3,869,000 6,000,000 6,000,000 6,000,000 6,000,000 13 Transfer In 14,493,144 6,303,267 - 24,262,200 8,545,300 8,545,500 8,545,500 8,545,500 8,545,500 14 Total Revenues 119,506,150 116,641,283 78,819,581 148,339,730 128,080,100 134,167,430 138,263,630 138,324,600 142,575,180 15 EXPENDITURES/TRANSFERS OUT
16 Salaries & Benefits 24,908,441 26,812,903 23,499,689 32,629,470 33,358,430 34,216,270 34,900,600 35,598,620 36,310,590 17 Organizational Development 518,233 579,026 461,839 839,050 722,440 729,660 736,960 744,330 751,770 18 Operating 24,259,852 15,505,136 13,292,135 17,687,600 14,429,340 14,717,930 15,012,290 15,312,540 15,618,790 19 Contract Services 14,961,012 21,083,365 14,664,117 26,821,570 26,497,590 27,027,540 27,568,090 28,119,450 28,681,840 20 Capital Outlay 2,494,167 6,527,795 1,720,377 15,839,250 1,029,140 1,500,000 1,500,000 1,500,000 1,500,000 21 County Contracts - Law Enforcement 18,079,108 19,361,442 13,218,147 22,107,020 20,123,650 22,136,020 24,349,620 26,784,580 29,463,040 22 County Contracts - Liability 3,307,590 3,627,440 2,486,427 3,729,640 3,785,590 4,088,440 4,415,520 4,768,760 5,150,260 23 County Contracts - Animal Control 2,251,652 2,952,531 2,736,497 4,320,000 5,166,220 5,269,540 5,374,930 5,482,430 5,592,080 24 Utilities 2,259,654 2,769,380 1,898,893 3,282,090 3,238,670 3,368,220 3,502,950 3,643,070 3,788,790 25 Debt Service 6,181,732 2,295,189 2,164,835 4,622,250 4,612,630 4,612,630 4,612,630 4,612,630 4,612,630 26 Transfers Out/Internal Svc Alloc. 8,859,353 10,037,756 - 23,539,540 12,183,850 8,000,000 8,000,000 8,000,000 8,000,000 27 Transfer Out to Reserves 1,016,500 2,270,000 - 1,520,000 2,035,000 2,280,000 2,280,000 2,280,000 2,280,000 28 Total Expenditures 109,097,293 113,821,962 76,142,956 156,937,480 127,182,550 127,946,250 132,253,590 136,846,410 141,749,790 29 Surplus/(Deficit) (Revenue - Expenditures) 10,408,857 2,819,321 2,676,625 (8,597,750) 897,550 6,221,180 6,010,040 1,478,190 825,390 30 FUND BALANCE BEFORE RESERVES/RESTRICTIONS 102,985,207 105,804,528 97,206,778 98,104,328 104,325,508 110,335,548 105,803,698 111,160,938 31 20 % Reserve Requirement (30% Recommended) 32,729,188 34,146,589 47,081,244 38,154,765 38,383,875 39,676,077 41,053,923 42,524,937 32 Restricted, Nonspendable and Assigned 22,594,028 35,000,000 35,000,000 35,000,000 35,000,000 35,000,000 35,000,000 35,000,000 33 ENDING AVAILABLE BALANCE 47,661,991 36,657,939 15,125,534 24,949,563 30,941,633 35,659,471 29,749,775 33,636,001

CITY OF PALMDALE

FIVE YEAR GENERAL FUND AND CONSOLIDATED FUNDS PROJECTION

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 105,804,527 148,339,730 141,674,250 15,263,230 47,081,244 35,000,000 15,125,533 153 Information Technology 2,229,613 5,534,130 5,931,910 - 1,831,833 154 Fleet Maintenance 5,819,463 4,686,910 5,663,010 - 4,843,363 156 Public Art Fund 1,852,343 250,000 314,160 21,000 1,767,183 157 Measure AV 22,759,039 23,654,330 16,663,630 20,485,930 3,714,956 5,548,853 158 American Rescue Funds 3,968,971 11,574,970 1,963,520 9,989,150 3,591,271 200 PEG Fund 775,366 120,000 804,740 - 90,626 201 Gas Tax Fund 11,152,871 7,200,840 4,177,850 11,583,990 2,591,871 202 Public Safety Fund 2,510,712 742,000 582,000 - 2,670,712 203 Prop A Fund 11,286,894 4,545,430 4,909,120 8,063,460 2,859,744 204/214 Prop C Funds 13,174,147 11,457,470 2,317,100 14,279,840 8,034,677 205 Air Quality Improvement Fund 364,675 253,510 - 211,750 406,435 206 Local Transp Fund Art 3 160,799 133,630 - 204,930 89,499 207 Local Transp Fund Art 8 (2,562,962) 13,521,710 9,194,010 1,116,260 648,478 208/218 Measure R Funds (4,152,390) 101,057,310 - 86,326,510 10,578,410 209/219 Measure M Funds 10,154,812 8,886,580 - 7,467,680 11,573,712 210 Road Maint & Rehab Acct Fund 6,776,623 4,490,150 - 10,392,570 874,203 211 Measure A LA County Parks (100,047) 1,659,290 33,250 1,525,990 3 220 Park Development Fund 1,766,581 2,325,000 150,000 1,124,990 2,816,591 221 Traffic Impact Fund 2,708,751 860,000 - 100,000 3,468,751 222-230 Drainage Funds 16,467,462 1,785,250 287,900 9,371,980 8,592,832 227 Fire Facilities Impact Fund 11,363,152 775,000 35,000 - 12,103,152 228 Sewer Upgrade Fund 508,938 10,000 - 421,900 97,038 229 Public Facilities Fund 2,222,173 515,000 - 644,830 2,092,343 240 Federal Funds Fund (5,472,203) 20,779,610 59,600 15,247,810 (3) 241 State Grants Fund (1,333,617) 3,413,820 1,009,470 1,070,730 3 242 Misc Grant/Developer Contrib 2,969,593 2,288,180 1,314,910 4,904,410 (961,547) 243 Federal Home Program 8,077,895 597,630 903,870 - 7,771,655 244 Federal Jobs Programs (20,362) 127,360 107,000 - (2) 245 HOME ARP Fund (9,541) 520,000 510,460 - (1) 250 Park Assessments Fund 3,836,399 3,233,200 3,256,440 300,000 3,513,159 251 Landscape Maintenance Fund 14,897,175 7,935,430 10,497,230 792,030 11,543,345 252 Street Lighting Assmnt Distr 4,554,886 2,615,140 1,322,080 - 5,847,946 253 Drainage Benefit Assessment 1,739,471 256,400 54,760 - 1,941,111 254 Sewer Maint Assessment Dist 39,458,127 6,686,920 7,198,440 9,359,120 11,837,438 17,750,049 255 Street Light County District 19,446,224 8,561,410 4,818,740 - 23,188,894 256 Street Light Dist #2 Anaverde 1,054,454 374,590 243,720 - 1,185,324 257 Street Light Dist #3 Ritter 345,787 147,230 122,480 - 370,537 258 Enhanced Infrastructure Financing Dist. 1,137,989 560,000 50,000 - 1,647,989 259 CFD 2022-1 Maintenance Service Dist. 5,915 64,100 22,690 - 47,325 260 Solid Waste 1,409,165 1,327,520 1,434,000 - 1,302,685 280 CDBG Fund 2,372,209 1,779,980 1,885,200 2,215,450 51,539 281 SAVES Grant Fund (16,856) 50,000 25,000 - 8,144 291 Housing Authority Fund 1,572,904 1,901,460 1,872,450 - 1,601,914 292 Housing Facilities Fund (176,108) 8,784,850 8,382,270 - 226,472 293 Housing Asset Fund 49,137,340 1,989,630 3,678,110 - 47,448,860 300 Water Park 4,049,505 2,633,200 2,235,350 596,540 3,850,815 350 Palmdale CCA 1,303,335 71,104,520 70,436,310 - 1,897,690 73,855 460 Successor Agency 6,999,926 79,831,910 71,537,140 - 15,294,696 480 AD88-1 10Th St West Improv (65,787) 65,790 - - 3 481 AD90-2 7Th St West Improvement 146,247 - 109,480 - 36,767 482 CFD 2003-1 Improvement Fund 13,096 - - - 13,096 483 CFD 91-1 Sierra Gateway Improv 173,718 8,000 - - 181,718 484 CFD 93-1 Ritter Ranch Impr Fund 2,921,810 125,000 - - 3,046,810 487 CFD 2022-3 Ritter Redemption 51,111 53,870 3,000 - 101,981 525 Debt Svc-PFA 6,297,720 5,647,220 5,650,720 - 6,294,220 580 OPEB Fiduciary Trust Funds 4,903,656 325,000 350,000 - 4,878,656 710 Palmdale Community Foundation 215,879 53,000 59,140 - 209,739 730 AD 88-1 10Th St West Redemption 97,666 5,000 65,790 - 36,876 732 AD 90-2 7Th St West Redemption (109,477) 109,480 - - 3 733 AD 87-1 Rancho Vista Rdmpt Fund 141,382 2,000 - - 143,382 734 CFD 03-1 Anaverde Redemption 2,058,345 1,553,000 1,529,320 - 2,082,025 735 CFD 2005-1 Redemption Fund 1,916,325 1,127,400 978,830 - 2,064,895 736 CFD 91-1 Sierra Gateway Redempt (107,145) 88,660 36,590 - (55,075) 737 AD 91-2 52Nd St West Redemption 25,045 500 - - 25,545 738 CFD 93-1 Ritter Ranch Rdmpt Fnd 207,325 15,000 28,790 - 193,535 739 AD 2006-01 Godde Hill Rdmp Fd 304, 125 156,480 141,310 - 319,295 740 CFD 16-1 Joshua Ranch Wtr Rdmp 2,749,156 886,070 863,400 - 2,771,826 741 CFD 2022-2 Ritter Ranch Improv 85,998 131,610 11,080 - 206,528 Total 406,378,318 592,295,410 397,506,620 233,082,080 64,531,328 35,000,000 268,553,699

CITY OF PALMDALE

ESTIMATED FUND BALANCE
FISCAL YEAR 2026

Fund Fund Description
FY 2027
Estimated
Beginning
Available Fund
Balance
FY 2027
Revenues
FY 2027
Operating
Expenditures
FY 2027 Capital
Expenditures
Reserve
Requirement
Nonspendable,
Restricted and
Assigned
FY 2027
Projected
Ending Available
Fund Balance
101, 150,
151 General Fund 97,206,777 128,080,100 126,422,550 760,000 38,154,765 35,000,000 24,949,562 153 Information Technology 1,831,833 6,530,390 5,691,480 - 2,220,000 450,743 154 Fleet Maintenance 4,843,363 2,061,960 4,438,860 - 1,000,000 1,466,463 156 Public Art Fund 1,767,183 250,000 427,290 164,000 1,425,893 157 Measure AV 9,263,809 24,377,710 21,883,170 4,985,170 6,717,085 56,094 158 American Rescue Funds 3,591,271 - - - 3,591,271 200 PEG Fund 90,626 120,000 204,740 - 5,886 201 Gas Tax Fund 2,591,871 5,279,030 3,795,380 700,000 3,375,521 202 Public Safety Fund 2,670,712 732,000 432,000 - 2,970,712 203 Prop A Fund 2,859,744 4,625,660 5,360,710 2,100,000 24,694 204/214 Prop C Funds 8,034,677 4,334,490 1,994,650 5,923,000 4,451,517 205 Air Quality Improvement Fund 406,435 407,500 - 400,000 413,935 206 Local Transp Fund Art 3 89,499 141,460 - - 230,959 207 Local Transp Fund Art 8 648,478 8,288,190 8,231,410 - 705,258 208/218 Measure R Funds 10,578,410 2,872,120 - 8,328,440 5,122,090 209/219 Measure M Funds 11,573,712 3,335,070 - 5,388,840 9,519,942 210 Road Maint & Rehab Acct Fund 874,203 4,759,780 - 4,500,000 1,133,983 211 Measure A LA County Parks 3 4,350,490 1,966,750 2,383,740 3 220 Park Development Fund 2,816,591 730,000 - 600,000 2,946,591 221 Traffic Impact Fund 3,468,751 860,000 - - 4,328,751 222-230 Drainage Funds 8,592,832 1,094,750 550,000 982,680 8,154,902 227 Fire Facilities Impact Fund 12,103,152 775,000 35,000 - 12,843,152 228 Sewer Upgrade Fund 97,038 10,000 - - 107,038 229 Public Facilities Fund 2,092,343 515,000 - 2,530,000 77,343 240 Federal Funds Fund (3) 31,341,760 59,600 31,282,160 (3) 241 State Grants Fund 3 4,252,870 4,252,870 - 3 242 Misc Grant/Developer Contrib (961,547) 12,689,550 8,887,240 - 2,840,763 243 Federal Home Program 7,771,655 3,870,100 3,913,930 - 7,727,825 244 Federal Jobs Programs (2) 107,000 107,000 - (2) 245 HOME ARP Fund (1) 1,570,260 1,570,260 - (1) 250 Park Assessments Fund 3,513,159 3,251,950 651,980 - 6,113,129 251 Landscape Maintenance Fund 11,543,345 8,269,850 10,327,610 - 9,485,585 252 Street Lighting Assmnt Distr 5,847,946 2,676,540 1,472,520 - 7,051,966 253 Drainage Benefit Assessment 1,941,111 260,150 54,760 - 2,146,501 254 Sewer Maint Assessment Dist 29,587,487 6,707,220 4,047,360 - 8,876,246 23,371,101 255 Street Light County District 23,188,894 8,640,640 4,752,920 - 27,076,614 256 Street Light Dist #2 Anaverde 1,185,324 381,200 253,810 - 1,312,714 257 Street Light Dist #3 Ritter 370,537 149,030 123,450 - 396,117 258 Enhanced Infrastructure Financing Dist. 1,647,989 580,000 100,000 - 2,127,989 259 CFD 2022-1 Maintenance Service Dist. 47,325 55,990 23,140 - 80,175 260 Solid Waste 1,302,685 736,290 1,036,040 - 1,002,935 280 CDBG Fund 51,539 4,645,800 2,607,750 1,000,000 1,089,589 281 SAVES Grant Fund 8,144 50,000 50,000 - 8,144 291 Housing Authority Fund 1,601,914 1,901,460 1,859,310 - 1,644,064 292 Housing Facilities Fund 226,472 8,378,100 8,604,570 - 2 293 Housing Asset Fund 47,448,860 2,193,630 12,836,450 - 36,806,040 300 Water Park 3,850,815 2,942,770 2,565,600 650,000 3,577,985 350 Palmdale CCA 1,971,545 73,258,260 71,931,070 - 2,157,930 1,140,805 460 Successor Agency 15,294,696 78,334,250 70,976,570 - 22,652,376 480 AD88-1 10Th St West Improv 3 - - - 3 481 AD90-2 7Th St West Improvement 36,767 - - - 36,767 482 CFD 2003-1 Improvement Fund 13,096 - - - 13,096 483 CFD 91-1 Sierra Gateway Improv 181,718 8,000 - - 189,718 484 CFD 93-1 Ritter Ranch Impr Fund 3,046,810 125,000 - - 3,171,810 487 CFD 2022-3 Ritter Redemption 101,981 54,950 5,250 - 151,681 525 Debt Svc-PFA 6,294,220 4,993,750 4,997,250 - 6,290,720 580 OPEB Fiduciary Trust Funds 4,878,656 345,000 350,000 - 4,873,656 710 Palmdale Community Foundation 209,739 57,340 97,050 - 170,029 730 AD 88-1 10Th St West Redemption 36,876 5,000 - - 41,876 732 AD 90-2 7Th St West Redemption 3 - - - 3 733 AD 87-1 Rancho Vista Rdmpt Fund 143,382 2,000 - - 145,382 734 CFD 03-1 Anaverde Redemption 2,082,025 1,584,000 1,534,940 - 2,131,085 735 CFD 2005-1 Redemption Fund 2,064,895 1,149,910 980,120 - 2,234,685 736 CFD 91-1 Sierra Gateway Redempt (55,075) 1,000 23,240 - (77,315) 737 AD 91-2 52Nd St West Redemption 25,545 500 - - 26,045 738 CFD 93-1 Ritter Ranch Rdmpt Fnd 193,535 15,000 22,570 - 185,965 739 AD 2006-01 Godde Hill Rdmp Fd 319,295 159,410 139,010 - 339,695 740 CFD 16-1 Joshua Ranch Wtr Rdmp 2,771,826 903,490 861,400 - 2,813,916 741 CFD 2022-2 Ritter Ranch Improv 206,528 134,240 11,160 - 329,608 Total 368,085,028 471,313,960 403,521,790 72,678,030 59,126,026 35,000,000 269,073,141

CITY OF PALMDALE

ESTIMATED FUND BALANCE
FISCAL YEAR 2027

Category 2024 Actuals 2025 Actuals
2026 YTD
Actual
2026
Adopted
2026
Projected
2027
Proposed $ Chg % Chg
60 PROPERTY TAXES 102,920,260 111,649,024 56,546,376 102,619,000 114,614,500 114,168,920 (445,580) -0.4% 61 SALES & USE TAXES 64,072,078 69,634,784 54,490,170 88,509,840 87,098,040 89,416,570 2,318,530 2.7% 62 OTHER TAXES 8,827,064 9,245,329 6,544,272 9,214,850 9,269,540 9,627,810 358,270 3.9% 63 TRANSIENT OCC TAX 5,096,411 4,888,140 2,923,221 5,302,310 5,302,310 5,350,000 47,690 0.9% 64 FRANCHISE FEES 8,739,108 9,477,594 8,633,425 9,798,100 9,851,100 9,803,100 (48,000) -0.5% 65 GRANTS 18,905,927 25,365,821 13,660,505 160,626,720 167,094,470 67,161,340 (99,933,130) -59.8% 66 DEVELOPER CONTRIB 40,940 15,339 - 50,000 50,000 50,000 - 0.0% 67 COUNTY CONTRIB 117,111 157,886 2,007,185 7,364,170 4,666,550 2,979,990 (1,686,560) -36.1% 68 STATE CONTRIBUTIONS - - - 1,000 1,000 1,000 - 0.0% 69 OTHER AGENCY CONTRIB 75,102 1,298,359 743,019 4,106,310 939,940 4,062,310 3,122,370 332.2% 71 USE OF PROPERTY 22,579,371 25,311,424 18,227,512 19,539,010 18,389,220 18,296,110 (93,110) -0.5% 72 FAIR VALUE OF INVEST 7,784,341 6,205,196 - - - - - 0.0% 75 PARK DEVELOPMENT FEE 677,938 941,198 597,041 1,500,000 2,275,000 680,000 (1,595,000) -70.1% 76 DRAINAGE FEES 5,085,662 761,622 1,260,901 900,000 1,540,000 1,000,000 (540,000) -35.1% 77 SEWER UPGRADE FEES (3,195) (3,235) 1,140 2,200 3,400 3,700 300 8.8% 78 TRAFFIC IMPACT FEES 2,025,899 878,735 628,144 850,000 850,000 850,000 - 0.0% 79 FACILITY IMPACT FEE 2,028,686 760,967 511,565 1,200,000 1,200,000 1,200,000 - 0.0% 80 LICENSES AND PERMITS 6,817,746 5,661,757 4,664,743 5,576,440 5,582,240 5,585,840 3,600 0.1% 81 CHRGS FOR SERVICES 71,502,308 81,239,565 48,279,989 75,566,070 75,638,650 78,016,280 2,377,630 3.1% 82 DEV CHRGS FOR SVCS 3,281,263 3,308,986 2,539,396 3,637,850 3,528,700 3,341,850 (186,850) -5.3% 83 FINES & FORFEITURES 1,850,430 1,612,365 505,708 1,321,030 1,194,530 1,309,570 115,040 9.6% 84 SPECIAL ASSESSMENTS 25,088,291 25,360,441 14,067,157 25,635,900 31,118,870 31,546,900 428,030 1.4% 90 OTHER - REVENUE 13,137,666 12,158,774 10,059,732 20,369,830 12,112,700 5,290,040 (6,822,660) -56.3% 93 BOND PROCEEDS (OFS) 40,930,000 - - - - - - 0.0% 95 GN/LS-SALE OF ASSET 82,891 180,725 - - - - - 0.0% 97 CAPITAL LEASE PROCEE 419,161 - - - - - - 0.0% 98 TRANSFERS IN 24,036,452 23,052,536 - 27,704,050 39,974,650 21,572,630 (18,402,020) -46.0% Grand Total 436,118,912 419,163,329 246,891,201 571,394,680 592,295,410 471,313,960 (120,981,450) -20.4%

CITY OF PALMDALE
FY 2027 DRAFT BUDGET

REVENUES-ALL FUNDS

Category 2024 Actuals 2025 Actuals
2026 YTD
Actual 2026 Adopted
2026
Projected
2027
Proposed $ Chg % Chg
60 PROPERTY TAXES 31,453,857 32,877,163 17,549,735 33,386,390 33,387,890 34,468,920 1,081,030 3% 61 SALES & USE TAXES 27,486,027 32,637,257 30,295,960 51,382,740 50,384,610 51,726,520 1,341,910 3% 63 TRANSIENT OCC TAX 5,096,411 4,888,140 2,923,221 5,302,310 5,302,310 5,350,000 47,690 1% 64 FRANCHISE FEES 8,574,370 9,415,496 8,517,599 9,728,100 9,731,100 9,683,100 (48,000) 0% 65 GRANTS 25,000 - - - - - - 0% 69 OTHER AGENCY CONTRIB 40,250 31,000 358,250 50,000 358,250 50,000 (308,250) -86% 71 USE OF PROPERTY 3,924,355 4,228,503 1,577,018 3,557,630 3,388,130 3,319,300 (68,830) -2% 72 FAIR VALUE OF INVEST 3,288,258 1,923,086 - - - - - 0% 80 LICENSES AND PERMITS 6,723,302 5,523,479 4,565,995 5,461,440 5,466,440 5,470,040 3,600 0% 81 CHRGS FOR SERVICES 1,344,006 1,463,929 1,217,660 1,492,130 1,602,550 1,613,650 11,100 1% 82 DEV CHRGS FOR SVCS 2,944,663 3,051,516 2,348,089 3,387,850 3,278,700 3,091,850 (186,850) -6% 83 FINES & FORFEITURES 1,568,771 1,285,208 205,148 965,750 823,750 942,420 118,670 14% 90 OTHER - REVENUE 12,148,030 11,377,521 9,260,906 18,727,000 10,353,800 3,819,000 (6,534,800) -63% 98 TRANSFERS IN 14,480,797 13,836,839 - 13,041,830 24,262,200 8,545,300 (15,716,900) -65% Grand Total 119,098,097 122,539,137 78,819,583 146,483,170 148,339,730 128,080,100 (20,259,630) -14%

CITY OF PALMDALE
FY 2027 DRAFT BUDGET

REVENUES-GENERAL FUND

Category 2024 Actuals 2025 Actuals
2026 YTD
Actual
2026
Adopted
2026
Projected
2027
Proposed $ Chg % Chg

2. CITY ATTORNEY
CITY ATTORNEY FINES & FORFEITURES 206,188 177,861 (13) - - - - 0.0% OTHER - REVENUE - 340,485 - - - - - 0.0% CITY ATTORNEY Total 206,188 518,346 (13) - - - - 0.0%

2. CITY ATTORNEY Total 206,188 518,346 (13) - - - - 0.0%

3. CITY MANAGER
CITY CLERK OTHER - REVENUE 22 - 5 - - - - 0.0% CITY CLERK Total 22 - 5 - - - - 0.0% COMMUNICATIONS FRANCHISE FEES 164,737 62,097 115,826 70,000 120,000 120,000 - 0.0% USE OF PROPERTY 17,074 19,123 - - - - - 0.0% FAIR VALUE OF INVEST 10,448 11,373 - - - - - 0.0% COMMUNICATIONS Total 192,259 92,594 115,826 70,000 120,000 120,000 - 0.0%

3. CITY MANAGER Total 192,281 92,594 115,831 70,000 120,000 120,000 - 0.0%

4. HUMAN RESOURCES
HUMAN RESOURCES CHRGS FOR SERVICES 2,015 3,686 - 3,000 3,000 - (3,000) -100.0% OTHER - REVENUE 380,428 393,624 329,850 404,000 406,000 417,500 11,500 2.8% HUMAN RESOURCES Total 382,443 397,310 329,850 407,000 409,000 417,500 8,500 2.1%

4. HUMAN RESOURCES Total 382,443 397,310 329,850 407,000 409,000 417,500 8,500 2.1%

5. OPERATIONS
AMERICAN RESCUE PLAN ACT GRANTS 9,416,435 1,538,640 11,566,473 11,566,470 11,566,470 - (11,566,470) -100.0% USE OF PROPERTY 1,466,955 1,313,852 335,078 - - - - 0.0% FAIR VALUE OF INVEST 206,721 223,063 - - - - - 0.0% OTHER - REVENUE 13,200 - 8,500 8,500 8,500 - (8,500) -100.0% AMERICAN RESCUE PLAN ACT Total 11,103,311 3,075,556 11,910,051 11,574,970 11,574,970 - (11,574,970) -100.0% ASSESSMENT DIST / CFD USE OF PROPERTY 182,239 193,644 - 193,500 193,500 194,520 1,020 0.5% FAIR VALUE OF INVEST - 2,023 - - - - - 0.0% SPECIAL ASSESSMENTS 3,668,606 3,605,481 1,832,644 3,850,120 3,850,120 3,927,120 77,000 2.0% ASSESSMENT DIST / CFD Total 3,850,844 3,801,147 1,832,644 4,043,620 4,043,620 4,121,640 78,020 1.9% EIFD PROPERTY TAXES 393,285 529,230 332,210 350,000 550,000 570,000 20,000 3.6% EIFD Total 393,285 529,230 332,210 350,000 550,000 570,000 20,000 3.6% FINANCE PROPERTY TAXES 31,453,857 32,877,163 17,549,735 33,386,390 33,387,890 34,468,920 1,081,030 3.2% SALES & USE TAXES 50,073,637 55,894,601 43,952,668 74,950,740 73,538,940 75,604,230 2,065,290 2.8% TRANSIENT OCC TAX 5,096,411 4,888,140 2,923,221 5,302,310 5,302,310 5,350,000 47,690 0.9% FRANCHISE FEES 8,574,370 9,415,496 8,517,599 9,728,100 9,731,100 9,683,100 (48,000) -0.5% OTHER AGENCY CONTRIB 56,352 99,081 743,019 269,000 577,250 275,000 (302,250) -52.4% USE OF PROPERTY 9,678,993 11,319,219 1,329,099 6,052,080 5,991,580 6,232,250 240,670 4.0% FAIR VALUE OF INVEST 7,337,064 5,777,912 - - - - - 0.0% LICENSES AND PERMITS 558,711 55,745 - - - - - 0.0% CHRGS FOR SERVICES 149 - - 180 - - - 0.0% DEV CHRGS FOR SVCS 174,180 18,644 - 185,000 185,000 - (185,000) -100.0% FINES & FORFEITURES 977,442 816,694 265,360 623,750 623,750 646,920 23,170 3.7% SPECIAL ASSESSMENTS 3,047,452 3,172,720 1,792,264 3,203,200 3,203,200 3,221,950 18,750 0.6% OTHER - REVENUE 4,051,424 2,877,785 2,102,878 2,747,000 3,282,000 3,257,000 (25,000) -0.8% TRANSFERS IN 11,564,359 7,655,106 - 9,035,540 8,873,960 2,869,790 (6,004,170) -67.7% FINANCE Total 132,644,400 134,868,305 79,175,844 145,483,290 144,696,980 141,609,160 (3,087,820) -2.1%

CITY OF PALMDALE
FY 2027 DRAFT BUDGET

REVENUES-ALL FUNDS BY DEPARTMENT/DIVISION

Category 2024 Actuals 2025 Actuals
2026 YTD
Actual
2026
Adopted
2026
Projected
2027
Proposed $ Chg % Chg

CITY OF PALMDALE
FY 2027 DRAFT BUDGET

REVENUES-ALL FUNDS BY DEPARTMENT/DIVISION
GENERAL CITY USE OF PROPERTY 2,941,930 1,367,291 - 2,001,550 1,273,540 1,314,540 41,000 3.2% FAIR VALUE OF INVEST 195,878 180,097 - - - - - 0.0% OTHER - REVENUE 209,093 278,203 81,333 305,000 395,000 215,000 (180,000) -45.6% BOND PROCEEDS (OFS) 40,930,000 - - - - - - 0.0% TRANSFERS IN 1,210,002 - - 3,367,130 4,573,680 3,899,210 (674,470) -14.7% GENERAL CITY Total 45,486,903 1,825,590 81,333 5,673,680 6,242,220 5,428,750 (813,470) -13.0% INFORMATION TECHNOLOGY TRANSFERS IN 1,490,884 4,420,292 - 5,489,130 5,489,130 6,485,390 996,260 18.1% INFORMATION TECHNOLOGY Total 1,490,884 4,420,292 - 5,489,130 5,489,130 6,485,390 996,260 18.1% PALMDALE COMMUNITY FOUNDATION CHRGS FOR SERVICES 59 103 42 100 100 100 - 0.0% OTHER - REVENUE 57,658 37,079 51,349 52,900 52,900 57,240 4,340 8.2% PALMDALE COMMUNITY FOUNDATION Total 57,717 37,182 51,390 53,000 53,000 57,340 4,340 8.2% RISK MANAGEMENT GRANTS 25,000 - - - - - - 0.0% OTHER - REVENUE 7,387,594 7,201,875 6,298,753 6,450,000 6,450,000 - (6,450,000) -100.0% TRANSFERS IN 7,412,594 6,181,733 - 4,630,340 15,855,970 5,706,510 (10,149,460) -64.0% RISK MANAGEMENT Total 14,825,189 13,383,608 6,298,753 11,080,340 22,305,970 5,706,510 (16,599,460) -74.4% SUCCESSOR AGENCY PROPERTY TAXES 70,360,649 77,460,564 38,369,639 68,652,610 79,696,610 78,150,000 (1,546,610) -1.9% USE OF PROPERTY 18,745 34,104 - 35,300 35,300 34,250 (1,050) -3.0% SUCCESSOR AGENCY Total 70,379,395 77,494,668 38,369,639 68,687,910 79,731,910 78,184,250 (1,547,660) -1.9%

5. OPERATIONS Total 280,231,927 239,435,577 138,051,863 252,435,940 274,687,800 242,163,040 (32,524,760) -11.8%

6. ECONOMIC & COMMUNITY DEVELOPMENT
ADMIN - ECONOMIC DEVELOPMENT OTHER - REVENUE - 50,000 50,000 50,000 50,000 50,000 - 0.0% ADMIN - ECONOMIC DEVELOPMENT Total - 50,000 50,000 50,000 50,000 50,000 - 0.0% AFFORDABLE HOUSING GRANTS 2,977,644 250,728 499,789 18,840,700 3,947,480 20,039,310 16,091,830 407.6% COUNTY CONTRIB - - - 951,310 505,060 446,250 (58,810) -11.6% USE OF PROPERTY 8,729,268 10,329,519 16,030,932 10,335,780 10,190,300 9,786,750 (403,550) -4.0% FAIR VALUE OF INVEST 7,206 7,712 - - - - - 0.0% CHRGS FOR SERVICES 184,368 171,173 184,789 227,940 227,140 227,940 800 0.4% OTHER - REVENUE - - - 350,000 350,000 450,000 100,000 28.6% GN/LS-SALE OF ASSET 82,891 180,725 - - - - - 0.0% TRANSFERS IN 14,041 (225) - - - - - 0.0% AFFORDABLE HOUSING Total 11,995,419 10,939,631 16,715,509 30,705,730 15,219,980 30,950,250 15,730,270 103.4% BUILDING AND SAFETY LICENSES AND PERMITS 5,763,744 4,412,182 3,923,408 4,504,000 4,504,000 4,501,500 (2,500) -0.1% CHRGS FOR SERVICES 87,211 242,681 94,204 200,000 200,000 70,000 (130,000) -65.0% DEV CHRGS FOR SVCS 42,900 108,931 72,066 65,000 72,200 73,000 800 1.1% BUILDING AND SAFETY Total 5,893,854 4,763,795 4,089,679 4,769,000 4,776,200 4,644,500 (131,700) -2.8% CDBG GRANTS 1,153,468 1,149,804 816,822 4,175,050 1,385,130 3,751,100 2,365,970 170.8% USE OF PROPERTY 34,169 - 10,051 - - - - 0.0% CDBG Total 1,187,637 1,149,804 826,874 4,175,050 1,385,130 3,751,100 2,365,970 170.8% ECONOMIC DEVELOPMENT USE OF PROPERTY 1,800 (1,800) - - - - - 0.0% LICENSES AND PERMITS 1,350 1,650 1,335 4,500 1,500 3,000 1,500 100.0% OTHER - REVENUE 249,349 353,022 (96,546) 9,040,000 90,000 22,000 (68,000) -75.6% ECONOMIC DEVELOPMENT Total 252,499 352,872 (95,211) 9,044,500 91,500 25,000 (66,500) -72.7% PLANNING LICENSES AND PERMITS 101,486 797,003 496,870 701,440 711,940 714,040 2,100 0.3% CHRGS FOR SERVICES 41,588 2,677 12,218 19,150 22,650 22,650 - 0.0% DEV CHRGS FOR SVCS 309,200 674,355 598,759 653,000 711,650 684,000 (27,650) -3.9% OTHER - REVENUE 1,925 9,277 509,666 10,000 10,000 10,000 - 0.0% PLANNING Total 454,198 1,483,312 1,617,514 1,383,590 1,456,240 1,430,690 (25,550) -1.8%

6. ECONOMIC & COMMUNITY DEVELOPMENT Total 19,783,608 18,739,414 23,204,365 50,127,870 22,979,050 40,851,540 17,872,490 77.8%

Category 2024 Actuals 2025 Actuals
2026 YTD
Actual
2026
Adopted
2026
Projected
2027
Proposed $ Chg % Chg

CITY OF PALMDALE
FY 2027 DRAFT BUDGET

REVENUES-ALL FUNDS BY DEPARTMENT/DIVISION

7. PUBLIC SAFETY
PUBLIC SAFETY GRANTS 622,274 724,208 984,738 745,610 804,210 804,210 - 0.0% LICENSES AND PERMITS 191,420 207,503 97,911 181,500 179,000 181,500 2,500 1.4% CHRGS FOR SERVICES 105,546 64,095 57,751 116,000 114,500 133,000 18,500 16.2% FINES & FORFEITURES 643,269 573,303 192,745 635,000 487,500 582,500 95,000 19.5% OTHER - REVENUE 480 2,903 2,520 2,500 2,600 2,600 - 0.0% CAPITAL LEASE PROCEE 419,161 - - - - - - 0.0% PUBLIC SAFETY Total 1,982,150 1,572,011 1,335,665 1,680,610 1,587,810 1,703,810 116,000 7.3%

7. PUBLIC SAFETY Total 1,982,150 1,572,011 1,335,665 1,680,610 1,587,810 1,703,810 116,000 7.3%

8. PARKS & RECREATION
COMMUNITY PROGRAMS GRANTS - 9,825 - 50,000 50,000 50,000 - 0.0% COMMUNITY PROGRAMS Total - 9,825 - 50,000 50,000 50,000 - 0.0% EVENTS & CULTURE USE OF PROPERTY 108,330 72,957 26,287 160,800 33,800 38,800 5,000 14.8% FAIR VALUE OF INVEST 24,929 1,441 - - - - - 0.0% CHRGS FOR SERVICES 444,729 435,422 518,134 499,300 546,700 589,000 42,300 7.7% DEV CHRGS FOR SVCS 336,600 257,470 191,307 250,000 250,000 250,000 - 0.0% OTHER - REVENUE 2,879 776 4,379 - 4,500 5,000 500 11.1% EVENTS & CULTURE Total 917,468 768,067 740,108 910,100 835,000 882,800 47,800 5.7% LIBRARY USE OF PROPERTY 6,222 5,280 3,333 7,000 7,000 7,000 - 0.0% OTHER - REVENUE 96,639 95,326 99,953 129,500 133,000 125,000 (8,000) -6.0% LIBRARY Total 102,861 100,606 103,286 136,500 140,000 132,000 (8,000) -5.7% PARKS & FACILITIES GRANTS - - - 2,000,000 33,250 1,966,750 1,933,500 5815.0% COUNTY CONTRIB - - - 5,837,860 1,626,040 2,383,740 757,700 46.6% USE OF PROPERTY 262,975 317,816 222,506 378,000 319,200 363,000 43,800 13.7% PARK DEVELOPMENT FEE 677,938 941,198 597,041 1,500,000 2,275,000 680,000 (1,595,000) -70.1% CHRGS FOR SERVICES 1,806,819 1,667,723 906,092 1,810,000 1,699,000 1,910,000 211,000 12.4% OTHER - REVENUE 171,972 49,986 37,199 80,000 60,000 60,000 - 0.0% TRANSFERS IN 516,500 520,000 - 520,000 520,000 574,770 54,770 10.5% PARKS & FACILITIES Total 3,436,203 3,496,722 1,762,838 12,125,860 6,532,490 7,938,260 1,405,770 21.5% RECREATION SERVICES OTHER AGENCY CONTRIB 18,750 25,000 - - - - - 0.0% USE OF PROPERTY 264,387 287,429 250,666 345,000 315,000 295,000 (20,000) -6.3% CHRGS FOR SERVICES 616,160 684,940 487,453 611,000 663,000 746,000 83,000 12.5% OTHER - REVENUE 23,879 21,144 - - - - - 0.0% RECREATION SERVICES Total 923,175 1,018,512 738,118 956,000 978,000 1,041,000 63,000 6.4%

8. PARKS & RECREATION Total 5,379,707 5,393,732 3,344,350 14,178,460 8,535,490 10,044,060 1,508,570 17.7%

Category 2024 Actuals 2025 Actuals
2026 YTD
Actual
2026
Adopted
2026
Projected
2027
Proposed $ Chg % Chg

CITY OF PALMDALE
FY 2027 DRAFT BUDGET

REVENUES-ALL FUNDS BY DEPARTMENT/DIVISION

9. PUBLIC WORKS
ENGINEERING PROPERTY TAXES 712,469 782,068 294,792 - 750,000 750,000 - 0.0% DEVELOPER CONTRIB 23,078 12,729 - - - - - 0.0% COUNTY CONTRIB 117,111 157,886 81,736 50,000 85,000 - (85,000) -100.0% USE OF PROPERTY 40,563 26,900 19,560 30,000 30,000 30,000 - 0.0% FAIR VALUE OF INVEST 2,095 1,575 - - - - - 0.0% DRAINAGE FEES 5,085,662 761,622 1,260,901 900,000 1,540,000 1,000,000 (540,000) -35.1% SEWER UPGRADE FEES (3,195) (3,235) 1,140 - 1,200 1,500 300 25.0% TRAFFIC IMPACT FEES 2,025,899 878,735 628,144 850,000 850,000 850,000 - 0.0% LICENSES AND PERMITS 106,592 49,396 46,471 70,000 70,000 70,000 - 0.0% CHRGS FOR SERVICES 40,344 22,321 39,730 33,800 43,000 43,000 - 0.0% DEV CHRGS FOR SVCS 2,418,383 2,249,586 1,677,264 2,484,850 2,309,850 2,334,850 25,000 1.1% FINES & FORFEITURES - 25,000 35,200 20,630 36,130 32,500 (3,630) -10.0% SPECIAL ASSESSMENTS 5,485,249 5,462,528 3,169,935 400 5,473,400 5,505,000 31,600 0.6% OTHER - REVENUE 526 506 20 400 400 400 - 0.0% ENGINEERING Total 16,054,775 10,427,616 7,254,892 4,440,080 11,188,980 10,617,250 (571,730) -5.1% ENVIRONMENTAL GRANTS 479,469 58,634 46,439 686,110 707,110 64,160 (642,950) -90.9% CHRGS FOR SERVICES 73,899 403,251 - 399,270 403,260 423,330 20,070 5.0% OTHER - REVENUE 276,497 214,648 3,758 211,060 217,250 225,800 8,550 3.9% ENVIRONMENTAL Total 829,865 676,533 50,197 1,296,440 1,327,620 713,290 (614,330) -46.3% MAINTENANCE PROPERTY TAXES - - - 230,000 230,000 230,000 - 0.0% DEVELOPER CONTRIB 17,863 2,610 - 50,000 50,000 50,000 - 0.0% COUNTY CONTRIB - - - 150,000 150,000 150,000 - 0.0% STATE CONTRIBUTIONS - - - 1,000 1,000 1,000 - 0.0% SEWER UPGRADE FEES - - - 2,200 2,200 2,200 - 0.0% LICENSES AND PERMITS 94,444 138,278 98,747 115,000 115,800 115,800 - 0.0% CHRGS FOR SERVICES 734,307 567,949 837,268 801,000 841,000 841,000 - 0.0% FINES & FORFEITURES 23,531 19,507 12,416 41,650 47,150 47,650 500 1.1% SPECIAL ASSESSMENTS 12,886,986 13,119,712 7,272,314 18,582,180 18,592,150 18,892,830 300,680 1.6% OTHER - REVENUE 121,303 132,756 85,934 106,500 109,200 107,500 (1,700) -1.6% TRANSFERS IN 1,828,072 4,275,630 - 4,661,910 4,661,910 2,036,960 (2,624,950) -56.3% MAINTENANCE Total 15,706,505 18,256,442 8,306,679 24,741,440 24,800,410 22,474,940 (2,325,470) -9.4% PALMDALE CCA USE OF PROPERTY - 26,090 - - - - - 0.0% CHRGS FOR SERVICES 67,363,604 76,971,462 45,140,692 70,843,630 70,873,600 73,008,260 2,134,660 3.0% OTHER - REVENUE 61,380 3,510 230,918 187,040 230,920 250,000 19,080 8.3% PALMDALE CCA Total 67,424,984 77,001,062 45,371,610 71,030,670 71,104,520 73,258,260 2,153,740 3.0% PUBLIC WORKS - ADMINISTRATION SALES & USE TAXES 13,998,441 13,740,183 10,537,502 13,559,100 13,559,100 13,812,340 253,240 1.9% OTHER TAXES 8,827,064 9,245,329 6,544,272 9,214,850 9,269,540 9,627,810 358,270 3.9% GRANTS 4,231,636 21,633,981 (253,756) 122,562,780 148,600,820 40,485,810 (108,115,010) -72.8% COUNTY CONTRIB - - 1,925,449 375,000 2,300,450 - (2,300,450) -100.0% OTHER AGENCY CONTRIB - 1,174,278 - 3,837,310 362,690 3,787,310 3,424,620 944.2% USE OF PROPERTY (1,174,278) - - - - - - 0.0% FACILITY IMPACT FEE 2,028,686 760,967 511,565 1,200,000 1,200,000 1,200,000 - 0.0% CHRGS FOR SERVICES 1,510 2,083 1,617 1,700 1,700 2,000 300 17.6% OTHER - REVENUE 31,419 95,872 259,263 235,430 260,430 35,000 (225,430) -86.6% PUBLIC WORKS - ADMINISTRATION Total 27,944,478 46,652,692 19,525,911 150,986,170 175,554,730 68,950,270 (106,604,460) -60.7%

9. PUBLIC WORKS Total 127,960,608 153,014,345 80,509,290 252,494,800 283,976,260 176,014,010 (107,962,250) -38.0% Grand Total 436,118,912 419,163,329 246,891,201 571,394,680 592,295,410 471,313,960 (120,981,450) -20.4%

Category 2024 Actuals 2025 Actuals
2026 YTD
Actual
2026
Adopted
2026
Projected
2027
Proposed $ Chg % Chg
10 SALARIES 29,957,228 31,898,054 27,940,833 38,214,810 38,014,650 40,970,120 2,955,470 7.8% 11 BENEFITS 12,761,012 13,843,701 12,527,958 18,465,880 18,308,900 17,412,570 (896,330) -4.9% 15 ORG DEVELOPMENT 692,097 719,202 591,198 1,185,560 1,146,910 1,011,400 (135,510) -11.8% 20 OPERATING EXP 35,230,048 24,776,694 17,858,040 40,348,020 30,716,800 35,400,600 4,683,800 15.2% 21 CONTRACT SERVICES 86,159,586 108,439,033 69,655,399 121,346,230 120,209,670 119,880,510 (329,160) -0.3% 22 SOFTWARE 1,071,506 2,283,255 1,890,506 3,580,910 3,573,290 3,371,170 (202,120) -5.7% 23 CAPITAL OUTLAY 462,139 551,954 372,494 935,250 928,310 544,090 (384,220) -41.4% 24 COUNTY CONTRACTS 32,852,379 33,366,712 25,152,368 39,004,510 39,077,240 40,181,580 1,104,340 2.8% 25 UTILITIES 7,030,131 8,567,211 5,839,081 9,646,660 9,759,430 9,972,980 213,550 2.2% 26 PROGRAM EXP 2,140,048 751,109 355,546 22,572,610 5,399,680 21,518,200 16,118,520 298.5% 30 INTER-GOV SHARING 59,495,693 65,197,880 29,054,887 59,525,000 60,025,000 61,246,390 1,221,390 2.0% 40 CAPITAL 39,956,436 111,486,843 34,065,551 239,007,200 239,287,650 79,082,840 (160,204,810) -67.0% 50 DEBT SERVICE 30,634,772 24,499,970 14,673,545 26,262,450 25,388,860 22,794,890 (2,593,970) -10.2% 59 TRANSFERS OUT 22,727,170 22,906,513 - 27,684,100 38,752,310 22,812,480 (15,939,830) -41.1% 95 GN/LS-SALE OF ASSET 274,481 - - - - - - 0.0% Grand Total 361,444,725 449,288,134 239,977,406 647,779,190 630,588,700 476,199,820 (154,388,880) -24.5%

CITY OF PALMDALE
FY 2027 DRAFT BUDGET

EXPENDITURES-ALL FUNDS

Category 2024 Actuals 2025 Actuals
2026 YTD
Actual
2026
Adopted
2026
Projected
2027
Proposed $ Chg % Chg
10 SALARIES 17,906,418 19,128,789 16,461,886 22,393,910 22,234,250 23,806,350 1,572,100 7% 11 BENEFITS 7,002,022 7,684,114 7,037,803 10,619,720 10,395,220 9,552,080 (843,140) -8% 15 ORG DEVELOPMENT 518,233 579,026 461,839 859,400 839,050 722,440 (116,610) -14% 20 OPERATING EXP 23,983,264 17,637,883 13,288,321 18,750,650 17,595,100 14,224,340 (3,370,760) -19% 21 CONTRACT SERVICES 15,078,309 21,082,899 14,664,117 26,422,310 26,821,570 26,497,590 (323,980) -1% 22 SOFTWARE 2,107 14,301 2,364 5,000 5,000 5,000 - 0% 23 CAPITAL OUTLAY 93,892 197,913 150,721 395,460 470,620 173,740 (296,880) -63% 24 COUNTY CONTRACTS 23,638,350 25,941,412 18,441,070 30,143,530 30,156,660 29,075,460 (1,081,200) -4% 25 UTILITIES 2,259,654 2,768,454 1,898,893 3,230,940 3,282,090 3,238,670 (43,420) -1% 26 PROGRAM EXP - - 1,450 200,000 87,500 200,000 112,500 129% 40 CAPITAL 1,847,341 6,329,882 1,569,656 15,517,200 15,368,630 855,400 (14,513,230) -94% 50 DEBT SERVICE 6,064,035 3,360,101 2,164,835 4,006,700 4,622,250 4,612,630 (9,620) 0% 59 TRANSFERS OUT 9,875,853 11,531,176 - 13,849,490 25,059,540 14,218,850 (10,840,690) -43% 95 GN/LS-SALE OF ASSET 274,481 - - - - - - 0% Grand Total 108,543,959 116,255,951 76,142,955 146,394,310 156,937,480 127,182,550 (29,754,930) -19%

CITY OF PALMDALE
FY 2027 DRAFT BUDGET

EXPENDITURES-GENERAL FUND

Category 2024 Actuals 2025 Actuals
2026 YTD
Actual
2026
Adopted
2026
Projected
2027
Proposed $ Chg % Chg

1. CITY COUNCIL
CITY COUNCIL SALARIES 255,712 233,988 150,593 220,400 208,400 213,260 4,860 2.3% BENEFITS 153,264 141,602 116,518 196,280 196,280 223,000 26,720 13.6% ORG DEVELOPMENT 28,052 41,622 57,365 84,500 85,100 85,100 - 0.0% OPERATING EXP 76,944 71,024 37,918 77,800 79,300 204,200 124,900 157.5% CAPITAL OUTLAY 243 - - 1,000 1,000 1,000 - 0.0% UTILITIES 4,671 5,259 3,323 4,700 4,700 4,700 - 0.0% TRANSFERS OUT 20,477 67,952 - 90,590 90,590 17,590 (73,000) -80.6% CITY COUNCIL Total 539,362 561,448 365,717 675,270 665,370 748,850 83,480 12.5%

1. CITY COUNCIL Total 539,362 561,448 365,717 675,270 665,370 748,850 83,480 12.5%

2. CITY ATTORNEY
CITY ATTORNEY SALARIES 72,533 345 - - - - - 0.0% BENEFITS 32,611 17 - 500 - - - 0.0% ORG DEVELOPMENT 12,249 4,140 (128) 3,500 500 500 - 0.0% OPERATING EXP 2,021 557 47 2,000 750 750 - 0.0% CONTRACT SERVICES 2,218,126 4,031,266 2,291,257 2,301,500 3,800,500 3,251,000 (549,500) -14.5% CAPITAL OUTLAY - - - 1,000 500 500 - 0.0% UTILITIES 873 467 - 500 - - - 0.0% TRANSFERS OUT 24,571 81,553 - 108,700 108,700 24,830 (83,870) -77.2% CITY ATTORNEY Total 2,362,984 4,118,345 2,291,177 2,417,700 3,910,950 3,277,580 (633,370) -16.2%

2. CITY ATTORNEY Total 2,362,984 4,118,345 2,291,177 2,417,700 3,910,950 3,277,580 (633,370) -16.2%

3. CITY MANAGER
CITY CLERK SALARIES 591,563 489,325 433,573 515,400 513,900 571,320 57,420 11.2% BENEFITS 241,233 222,802 180,633 223,900 217,900 222,760 4,860 2.2% ORG DEVELOPMENT 19,292 17,174 10,927 40,900 40,900 29,570 (11,330) -27.7% OPERATING EXP 12,403 8,050 3,727 18,030 18,030 12,530 (5,500) -30.5% CONTRACT SERVICES 61,784 422,820 8,303 53,520 53,520 497,600 444,080 829.7% CAPITAL OUTLAY 1,057 576 - 1,500 26,500 1,500 (25,000) -94.3% UTILITIES 498 232 - 500 500 500 - 0.0% TRANSFERS OUT 45,048 157,049 - 199,280 199,280 124,160 (75,120) -37.7% CITY CLERK Total 972,877 1,318,028 637,162 1,053,030 1,070,530 1,459,940 389,410 36.4% CITY MANAGER SALARIES 1,173,380 1,355,788 1,244,756 1,338,830 1,335,830 1,509,750 173,920 13.0% BENEFITS 514,320 668,346 583,206 595,240 625,240 885,300 260,060 41.6% ORG DEVELOPMENT 92,031 133,498 81,523 113,510 113,510 73,750 (39,760) -35.0% OPERATING EXP 18,608 88,940 36,375 2,241,500 142,000 101,500 (40,500) -28.5% CONTRACT SERVICES 9,495 73,586 46,254 138,250 103,250 321,000 217,750 210.9% CAPITAL OUTLAY 2,261 71,806 2,677 94,160 148,320 10,000 (138,320) -93.3% UTILITIES 1,818 1,874 875 1,920 1,920 1,920 - 0.0% TRANSFERS OUT 27,994 142,276 - 116,640 116,640 239,420 122,780 105.3% CITY MANAGER Total 1,839,907 2,536,113 1,995,666 4,640,050 2,586,710 3,142,640 555,930 21.5%

CITY OF PALMDALE
FY 2027 DRAFT BUDGET

OPERATING EXPENDITURES-ALL FUNDS BY DEPARTMENT/DIVISION

Category 2024 Actuals 2025 Actuals
2026 YTD
Actual
2026
Adopted
2026
Projected
2027
Proposed $ Chg % Chg

CITY OF PALMDALE
FY 2027 DRAFT BUDGET

OPERATING EXPENDITURES-ALL FUNDS BY DEPARTMENT/DIVISION COMMUNICATIONS SALARIES 397,577 147,438 192,026 265,060 265,060 356,590 91,530 34.5% BENEFITS 152,106 71,570 85,846 135,830 114,830 146,390 31,560 27.5% ORG DEVELOPMENT 10,962 5,705 9,040 23,000 21,760 18,160 (3,600) -16.5% OPERATING EXP 1,157 2,675 658 3,000 3,000 3,000 - 0.0% CONTRACT SERVICES 885,749 1,772,949 993,229 2,475,000 1,696,600 1,786,000 89,400 5.3% CAPITAL OUTLAY 19,612 123 33 5,500 500 2,000 1,500 300.0% UTILITIES 1,041 444 - 600 600 600 - 0.0% CAPITAL - 392 - - - - - 0.0% TRANSFERS OUT 24,605 81,553 - 108,700 108,700 49,660 (59,040) -54.3% COMMUNICATIONS Total 1,492,808 2,082,848 1,280,832 3,016,690 2,211,050 2,362,400 151,350 6.8% LEGISLATIVE AFFAIRS SALARIES 155,864 66,647 89,168 190,820 190,820 123,340 (67,480) -35.4% BENEFITS 32,374 22,084 38,414 99,850 99,850 49,730 (50,120) -50.2% ORG DEVELOPMENT 7,083 - 8,691 13,520 9,020 8,320 (700) -7.8% CONTRACT SERVICES 237,266 305,200 258,800 379,200 379,200 379,200 - 0.0% LEGISLATIVE AFFAIRS Total 432,588 393,931 395,073 683,390 678,890 560,590 (118,300) -17.4% RECORDS MANAGEMENT SALARIES 61,204 73,590 105,937 98,940 143,940 155,060 11,120 7.7% BENEFITS 6,306 2,155 2,211 10,300 5,300 5,200 (100) -1.9% ORG DEVELOPMENT - 8 - 3,000 3,000 2,500 (500) -16.7% OPERATING EXP 1,727 5,010 1,395 6,200 6,200 6,700 500 8.1% CONTRACT SERVICES 12,702 8,103 10,921 97,850 97,850 91,150 (6,700) -6.8% CAPITAL OUTLAY - - 159 1,000 1,000 10,000 9,000 900.0% UTILITIES 10,418 15,376 8,094 15,630 15,630 16,100 470 3.0% RECORDS MANAGEMENT Total 92,358 104,242 128,718 232,920 272,920 286,710 13,790 5.1%

3. CITY MANAGER Total 4,830,539 6,435,161 4,437,450 9,626,080 6,820,100 7,812,280 992,180 14.5%

4. HUMAN RESOURCES
HUMAN RESOURCES SALARIES 609,361 579,987 654,529 840,320 840,320 910,750 70,430 8.4% BENEFITS 276,398 288,346 370,188 482,320 433,820 440,100 6,280 1.4% ORG DEVELOPMENT 4,977 14,270 14,863 43,500 43,500 44,900 1,400 3.2% OPERATING EXP 1,762,079 1,650,053 1,462,930 2,026,000 2,044,000 2,048,200 4,200 0.2% CONTRACT SERVICES 1,270,904 1,450,501 1,548,777 1,456,910 1,983,910 1,523,500 (460,410) -23.2% CAPITAL OUTLAY - 4,743 12,989 33,580 33,580 6,940 (26,640) -79.3% UTILITIES - - 1,468 - - 960 960 0.0% TRANSFERS OUT 28,668 83,893 - 126,810 126,810 97,010 (29,800) -23.5% HUMAN RESOURCES Total 3,952,388 4,071,794 4,065,743 5,009,440 5,505,940 5,072,360 (433,580) -7.9%

4. HUMAN RESOURCES Total 3,952,388 4,071,794 4,065,743 5,009,440 5,505,940 5,072,360 (433,580) -7.9%

Category 2024 Actuals 2025 Actuals
2026 YTD
Actual
2026
Adopted
2026
Projected
2027
Proposed $ Chg % Chg

CITY OF PALMDALE
FY 2027 DRAFT BUDGET

OPERATING EXPENDITURES-ALL FUNDS BY DEPARTMENT/DIVISION

5. OPERATIONS
AMERICAN RESCUE PLAN ACT OPERATING EXP 1,733,667 382,417 451,708 1,850,820 1,850,820 - (1,850,820) -100.0% CONTRACT SERVICES 208,925 302,157 76,072 107,970 107,970 - (107,970) -100.0% CAPITAL OUTLAY 27,216 15,046 - 4,730 4,730 - (4,730) -100.0% COUNTY CONTRACTS 2,000,000 - - - - - - 0.0% UTILITIES 2,174 160 - - - - - 0.0% AMERICAN RESCUE PLAN ACT Total 3,971,982 699,779 527,780 1,963,520 1,963,520 - (1,963,520) -100.0% ASSESSMENT DIST / CFD OPERATING EXP 500 - - - - - - 0.0% CONTRACT SERVICES 923,543 956,249 785,918 1,128,570 1,090,570 1,088,730 (1,840) -0.2% DEBT SERVICE 2,361,608 2,356,821 1,895,462 2,352,760 2,352,760 2,350,100 (2,660) -0.1% TRANSFERS OUT 147,000 159,150 - 176,940 171,680 162,000 (9,680) -5.6% ASSESSMENT DIST / CFD Total 3,432,652 3,472,220 2,681,380 3,658,270 3,615,010 3,600,830 (14,180) -0.4% EIFD OPERATING EXP - 152,341 22,954 50,000 50,000 100,000 50,000 100.0% EIFD Total - 152,341 22,954 50,000 50,000 100,000 50,000 100.0% FINANCE SALARIES 1,297,914 1,387,412 1,220,444 1,651,090 1,651,090 1,982,230 331,140 20.1% BENEFITS 666,182 676,750 595,659 846,150 846,650 917,700 71,050 8.4% ORG DEVELOPMENT 26,672 42,285 21,120 53,720 57,120 38,610 (18,510) -32.4% OPERATING EXP 31,954 98,434 30,146 248,500 250,500 261,630 11,130 4.4% CONTRACT SERVICES 732,918 935,551 202,134 733,950 727,300 722,010 (5,290) -0.7% CAPITAL OUTLAY 5,075 8,289 11,880 14,000 13,500 6,000 (7,500) -55.6% UTILITIES 1,503 621 599 2,000 800 700 (100) -12.5% DEBT SERVICE 203,562 - - 172,700 50,000 50,000 - 0.0% TRANSFERS OUT 9,375,180 4,548,171 - 4,952,410 5,113,390 1,374,990 (3,738,400) -73.1% GN/LS-SALE OF ASSET 274,481 - - - - - - 0.0% FINANCE Total 12,615,442 7,697,513 2,081,982 8,674,520 8,710,350 5,353,870 (3,356,480) -38.5% GENERAL CITY SALARIES 60,511 64,407 58,855 (320,000) (320,000) (73,380) 246,620 -77.1% BENEFITS 222,986 87,392 68,593 1,293,000 1,193,000 1,128,640 (64,360) -5.4% ORG DEVELOPMENT 105,844 105,062 104,048 162,330 162,330 117,670 (44,660) -27.5% OPERATING EXP 695,700 846,528 297,721 1,223,300 1,304,300 1,288,000 (16,300) -1.2% CONTRACT SERVICES 378,653 456,643 317,860 878,630 859,230 744,330 (114,900) -13.4% UTILITIES 65,877 81,654 50,633 76,500 81,500 81,500 - 0.0% CAPITAL 197,203 28,343,223 15,063 140,000 40,000 50,000 10,000 25.0% DEBT SERVICE 15,726,863 9,002,070 3,732,727 9,138,910 10,233,170 9,606,380 (626,790) -6.1% TRANSFERS OUT 8,515,119 7,230,407 - 8,583,010 19,807,350 9,498,520 (10,308,830) -52.0% GENERAL CITY Total 25,968,755 46,217,385 4,645,500 21,175,680 33,360,880 22,441,660 (10,919,220) -32.7%

Category 2024 Actuals 2025 Actuals
2026 YTD
Actual
2026
Adopted
2026
Projected
2027
Proposed $ Chg % Chg

CITY OF PALMDALE
FY 2027 DRAFT BUDGET

OPERATING EXPENDITURES-ALL FUNDS BY DEPARTMENT/DIVISION INFORMATION TECHNOLOGY SALARIES 753,711 884,644 740,518 903,950 905,950 970,140 64,190 7.1% BENEFITS 371,067 422,758 347,235 447,670 447,830 418,400 (29,430) -6.6% ORG DEVELOPMENT 10,623 8,181 11,259 17,000 17,000 13,000 (4,000) -23.5% OPERATING EXP 990,237 7,826 5,304 15,000 10,000 15,000 5,000 50.0% CONTRACT SERVICES 90,813 112,042 109,901 143,030 288,650 449,000 160,350 55.6% SOFTWARE 1,069,399 2,268,954 1,888,142 3,575,910 3,568,290 3,299,920 (268,370) -7.5% CAPITAL OUTLAY 176,134 160,156 164,950 210,000 210,000 170,000 (40,000) -19.0% UTILITIES 97,932 101,871 80,797 112,000 112,000 95,600 (16,400) -14.6% CAPITAL 307,063 496,597 654,250 1,489,930 1,489,930 665,160 (824,770) -55.4% INFORMATION TECHNOLOGY Total 3,866,978 4,463,029 4,002,356 6,914,490 7,049,650 6,096,220 (953,430) -13.5% PALMDALE COMMUNITY FOUNDATION OPERATING EXP 69,270 68,542 59,999 121,430 59,140 97,050 37,910 64.1% PALMDALE COMMUNITY FOUNDATION Total 69,270 68,542 59,999 121,430 59,140 97,050 37,910 64.1% RISK MANAGEMENT SALARIES 37,353 258,456 255,693 343,340 343,340 237,240 (106,100) -30.9% BENEFITS 21,957 135,099 110,755 181,710 181,710 120,410 (61,300) -33.7% ORG DEVELOPMENT 3,277 4,225 604 11,500 11,500 7,200 (4,300) -37.4% OPERATING EXP 19,764,893 12,461,749 9,497,365 10,788,470 10,703,470 6,138,980 (4,564,490) -42.6% CONTRACT SERVICES 1,179,442 950,602 329,814 1,233,250 833,250 670,500 (162,750) -19.5% CAPITAL OUTLAY - - 328 1,500 1,500 1,500 - 0.0% UTILITIES - 49 223 360 360 360 - 0.0% RISK MANAGEMENT Total 21,006,921 13,810,180 10,194,782 12,560,130 12,075,130 7,176,190 (4,898,940) -40.6% SUCCESSOR AGENCY OPERATING EXP 1,635,344 - - 200 200 - (200) -100.0% CONTRACT SERVICES 1,224,883 1,317,904 1,239,658 1,415,400 1,415,400 1,396,600 (18,800) -1.3% UTILITIES 97,520 102,032 12,957 111,500 111,500 94,400 (17,100) -15.3% PROGRAM EXP - - - 365,000 - - - 0.0% INTER-GOV SHARING 59,495,693 65,197,880 29,054,887 59,525,000 60,025,000 61,246,390 1,221,390 2.0% DEBT SERVICE 10,232,070 10,199,560 6,921,030 10,949,780 9,663,430 8,113,180 (1,550,250) -16.0% TRANSFERS OUT - 623,297 - 633,460 321,610 126,000 (195,610) -60.8% SUCCESSOR AGENCY Total 72,685,511 77,440,673 37,228,532 73,000,340 71,537,140 70,976,570 (560,570) -0.8%

5. OPERATIONS Total 143,617,510 154,021,662 61,445,263 128,118,380 138,420,820 115,842,390 (22,578,430) -16.3%

6. ECONOMIC & COMMUNITY DEVELOPMENT
ADMIN - ECONOMIC DEVELOPMENT SALARIES 483,621 422,070 344,402 553,770 553,770 652,600 98,830 17.8% BENEFITS 206,629 169,650 158,970 243,290 243,290 278,730 35,440 14.6% ORG DEVELOPMENT 15,622 4,836 9,535 14,500 14,500 13,500 (1,000) -6.9% OPERATING EXP 7,578 6,662 6,870 7,500 7,500 7,500 - 0.0% CONTRACT SERVICES 31,362 28,535 20,061 55,630 55,630 56,000 370 0.7% UTILITIES 540 528 643 1,300 1,300 1,300 - 0.0% TRANSFERS OUT 53,239 176,696 - 235,510 235,510 71,030 (164,480) -69.8% ADMIN - ECONOMIC DEVELOPMENT Total 798,590 808,976 540,482 1,111,500 1,111,500 1,080,660 (30,840) -2.8%

Category 2024 Actuals 2025 Actuals
2026 YTD
Actual
2026
Adopted
2026
Projected
2027
Proposed $ Chg % Chg

CITY OF PALMDALE
FY 2027 DRAFT BUDGET

OPERATING EXPENDITURES-ALL FUNDS BY DEPARTMENT/DIVISION AFFORDABLE HOUSING SALARIES 496,670 706,420 669,085 933,830 934,330 1,176,400 242,070 25.9% BENEFITS 228,504 345,067 314,429 467,060 467,060 552,870 85,810 18.4% ORG DEVELOPMENT 19,154 22,842 11,055 31,700 25,700 28,400 2,700 10.5% OPERATING EXP 1,342,581 514,230 345,289 7,573,590 1,720,160 10,640,660 8,920,500 518.6% CONTRACT SERVICES 4,297,664 4,685,431 3,033,514 6,173,130 5,337,970 5,744,160 406,190 7.6% CAPITAL OUTLAY 22,370 28,055 8,795 25,950 28,950 25,250 (3,700) -12.8% UTILITIES 1,028,315 1,568,592 914,471 1,561,320 1,633,140 1,621,660 (11,480) -0.7% PROGRAM EXP 2,140,048 751,109 355,546 20,415,330 4,951,600 20,174,000 15,222,400 307.4% CAPITAL 405,165 575,757 90,094 1,435,000 685,000 1,219,000 534,000 78.0% DEBT SERVICE 599,703 1,630,166 787,693 2,274,990 1,716,560 1,715,740 (820) 0.0% TRANSFERS OUT 159,718 530,088 - 706,520 706,520 154,840 (551,680) -78.1% AFFORDABLE HOUSING Total 10,739,889 11,357,758 6,529,971 41,598,420 18,206,990 43,052,980 24,845,990 136.5% BUILDING AND SAFETY SALARIES 1,418,618 1,869,967 1,454,090 2,043,050 1,943,050 1,879,510 (63,540) -3.3% BENEFITS 721,421 918,338 673,842 1,059,550 1,061,150 865,530 (195,620) -18.4% ORG DEVELOPMENT 28,144 32,122 16,927 42,700 42,700 36,900 (5,800) -13.6% OPERATING EXP 988 4,550 1,859 19,000 19,000 11,000 (8,000) -42.1% CONTRACT SERVICES 538,274 661,466 374,477 851,010 851,010 851,010 - 0.0% CAPITAL OUTLAY 3,322 1,562 896 4,000 4,000 4,000 - 0.0% UTILITIES 6,574 6,973 5,027 7,140 7,140 7,140 - 0.0% TRANSFERS OUT 106,578 288,550 - 385,120 385,120 289,260 (95,860) -24.9% BUILDING AND SAFETY Total 2,823,919 3,783,529 2,527,117 4,411,570 4,313,170 3,944,350 (368,820) -8.6% CDBG SALARIES 235,265 206,372 212,416 187,660 187,660 45,930 (141,730) -75.5% BENEFITS 19,528 24,605 15,362 21,500 21,500 23,390 1,890 8.8% ORG DEVELOPMENT 1,743 1,507 100 7,500 500 7,500 7,000 1400.0% OPERATING EXP 99,254 69,432 21,350 98,520 98,520 98,520 - 0.0% CONTRACT SERVICES 66,511 102,356 72,113 119,320 171,820 174,320 2,500 1.5% CAPITAL OUTLAY - - - 100 - 100 100 0.0% UTILITIES 17,060 646 - - - - - 0.0% PROGRAM EXP - - - 1,792,280 448,080 1,344,200 896,120 200.0% DEBT SERVICE 321,874 347,518 373,038 373,040 373,040 - (373,040) -100.0% CDBG Total 761,235 752,436 694,378 2,599,920 1,301,120 1,693,960 392,840 30.2% ECONOMIC DEVELOPMENT SALARIES 281,981 356,019 263,352 399,710 398,710 407,520 8,810 2.2% BENEFITS 131,838 158,838 112,500 152,520 152,520 160,500 7,980 5.2% ORG DEVELOPMENT 33,963 36,188 18,118 38,420 33,170 32,100 (1,070) -3.2% OPERATING EXP 320,402 1,051,716 808,639 2,046,640 1,371,630 4,008,760 2,637,130 192.3% CONTRACT SERVICES 430,609 347,441 452,798 952,340 912,340 771,400 (140,940) -15.4% CAPITAL OUTLAY - 851 - 1,500 1,500 1,500 - 0.0% UTILITIES 17,658 17,212 14,479 22,950 17,250 16,550 (700) -4.1% TRANSFERS OUT 24,571 81,553 - 108,700 108,700 56,830 (51,870) -47.7% ECONOMIC DEVELOPMENT Total 1,241,023 2,049,818 1,669,887 3,722,780 2,995,820 5,455,160 2,459,340 82.1%

Category 2024 Actuals 2025 Actuals
2026 YTD
Actual
2026
Adopted
2026
Projected
2027
Proposed $ Chg % Chg

CITY OF PALMDALE
FY 2027 DRAFT BUDGET

OPERATING EXPENDITURES-ALL FUNDS BY DEPARTMENT/DIVISION PLANNING SALARIES 814,636 960,642 925,854 1,233,100 1,231,600 1,328,670 97,070 7.9% BENEFITS 396,518 469,123 442,916 629,170 630,470 561,700 (68,770) -10.9% ORG DEVELOPMENT 16,866 9,870 11,719 21,920 21,920 16,360 (5,560) -25.4% OPERATING EXP 5,707 4,765 7,720 17,500 17,500 20,200 2,700 15.4% CONTRACT SERVICES 72,501 107,117 57,402 328,200 328,700 143,700 (185,000) -56.3% CAPITAL OUTLAY 2,908 280 - 3,000 3,000 3,000 - 0.0% UTILITIES 47 718 229 - 300 300 - 0.0% TRANSFERS OUT 49,145 165,617 - 217,390 217,390 170,480 (46,910) -21.6% PLANNING Total 1,358,327 1,718,132 1,445,839 2,450,280 2,450,880 2,244,410 (206,470) -8.4%

6. ECONOMIC & COMMUNITY DEVELOPMENT Total 17,722,984 20,470,649 13,407,674 55,894,470 30,379,480 57,471,520 27,092,040 89.2%

7. PUBLIC SAFETY
PUBLIC SAFETY SALARIES 2,685,189 2,071,465 2,077,093 3,285,940 3,282,940 3,550,870 267,930 8.2% BENEFITS 1,068,392 1,106,542 1,049,258 1,828,030 1,827,030 1,713,060 (113,970) -6.2% ORG DEVELOPMENT 15,683 24,482 28,808 36,000 36,000 32,270 (3,730) -10.4% OPERATING EXP 89,570 407,602 393,342 711,000 646,400 666,400 20,000 3.1% CONTRACT SERVICES 637,510 2,597,769 1,957,265 3,720,780 3,453,710 3,529,650 75,940 2.2% SOFTWARE - 12,000 - - - - - 0.0% CAPITAL OUTLAY 1,365 1,600 7,701 7,500 14,500 7,500 (7,000) -48.3% COUNTY CONTRACTS 30,852,379 33,366,712 25,152,368 39,004,510 39,077,240 40,181,580 1,104,340 2.8% UTILITIES 25,720 27,312 16,321 35,000 30,000 32,520 2,520 8.4% CAPITAL 433,314 - - - - - - 0.0% DEBT SERVICE 150,000 - - - - - - 0.0% TRANSFERS OUT 111,862 615,668 - 259,580 259,580 919,910 660,330 254.4% PUBLIC SAFETY Total 36,070,983 40,231,152 30,682,154 48,888,340 48,627,400 50,633,760 2,006,360 4.1%

7. PUBLIC SAFETY Total 36,070,983 40,231,152 30,682,154 48,888,340 48,627,400 50,633,760 2,006,360 4.1%

8. PARKS & RECREATION
COMMUNITY PROGRAMS SALARIES 299,270 350,342 310,953 496,710 500,710 691,310 190,600 38.1% BENEFITS 146,926 177,727 159,493 212,240 202,240 227,080 24,840 12.3% ORG DEVELOPMENT 2,835 1,919 - 6,350 6,350 6,350 - 0.0% OPERATING EXP 203,770 159,640 112,263 240,500 215,500 195,000 (20,500) -9.5% CONTRACT SERVICES 4,070 1,792 2,371 4,500 4,500 3,800 (700) -15.6% UTILITIES 606 5,976 9,506 25,300 18,700 19,200 500 2.7% COMMUNITY PROGRAMS Total 657,477 697,396 594,586 985,600 948,000 1,142,740 194,740 20.5% EVENTS & CULTURE SALARIES 1,288,250 1,554,952 1,339,881 1,880,900 1,883,900 1,987,230 103,330 5.5% BENEFITS 392,744 432,285 365,048 446,770 444,270 428,850 (15,420) -3.5% ORG DEVELOPMENT 9,194 5,024 12,418 14,100 17,510 17,900 390 2.2% OPERATING EXP 833,969 1,148,482 916,179 1,662,450 1,600,710 1,662,950 62,240 3.9% CONTRACT SERVICES 872,145 1,505,864 1,847,794 2,733,750 2,706,750 3,370,500 663,750 24.5% SOFTWARE 2,107 2,301 2,364 5,000 5,000 5,000 - 0.0% CAPITAL OUTLAY 34,174 41,193 33,515 60,900 60,900 17,500 (43,400) -71.3% UTILITIES 76,516 81,467 43,632 122,750 84,250 89,750 5,500 6.5% CAPITAL 31,939 8,388 - 45,000 35,000 30,000 (5,000) -14.3% EVENTS & CULTURE Total 3,541,038 4,779,956 4,560,830 6,971,620 6,838,290 7,609,680 771,390 11.3%

Category 2024 Actuals 2025 Actuals
2026 YTD
Actual
2026
Adopted
2026
Projected
2027
Proposed $ Chg % Chg

CITY OF PALMDALE
FY 2027 DRAFT BUDGET

OPERATING EXPENDITURES-ALL FUNDS BY DEPARTMENT/DIVISION LIBRARY SALARIES 34,448 8,275 7,996 8,000 8,000 - (8,000) -100.0% BENEFITS 2,126 260 251 - - - - 0.0% OPERATING EXP 293,296 364,332 264,196 376,000 373,500 373,500 - 0.0% CONTRACT SERVICES 1,097,023 1,198,664 1,024,251 1,333,040 1,334,040 1,340,660 6,620 0.5% CAPITAL OUTLAY 5,955 3,838 3,922 5,000 5,000 5,000 - 0.0% UTILITIES 51,414 46,334 53,901 60,600 75,100 75,600 500 0.7% TRANSFERS OUT 49,145 163,106 - 217,390 217,390 369,380 151,990 69.9% LIBRARY Total 1,533,407 1,784,808 1,354,518 2,000,030 2,013,030 2,164,140 151,110 7.5% PARKS & FACILITIES SALARIES 2,287,619 2,541,950 2,245,476 3,094,900 2,854,740 3,233,030 378,290 13.3% BENEFITS 595,237 707,810 761,501 1,018,750 1,017,650 891,610 (126,040) -12.4% ORG DEVELOPMENT 22,209 26,195 10,456 39,460 29,660 31,660 2,000 6.7% OPERATING EXP 492,605 351,117 337,410 713,100 692,200 698,100 5,900 0.9% CONTRACT SERVICES 176,197 273,001 760,505 1,206,600 932,600 654,300 (278,300) -29.8% CAPITAL OUTLAY 88,410 128,636 32,019 221,000 131,000 98,000 (33,000) -25.2% UTILITIES 382,010 412,119 316,326 533,150 476,300 494,650 18,350 3.9% CAPITAL 24,430 72,007 206,562 2,454,300 397,550 2,042,150 1,644,600 413.7% TRANSFERS OUT 351,423 1,005,654 - 1,350,370 1,350,370 1,603,250 252,880 18.7% PARKS & FACILITIES Total 4,420,140 5,518,488 4,670,256 10,631,630 7,882,070 9,746,750 1,864,680 23.7% RECREATION SERVICES SALARIES 2,399,467 2,611,026 1,992,040 2,870,020 2,870,020 3,059,740 189,720 6.6% BENEFITS 385,060 413,051 324,378 322,060 334,300 367,870 33,570 10.0% ORG DEVELOPMENT 10,197 13,327 7,580 18,930 14,030 16,930 2,900 20.7% OPERATING EXP 188,336 208,964 156,350 274,690 221,690 248,890 27,200 12.3% CONTRACT SERVICES 182,512 176,684 175,811 307,000 226,500 275,000 48,500 21.4% CAPITAL OUTLAY 17,216 36,187 64,392 73,870 73,870 25,350 (48,520) -65.7% UTILITIES 64,177 79,833 65,471 104,180 97,180 97,180 - 0.0% RECREATION SERVICES Total 3,246,964 3,539,072 2,786,023 3,970,750 3,837,590 4,090,960 253,370 6.6% EMERGENCY MANAGEMENT SALARIES 130,218 149,363 124,364 157,000 154,900 164,010 9,110 5.9% BENEFITS 71,246 78,057 64,030 82,280 82,280 78,720 (3,560) -4.3% ORG DEVELOPMENT 5,981 422 655 10,800 5,800 7,500 1,700 29.3% OPERATING EXP 15,826 21,393 15,062 31,500 21,000 25,250 4,250 20.2% CONTRACT SERVICES 11,781 6,200 50 40,800 25,800 15,800 (10,000) -38.8% CAPITAL OUTLAY 512 741 - 8,400 8,400 - (8,400) -100.0% UTILITIES 498 559 232 2,000 1,000 800 (200) -20.0% EMERGENCY MANAGEMENT Total 236,061 256,734 204,393 332,780 299,180 292,080 (7,100) -2.4%

8. PARKS & RECREATION Total 13,635,087 16,576,454 14,170,606 24,892,410 21,818,160 25,046,350 3,228,190 14.8%

9. PUBLIC WORKS
CAPITAL IMPROVEMENT PROJECTS SALARIES 351,913 296,273 125,836 - - - - 0.0% BENEFITS 368,291 323,110 61,375 - - - - 0.0% CAPITAL 38,359,581 79,449,431 32,464,648 229,884,880 233,082,080 72,678,030 (160,404,050) -68.8% CAPITAL IMPROVEMENT PROJECTS Total 39,079,785 80,068,814 32,651,859 229,884,880 233,082,080 72,678,030 (160,404,050) -68.8%

Category 2024 Actuals 2025 Actuals
2026 YTD
Actual
2026
Adopted
2026
Projected
2027
Proposed $ Chg % Chg

CITY OF PALMDALE
FY 2027 DRAFT BUDGET

OPERATING EXPENDITURES-ALL FUNDS BY DEPARTMENT/DIVISION ENGINEERING SALARIES 1,211,752 1,044,977 1,308,838 1,947,060 1,967,060 1,889,650 (77,410) -3.9% BENEFITS 561,738 493,515 619,092 1,032,100 1,032,900 865,270 (167,630) -16.2% ORG DEVELOPMENT 10,090 11,211 16,916 36,000 36,000 32,150 (3,850) -10.7% OPERATING EXP 9,430 5,676 5,128 20,100 20,100 20,500 400 2.0% CONTRACT SERVICES 382,478 153,780 314,193 1,337,700 1,322,700 1,542,700 220,000 16.6% CAPITAL OUTLAY 2,000 2,333 1,379 16,200 16,200 16,600 400 2.5% UTILITIES 10,154 13,799 10,357 23,150 16,150 15,950 (200) -1.2% DEBT SERVICE 17,787 - - - - - - 0.0% TRANSFERS OUT 35,921 59,988 - 83,350 83,350 37,730 (45,620) -54.7% ENGINEERING Total 2,241,350 1,785,278 2,275,902 4,495,660 4,494,460 4,420,550 (73,910) -1.6% ENVIRONMENTAL SALARIES 383,452 419,993 217,028 393,980 393,980 416,120 22,140 5.6% BENEFITS 185,635 183,010 114,807 205,450 205,450 203,630 (1,820) -0.9% ORG DEVELOPMENT 15,282 9,925 10,089 14,580 14,580 18,580 4,000 27.4% OPERATING EXP 5,762 2,780 2,293 13,000 13,000 5,000 (8,000) -61.5% CONTRACT SERVICES 202,978 364,486 352,247 1,112,710 1,072,710 321,060 (751,650) -70.1% SOFTWARE - - - - - 66,250 66,250 0.0% CAPITAL OUTLAY - 2,993 - 7,010 7,010 - (7,010) -100.0% UTILITIES 480 503 955 1,000 1,000 500 (500) -50.0% TRANSFERS OUT - - - - - 350,000 350,000 0.0% ENVIRONMENTAL Total 793,589 983,691 697,418 1,747,730 1,707,730 1,381,140 (326,590) -19.1% MAINTENANCE SALARIES 8,437,549 9,420,289 8,242,036 11,335,980 11,426,580 11,982,890 556,310 4.9% BENEFITS 4,702,858 5,170,363 4,373,990 6,510,370 6,502,320 6,199,490 (302,830) -4.7% ORG DEVELOPMENT 143,029 121,034 95,894 226,420 226,420 219,220 (7,200) -3.2% OPERATING EXP 4,516,062 4,602,641 2,546,298 7,004,430 6,290,430 5,571,080 (719,350) -11.4% CONTRACT SERVICES 8,545,288 10,655,331 8,197,096 17,806,860 17,690,860 16,279,750 (1,411,110) -8.0% CAPITAL OUTLAY 47,312 42,780 26,858 121,600 121,600 117,600 (4,000) -3.3% UTILITIES 5,061,415 5,991,005 4,226,924 6,816,750 6,967,250 7,197,900 230,650 3.3% CAPITAL 197,741 2,541,049 634,933 3,558,090 3,558,090 2,398,500 (1,159,590) -32.6% DEBT SERVICE 1,011,945 963,835 963,595 990,070 989,700 959,490 (30,210) -3.1% TRANSFERS OUT 3,565,970 6,619,110 - 9,007,750 9,007,750 7,018,120 (1,989,630) -22.1% MAINTENANCE Total 36,229,168 46,127,437 29,307,624 63,378,320 62,781,000 57,944,040 (4,836,960) -7.7% PALMDALE CCA SALARIES 121,749 139,401 120,315 164,990 164,990 179,030 14,040 8.5% BENEFITS 54,510 54,726 58,689 85,410 85,410 86,680 1,270 1.5% ORG DEVELOPMENT 6,194 6,997 2,802 25,000 25,000 31,000 6,000 24.0% OPERATING EXP 3,510 324 2,685 855,250 855,250 859,250 4,000 0.5% CONTRACT SERVICES 59,094,433 72,205,157 42,676,268 69,207,830 69,207,830 70,608,580 1,400,750 2.0% CAPITAL OUTLAY 2,403 - - 5,250 5,250 8,250 3,000 57.1% TRANSFERS OUT 4,095 13,761 - - - 20,580 20,580 0.0% PALMDALE CCA Total 59,286,894 72,420,367 42,860,759 70,343,730 70,343,730 71,793,370 1,449,640 2.1%

Category 2024 Actuals 2025 Actuals
2026 YTD
Actual
2026
Adopted
2026
Projected
2027
Proposed $ Chg % Chg

CITY OF PALMDALE
FY 2027 DRAFT BUDGET

OPERATING EXPENDITURES-ALL FUNDS BY DEPARTMENT/DIVISION PUBLIC WORKS - ADMINISTRATION SALARIES 1,128,880 1,226,230 813,686 1,180,060 1,179,060 1,369,310 190,250 16.1% BENEFITS (168,992) (121,296) 358,771 (363,420) (363,350) (650,040) (286,690) 78.9% ORG DEVELOPMENT 14,850 15,131 18,815 31,200 31,830 23,800 (8,030) -25.2% OPERATING EXP 4,900 8,245 6,861 11,000 11,000 10,500 (500) -4.5% CONTRACT SERVICES 81,047 272,388 118,287 1,512,000 1,137,000 1,277,500 140,500 12.4% CAPITAL OUTLAY 2,597 165 - 6,000 6,000 5,000 (1,000) -16.7% UTILITIES 2,620 3,596 1,640 3,860 3,860 4,640 780 20.2% DEBT SERVICE 9,360 - - 10,200 10,200 - (10,200) -100.0% TRANSFERS OUT 6,840 11,422 - 15,880 15,880 36,890 21,010 132.3% PUBLIC WORKS - ADMINISTRATION Total 1,082,102 1,415,881 1,318,059 2,406,780 2,031,480 2,077,600 46,120 2.3%

9. PUBLIC WORKS Total 138,712,887 202,801,468 109,111,620 372,257,100 374,440,480 210,294,730 (164,145,750) -43.8% Grand Total 361,444,725 449,288,134 239,977,406 647,779,190 630,588,700 476,199,820 (154,388,880) -24.5%

Description Project Description 2024 Actuals 2025 Actuals 2026 Budget 2026 YTD
Actual
2026
Projected
2027
Proposed

1. Revenue

1. Revenue REVENUE 23,807,078 24,123,988 24,068,000 13,656,708 23,654,330 24,377,710

1. Revenue Total 23,807,078 24,123,988 24,068,000 13,656,708 23,654,330 24,377,710

2. Expenditure
A. Public Safety PUBLIC SAFETY 1,756,230 1,250,439 1,368,530 1,428,022 1,332,230 2,016,360 PUBLIC SAFETY INDEPENDENT ANIMAL SVCS FEASABILITY 67,279 - - - - - PUBLIC SAFETY ANIMAL HEALTH SVCS 143,352 122,792 445,780 178,453 300,000 300,000 PUBLIC SAFETY SHERIFF-GENERAL CONTRACT 1,838,470 1,893,600 2,143,710 1,429,140 2,143,710 4,193,020 PUBLIC SAFETY SHERIFF - INFRASTRUCTURE/COMMERCIAL 227,380 234,200 265,140 176,760 265,140 271,240 PUBLIC SAFETY SHERIFF-COMMUNITY PROGRAMS 4,092,650 4,215,400 4,772,190 3,181,460 4,772,190 4,881,950 PUBLIC SAFETY SHERIFF-ECON DEV 1,050,600 1,082,100 1,225,030 1,633,373 1,225,030 1,253,210 EMERGENCY MANAGEMENT 201,464 227,420 240,080 188,587 237,380 242,730 A. Public Safety Total 9,377,425 9,025,951 10,460,460 8,215,796 10,275,680 13,158,510 B. Beautification/Infrastructure/CIP PARK MAINTENANCE MAV 293,385 516,279 8,000 104,179 223,320 515,620 PARK MAINTENANCE MAV EMERGENCY INC-HURRICANE HILARY 1,729 - - - - - LANDSCAPE MAINTENANCE - 217,273 - - - -
FLEET MAINTENANCE 145,077 - - - - -
COMMUNITY PRESERVATION - 6,019 2,365,330 1,273,410 2,395,330 2,208,130 CITY WIDE SECURITY 364,792 162,950 355,740 35,511 110,000 - HAMMACK CNT DEMO - 38,365 128,570 10,775 10,780 - CHIMBOLE/LIBRARY/CITY HALL IMP - 185,911 1,526,850 - 1,526,850 - PUB FACILITY ENERGY EFFICIENCY SPORTSFIELD LIGHTING - 3,201,521 3,000,870 766,830 766,830 - BATTERY STORAGE MCADAM 442,795 441,786 118,050 - - - SAM YELLEN PARK 5,745,599 4,792,827 1,290,570 616,172 1,290,570 850,000 MK PARK SWIM DECK 65,925 34,755 - 23,065 - - SPORTS FIELD MAINTENANCE 94,155 131,712 9,440 - 9,440 - SPORTS FIELD MAINTENANCE PARK IMPR TURF AND PAINT 21,467 26,592 34,080 27,750 34,080 - SPORTS FIELD MAINTENANCE PARK IMPR OASIS PLYGRND 723,131 689 - - - - SPORTS FIELD MAINTENANCE PARK IMPR DESERT SANDS PLYGRND 802,603 689 - - - - SPORTS FIELD MAINTENANCE PARK IMPR DESERT SANDS PARK 55,265 137,754 269,430 - 269,430 - SPORTS FIELD MAINTENANCE PARK IMPR CONCRETE RPR 215,670 134,076 198,910 127 198,910 - SPORTS FIELD MAINTENANCE PARK IMPR BIRD MITIGATION 29,400 - - - - - SPORTS FIELD MAINTENANCE PARK IMPR BALLFIELD FENCING - 144,022 220,000 25,400 220,000 - SPORTS FIELD MAINTENANCE SOCCER FIELD RENOVATION 191,061 30,118 590,500 175,956 590,500 - PARK MASTER PLAN 79,299 2,579 - - - -
SPORTS FIELD LED LIGHT RETROFI 964,041 - - - - 1,530,000 BOTW SNACK BAR - 17,550 482,450 432,706 482,450 - MCADAM PARK RENOV 125,015 269,678 10,156,560 332,625 10,356,560 - COURSON REVITALIZATION - - 2,356,900 - 2,356,900 - MK PARK POOL ENCLOSURE - - 702,530 - 702,530 - MCADAM CULTURAL ART - - 150,000 - 44,830 105,170 DRYTOWN DROPSLIDE - - 1,149,980 8,871 1,149,980 - PARKING ENF/SIGNAGE/SWEEPING 16,439 10,329 - - - - PARKING ENF/SIGNAGE/SWEEPING PARKING ENF/SIGNAGE/SWEEPING 104,715 326,954 29,670 27,648 29,670 - OASIS PARK BASIN UPGRADE - - - - - 2,500,000 B. Beautification/Infrastructure/CIP Total 10,593,582 11,168,811 25,480,050 4,033,815 23,104,580 7,708,920

CITY OF PALMDALE
FY 2027 PROPOSED BUDGET

MEASURE AV FUND

Description Project Description 2024 Actuals 2025 Actuals 2026 Budget 2026 YTD
Actual
2026
Projected
2027
Proposed

CITY OF PALMDALE
FY 2027 PROPOSED BUDGET

MEASURE AV FUND
C. Community Programs MAV ADMINISTRATION 1,900 5,487 1,125,000 5,700 25,000 25,000 MAV ADMINISTRATION COMMUNITY PARTNERSHIPS MAV - 50,000 50,000 - 15,000 55,000 COMMUNITY PROGRAMS - - - - - 70,000 MAV S.A.V.E.S. 89,609 141,127 312,340 72,887 295,740 662,820 MAV S.A.V.E.S. UNHOUSED PROGRAMS 135,025 75,157 110,000 51,219 85,000 90,000 PARKS ADMIN MAV 13,232 13,784 30,000 14,184 30,000 30,000 SENIOR CENTER MAV 319,166 346,348 455,950 292,528 436,050 414,560 SENIOR CENTER MAV PART-TIME RENTALS 24,446 23,466 50,910 26,832 52,410 56,670 SPECIAL EVENTS MAV 833,075 1,050,362 1,125,670 862,306 1,125,670 1,194,090 SPECIAL EVENTS MAV HOSTED EVENTS 11,044 19,941 355,060 67,109 355,060 354,010 C. Community Programs Total 1,427,496 1,725,671 3,614,930 1,392,766 2,419,930 2,952,150 D. Economic Development MAV ECON DEV - 2,318 - - - - MAV ECON DEV BUSINESS RETENTION 72,636 175,175 184,370 132,523 154,370 193,500 MAV ECON DEV AUTO MALL PARTNERSHIP 33,390 565,056 500,000 344,511 500,000 500,000 MAV ECON DEV AEROSPACE INCENTIVE 62,500 62,500 625,000 125,000 250,000 500,000 MAV ECON DEV PROPERTY ACQUISITION/ENTITLEMENT 30,703 143,989 507,010 105,823 257,000 1,500,000 MAV ECON DEV FILM & TOURISM 75,114 24,676 100,000 30,756 80,000 135,000 D. Economic Development Total 274,343 973,715 1,916,380 738,612 1,241,370 2,828,500 E. Administrative Costs MAV ADMINISTRATION 10,000 - 10,000 - 10,000 - MAV ADMINISTRATION 77,972 86,867 98,000 78,293 98,000 220,260 E. Administrative Costs Total 87,972 86,867 108,000 78,293 108,000 220,260 Grand Total 45,567,896 47,105,002 65,647,820 28,115,991 60,803,890 51,246,050 Expenditure Total 21,760,818 22,981,015 41,579,820 14,459,283 37,149,560 26,868,340 Surplus/(Deficit) 2,046,259 1,142,973 (17,511,820) (802,575) (13,495,230) (2,490,630) Beginning Fund Balance 22,759,039 9,263,809
Change in Fund Balance (13,495,230) (2,490,630)
Ending Fund Balance - Before Reserves 9,263,809 6,773,179 Reserve Requirement - 10% (Presented 25% for FY27) 3,714,956 6,717,085 Ending Fund Balance - After Reserves 5,548,853 56,094

CIP Description Fund Fund Description
2026 YTD
Actual 2026 Adopted
2027 Final
Proposed Budget
Total
Proposed CIP
Budget
B0004 ADA COMPLIANCE 203 PROP A FUND - 395,420 - 395,420 206 LOCAL TRANSP FUND ART 3 23,800 204,930 - 204,930 220 PARK DEVELOPMENT FUND 34,153 125,000 - 125,000 B0004 Total 57,953 725,350 - 725,350 B0013 ADA COMP-AVE Q 12/10TH-12TH E 214 PROP C LOCAL RETURN - 55,800 - 55,800 280 CDBG FUND 6,330 65,760 - 65,760 B0013 Total 6,330 121,560 - 121,560 B0XX1 RVB ADA & SIDEWALK GAP CLOSURE 201 GAS TAX FUND - - 500,000 500,000 280 CDBG FUND - - 1,000,000 1,000,000 B0XX1 Total - - 1,500,000 1,500,000 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 2,468 19,620 - 19,620 D0004 Total 2,468 19,620 - 19,620 D0008 AMARGOSA CRK UPPER RECHG PROJ 156 PUBLIC ART FUND - 1,000 89,000 90,000 211 MEASURE A LA COUNTY PARKS 388,292 915,680 - 915,680 222 AMARGOSA DRAINAGE FUND 13,031 502,920 - 502,920 223 ANAVERDE DRAINAGE FUND - 296,920 - 296,920 224 PORTAL RIDGE DRAINAGE FUND - 448,700 - 448,700 225 PEARLAND DRAINAGE FUND 34,870 944,200 - 944,200 226 LITTLEROCK DRAINAGE FUND 24,260 50,000 - 50,000 230 BIG ROCK DRAINAGE FUND 22,822 73,400 - 73,400 D0008 Total 483,275 3,232,820 89,000 3,321,820 D0118 PEARLAND DRAINAGE PLAN STUDY 225 PEARLAND DRAINAGE FUND - 500,330 - 500,330 D0118 Total - 500,330 - 500,330 D0119 OASIS PARK BASIN UPGRADE 157 MEASURE AV - - 2,500,000 2,500,000 225 PEARLAND DRAINAGE FUND 83,919 1,158,650 - 1,158,650 D0119 Total 83,919 1,158,650 2,500,000 3,658,650 D0120 40TH E/AVE R DRAINAGE IMPRV 225 PEARLAND DRAINAGE FUND 62,927 2,257,630 - 2,257,630 D0120 Total 62,927 2,257,630 - 2,257,630 D0171 DRNG IMPR 25 W OLIVE DR/AVE S 225 PEARLAND DRAINAGE FUND - - - - D0171 Total - - - - D0173 TS HILARY-BERNARDIN WALL RPR 225 PEARLAND DRAINAGE FUND - - - - D0173 Total - - - -

CITY OF PALMDALE
FY 2027 DRAFT BUDGET

CAPITAL IMPROVEMENT PROGRAM

CIP Description Fund Fund Description
2026 YTD
Actual 2026 Adopted
2027 Final
Proposed Budget
Total
Proposed CIP
Budget

CITY OF PALMDALE
FY 2027 DRAFT BUDGET

CAPITAL IMPROVEMENT PROGRAM
D0XX1 PUMP REPLC&REPAIR 218 MEASURE R LOCAL RETURN - - 375,000 375,000 223 ANAVERDE DRAINAGE FUND - - 375,000 375,000 D0XX1 Total - - 750,000 750,000 F0010 CITY FACILITIES 101 GENERAL FUND 73 - - - 157 MEASURE AV 172,790 335,620 - 335,620 229 PUBLIC FACILITIES FUND 71,135 494,930 - 494,930 240 FEDERAL FUNDS FUND 656,983 1,211,610 - 1,211,610 CITY FACILITIES ARPA 158 AMERICAN RESCUE PLAN FUND - 3,801,330 - 3,801,330 F0010 Total 900,981 5,843,490 - 5,843,490 F0028 PTC WAYFINDING SIGNAGE 203 PROP A FUND - 100,000 - 100,000 F0028 Total - 100,000 - 100,000 F0047 LIBRARY IMPROVEMENTS 241 STATE GRANTS FUND 273,000 273,000 - 273,000 F0047 Total 273,000 273,000 - 273,000 F0052 PLAYHOUSE HVAC UPGRADE 220 PARK DEVELOPMENT FUND - - - - 229 PUBLIC FACILITIES FUND - - - - F0052 Total - - - - F0060 PTC TRANSIT INFRSTR IMPR 209 MEASURE M FUND - 1,659,330 - 1,659,330 F0060 Total - 1,659,330 - 1,659,330 F0062 SAVES/OASIS GENERATORS 241 STATE GRANTS FUND - - - - F0062 Total - - - - F0083 CITY WIDE SECURITY 157 MEASURE AV 35,511 110,000 - 110,000 203 PROP A FUND - - - - F0083 Total 35,511 110,000 - 110,000 F0121 CITY DEV SVCS ELEVATOR REPAIR 229 PUBLIC FACILITIES FUND - 118,850 - 118,850 F0121 Total - 118,850 - 118,850 F0122 FIRE SUPRESSION RETROFITTING 229 PUBLIC FACILITIES FUND - - - - F0122 Total - - - - F0137 OASIS GENERATOR 158 AMERICAN RESCUE PLAN FUND - - - - F0137 Total - - - - F0148 OASIS REC CNTR ROOF 101 GENERAL FUND - - - - F0148 Total - - - - F0156 HAMMACK CNT DEMO 157 MEASURE AV 10,775 10,780 - 10,780 158 AMERICAN RESCUE PLAN FUND - - - - F0156 Total 10,775 10,780 - 10,780

CIP Description Fund Fund Description
2026 YTD
Actual 2026 Adopted
2027 Final
Proposed Budget
Total
Proposed CIP
Budget

CITY OF PALMDALE
FY 2027 DRAFT BUDGET

CAPITAL IMPROVEMENT PROGRAM
F0161 CHIMBOLE/LIBRARY/CITY HALL IMP 101 GENERAL FUND - 12,019,100 - 12,019,100 157 MEASURE AV - 1,526,850 - 1,526,850 158 AMERICAN RESCUE PLAN FUND 478,199 4,289,250 - 4,289,250 280 CDBG FUND - - - - F0161 Total 478,199 17,835,200 - 17,835,200 F0164 FACILITIES REPAIR P&R BLDG 229 PUBLIC FACILITIES FUND 2,520 31,050 - 31,050 F0164 Total 2,520 31,050 - 31,050 F0178 SAVES TENANT IMPR 158 AMERICAN RESCUE PLAN FUND 247,000 1,435,520 - 1,435,520 280 CDBG FUND - 1,000,000 - 1,000,000 F0178 Total 247,000 2,435,520 - 2,435,520 F0188 TV LINC 158 AMERICAN RESCUE PLAN FUND - - - - F0188 Total - - - - F0XX1 IT SERVER AND COMM RM RENO 229 PUBLIC FACILITIES FUND - - 2,000,000 2,000,000 F0XX1 Total - - 2,000,000 2,000,000 F0XX2 CITY FACILITIES AERO BLDG 101 GENERAL FUND - - 250,000 250,000 229 PUBLIC FACILITIES FUND - - 250,000 250,000 F0XX2 Total - - 500,000 500,000 F0XX3 DEV SVCS CARPET 229 PUBLIC FACILITIES FUND - - 280,000 280,000 F0XX3 Total - - 280,000 280,000 F0XX4 CITY FACILITIES AERO BLDG 101 GENERAL FUND - - 110,000 110,000 F0XX4 Total - - 110,000 110,000 G0007 PAVEMENT MANAGEMENT PROGRAM 207 LOCAL TRANSP FUND ART 8 50,128 346,520 - 346,520 214 PROP C LOCAL RETURN 51,088 166,960 - 166,960 G0007 Total 101,216 513,480 - 513,480 G0026 PUBLIC WORKS SOFTWARE UPGRADE 201 GAS TAX FUND 9,000 105,320 - 105,320 G0026 Total 9,000 105,320 - 105,320 G0027 RITTER RANCH CFD 93-1 DEP AGMT 101 GENERAL FUND - - - - G0027 Total - - - - G0028 HIGH SPEED RAIL ADM REIMB AGMT 241 STATE GRANTS FUND - - - - G0028 Total - - - - G0030 GENERAL PLAN UPDATE 101 GENERAL FUND 75 80 - 80 241 STATE GRANTS FUND - - - - G0030 Total 75 80 - 80 G0095 PUB FAC ENERGY EFFICIENCY 101 GENERAL FUND - - - - 158 AMERICAN RESCUE PLAN FUND - - - - PUB FACILITY ENERGY EFFICIENCY 157 MEASURE AV 766,830 766,830 - 766,830 G0095 Total 766,830 766,830 - 766,830

CIP Description Fund Fund Description
2026 YTD
Actual 2026 Adopted
2027 Final
Proposed Budget
Total
Proposed CIP
Budget

CITY OF PALMDALE
FY 2027 DRAFT BUDGET

CAPITAL IMPROVEMENT PROGRAM
G0096 BATTERY STORAGE MCADAM 157 MEASURE AV - - - - BATTERY STORAGE PROJECT 205 AIR QUALITY IMPROVEMENT FUND 211,750 211,750 - 211,750 G0096 Total 211,750 211,750 - 211,750 G0157 DIGITAL EQUITY STUDY 241 STATE GRANTS FUND 65,749 254,930 - 254,930 G0157 Total 65,749 254,930 - 254,930 G0165 EECBG GRANT 241 STATE GRANTS FUND - - - - G0165 Total - - - - G0167 FACILITY ENERGY EFFICIENCY 101 GENERAL FUND - - - - G0167 Total - - - - G0168 RECORD DIGITIZATION 158 AMERICAN RESCUE PLAN FUND 132,826 463,050 - 463,050 G0168 Total 132,826 463,050 - 463,050 G0171 MULTIAGENCY REGIONAL RES CNTR 101 GENERAL FUND - - - - G0171 Total - - - - G0172 DOT CHARGING FACILITY INFR 240 FEDERAL FUNDS FUND - 1,844,000 - 1,844,000 G0172 Total - 1,844,000 - 1,844,000 G0XX1 ENGINEERING STUDIES 218 MEASURE R LOCAL RETURN - - 500,000 500,000 G0XX1 Total - - 500,000 500,000 L0013 LMD DESIGN AND RENOVATION 251 LANDSCAPE MAINTENANCE FUND - 206,280 - 206,280 L0013 Total - 206,280 - 206,280 L0088 PALM BLVD/47TH LNDSCP 214 PROP C LOCAL RETURN 27,565 147,990 - 147,990 L0088 Total 27,565 147,990 - 147,990 L0193 LMD 24 BOLZ RANCH RD 251 LANDSCAPE MAINTENANCE FUND - 287,120 - 287,120 L0193 Total - 287,120 - 287,120 L0194 LMD 24 N8/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 19,072 20,000 - 20,000 157 MEASURE AV 616,172 1,290,570 850,000 2,140,570 211 MEASURE A LA COUNTY PARKS - - - - 220 PARK DEVELOPMENT FUND 549,987 549,990 - 549,990 241 STATE GRANTS FUND 260,000 260,000 - 260,000 P0009 Total 1,445,231 2,120,560 850,000 2,970,560 P0027 DRY TOWN WP-REFURBISHMENT 250 PARK ASSESSMENTS FUND - 300,000 - 300,000 P0027 Total - 300,000 - 300,000 P0042 COMMUNITY PUBLIC ART PROJECTS 156 PUBLIC ART FUND - - - - 242 MISC GRANT/DEVELOPER CONTRIB - - - - P0042 Total - - - -

CIP Description Fund Fund Description
2026 YTD
Actual 2026 Adopted
2027 Final
Proposed Budget
Total
Proposed CIP
Budget

CITY OF PALMDALE
FY 2027 DRAFT BUDGET

CAPITAL IMPROVEMENT PROGRAM
P0052 MARIE KERR PARK N RIDE 203 PROP A FUND 14,290 4,616,260 2,000,000 6,616,260 211 MEASURE A LA COUNTY PARKS - - 2,383,740 2,383,740 224 PORTAL RIDGE DRAINAGE FUND - 1,000,000 - 1,000,000 P0052 Total 14,290 5,616,260 4,383,740 10,000,000 P0055 ARNIE QUINONES PARK 220 PARK DEVELOPMENT FUND - 175,000 250,000 425,000 P0055 Total - 175,000 250,000 425,000 P0105 MK PARK SWIM DECK 157 MEASURE AV 23,065 - - - 211 MEASURE A LA COUNTY PARKS 571,712 610,310 - 610,310 P0105 Total 594,777 610,310 - 610,310 P0109 SPORTS FIELD MAINTENANCE 157 MEASURE AV 229,233 1,322,360 - 1,322,360 P0109 Total 229,233 1,322,360 - 1,322,360 P0110 PARK MASTER PLAN 157 MEASURE AV - - - - P0110 Total - - - - P0111 SPORTS FIELD LED LIGHT RETROFI 157 MEASURE AV - - 1,530,000 1,530,000 P0111 Total - - 1,530,000 1,530,000 P0115 DESERT SANDS PARK IMPROVEMENTS 229 PUBLIC FACILITIES FUND - - - - P0115 Total - - - - P0117 BOTW SNACK BAR 101 GENERAL FUND 182,609 270,200 - 270,200 157 MEASURE AV 432,706 482,450 - 482,450 158 AMERICAN RESCUE PLAN FUND - - - - P0117 Total 615,315 752,650 - 752,650 P0130 MCADAM PARK RENO 242 MISC GRANT/DEVELOPER CONTRIB - 275,000 - 275,000 MCADAM PARK RENOV 157 MEASURE AV 332,625 10,356,560 - 10,356,560 254 SEWER MAINT ASSESSMENT DIST - 200,000 - 200,000 P0130 Total 332,625 10,831,560 - 10,831,560 P0131 COURSON REVITALIZATION 101 GENERAL FUND - 150,000 - 150,000 157 MEASURE AV - 2,356,900 - 2,356,900 COURSON REVITALIZATION GRNT 242 MISC GRANT/DEVELOPER CONTRIB 71,817 3,787,310 - 3,787,310 P0131 Total 71,817 6,294,210 - 6,294,210 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 75,000 157 MEASURE AV - 44,830 105,170 150,000 220 PARK DEVELOPMENT FUND - - 350,000 350,000 P0151 Total - 44,830 530,170 575,000

CIP Description Fund Fund Description
2026 YTD
Actual 2026 Adopted
2027 Final
Proposed Budget
Total
Proposed CIP
Budget

CITY OF PALMDALE
FY 2027 DRAFT BUDGET

CAPITAL IMPROVEMENT PROGRAM
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 94,406 275,000 - 275,000 P0180 Total 94,406 275,000 - 275,000 P0181 DT LITTLE MINER REFURB 300 WATER PARK 3,271 80,120 - 80,120 P0181 Total 3,271 80,120 - 80,120 P0182 DT PATHWAY LIGHTING RETROFIT 300 WATER PARK - 316,040 - 316,040 P0182 Total - 316,040 - 316,040 P0183 DT SPLASH POOL REPAIR 300 WATER PARK - - - - P0183 Total - - - - P0184 DT TWR B MECHANICAL REFURB 300 WATER PARK - 156,380 - 156,380 P0184 Total - 156,380 - 156,380 P0185 DT TWR B REPAIRS 300 WATER PARK 89 44,000 - 44,000 P0185 Total 89 44,000 - 44,000 P0190 ADA SIDEWALKS 280 CDBG FUND 270,045 649,690 - 649,690 P0190 Total 270,045 649,690 - 649,690 P0191 ADA PLAYGROUND IMPR 280 CDBG FUND - 500,000 - 500,000 P0191 Total - 500,000 - 500,000 P0192 DRYTOWN DROPSLIDE 101 GENERAL FUND 1,355,187 2,823,850 - 2,823,850 157 MEASURE AV 8,871 1,149,980 - 1,149,980 P0192 Total 1,364,058 3,973,830 - 3,973,830 P0XX2 DESERT SANDS BASEBALL FIELD IMPR 211 MEASURE A LA COUNTY PARKS - - - - P0XX2 Total - - - - P0XX3 DESERT SANDS LIGHTING 211 MEASURE A LA COUNTY PARKS - - - - P0XX3 Total - - - - P0XX6 DRYTOWN KITCHEN REFURB 300 WATER PARK - - 500,000 500,000 P0XX6 Total - - 500,000 500,000 P0XX7 DRYTOWN PA SYSTEM DESIGN AND INSTALL300 WATER PARK - - 150,000 150,000 P0XX7 Total - - 150,000 150,000 S0025 STREET RESURFACING PROGRAM 201 GAS TAX FUND 7,371,434 8,721,500 200,000 8,921,500 207 LOCAL TRANSP FUND ART 8 146,047 499,010 - 499,010 210 ROAD MAINT & REHAB ACCT FUND 1,518,318 1,709,270 - 1,709,270 214 PROP C LOCAL RETURN 1,676,917 3,452,400 - 3,452,400 218 MEASURE R LOCAL RETURN - - 3,913,440 3,913,440 S0025 Total 10,712,716 14,382,180 4,113,440 18,495,620

CIP Description Fund Fund Description
2026 YTD
Actual 2026 Adopted
2027 Final
Proposed Budget
Total
Proposed CIP
Budget

CITY OF PALMDALE
FY 2027 DRAFT BUDGET

CAPITAL IMPROVEMENT PROGRAM
S0040 RANCHO VISTA GRADE SEP PH II 201 GAS TAX FUND 56,102 893,570 - 893,570 208 MEASURE R FUND - 500,000 - 500,000 RANCHO VISTA GRADE SEP PH 2 218 MEASURE R LOCAL RETURN - - 500,000 500,000 RVB GRADE SEPARATION PHASE II 240 FEDERAL FUNDS FUND - - 23,000,000 23,000,000 S0040 Total 56,102 1,393,570 23,500,000 24,893,570 S0044 NO CO FORUMITS EXPANSION 204 PROP C FUND 680,194 936,040 - 936,040 NO CO FORUM ITS EXPANSION 203 PROP A FUND 201,013 2,190,590 - 2,190,590 S0044 Total 881,206 3,126,630 - 3,126,630 S0049 SR 138 PALMDALE BLVD 5TH/10TH 208 MEASURE R FUND 353,187 19,442,630 - 19,442,630 S0049 Total 353,187 19,442,630 - 19,442,630 S0050 SR 138/10TH ST W INTERCHANGE 208 MEASURE R FUND 18,430 23,447,170 - 23,447,170 S0050 Total 18,430 23,447,170 - 23,447,170 S0051 SR 138/PLMDL BLVD SB 14 RAMP 208 MEASURE R FUND 8,466,761 22,549,870 - 22,549,870 209 MEASURE M FUND 936,924 1,156,200 - 1,156,200 S0051 Total 9,403,685 23,706,070 - 23,706,070 S0052 SR 138(SR 14) WDEN RVB TO BLVD 208 MEASURE R FUND - - - - S0052 Total - - - - 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 374,785 374,790 - 374,790 207 LOCAL TRANSP FUND ART 8 27,737 27,740 - 27,740 209 MEASURE M FUND (6,296) - - - 240 FEDERAL FUNDS FUND - - - - S0058 Total 396,226 402,530 - 402,530 S0061 AVENUE R ITS SIGNAL SYNC 203 PROP A FUND 78,804 583,980 - 583,980 204 PROP C FUND - 2,880,170 - 2,880,170 S0061 Total 78,804 3,464,150 - 3,464,150 S0062 COUNTY PAVEMENT PROJ 207 LOCAL TRANSP FUND ART 8 46,963 242,990 - 242,990 210 ROAD MAINT & REHAB ACCT FUND - - - - COUNTY PAVEMENT PROJ CONTRIB 201 GAS TAX FUND - 735,780 - 735,780 254 SEWER MAINT ASSESSMENT DIST - 364,800 - 364,800 COUNTY PAVEMENT PROJECT 218 MEASURE R LOCAL RETURN - 168,900 - 168,900 219 MEASURE M LOCAL RETURN - 575,090 - 575,090 S0062 Total 46,963 2,087,560 - 2,087,560

CIP Description Fund Fund Description
2026 YTD
Actual 2026 Adopted
2027 Final
Proposed Budget
Total
Proposed CIP
Budget

CITY OF PALMDALE
FY 2027 DRAFT BUDGET

CAPITAL IMPROVEMENT PROGRAM
S0066 HSIP ROUNDABOUT @ S-8 & 40TH E 208 MEASURE R FUND - - - - 240 FEDERAL FUNDS FUND - - - - S8 & 40TH EAST 218 MEASURE R LOCAL RETURN 159,044 159,050 - 159,050 S8 & 40TH EST 156 PUBLIC ART FUND - - - - S0066 Total 159,044 159,050 - 159,050 S0067 CIVIC CENTER COMPLETE STREETS 201 GAS TAX FUND 182 251,400 - 251,400 218 MEASURE R LOCAL RETURN 26,626 304,950 - 304,950 219 MEASURE M LOCAL RETURN 27,928 149,630 - 149,630 241 STATE GRANTS FUND 52,921 282,800 - 282,800 S0067 Total 107,657 988,780 - 988,780 S0072 RV AND SIERRA AT GRADE SEP 204 PROP C FUND - 1,272,290 - 1,272,290 S0072 Total - 1,272,290 - 1,272,290 S0075 RV BLVD SH RR SAFETY CROSSING 240 FEDERAL FUNDS FUND 20,988 3,633,560 - 3,633,560 S0075 Total 20,988 3,633,560 - 3,633,560 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 214 PROP C LOCAL RETURN - - - - 219 MEASURE M LOCAL RETURN 1,533 500,000 - 500,000 240 FEDERAL FUNDS FUND - 2,000,000 - 2,000,000 S0142 Total 1,533 2,500,000 - 2,500,000 S0143 GUARDRAIL MAINTENANCE 201 GAS TAX FUND - 3,720 - 3,720 S0143 Total - 3,720 - 3,720 S0145 AVE R SH RR SAFETY CRS 240 FEDERAL FUNDS FUND 78,107 776,670 - 776,670 S0145 Total 78,107 776,670 - 776,670 S0146 SR138 PLMD BLVD SIDEWALK GAP C 209 MEASURE M FUND - 50,000 - 50,000 S0146 Total - 50,000 - 50,000 S0155 MUSICAL ROAD 158 AMERICAN RESCUE PLAN FUND - - - - S0155 Total - - - - S0169 PARKING ENF/SIGNAGE/SWEEPING 157 MEASURE AV 27,648 29,670 - 29,670 S0169 Total 27,648 29,670 - 29,670 S0175 AVTA BUS STOPS 203 PROP A FUND - - - - S0175 Total - - - - S0177 AVTA BUS STOPS 203 PROP A FUND - 84,170 - 84,170 S0177 Total - 84,170 - 84,170

CIP Description Fund Fund Description
2026 YTD
Actual 2026 Adopted
2027 Final
Proposed Budget
Total
Proposed CIP
Budget

CITY OF PALMDALE
FY 2027 DRAFT BUDGET

CAPITAL IMPROVEMENT PROGRAM
S0186 PALMDALE BLVD ACQ 201 GAS TAX FUND 29,258 497,910 - 497,910 S0186 Total 29,258 497,910 - 497,910 S0187 AVE T DESIGN & ENVIRONMENTAL 210 ROAD MAINT & REHAB ACCT FUND 358,510 2,496,410 - 2,496,410 219 MEASURE M LOCAL RETURN - - 2,500,000 2,500,000 S0187 Total 358,510 2,496,410 2,500,000 4,996,410 S019X SS4A ACTIVE TRANSP PLAN 203 PROP A FUND - - 100,000 100,000 240 FEDERAL FUNDS FUND - - 400,000 400,000 S019X Total - - 500,000 500,000 S02XX SS4A 20TH EAST CORRIDOR 219 MEASURE M LOCAL RETURN - - 1,345,540 1,345,540 240 FEDERAL FUNDS FUND - - 5,382,160 5,382,160 S02XX Total - - 6,727,700 6,727,700 S02XY AVE R8 IMPROVEMENTS 210 ROAD MAINT & REHAB ACCT FUND - 4,300,000 4,500,000 8,800,000 214 PROP C LOCAL RETURN - 4,800,000 4,000,000 8,800,000 218 MEASURE R LOCAL RETURN - 6,000,000 - 6,000,000 S02XY Total - 15,100,000 8,500,000 23,600,000 S0XX5 AVE Q COMPLETE STRT & CROSSING 218 MEASURE R LOCAL RETURN - - 500,000 500,000 240 FEDERAL FUNDS FUND - - 1,000,000 1,000,000 S0XX5 Total - - 1,500,000 1,500,000 S0XX6 DIV ST REALIGNMENT 218 MEASURE R LOCAL RETURN - - 750,000 750,000 S0XX6 Total - - 750,000 750,000 T0006 TRAFFIC SIGNAL LEFT PHASING 221 TRAFFIC IMPACT FUND - 100,000 - 100,000 T0006 Total - 100,000 - 100,000 T0027 15 E/DR 138 INTERSCTN IMPR 214 PROP C LOCAL RETURN - 120,000 - 120,000 15 E/SR 138 INTRSCTN IMPRVMT 204 PROP C FUND - 148,190 - 148,190 T0027 Total - 268,190 - 268,190 T0031 AVE R 45TH ST E TRAFFIC SIGNAL 221 TRAFFIC IMPACT FUND - - - - T0031 Total - - - - T0032 RVB & DIVISION ST TRAFFIC 210 ROAD MAINT & REHAB ACCT FUND 18,854 736,890 - 736,890 T0032 Total 18,854 736,890 - 736,890 T0033 Traffic Signal - Auto Ctr & 5t 201 GAS TAX FUND - - - - T0033 Total - - - - T0127 TRAFFIC SIGNAL M & 20TH E 219 MEASURE M LOCAL RETURN 265,672 377,430 - 377,430 T0127 Total 265,672 377,430 - 377,430 T0129 RVB & ARMFIELD SIGNAL 210 ROAD MAINT & REHAB ACCT FUND - - - - T0129 Total - - - - T0163 CITYWIDE SIGNAL MOD 218 MEASURE R LOCAL RETURN 29,302 626,940 - 626,940 240 FEDERAL FUNDS FUND 264,438 5,781,970 - 5,781,970 T0163 Total 293,739 6,408,910 - 6,408,910

CIP Description Fund Fund Description
2026 YTD
Actual 2026 Adopted
2027 Final
Proposed Budget
Total
Proposed CIP
Budget

CITY OF PALMDALE
FY 2027 DRAFT BUDGET

CAPITAL IMPROVEMENT PROGRAM
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
T0XX2 TS MOD REWIRE 218 MEASURE R LOCAL RETURN - - 250,000 250,000 T0XX2 Total - - 250,000 250,000
T0XX3 RETRO SIGN RPLMT 218 MEASURE R LOCAL RETURN - - 250,000 250,000 T0XX3 Total - - 250,000 250,000
T0XX4 RETRO SIGN RPLMT 218 MEASURE R LOCAL RETURN - - 290,000 290,000 T0XX4 Total - - 290,000 290,000
T0XXX AVE M CORRIDOR & USAF IMPR 214 PROP C LOCAL RETURN - 300,000 23,000 323,000 240 FEDERAL FUNDS FUND - - 1,500,000 1,500,000
T0XXX Total - 300,000 1,523,000 1,823,000
U0001 STORM DRAIN UPGRADE 219 MEASURE M LOCAL RETURN - 3,000,000 443,300 3,443,300 225 PEARLAND DRAINAGE FUND 166,488 2,059,610 607,680 2,667,290 228 SEWER UPGRADE FUND 157,112 421,900 - 421,900
254 SEWER MAINT ASSESSMENT DIST - 2,700,000 - 2,700,000 U0001 Total 323,600 8,181,510 1,050,980 9,232,490
U0002 LIFT STATION ELIM SEWER REPAIR 254 SEWER MAINT ASSESSMENT DIST - 1,929,920 - 1,929,920 U0002 Total - 1,929,920 - 1,929,920
U0003 CITY WIDE SEWER REPAIRS 254 SEWER MAINT ASSESSMENT DIST - 164,860 - 164,860 U0003 Total - 164,860 - 164,860
U0004 SEWER MANHOLE REPAIR AND RAISE 254 SEWER MAINT ASSESSMENT DIST - - - - U0004 Total - - - -
U0134 FLEET MAINTENANCE BLDG 101 GENERAL FUND - - 400,000 400,000 205 AIR QUALITY IMPROVEMENT FUND - - 400,000 400,000 214 PROP C LOCAL RETURN - - 1,900,000 1,900,000
218 MEASURE R LOCAL RETURN - - 1,000,000 1,000,000 219 MEASURE M LOCAL RETURN - - 1,100,000 1,100,000 254 SEWER MAINT ASSESSMENT DIST 24,905 3,999,540 - 3,999,540 U0134 Total 24,905 3,999,540 4,800,000 8,799,540
Grand Total 32,651,859 233,082,080 72,678,030 305,760,110

Department Division Position Title Requested Status FTE Union
(Y/N) Funding Source
Annual Salary &
Benefits Amount
New Position Requests
Economic & Community
Development Planning Office Assistant I/II FT 1 N General Fund 78,650
Operations Purchasing Buyer I/II FT 1 N General Fund 138,750 Public Safety Public Safety Parking Enfocement Officer FT 1 N General Fund 91,050 Parks & Recreation Community Programs Administrative Assistant FT 1 N General Fund 102,310 Public Works Administration/CIP Project Manager FT 1 N Various Project Funds 180,350 Public Works Engineering Assistant Engineer FT 1 N TDA 8/Special Funds 163,540 Public Works Maintenance Operator I/II FT 1 Y Gas Tax 102,310 Public Works Maintenance Sr. Inspector FT 1 Y
Traffic Signal Assessment
Districts 151,210
Public Works
Maintenance Maintenance Worker I/II FT 1 Y Measure AV 84,200 New Position Total 9 1,092,370
Reclassification Requests (Existing Positions)
City Council
Administration City Council Liaison FT 1 N General Fund 8,082 City Manager Communications Sr. Manager FT 1 N General Fund 14,518 Operations Information Technology Sr. Analyst FT 1 N I.T. Internal Service Fund 10,829 Public Safety Public Safety Sr. Commuity Service Officer FT 1 N General Fund 6,647 Parks & Recreation Aquatics Maintenance Maintenance Specialist FT 1 N General Fund 6,443 Parks & Recreation Administration Specialist, Sr FT 1 N General Fund 6,470 Public Works Environmental Coordinator (Title Change Only) FT 2 N General Fund - Reclassification Total 8 52,989

CITY OF PALMDALE
FY 2027 DRAFT BUDGET

PERSONNEL REQUESTS

Department Division / Section Quantity Funding Source 2027
Proposed
Capital Outlay - Technology
1 Password Manager Operations Information Technology 1 IT ISF 50,000 2 Network VideoRecorder (NVR) Storage Operations Information Technology 1 IT ISF 160,000 3 Avigilon System Support Operations Information Technology 1 IT ISF 125,000 4 Hard Drive Shredder Operations Information Technology 1 IT ISF 25,000 5 City Hall Internet Connection Enhancement Operations Information Technology 1 IT ISF 12,000 6 City Facility Fiber Upgrade Operations Information Technology 1 IT ISF 20,000 Subtotal 392,000
Equipment
7 Pool Cover Replacements Parks & Recreation Acquatics 1 General Fund 75,000 8 Marie Kerr Pool Replaster Parks & Recreation Parks & Facilities 1 Park Development Fund 350,000 9 RFID Theft Prevention System Parks & Recreation Parks & Facilities 1 General Fund 53,900 10 Library Scanning Services Parks & Recreation Parks & Facilities 1 General Fund 120,000 11 Manzanita Park Playground Parks & Recreation Parks & Facilities 1 Park Development Fund 200,000 12 Playhouse Improvements Parks & Recreation Events & Culture 1 General Fund 290,000 13 Dog Agility Equipment Parks & Recreation Parks & Facilities 1 General Fund 15,000 14 Amphitheater Master Plan Parks & Recreation Parks & Facilities 1 Park Development Fund 50,000 Subtotal 1,153,900
Program Requests
15 Gaming Program Parks & Recreation Recreation Centers 1 General Fund 42,000 16 Cultural Festival Parks & Recreation Events & Culture 1 General Fund 110,000 Subtotal 152,000
Vehicles/Equipment - Replacements
17 508042 F450 Service Truck with Welder (508042) Public Works Maintenance - Parks 1 Fleet ISF 100,000 18 310434 F250 Service Body ZEV Pickup Truck (310434) Public Works Maintenance - Landscape 1 Fleet ISF 85,000 19 801158 Stump Grinder (801158/701158) Public Works Maintenance - Streets 1 Fleet ISF 80,000 20 812199 410 Backhoe (812199) Public Works Maintenance - Streets 1 Fleet ISF 240,000 21 310437 F250 Service Body ZEV Pickup Truck (310437) Public Works Maintenance - Landscape 1 Fleet ISF 85,000 22 312065 ZEV Pickup Truck (312065) Public Works Maintenance - Utility 1 Fleet ISF 85,000 23 908PD1 ECO250 Top Dresser Public Works Maintenance - Parks 1 Fleet ISF 16,000 24 Electric Bunker Rake Public Works Maintenance - Parks 1 Fleet ISF 40,000 Subtotal 731,000
Vehicles/Equipment - New
25 F150 Truck or ZEV equivalent Public Works Maintenance - Parks 1 Fleet ISF 85,000 26 Ramptek 28' Tandem Axle Trailer Public Works Maintenance - Traffic 1 Fleet ISF 20,000 27 Class C Equipment Transport Trailer (9999 gvw) Public Works Maintenance - Parks 1 Fleet ISF 30,000 28 Tractor with Boom Mower Public Works Maintenance - Landscape 1 Fleet ISF 440,000 29 Peterson Grapple-Rolloff Truck Public Works Maintenance - CPP 1 Fleet ISF 410,000 30 Toro Dingo Tractor w. Grapple-Brush Mower Public Works Maintenance - CPP 1 Fleet ISF 50,000 31 Toro Dingo Concrete Breaker Attachment Public Works Maintenance - Landscape 1 Fleet ISF 12,500 32 HD Utility Vehicle Public Works Park Maintenance 1 Fleet ISF 25,000 Subtotal 1,072,500
Grand Total 3,501,400

CITY OF PALMDALE
FY 2027 DRAFT BUDGET

CAPITAL OUTLAY REQUESTS

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

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.

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.