Twentynine Palms City Council
February 25, 2025

TWENTYNINE PALMS CITY COUNCIL

REGULAR MEETING AGENDA
6136 Adobe Road
Twentynine Palms, CA 92277
www.29palms.org
Tuesday, February 25, 2025
NOTICE IS HEREBY GIVEN, that the City Council will hold a Regular Meeting on Tuesday, February 25, 2025, at City Hall, 6136 Adobe Road, Twentynine Palms, CA 92277 to consider the following:

REGULAR SESSION AGENDA
6:00 P.M.

CALL TO ORDER
Pledge of Allegiance.

Invocation - Apostle Melvin Brock, The Sanctuary Church.

Roll Call.

Closed Session Announcements.

Changes to the Agenda.

ANNOUNCEMENTS
These proceedings may be viewed on demand on the City of Twentynine Palms website at www.29palms.org.

You may also Live Stream this meeting by going on our website and clicking on the "Meeting Agendas" link.

AWARDS, PRESENTATIONS, APPOINTMENTS AND PROCLAMATIONS

1. Presentation by the 5th Grade Class at Oasis Elementary School on their Black History Month Project.

2. Proclamation Recognizing February 2025 as Black History Month.

Proclamation Recognizing February 2025 as Black History Month. - Pdf 5 - 6

3. Presentation by Dave Thornton, Habitat for Humanity.

COUNCIL COMMENTS AND REPORTS OF MEETINGS ATTENDED

CONSENT CALENDAR
All matters listed under the Consent Calendar are to be considered routine by the City Council and will be enacted by one motion in the form listed. Any item may be removed from the Consent Calendar and considered separately by the City Council. The public will be given an opportunity to comment on Consent Calendar items prior to the City Council action

4. Waive the Reading of Ordinance and Approve the Reading by Title Only.

5. Approval of Minutes of the City Council Meeting Held on January 28, 2025, and February 11, 2025.

City Council - Regular Meeting - 28 Jan 2025 - Minutes - Pdf City Council - Regular Meeting - 11 Feb 2025 - Minutes - Pdf 7 - 16

ITEMS REMOVED FROM CONSENT CALENDAR FOR DISCUSSION

PUBLIC HEARING - NONE

DISCUSSION AND POTENTIAL ACTION ITEMS

6. Designation of a Delegate and Alternate Delegate for the Southern California Association of Governments (SCAG) Annual Regional Conference and General Assembly.

RECOMMENDATION: The City Council select two Councilmembers to serve as Delegate and Alternate Delegate for the Southern California Association of Governments (SCAG) Annual General Assembly.

Designation of a Delegate and Alternate Delegate for the Southern California Association of Governments (SCAG) Annual Regional Conference and General Assembly. - Pdf 17 - 18

7. Financial Report - Fiscal Year 2024-25 Mid-Year Budget Update - General Fund.

RECOMMENDATION: The City Council:

1. Review and approve the proposed General Fund Budget amendments for FY 2024-25.

2. Approve the following interfund transfers for FY 2024-25:

From the General Fund to the Capital Projects Fund.
 $1,151 more for the purchase of the Code Enforcement vehicle (Previously allocated $50,000)
 $26,000 more for the purchase of the Animal Control vehicle (Previously allocated $105,000)
 $35,000 towards the Street Sweeper reserves (up to $120,000 per year).  $200,000 for improvements at the Senior Center.

From the General Fund to the CDBG Fund.
 $6,000 for unreimbursed expenditures associated with the Homekey project.

Financial Report - Fiscal Year 2024-25 Mid-Year Budget Update - General Fund. - Pdf 19 - 109

8. Financial Report - Fiscal Year 2024-25 Mid-Year Budget Update - Capital Projects Funds and Special Funds.

RECOMMENDATION: The City Council review and approve the proposed Capital Projects Fund and Special Funds budget amendments for FY 2024-25.

Financial Report - Fiscal Year 2024-25 Mid-Year Budget Update - Capital Projects Funds and Special Funds. - Pdf
111 - 149

9. Joshua Tree National Park Visitor Center Lease.

RECOMMENDATION: The City Council authorize the City Manager and City Attorney to amend or rewrite the February 8, 2022, lease between the National Park Service and the City of Twentynine Palms to allow the Joshua Tree National Park Association to assume or otherwise become responsible for all lease obligations needed to ensure Freedom Plaza's Joshua Tree National Park Cultural Center remains operational in the event the National Park Service is forced to suspend visitor center operations. All other lease provisions would substantially remain the same.

Joshua Tree National Park Visitor Center Lease. - Pdf
151 - 184

FUTURE COUNCIL INITIATED ITEMS

1. Revisit allocated funds for the portable showers and Navigation Center.

2. Discussion on the General Plan Update.

3. Discussion surrounding (i) costs to maintain dirt roads verses paved roads; (ii) what is a City maintained dirt road, a non-maintained dirt road, a road that has been accepted by the City, a road that is private and not accepted by the City; (iii) the City's ability and liability associated with the City periodically maintaining non-maintained roads, and (iv) ways residents can bring non-maintained and non-accepted dirt roads to paved-rural-road standards ready for acceptance into the City's accepted-and-maintained road list.

4. Shade structures around Freedom Plaza and a possible art fixture with "Freedom Plaza" announcing the location.

5. A review and discussion of fees as it relates to Site Plan Reviews for ancillary uses.

6. Discussion on abandoned homes in the community.

7. Discussion on reorganizing the Homeless and Housing Committee.

8. Discussion on partnering with the Boys and Girls Club.

PUBLIC COMMENTS
This is the time for the public to address the City Council on issues within the jurisdiction of the City Council that are NOT on this agenda. All comments are to be directed to the City Council and shall not consist of any personal attacks. Members of the public are expected to maintain a professional, courteous decorum during their comments. There is a time limitation of three minutes per person. If you haven’t already done so, please fill out name and address slips and give them to the City Clerk. The City Council is prohibited by State law from taking action or discussing items not included on the printed agenda. Public comments on specific agenda items will be deferred until consideration of the item on the agenda.

CITY MANAGER UPDATE

ADJOURNMENT
It is the intention of the City of Twentynine Palms to comply with the Americans with Disabilities Act in all respects. If you are a person with a disability who requires a disability-related modification or accommodation in order to participate in a meeting, including auxiliary aids or services, please request such modification or accommodation from the City Clerk at (760) 367- 4890 (facsimile). Notification at least 48 hours prior to the meeting will enable the City to make reasonable arrangements to assure accessibility to the meeting. Please advise us at the time whether you will require accommodations to participate in meetings on a regular basis. Any person affected by any application on this agenda may submit their concerns in writing prior to the meeting or appear in person and be heard in support or opposition to the proposal at the time the matter is considered on the agenda. The staff reports, applications and environmental documents may be viewed at either the office of Community Development or the office of the City Clerk, 6136 Adobe Road, from 7:00 a.m. until 6:00 p.m. Monday through Thursday, except legal holidays. The Invocation is given per Policy 10-01, and does not reflect the views of the City but rather is an expression of speech by a private citizen making the presentation. Telephone inquiries may be made at (760) 367-6799. If you challenge any agenda issue in court, you may be limited to raising only those issues that you or someone else raised at the public meeting described in this notice, or in written correspondence delivered to the City of Twentynine Palms at, or prior to, the public meeting.

This notice of agenda is hereby certified to have been posted on or before 6:00 p.m., February 20, 2025.

Cindy Villescas CMC, City Clerk Time/Date

STAFF REPORT
TO: City Council
FROM: Finance Technician
FOR MEETING: Feb 25 2025
SUBJECT: Proclamation Recognizing February 2025 as Black History Month.

ATTACHMENTS:
• Proclamation Recognizing
February 2025 as Black History
Month

CITY OF TWENTYNINE PALMS

PROCLAMATION

RECOGNIZING FEBRUARY AS BLACK HISTORY MONTH
WHEREAS, During National Black History Month, we celebrate the legacy of Black Americans whose power to lead, to overcome, and to expand the meaning and practice of American democracy has helped our Nation become a more fair and just society.

WHEREAS, the continued sacrifices of Black Americans need to be honored & recognized for their endless, cultural, scientific, political, and economic contributions to the very foundation of American society that has manifested through the relentless strength and will to persevere regardless of the circumstances.

WHEREAS, Black American Descendants are one of the longest, consistent populations living in America, making Black Americans generationally one of the oldest genealogical populations on American soil after Native Americans. Black Americans have lived, toiled and collectively strived for the betterment of America dating back to the 1500s when Africans arrived to Spanish Florida and 1600s when Africans arrived to the English Colonies of North America.

WHEREAS, Black Americans have contributed an unimaginable amount of wealth to the United States economy throughout American history, while uncompensated and undercompensated, yet still willing to sacrifice everything to make America a better place.

WHEREAS, Black Americans have survived, thrived and risen to the highest ranks in all areas of American society including within local, state and federal governments, from the halls of integrated elementary schools to the halls of Congress. In addition, tens of millions of Black Americans throughout American history have served in all branches of the United States Armed Forces, defending the ideals of Life, Liberty, and the Pursuit of Justice for all.

NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Twentynine Palms, does hereby proclaim February 2025 to be Black History Month and encourages all residents to observe this month.

DATED this 25th day of February 2025.
______________________________
Steven Bilderain, Mayor

TWENTYNINE PALMS CITY COUNCIL
City Council - Regular Meeting MINUTES
City Hall, 6136 Adobe Road, Twentynine Palms, CA 92277
www.29palms.org
January 28, 2025
CALL TO ORDER - Mayor Bilderain called the meeting to order at 6:01 p.m.

Pledge of Allegiance - Ms. Mary Kay Sherry led the Pledge of Allegiance.

Invocation - Suzy Dick, The Church of Jesus Christ of Latter-Day Saints, gave the invocation.

Roll Call - The following Councilmembers were present: Ramirez, Mintz, Scott, Wright, Bilderain.

Closed Session Announcements - None.

Changes to the Agenda - None.

ANNOUNCEMENTS
Mayor Bilderain announced that these proceedings may be viewed on demand on the City of Twentynine Palms website at www.29palms.org. You may also Live Stream this meeting by going on our website and clicking on the "Meeting Agendas" link.

AWARDS, PRESENTATIONS, APPOINTMENTS AND PROCLAMATIONS

1. Presentation by the San Bernardino County District Attorney's Office on Proposition 36.

This presentation will be moved to a future meeting due to the presenter not being able to attend this meeting.

2. Presentation of Report from the Joshua Tree National Park Art Expo by Ms. Vickie Waite, Joshua Tree National Park Council for the Arts.

Ms. Vickie Waite provided information on the Joshua Tree National Park Art Expo.

3. Presentation: Update on Molding Hearts' Homeless Outreach.

Ms. Lakita Johnson gave a PowerPoint presentation on what Molding Hearts has accomplished.

COUNCIL COMMENTS AND REPORTS OF MEETINGS ATTENDED
Councilmember Ramirez commented that she attended and participated in the Point in Time Count, and she has been in contact with some community members about the possibility of some low-income age restricted housing, and she also met with a doctor who has a background in oncology, hematology, wound care certified, rural health and provides tele help. She commented that she is working with him to possibly bring this accessible healthcare along with trying to bring urgent care facility to the community.

Councilmember Scott mentioned that he was part of the Planning Commission subcommittee who conducted interviews for the two upcoming seats on the Commission.

Councilmember Wright commented that he sat in on a Zoom call with Senator Ochoa Bogh, he participated in the Martin Luther King Walk (MLK) last week and he wanted to comment on the difference in customer service and hospitality in other cities as opposed to our community. He mentioned that he recently was out of town at a store and needed

City Council - Regular Meeting
January 28, 2025
assistance. No one was interested in helping him and employees were rude. He mentioned he was recently in a store in our community and employees were more than helpful.

Mayor Pro Tem Mintz mentioned that he attended and participated in the Point in Time Count, he also sat in on a Zoom call with Senator Ochoa Bogh, he attended the MLK Walk, and he attempted to attend the MDAQMD meeting in Victorville but had to turn around and come back home due to snow.

Mayor Bilderain commented that he attended the MLK Walk and Barbecue, he met with citizens and met with our SCE representatives regarding the recent power outages in our area.

CONSENT CALENDAR

4. Waive the Reading of Ordinance and Approve the Reading by Title Only.

5. Approval of Agreement for Procurement of Recovered Organic Waste with Burrtec Waste and Recycling Services, LLC.

RECOMMENDATION: The City Council:

1. Approve an Agreement for Procurement of Recovered Organic Waste with Burrtec Waste and Recycling Services, LLC;

2. Authorize the Mayor to execute the Agreement.

6. Treasurer's Report - FY 2024-25 Quarter 2.

RECOMMENDATION: The City Council receive and approve the Treasurer's Report for the 2nd Quarter of Fiscal Year 2024-25.

7. Award Professional Services Agreement for 6943 Elm Avenue Rehabilitation Project.

RECOMMENDATION: The City Council award a Professional Services Agreement to Design Concepts for the 6943 Elm Avenue Rehabilitation project subject to “Approval as to Form” by the City Attorney and “Approval as to Content” by the City Manager.

Councilmember Scott asked to pull item #7 for discussion.

ACTION: A motion was made by Mayor Pro Tem Mintz, seconded by Councilmember Wright, to approve the Consent Calendar as submitted, minus item #7.

The above motion was carried by the following:

ROLL CALL VOTE:

AYES: BILDERAIN, MINTZ, RAMIREZ, SCOTT, WRIGHT
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE

ITEMS REMOVED FROM CONSENT CALENDAR FOR DISCUSSION

8. Award Professional Services Agreement for 6943 Elm Avenue Rehabilitation Project.

City Manager James presented the Staff Report.

Astrid Johnson commented that this property is for veteran housing and provided more explanation on these properties.

City Council - Regular Meeting
January 28, 2025
ACTION: A motion was made by Mayor Pro Tem Mintz, seconded by Councilmember Scott, to approve the Professional Services Agreement for 6943 Elm Avenue Rehabilitation Project.

The above motion was carried by the following:

ROLL CALL VOTE:

AYES: BILDERAIN, MINTZ, RAMIREZ, SCOTT, WRIGHT
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
PUBLIC HEARING – None.

DISCUSSION AND POTENTIAL ACTION ITEMS

9. Purchase of New Animal Control Truck and Body.

RECOMMENDATION: The City Council approve the purchase and award the bid to Rush Truck Center in the amount of $130,894.22.

City Manager James presented the Staff Report and then passed the floor to Mr. Rick Boyd, Animal Control Supervisor, who provided more input on the need for this vehicle.

ACTION: A motion was made by Councilmember Wright, seconded by Councilmember Ramirez, to approve the purchase and award the bid to Rush Truck Center in the amount of $130,894.22 The above motion was carried by the following:

ROLL CALL VOTE:

AYES: BILDERAIN, MINTZ, RAMIREZ, SCOTT, WRIGHT
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE

10. Community Resource Center.

This item is an opportunity for the City Council to review and discuss the community's need for a resource center. The City Council may choose to authorize the engagement of a firm to conduct a community survey.

City Manager James presented the Staff Report.

Councilmember Scott mentioned that he appreciates the City Manager in all he did to put the Staff Report together; however, he disagrees with some of the options brought forth. He believes this is a discussion we have been having for over two years, from creating a homeless advisory committee who worked at great length at defining what the needs are, a survey was done in 2023, an equity element which involved workshops was also brought forth and in the last strategic planning session, a revenue augmentation to pay for debt financing in order to rehabilitate some of our buildings.

Councilmember Ramirez commented that Councilmember Scott did mention a survey that was done in 2023, but we are now in 2025, so she would like a survey done to compare it to the one conducted in 2023.

Mayor Pro Tem Mintz mentioned that he is concerned about the long haul of this. he feels that we need to have a broader discussion about this, conducting a survey. If we are going to have a discussion about buildings, the main issue we need to discuss is how are we going to pay for all this.

City Council - Regular Meeting
January 28, 2025
Councilmember Wright mentioned that this discussion should be held during the upcoming Strategic Planning Workshop.

City Manager James commented that the survey that was done in 2023 was for sewer which was a very focused survey and it was not intended to gauge the community's contentment with city services.

Jenn DeFalco, spoke in favor of the Resource Center, mentioning that this resource center should also be for the housed, those struggling with mental health issues, etc.

Astrid Johnson, spoke in favor of the Resource Center, with multiple purposes.

Lori Cosgriff, spoke in favor of the Resource Center and commented that she does not feel we need to spend a lot of money on a survey and the Center.

Joseph Carder, spoke in favor of the Resource Center.

Karalee Hargrove, spoke about some resources that are coming up with the schools that will be housed at the schools, so she is suggesting that the Morongo Unified School District and the City have a joint meeting and work together to provide these resources that are being discussed now.

Anna Langkilde, spoke in favor of the Resource Center. She mentioned that she works at the County's Transitional Assistance Office, and they are very short staffed and overworked because they want to help their customers. They feel inadequate because they don't have all the resources needed so this center would be very helpful.

Lakita Johnson, Molding Hearts, spoke regarding County Resources that are available, and it shouldn't fall solely on the City of Twentynine Palms to provide.

After a brief discussion, Councilmember Scott suggested Staff reach out to the school district to collaborate with them on this Center. Councilmember Ramirez suggested we reach out to the medical partners to be part of this as well.

FUTURE COUNCIL INITIATED ITEMS

1. Revisit allocated funds for the portable showers and Navigation Center.

2. Discussion on the General Plan Update.

3. Discussion surrounding (i) costs to maintain dirt roads verses paved roads; (ii) what is a City maintained dirt road, a non-maintained dirt road, a road that has been accepted by the City, a road that is private and not accepted by the City; (iii) the City's ability and liability associated with the City periodically maintaining non-maintained roads, and (iv) ways residents can bring non-maintained and non-accepted dirt roads to paved-rural-road standards ready for acceptance into the City's accepted-and-maintained road list.

4. Shade structures around Freedom Plaza and a possible art fixture with "Freedom Plaza" announcing the location.

5. A review and discussion of fees as it relates to Site Plan Reviews for Barber Shops in existing buildings.

6. Discussion on increasing the City Council compensation.

City Manager James provided an update on the above items.

City Council - Regular Meeting
January 28, 2025

PUBLIC COMMENTS
Astrid Johnson, Twentynine Palms, thanked the City Council and Code Enforcement for their participation in the Point in Time Count.

Jenn DeFalco, Twentynine Palms, thanked Ms. Lakita Johnson for all her hard work and everything she does. She mentioned there are still unhoused people out there and help is still needed with blankets, sleeping bags, toiletries, etc.

Lakita Johnson, spoke about individuals in the community that her organization has tried to help, however, there are some individuals that do not want to be helped, and they cannot do anything about that.

John Dillon, Twentynine Palms, spoke about his annual blanket and clothing drive for those unhoused in the area. He praised Ms. Johnson for all her efforts in helping the unhoused.

Karalee Hargrove, Twentynine Palms, provided updates about the School District, saying that the District has recently made a decision to bring sixth grade students into the Junior High School, the Local Control Accountability Plan (LCAP) survey is available on the MUSD website and anyone can participate in this survey, the District is recruiting for an oversight committee to provide input on how Measure C funds, the Bond that was recently voted in, should be spent, and Twentynine Palms High School students beat Yucca Valley High School in the first ever culinary competition. She thanked the City Council once again for bringing the commercial kitchen for the students.

Ms. Suzy Dick, Yucca Valley, thanked the City Council, City Staff and Ms. Lori Cosgriff for all their help with the Food Giveaway on January 24th. Ms. Cosgriff thanked Ms. Dick for all her help and support.

LeeAnn Clarke, Twentynine Palms, provided the following updates on behalf of the Ministerial Association: she is excited to report that the MLK walk was a huge success with the whole City Council and City Manager participating. She thanked Anna Stump, former PAAC Chair for attending as well, the Mayor's Prayer Breakfast will be on February 25, 2025.

Robin Schlosser, Reach Out Morongo Basin, thanked Lori Cosgriff, Suzy Dick and the Church of Jesus Christ of LatterDay Saints for their help and donations as they received food for the seniors as well. She thanked City Manager James for visiting the Senior Center with the Public Works Staff last week. She appreciates Mayor Pro Tem Mintz's comment earlier about all city buildings needing retrofitting, because the Senior Center is one of them in dire need, particularly the roof.

CITY MANAGER UPDATE
City Manager James commented what a wonderful community we have in terms of interaction and feedback. He mentioned that the MLK Walk was a wonderful event, he provided an update on two grants the City recently applied for, the EPA grant and an Active Transportation Infrastructure Investment Program grant, mentioning that as of Monday, February 10th, President Trump has paused major funding as they evaluate financial feasibility. He commented that he had the privilege of participating in the Point in Time Count.

ADJOURNMENT - Mayor Bilderain adjourned the meeting at 8:03 p.m.

Respectfully submitted,
Cindy Villescas, CMC
City Clerk

TWENTYNINE PALMS CITY COUNCIL
City Council - Regular Meeting MINUTES
City Hall, 6136 Adobe Road, Twentynine Palms, CA 92277
www.29palms.org
February 11, 2025
CALL TO ORDER - Mayor Bilderain called the meeting to order at 6:02 p.m.

Pledge of Allegiance - Town of Yucca Valley Councilmember Lombardo led the Pledge of Allegiance.

Invocation - Ms. LeeAnn Clarke gave the Invocation.

Roll Call - The following Councilmembers were present: Bilderain, Mintz, Ramirez, Scott, Wright.

Closed Session Announcements - None.

Changes to the Agenda - None.

ANNOUNCEMENTS
Mayor Bilderain announced that these proceedings may be viewed on demand on the City of Twentynine Palms website at www.29palms.org. You may also Live Stream this meeting by going on our website and clicking on the "Meeting Agendas" link.

AWARDS, PRESENTATIONS, APPOINTMENTS AND PROCLAMATIONS

1. Presentation by San Bernardino County DAs Office on Proposition 36.

Mr. Doug Poston, San Bernardino County DAs office provided a Power Point Presentation on Proposition 36.

2. Presentation of Report for Holiday Art Faire (Community Events Grantee) by Ms. Cathy Snodgrass.

Ms. Snodgrass provided a recap of the Holiday Art Faire, sponsored by the Artist Guild, held on November 30, 2024.

COUNCIL COMMENTS AND REPORTS OF MEETINGS ATTENDED
Councilmember Ramirez mentioned that she attended the CalCities Mayors, and new Councilmembers Academy and it was very informative, she participated in the Headquarters Battalion fundraiser, and she said she has received many requests for comment from several media outlets, regarding Molding Hearts.

Councilmember Scott mentioned that he and the Mayor recently hosted Senator Ochoa Bogh at the Senior Center and she had an opportunity to speak with some of our leaders in the community, he is hosting a speaking engagement event at Wing n It on Tuesday, February 18th beginning at 6:00 p.m.

Councilmember Wright mentioned that he didn't attend any events or meetings.

Mayor Pro Tem Mintz commented that he attended the SBCTA meeting in San Bernardino.

Mayor Bilderain wished everyone Happy Valentine's Day this upcoming Friday. He mentioned that he attended a Youth Council meeting recently, he met with Senator Ochoa Bogh, he had the opportunity to kick off the JT55 Bike Ride over the weekend, he had meetings with citizens, and he met with interested people wanting to develop a community garden.

City Council - Regular Meeting
February 11, 2025
Councilmember Ramirez asked everyone to join her in singing Happy Birthday to Councilmember Scott who recently celebrated a birthday.

CONSENT CALENDAR

3. Waive the Reading of Ordinance and Approve the Reading by Title Only.

4. Approval of Minutes of the City Council Meeting Held on January 11, 2025.

5. Approval of Warrant Register Totaling $3,196,915.46.

6. Amendment #4 to Split Rock Avenue Bridge Design Contract.

RECOMMENDATION: The City Council:

1. Approve Agreement Amendment #4 for Construction Support Services for the “Split Rock Avenue Bridge Project” with Dokken Engineer for a total contract amount increase of $325,000;

2. Authorize the City Manager to execute the attached Amendment #4 document.

7. Acquisition of Water Truck.

RECOMMENDATION: The City Council approve the purchase of a 2015 Ford F-750 Water Truck in the amount of $48,393.75.

ACTION: A motion was made by Mayor Pro Tem Mintz, seconded by Councilmember Wright, to approve the Consent Calendar as submitted.

The above motion was carried by the following:

ROLL CALL VOTE:

AYES: BILDERAIN, MINTZ, RAMIREZ, SCOTT, WRIGHT
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE

ITEMS REMOVED FROM CONSENT CALENDAR FOR DISCUSSION
PUBLIC HEARING – None.

DISCUSSION AND POTENTIAL ACTION ITEMS

8. Planning Commission Appointments.

RECOMMENDATION: The City Council reappoint Commissioner Paahana and Commissioner Krushat to the Planning Commission as recommended by the City Council subcommittee.

Councilmember Scott as a subcommittee member provided the Staff Report and recommendations from Councilmember Ramirez and himself.

Mayor Bilderain commented that an email was received from Mr. Carlos Blandon for the record.

Carlos Blandon, Twentynine Palms, spoke against the recommendation.

Xarene Escander, Twentynine Palms, asked if there are term limits for the Planning Commission.

Councilmember Scott replied no.

City Council - Regular Meeting
February 11, 2025
ACTION: A motion was made by Mayor Pro Tem Mintz, seconded by Councilmember Wright, to reappoint Commissioner Paahana and Commissioner Krushat to the Planning Commission as recommended by the City Council subcommittee.

The above motion was carried by the following:

ROLL CALL VOTE:

AYES: BILDERAIN, MINTZ, RAMIREZ, SCOTT, WRIGHT
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE

9. Temporary Monthly Funding of Hope Center.

RECOMMENDATION: The City Council discuss and potentially vote to provide monthly contributions to Community Learning and Equipping Project, Inc. (CLEP)'s "Feed the Need" program.

City Manager James presented the Staff Report. He then passed the floor to Mr. Sylester Cullum and Pastor Perry Ford, the Sanctuary Church, who provided more information about the CLEP program.

LeeAnn Clarke, Twentynine Palms, spoke in support of the City providing monthly contributions.

Robin Schlosser, Reach Out Morongo Basin, asked how long is "temporary"? What is the plan of action when funding runs out if the church is not able to support this now. She mentioned that she asks because there are several food pantries in our area and maybe we could all come together as one pantry instead of trying to fund multiple organizations.

Alex Garcia, Twentynine Palms, spoke in favor of the Hope Center.

ACTION: A motion was made by Mayor Pro Tem Mintz, seconded by Councilmember Scott, to provide monthly contributions in the amount of $2,000 per month to Community Learning and Equipping Project, Inc. (CLEP)'s "Feed the Need" program. This amount will be until the next upcoming Fiscal Year and the amount can be revisited.

The above motion was carried by the following:

ROLL CALL VOTE:

AYES: BILDERAIN, MINTZ, RAMIREZ, SCOTT, WRIGHT
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE

FUTURE COUNCIL INITIATED ITEMS

1. Revisit allocated funds for the portable showers and Navigation Center.

2. Discussion on the General Plan Update.

3. Discussion surrounding (i) costs to maintain dirt roads verses paved roads; (ii) what is a City maintained dirt road, a non-maintained dirt road, a road that has been accepted by the City, a road that is private and not accepted by the City; (iii) the City's ability and liability associated with the City periodically maintaining non-maintained roads, and (iv) ways residents can bring non-maintained and non-accepted dirt roads to paved-rural-road standards ready for acceptance into the City's accepted-and-maintained road list.

4. Shade structures around Freedom Plaza and a possible art fixture with "Freedom Plaza" announcing the location.

5. A review and discussion of fees as it relates to Site Plan Reviews for ancillary uses.

6. Discussion on abandoned homes in the community.

City Council - Regular Meeting
February 11, 2025
Councilmember Scott asked for a discussion on reorganizing the homeless and housing committee. Councilmember Ramirez seconded the item.

Councilmember Ramirez asked for a discussion on a partnership with the Boys and Girls Club and the City of Twentynine Palms. Councilmember Scott seconded the item.

PUBLIC COMMENTS - None.

CITY MANAGER UPDATE
City Manager James provided the following updates: he acknowledged that after the floods in July of last year, one key priority is our City equipped to properly respond to disasters? As a team, we continue to focus on identifying what our needs are. He mentioned that he is looking into some training courses for Staff. He commented on the upcoming Strategic Planning Workshops, mentioning that the Workshop will take place around March or April and focus on plan development in May and adoption of the plan in June. He commented that he participated in the Natural Disaster exercise held the day before with the First Responders.

ADJOURNMENT - Mayor Bilderain adjourned the meeting at 7:19 p.m.

Respectfully submitted,
Cindy Villescas, CMC
City Clerk/Public Information Officer

STAFF REPORT
TO: City Council
FROM: City Clerk
FOR MEETING: Feb 25 2025
SUBJECT: Designation of a Delegate and Alternate Delegate for the Southern California Association of Governments (SCAG) Annual Regional Conference and General Assembly.

RECOMMENDATION:

The City Council select two Councilmembers to serve as Delegate and Alternate Delegate for the Southern California Association of Governments (SCAG) Annual General Assembly.

ORDER OF PROCEDURE:

Request Staff Report (City Clerk Presenting)
Council Questions of Staff
Council Discussion
Motion/Second
Discussion of Motion
Call the Question
BACKGROUND:

The Southern California Association of Governments (SCAG) was established in 1965 and is the nation's largest metropolitan planning organization and council of governments representing six counties and more than 19 million residents. SCAG is a joint powers authority established under California law, which means that it is an association of local governments and agencies that voluntarily come together on issues of common concern.

SCAG is mandated by Federal and State law to develop regional plans for transportation, growth, management, housing development, air quality, and other issues of regional significance. Through the SCAG adopted plans, the Regional Councilmembers, acting through SCAG, have kept Southern California eligible for billions of Federal and State dollars to assist with city and county programs.

The annual SCAG General Assembly will be held on Thursday and Friday, May 1-2, 2025, at the JW Marriott Desert Springs Resort & Spa in Palm Desert. Each year, SCAG's member cities select a delegate and an alternate delegate to represent their city at the annual meeting.

ENVIRONMENTAL:

N/A
ALTERNATIVES:

The City Council could choose not to select a delegate or alternate delegate and have no representation at the Annual General Assembly. Page 17 of 184
FISCAL IMPACT:

N/A

STAFF REPORT
TO: City Council
FROM: Finance Director
FOR MEETING: Feb 25 2025
SUBJECT: Financial Report - Fiscal Year 2024-25 Mid-Year Budget Update - General Fund.

RECOMMENDATION:

The City Council:

1. Review and approve the proposed General Fund Budget amendments for FY 2024-25.

2. Approve the following interfund transfers for FY 2024-25:

From the General Fund to the Capital Projects Fund.
 $1,151 more for the purchase of the Code Enforcement vehicle (Previously allocated $50,000)  $26,000 more for the purchase of the Animal Control vehicle (Previously allocated $105,000)  $35,000 towards the Street Sweeper reserves (up to $120,000 per year).  $200,000 for improvements at the Senior Center.

From the General Fund to the CDBG Fund.
 $6,000 for unreimbursed expenditures associated with the Homekey project.

ORDER OF PROCEDURE:

Request Staff Report (Finance Director Presenting)
Council Questions of Staff
Receive Public Comment
Council Discussion
Motion/Second
Discussion of Motion
Call the Question
ATTACHMENTS:
• Mid-Year GF Budget Update
FY 2024-25 - Presentation
• Mid-Year Budget - General
Fund FY 2024-25
• Twentynine Palms 3Q24
Newsletter
• General Fund Reserve Policy
Report
BACKGROUND:

The mid-year financial report and budget adjustments for FY 2024-25 are attached for City Council's review and approval. The mid-year financial report reflects the current cash balances, year-to-date revenues and

expenditures, reserves, and a "snapshot" of the Fiscal Year 2025-26 budget. The intent of this report is to provide the City Council, Staff, and citizens with an overview of the financial condition of the City through mid-year.

Cash Balances:

Through December 2024, the City has a total of $18.5M in cash and investment balances, which have remained steady since fiscal year ending on June 30, 2024. To maximize the City's resources, the City Treasurer invests temporary idle cash in investments approved under the City's investment policy. As of December 31, 2024, the City has the following investments: Local Agency Investment Fund (LAIF) - $8.8M, earning an average of 4.62% during the last quarter of 2024; Certificate of Deposit - $4.9M, earning an average of 3.6% in December 2024, and U.S. Treasury Bills - $2.0M, earning an average of 4.4% in December 2024.

Operating Revenues:

From July 2024 to January 2025, a total of $7.5M or 52.4% of the total estimated operating revenue, excluding transfers in and reserves, was collected. Property tax receipts through the first 7 months of the fiscal year account for 25.0% of the general fund operating revenue. The other major revenue collections through January 2025 are as follows: Vehicle License Fee (VLF) in Lieu of Property Tax - 30.1%; Sales Tax - 9.6%; and TOT 13.3%. While revenue from property taxes and VLF in lieu of Property taxes has increased moderately compared to prior year, TOT for the first two quarters in the fiscal year (July 2024 to December 2024) has remained stagnant compared to the same quarter in the prior year. Sales tax revenue is also expected to remain stagnant for the current and upcoming fiscal year. According to HDL's sale tax update and forecast, recent reductions to the Federal Funds Rate are not considered to help until later in 2025. The City should expect FY 2024-25 sales taxes to stay flat or decline slightly as sluggish economic conditions leave consumers cautious in their spending patterns, especially for big ticket purchases and discretionary products (see HDL's Sales Tax Update attached).

Operating Expenditures:

From July 2024 to January 2025, a total of $7.0M or 50.5% of the total estimated operating expenditures, excluding transfers out, has been spent or encumbered. Salaries & Benefits are within budget at 56.6% as of January 2024. Prepaid CalPERS employer contributions (exclusive of cost sharing contributions) were not required for FY 2023-24 due to the investment return being above CalPERS' assumed rate of return of 6.8%; however, an Unfunded Accrued Liability (UAL) contribution was due for FY 2024-25 in the amount of $66.7K. The UAL contribution is expected to increase by 111% in FY 2025-26. As of June 30, 2024, the City's Other PostEmployment Benefits (OPEB) liability has been funded at 101%; therefore, no OPEB contributions are expected for this or next fiscal year. The City's annual liability and property insurance has also increased significantly over the past few years; current year premiums are at $357K, which is 17% higher compared to prior year. Due to rising costs in labor and materials, Staff recommends an amendment of $107K for law enforcement billable costs and LLESA purchases. Under the existing Law Enforcement Services Contract, the City is responsible for all fuel, repairs, and maintenance costs of all contract vehicles, including collision damage. The City pays 66.7% of each building permit fee to Charles Abbott and Associates, Inc., for building and safety services, as revenue from building permits is projected to decrease, so will building and safety costs. As mentioned earlier, consumers continue to feel the burden of increased pricing in most sectors of society with non-essential purchases being placed on hold.

Transfers In/Out:

In addition to the transfers already approved in prior meetings (i.e., $250K for the Animal Control shelter, $160K for self-funding of the Capital Projects Fund, $70K for subsidy of the Sewer Fund, and $10K for the Code Enforcement vehicle), Staff is recommending a total of $268.2K in additional transfers from the General Fund to the Capital Projects Fund. An additional $1.2K and $26K is needed to cover the acquisitions of the Code Enforcement and Animal Control vehicles, respectively. The City Council had previously approved $50K and $105K for the purchase of the Code Enforcement vehicle and Animal Control vehicle, respectively; however, actual costs were higher than initially projected. During the current fiscal year, Staff identified the need for improvements at the Senior Center including ADA improvements and roof replacement. Staff is recommending a transfer of $200K from the General fund for the ADA improvements, the funding for the roof replacement has been committed in previous budgets.

Each fiscal year, the City receives $120K from Burrtec for street sweeping services, whatever is left at the end of the fiscal year gets transferred to the Capital Projects Fund reserves to fund the future acquisition of a Street Sweeper. Staff is projecting that $35K of the $120K will be left in FY 2024-25. Through June 30, 2024, $196K has been accumulated for the acquisition of a Street Sweeper. Page 20 of 184 Staff is also recommending a $6K transfer from the General Fund to the CDBG fund for unreimbursed expenditures associated with the Homekey project.

Reserves:

The unrestricted and unassigned reserve balance for the General Fund as of June 30, 2024 is $11.1M or 79% of actual operating expenditures, which is in line with the City's current reserve policy of 50-55%. Staff is projecting a surplus of $91.6K for FY 2024-25, and an unassigned fund balance of $11.0M, which equates to 80% of the City's total operating expenditures, a ratio that is in line with the City's reserve policy. Based on a General Fund Reserve assessment conducted in 2018 by hired Consultant, William C. Statler, the City needs to maintain reserves at 25% of operating and debt service expenditures just to meet cash flows during the year. To provide appropriate flexibility in addressing economic uncertainties, such as downturns in the economy; responding to local disasters; contingencies for unforeseen operating or capital needs, the City Council adopted a reserve policy of 50-55% of operating and debt service expenditures, which is segregated into the following components:

1. Cash Flows: 25%

2. Fiscal Stability: 15%

3. Contingencies/Strategic Opportunities: 15%
For more details about the City's reserve policy, please refer to the attached Reserve Policy.

Fiscal 2024-25 "Snapshot":

Staff is projecting a surplus of only $139K for FY 2025-26, which is mainly driven by a moderate and conservative increase in revenues, as well as a 2.5% increase in Salaries, and 4% increase in Law Enforcement contract services. The General Fund budget for FY 2025-26 will be reevaluated and presented to the City Council in June 2025 for review and approval.

ENVIRONMENTAL:

Not Applicable.

ALTERNATIVES:

The City Council could choose to make policy changes on funding.

FISCAL IMPACT:

A balanced budget.

CITY OF TWENTYNINE PALMS
Fiscal Year 2024-25 Mid-Year Budget Update
General Fund

MID-YEAR BUDGET

AMENDMENTS
Schedule:February 25th General Fund Budget, Capital Projects Funds, & Special Revenue Funds
2/18/2025 2

MID-YEAR UPDATE
• Comprised of:  Cash Balances
 General Fund Budget Summary YTD vs. Budget Top Revenue Adjustments Revenue Sources Net Taxable Assessed Value History Top Expenditure Adjustments Department Expenditures Fund Balance Summary Reserves Fiscal 2025-26 “Snapshot” Presentation Summary Staff Recommendations 2/18/2025 3

CASH BALANCES
Cash Balances as of 12/31/24:
• Checking Account (GF & SF) – $2.8M• Successor Agency - $254K• Investments:
o LAIF - $8.8Mo CDs - $4.9Mo U.S. Treasury Bills - $2.0M 2/18/2025 4

GENERAL FUND BUDGET SUMMARY
Adjustments
24/25 Proposed
Budget
24/25 Adopted
Budget
$14,219,847 $14,681,790
* $461,943 Revenues, Reserves
& Transfers In
$14,102,163 $14,590,233 $488,070 Expenditures
&
Transfers Out
SURPLUS $117,684 $91,557 $(26,127)
*Includes $357,010 from reserves for various projects
2/18/2025 5

YTD VS. BUDGET
CY
%
24/25 Proposed
YTD Actuals* Budget
Revenues
& Transfers In $7,505,923 $14,681,790 51%
Expenditures
& Transfers Out $7,103,128 $14,590,233 49%
Summary
*Actuals through 1/31/2025
2/18/2025 6

TOP REVENUE ADJUSTMENTS
Adjustments
24/25 Proposed
Budget
24/25 Adopted
Revenue Type Budget
Property Taxes $2,810,660 $3,216,475 $405,815VLF in Lieu of Property Tax (1) $4,398,932 $4,498,486 $99,554Building & Road Permits $630,000 $550,000 $(80,000)
Grant Revenue $25,000 $85,200 $60,200(1) VLF = Vehicle License Fee 2/18/2025 7

WHERE DOES THE REVENUE COME
FROM?*
22%
31%
11%
13%
2%
7%
6%
1%
1%
6%
FY 2024‐25 Proposed Budget
Property TaxVLF in Lieu of Property TaxSales TaxTransient Occupancy Tax (TOT)Other TaxesFranchise FeesPlanning & Building Permits
Park
& Rec Fees
Animal Control FeesOther
*Excludes reserves and transfers in
2/18/2025 8

CITY OF TWENTYNINE PALMS NET

TAXABLE ASSESSED VALUE HISTORY
Fiscal Year Secured Unsecured SBE Nonunitary Net Total AV % Change
2011‐12 $794,552,911 $20,298,883 $86,754 $814,938,548 NA 2012‐13 $796,079,890 $20,405,004 $86,754 $816,571,648 0.20% 2013‐14 $781,792,218 $20,057,318 $86,754 $801,936,290 (1 .79% )
2014‐15 $802,424,517 $20,937,193 $252,649 $823,614,359 2.70% 
2015‐16 $819,140,029 $22,126,150 $252,649 $841,518,828 2.17% 
2016‐17 $829,433,547 $19,046,841 $252,649 848,733,037 0.86% 
2017‐18 $841,474,081 $18,405,803 $252,649 $860,132,533 1.34% 2018‐19 $874,065,397 $17,581,904 $252,649 $891,899,950 3.69% 
2019‐20 $908,885,222 $18,715,010 $257,656 $927,857,888 4.03% 
2020‐21 $949,184,759 $18,295,839 $257,656 $967,738,254 4.30% 
2021‐22 $1,003,153,814 $19,892,321 $257,656 1,023,303,791 5.74% 
2022‐23 $1,116,657,102 $20,612,032 $257,656 $1,137,526,790 11.16% 
2023‐24 $1,250,121,084 $23,415,937 $620,877 $1,274,157,898 12.01% 
Source: Secured, Unsecured and Utility Values from San Bernardino County for each fiscal year, as complied by HdL. Coren & Cone. 2/18/2025 9

TOP EXPENDITURE ADJUSTMENTS
Adjustments
24/25 Proposed
Budget
24/25 Adopted
Expenditure Type Budget
Law Enforcement $5,851,273 $5,958,273 $107,000 (1)Nondepartmental Expenditures $1,624,710 $1,957,311 $332,601 (2)Building & Safety $550,210 $486,850 $(63,360) (3)
Freedom Plaza – Community Center $213,694 $231,034 $17,340 (4) (1) Includes fuel, repair, and maintenance of all contract vehicles and LLESA purchases. (2) The major amendments in this category include the purchase of LED flood signals for PW in the amount of $57K, an additional $20K for the strategic planning service, $16K for crisis communication training, $233.2K in additional transfers for the following: $200K Senior Center improvements, $26K for Animal Control vehicle, $6K for unreimbursed expenditures in the CDBG Fund; and $1.2K for Code enforcement vehicle.
(3) Building and Safety costs change in proportion to Building permit revenues as the City pays 66.7% of each building permit fee to Charles Abbott and Associates.
(4) The adjustment includes the following increases: Electricity ‐ $5K and $12K for EV chargers' software. 2/18/2025
10

DEPARTMENT EXPENDITURES
Proposed
% Used
Amended Budget
Department YTD Actuals*
City Council $34,057 $65,112 52%Administration $1,031,626 $1,914,620 54%Non‐Departmental $858,886 $1,977,311 43%Community Development $323,671 $681,688 48%Code Enforcement $153,088 $282,745 54%Building, Safety, and Eng. $205,845 $486,850 42%Law Enforcement $2,733,771 $5,958,273 46%Animal Control $334,256 $630,607 53%Public Works Admin/Street Swp $259,355 $493,463 53%Community Services/Parks $1,168,573 $2,099,564 56% * Through 1/31/2025
2/18/2025
11

FUND BALANCE SUMMARY
FY 2024‐25
Forecast
FY 2023‐24
Actual
FY 2022‐23
Actual
FY 2021‐22
Fund Balance Classification Actual
Nonspendable – Land held for resale $93,963 $93,963 $93,963 $93,963 (1)Restricted $372,700 $406,426 $431,729 $517,659 (2)Assigned $3,599,844 $2,011,441 $396,982 $150,000 (3)Unassigned $6,575,462 $9,098,342 $11,103,632 $10,999,231 Total Fund Balance $10,641,969 $11,610,172 $12,026,306 $11,760,853 Total Operating Expenditures $10,359,953 $11,564,722 $14,002,891 $13,833,773 (4)Operating Reserves (% of Expend) 63% 79% 79% 80% (5)City’s Reserve Policy 60‐65% 50‐55% 50‐55% 50‐55% (1) Land purchased from the Successor Agency as part of the Lear Traffic Signal Installation.(2) Local Law Enforcement Supplemental Account (LLESA) Funds and Seized Assets Funds restricted to fund frontline municipal police services.(3) Amounts the City Council assigns to use for a specific purpose.(4) Exclusive of Transfers Out.(5) Reserves = Unassigned Fund balance/Total Expenditures. 2/18/2025
12

RESERVES
Key Points:• Based on a General Fund Reserve assessment conducted in 2018, the City needs to maintain reserves at 50-55% of operating and debt service expenditures, which are to be segregated into the following components:

1. Cash Flows: 25% ($3.5M)2. Fiscal Stability: 15% ($2.1M)3. Contingencies/Strategic Opportunities: 15% ($2.1M) 2/18/2025
13

2025-26 SNAPSHOT
25/26 FORECAST
Revenues
& Transfers In $14,582,862
Expenditures
& Transfers Out $14,443,825
SURPLUS $139,037
2/18/2025
14

PRESENTATION SUMMARY
 Overall, the City’s operating budget is performing well through mid-year;
 Cash and Reserves are strong; Revenue and expenditures are within expectations; Fiscal 2024-25 Budget will be balanced. 2/18/2025
15

STAFF RECOMMENDATIONS
Staff is recommending the following actions:1. The City Council review and approve the proposed General Fund Budget amendments for FY 2024-25.

2. Approve the following inter-fund transfers for FY 2024-25:

From the General Fund to the Capital Projects Fund ($262,151). • $1,151 more for the purchase of the Code Enforcement vehicle (Previously allocated $50,000.• $26,000 more for the purchase of the Animal Control vehicle (Previously allocated $105,000) • $35,000 towards the Street Sweeper reserves (up to $120,000 per year).• $200,000 for improvements at the Senior Center.

From the General Fund to the CDBG Fund
• $6,000 for unreimbursed expenditures from the Homekey project. 2/18/2025
16

PROPOSED BUDGET ADJUSTMENTS
Questions?
2/18/2025
17

PROPOSED BUDGET ADJUSTMENTS
THANK YOU!
2/18/2025
18

Approved
5/28/2024
2022-2023 2023-2024 2024-2025 2024-2025 2024-2025

BUDGET BUDGET THROUGH REVISED PROPOSED
ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS
Total Revenue and Transfers In 16,988,823 $ 14,901,267 $ 7,505,923 $ 14,219,847 $ 14,681,790 $ 461,943 $ Total Expenditures and Transfers Out 16,009,631 $ 14,475,027 $ 7,103,128 $ 14,102,163 $ 14,590,233 $ 488,070 $ Net Revenue (Loss) 979,192 $ 426,240 $ 402,795 $ 117,684 $ 91,557 $ (26,127) $ Fund Balance Classification
Nonspendable 93,963 $ 93,963 $ 93,963 $ 93,963 $ 93,963 $ Restricted $ 431,729 406,426 $ 588,656 $ 517,659 $ 517,659 $ Assigned 2,011,441 $ 396,982 $ 196,972 $ 150,000 $ 150,000 $ Unassigned 9,098,342 $ 11,103,632 $ 11,549,510 $ 8,717,828 $ 10,999,231 $ Total Fund Balance 11,610,172 12,026,306 $ 12,429,101 $ 9,479,450 $ 11,760,853 $ Total Operating Expenditures (1) $ 14,002,891 11,564,720 $ 6,988,128 $ 13,578,854 $ 13,833,773 $ Operating Reserves (%) (2) 79% 79% 64% 80%
City's Reserve Policy 50-55% 50-55% 50-55% 50-55%
(1) Exclusive of Transfers Out
(2) Operating Reserves = Unassigned Fund Balance/Total Operating Expenditures

CITY OF TWENTYNINE PALMS

GENERAL FUND BUDGET

AS AMENDED

SUMMARY
FISCAL YEAR 2024-2025
1 2/18/2025 Page 40 of 184
2022-2023 2023-2024 2024-2025 2024-2025 2024-2025

ACCOUNT BUDGET BUDGET THROUGH REVISED PROPOSED
CODE R E V E N U E ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS 01 0000 4101 Property Taxes: Current and Prior Year 2,715,614 $ 3,092,764 $ 1,864,081 $ 2,810,660 $ 3,216,475 405,815 $ 01 0000 4106 Property Tax / VLF 3,794,419 $ 4,250,176 $ 2,249,244 $ 4,398,932 $ 4,498,486 99,554 $ 01 0000 4110 Property Transfer Fees 76,031 $ 61,222 $ 5,667 $ 56,925 $ 56,925 - $ 01 0000 4115 Utility Unitary Tax 155,668 $ 177,984 $ 6,115 $ 155,250 $ 155,250 - $ 01 0000 4120 Sales & Use Tax 1,562,276 $ 1,538,338 $ 713,922 $ 1,549,505 $ 1,549,505 - $ 01 0000 4125 Transient Occupancy Tax 2,346,125 $ 2,237,285 $ 990,501 $ 1,900,000 $ 1,900,000 - $ 01 0000 4140 Franchise Fees 930,375 $ 969,861 $ 306,436 $ 964,624 $ 964,624 - $ 01 0000 4145 Business License Fees 69,387 $ 74,185 $ 43,951 $ 65,000 $ 65,000 - $ 01 0000 4155 Motor Vehicle In-Lieu Tax 28,378 $ 32,518 $ 44,584 $ 29,120 $ 29,120 - $ 01 0000 4200 Animal Control Revenue 81,486 $ 98,533 $ 43,330 $ 84,000 $ 84,000 - $ 01 0000 4220 Planning & Engineering Fees 282,413 $ 201,542 $ 121,415 $ 190,000 $ 190,000 - $ 01 0000 4224 Building & Road Permits 710,752 $ 561,818 $ 303,243 $ 630,000 $ 550,000 (80,000) $ 01 0000 4245 Interest/Fair Market Value Adjustment 98,635 $ 609,363 $ 193,535 $ 120,000 $ 150,000 30,000 $ 01 0000 4252 Grant Revenue 41,540 $ 2,400 $ - $ 25,000 $ 85,200 60,200 $ 01 0000 4272 Rent 72,418 $ 71,564 $ 44,510 $ 72,403 $ 65,000 (7,403) $ 01 0000 4288 Burrtec/Street Sweeper 100,000 $ 120,000 $ 70,000 $ 120,000 $ 120,000 - $ 01 0000 4603 Swimming Pool 19,528 $ 40,664 $ 20,302 $ 25,500 $ 25,500 - $ 01 0000 4605 Recreation Fees 107,001 $ 116,169 $ 64,824 $ 91,237 $ 91,237 - $ 01 0000 4608 Park & Rec Event Fees 73,914 $ 54,144 $ 24,267 $ 50,000 $ 50,000 - $ 01 0000 4610 Project Phoenix Community Center - $ 7,122 $ 2,071 $ 1,500 $ 5,000 3,500 $ 01 0000 4611 EV Charging Fees 24,287 $ 33,668 $ 17,952 $ 25,000 $ 25,000 - $ 01 0000 4702 Police Grants 165,306 $ 186,305 $ 178,993 $ 180,000 $ 180,000 - $ 01 0000 4703 SRO Contract 88,217 $ 118,403 $ 118,181 $ 118,181 $ 118,181 - $ 01 0000 4890 Miscellaneous 151,577 $ 127,634 $ 43,790 $ 85,000 $ 85,000 - $ 01 0000 4XXXReserves/COPS Deferred Rev - $ - $ - $ 407,010 $ 357,010 (50,000) $ TOTAL REVENUE 13,695,347 $ 14,783,662 $ 7,470,914 $ 14,154,847 $ 14,616,513 $ 461,666 $ TRANSFER IN:
01 0000 4316 Admin Fees 132,273 $ 107,500 $ 35,000 $ 45,000 $ 45,277 $ 277 $ 01 0000 4316 ARPA Revenue Loss Transfer 3,118,608 $ - $ - $ - $ - $ - $ TOTAL TRANSFER IN 3,250,881 $ 107,500 $ 35,000 $ 45,000 $ 45,277 $ 277 $

TOTAL REVENUE AND
TRANSFERS IN 16,946,228 $ 14,891,162 $ 7,505,914 $ 14,199,847 $ 14,661,790 $ 461,943 $

GENERAL FUND REVENUE BUDGET
All revenue that is not designated to go to another fund is General Fund revenue. This revenue is used to pay for the general expenditures of 2 2/18/2025 Page 41 of 184
2022-2023 2023-2024 2024-2025 2024-2025 2024-2025

ACCOUNT BUDGET BUDGET THROUGH REVISED PROPOSED
CODE DEPARTMENT ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS 01 0101 City Council 61,329 $ 59,426 $ 34,057 $ 65,112 $ 65,112 $ - $ 01 0102 City Administration 552,109 $ 518,961 $ 329,776 $ 570,578 $ 582,078 $ 11,500 $ 01 0103 City Attorney 111,185 $ 135,902 $ 59,497 $ 118,000 $ 118,000 $ - $ 01 0104 City Hall 175,774 $ 224,098 $ 121,377 $ 244,600 $ 247,585 $ 2,985 $ 01 0105 Finance 276,914 $ 288,316 $ 223,785 $ 407,434 $ 397,807 $ (9,627) $ 01 0106 City Clerk 162,067 $ 196,829 $ 118,534 $ 223,197 $ 234,007 $ 10,810 $ 01 0107 Nondepartmental 5,456,278 $ 2,941,204 $ 858,877 $ 1,624,710 $ 1,957,311 $ 332,601 $ 01 0108 Successor Administration 115,021 $ 114,251 $ 22,833 $ 34,141 $ 34,141 $ - $ 01 0109 IT Department 280,446 $ 243,775 $ 155,824 $ 283,160 $ 301,002 $ 17,842 $ 01 1010 Community Development 622,684 $ 570,257 $ 321,112 $ 670,188 $ 670,688 $ 500 $ 01 1011 Code Enforcement 240,369 $ 259,355 $ 153,088 $ 272,245 $ 282,745 $ 10,500 $ 01 1012 Building, Safety & Eng. 607,115 $ 482,635 $ 205,845 $ 550,210 $ 486,850 $ (63,360) $ 01 1013 Economic Development 11,893 $ 1,847 $ 2,559 $ 15,143 $ 11,000 $ (4,143) $ 01 2021 Law Enforcement 4,996,955 $ 5,726,528 $ 2,733,771 $ 5,851,273 $ 5,958,273 $ 107,000 $ 01 2022 Animal Control 497,940 $ 561,335 $ 334,256 $ 625,607 $ 630,607 $ 5,000 $ 01 3031 Community Services 197,701 $ 248,353 $ 174,937 $ 267,974 $ 274,974 $ 7,000 $ 01 3032 Recreation Department 401,321 $ 475,192 $ 278,946 $ 507,414 $ 515,273 $ 7,859 $ 01 3033 Luckie Park Pool 48,783 $ 109,518 $ 72,090 $ 121,480 $ 124,770 $ 3,290 $ 01 3034 Senior Center 50,871 $ 53,074 $ 30,898 $ 56,879 $ 58,679 $ 1,800 $ 01 3035 Community Events 167,384 $ 211,815 $ 138,579 $ 245,033 $ 252,833 $ 7,800 $ 01 3036 Patriotic Hall 9,949 $ 10,146 $ 12,508 $ 14,854 $ 20,475 $ 5,621 $ 01 3037 Luckie Park Activity Center 6,565 $ 7,453 $ 5,769 $ 12,693 $ 13,545 $ 852 $ 01 3038 Project Phoenix Community Center 152,554 $ 132,428 $ 127,675 $ 213,694 $ 231,034 $ 17,340 $ 01 4041 Public Works Administration 117,051 $ 206,521 $ 211,317 $ 362,963 $ 373,463 $ 10,500 $ 01 4042 Public Works Street Sweeping 116,640 $ 120,000 $ 48,038 $ 120,000 $ 120,000 $ - $ 01 4045 Parks Maintenance 530,138 $ 565,703 $ 327,171 $ 603,581 $ 607,981 $ 4,400 $ 35 0107 Risk Management 42,595 $ 10,105 $ 9 $ 20,000 $ 20,000 $ - $ TOTAL EXPENDITURES 16,009,631 $ 14,475,027 7,103,128 14,102,163 $ 14,590,233 $ 488,070 $

GENERAL FUND EXPENDITURE SUMMARY
General or operating expenditures provide basic services throughout the City and are charged to the General Fund. 3 2/18/2025 Page 42 of 184
2022-2023 2023-2024 2024-2025 2024-2025 2024-2025

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH REVISED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS 01 0101 Expenditures
01 0101 5110 Salaries 29,258 $ 28,793 $ 17,224 $ 30,225 $ 30,225 $ - $ 01 0101 5250 Insurance 14,440 $ 14,913 $ 8,651 $ 15,422 $ 15,422 $ - $ 01 0101 5251 Retirement 2,770 $ 2,975 $ 1,423 $ 3,256 $ 3,256 $ - $ 01 0101 5252 Workers Comp 776 $ 704 $ 670 $ 1,209 $ 1,209 $ - $ 01 0101 6251 Training & Meetings 14,085 $ 12,041 $ 6,089 $ 15,000 $ 15,000 $ - $ TOTAL EXPENDITURES 61,329 $ 59,426 $ 34,057 $ 65,112 $ 65,112 $ - $

CITY COUNCIL
The City Council is the Legislative body that governs the City and is made up of five elected members who meet regularly on the second and fourth Tuesday of each month.
4 2/18/2025 Page 43 of 184
2022-2023 2023-2024 2024-2025 2024-2025 2024-2025

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH REVISED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS 01 0102 Expenditures
01 0102 5110 Salaries 372,304 $ 371,164 $ 240,361 $ 415,426 $ 415,426 $ - $ 01 0102 5235 Vehicle/Cell Allowance 5,763 $ 3,304 $ 4,362 $ 7,560 $ 7,560 $ - $ 01 0102 5250 Insurance 45,617 $ 34,974 $ 28,166 $ 49,813 $ 49,813 $ - $ 01 0102 5251 Retirement 40,069 $ 34,888 $ 22,964 $ 40,922 $ 40,922 $ - $ 01 0102 5252 Workers Comp 11,119 $ 10,420 $ 10,222 $ 16,617 $ 16,617 $ - $ 01 0102 5253 PTO 16,078 $ 31,993 $ 9,788 $ 15,000 $ 15,000 $ - $ 01 0102 6221 Telephone - $ 1,022 $ 833 $ 1,740 $ 1,740 $ - $ 01 0102 6244 Miscellaneous - $ 3,801 $ 348 $ 12,500 $ 2,500 $ (10,000) $ 01 0102 6251 Training & Meetings 11,574 $ 6,694 $ 11,388 $ 9,000 $ 17,000 $ 8,000 $ 01 0102 6258 Staff Education Reimbursement - $ - $ - $ - $ 12,500 $ 12,500 $ 01 0102 6359 Contract & Consulting 3,822 $ 1,501 $ 1,344 $ 2,000 $ 3,000 $ 1,000 $ 01 0102 6359 Contract & Consulting - Outreach 45,010 $ 19,200 $ - $ - $ - $ - $ 01 0102 6518 Electronic Equipment 753 $ - $ - $ - $ - $ - $ TOTAL EXPENDITURES 552,109 $ 518,961 $ 329,776 $ 570,578 $ 582,078 $ 11,500 $

CITY ADMINISTRATION
City Manager and administrative staff carry out policies set by the City Council and supports the day to day operations of the City. City Manager 83%, Executive Assistant 98%, Human Resources 98%, and Office Assistant 100%. 5 2/18/2025 Page 44 of 184
2022-2023 2023-2024 2024-2025 2024-2025 2024-2025

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH REVISED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS 01 0103 Expenditures
01 0103 6107 City Attorney 111,185 $ 135,902 $ 59,497 $ 118,000 $ 118,000 $ - $ TOTAL EXPENDITURES 111,185 $ 135,902 $ 59,497 $ 118,000 $ 118,000 $ - $

CITY ATTORNEY
The City Attorney acts as legal advisor to the City Council and the Successor Agency. 6 2/18/2025 Page 45 of 184
2022-2023 2023-2024 2024-2025 2024-2025 2024-2025

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH REVISED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS 01 0104 Expenditures
01 0104 6210 Electricity 22,311 $ 24,675 $ 16,187 $ 26,198 $ 26,198 $ - $ 01 0104 6211 Gas 4,401 $ 3,158 $ 1,113 $ 6,717 $ 5,500 $ (1,217) $ 01 0104 6212 Water 18,808 $ 23,701 $ 12,797 $ 24,933 $ 24,933 $ - $ 01 0104 6221 Telephone 10,655 $ 10,553 $ 7,182 $ 13,097 $ 13,097 $ - $ 01 0104 6291 Building Operations & Main 11,793 $ 52,793 $ 6,110 $ 27,000 $ 27,000 $ - $ 01 0104 6359 Contract & Consulting Services 26,580 $ 28,130 $ 14,527 $ 29,912 $ 29,912 $ - $ 01 0104 6442 Internal Loan - $ - $ - $ 35,798 $ 40,000 $ 4,202 $ 01 0104 6441 Debt Svc Interest Payment 38,206 $ 36,939 $ 21,583 $ 35,631 $ 35,631 $ - $ 01 0104 6442 Debt Svc Principal Payment 43,020 $ 44,149 $ 41,878 $ 45,314 $ 45,314 $ - $ TOTAL EXPENDITURES 175,774 $ 224,098 $ 121,377 $ 244,600 $ 247,585 $ 2,985 $

CITY HALL
This Department supports the cost associated with the daily operation of City Hall. 7 2/18/2025 Page 46 of 184
2022-2023 2023-2024 2024-2025 2024-2025 2024-2025

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH REVISED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS 01 0105 Expenditures
01 0105 5110 Salaries 177,343 $ 185,530 $ 152,710 $ 258,464 $ 264,464 $ 6,000 $ 01 0105 5235 Vehicle Allowance 289 $ 248 $ 633 $ 1,098 $ 1,098 $ - $ 01 0105 5250 Insurance 21,214 $ 19,901 $ 15,989 $ 24,459 $ 24,559 $ 100 $ 01 0105 5251 Retirement 15,804 $ 15,497 $ 11,575 $ 20,372 $ 20,372 $ - $ 01 0105 5252 Workers Comp 5,134 $ 5,123 $ 6,501 $ 10,338 $ 10,611 $ 273 $ 01 0105 5253 PTO 2,603 $ 11,398 $ 6,911 $ 10,000 $ 10,000 $ - $ 01 0105 6241 Office Supplies 1,843 $ 2,172 $ 321 $ 3,000 $ 3,000 $ - $ 01 0105 6251 Training & Meetings 2,819 $ 5,829 $ 198 $ 5,000 $ 5,000 $ - $ 01 0105 6257 Dues & Subscriptions 8,400 $ 9,315 $ 530 $ 10,500 $ 10,500 $ - $ 01 0105 6359 Contract & Consulting 5,371 $ 151 $ - $ 26,000 $ 10,000 $ (16,000) $ 01 0105 6518 Computer Software
& Hardware 17,932 $ 14,795 $ 13,787 $ 17,978 $ 17,978 $ - $ 01 0105 6554 Payroll Service 18,162 $ 18,357 $ 14,630 $ 20,225 $ 20,225 $ - $ TOTAL EXPENDITURES 276,914 $ 288,316 $ 223,785 $ 407,434 $ 397,807 $ (9,627) $ The Finance Department accounts for financial activities including payroll accounts payable, the receipt of monies, issuance of business licenses, preparation of the annual budget and annual audits.

FINANCE DEPARTMENT
8 2/18/2025 Page 47 of 184
2022-2023 2023-2024 2024-2025 2024-2025 2024-2025

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH REVISED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS 01 0106 Expenditures
01 0106 5110 Salaries 109,099 $ 122,251 $ 74,419 $ 135,434 $ 135,434 $ - $ 01 0106 5235 Vehicle/Cell Allowance 2,280 $ 1,535 $ 679 $ 1,176 $ 1,176 $ - $ 01 0106 5250 Insurance 10,578 $ 10,825 $ 6,559 $ 11,388 $ 11,388 $ - $ 01 0106 5251 Retirement 13,361 $ 17,212 $ 10,529 $ 19,148 $ 19,148 $ - $ 01 0106 5252 Workers Comp 3,185 $ 3,321 $ 3,499 $ 5,417 $ 5,417 $ - $ 01 0106 5253 PTO - $ 2,216 $ 8,810 $ 3,000 $ 10,000 $ 7,000 $ 01 0106 6221 Telephone - $ 623 $ 364 $ 636 $ 636 $ - $
01 0106 6231 Printing - $ - $ - $ 500 $ 500 $ - $
01 0106 6233 Legal Notices 7,787 $ 6,224 $ 334 $ 9,000 $ 8,000 $ (1,000) $ 01 0106 6241 Office Supplies 1,237 $ 679 $ 631 $ 2,000 $ 1,500 $ (500) $ 01 0106 6244 Miscellaneous 44 $ - $ 139 $ 500 $ 500 $ - $ 01 0106 6251 Training & Meetings 5,281 $ 5,509 $ 3,922 $ 6,500 $ 9,000 $ 2,500 $ 01 0106 6257 Dues & Subscriptions 6,292 $ 6,946 $ 753 $ 4,300 $ 7,500 $ 3,200 $ 01 0106 6257 Subscription Software - $ 4,950 $ 5,198 $ 5,198 $ 5,198 $ - $ 01 0106 6349 Marketing - $ 14,168 $ 1,139 $ 12,000 $ 15,000 $ 3,000 $ 01 0106 6359 Contract & Consulting - $ - $ - $ 1,000 $ 500 $ (500) $ 01 0106 6360 Special Department
Supplies - $ 370 $ - $ 1,000 $ 500 $ (500) $
01 0106 6405 Redistricting - $ - $ 610 $ - $ 610 $ 610 $ 01 0106 6411 Elections 2,923 $ - $ 949 $ 5,000 $ 2,000 $ (3,000) $ TOTAL EXPENDITURES 162,067 $ 196,829 $ 118,534 $ 223,197 $ 234,007 $ 10,810 $

CITY CLERK
The City Clerk records and retains the records of the City Council, Planning Commission and other City activities. 9 2/18/2025 Page 48 of 184
2022-2023 2023-2024 2024-2025 2024-2025 2024-2025

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH REVISED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS 01 0107 Expenditures
01 0107 6231 Printing 2,268 $ 1,926 $ 1,187 $ 3,600 $ 3,600 $ - $ 01 0107 6232 Advertising Note 1 $ - 3,258 $ - $ 4,000 $ 2,000 $ (2,000) $ 01 0107 6241 Office Supplies 17,411 $ 10,563 $ 4,455 $ 14,500 $ 13,000 $ (1,500) $ 01 0107 6242 Postage 9,334 $ 5,714 $ 3,128 $ 10,000 $ 10,000 $ - $ 01 0107 6243 Credit Card Admin Fees 55,981 $ 59,462 $ 30,762 $ 56,000 $ 62,000 $ 6,000 $ 01 0107 6244 Miscellaneous Note 2 $ 34,984 21,143 $ 9,041 $ 40,000 $ 36,000 $ (4,000) $ 01 0107 6246 Cafeteria Plan Costs 1,425 $ 1,395 $ 562 $ 2,500 $ 2,500 $ - $ 01 0107 6257 Dues & Subscriptions Note 3 $ 19,444 91,382 $ 10,358 $ 23,100 $ 26,850 $ 3,750 $ 01 0107 6259 Dues, League of Cal. Cities 12,432 $ 12,272 $ 12,622 $ 13,707 $ 13,707 $ - $ 01 0107 6281 Emergency/Safety Management 7,268 $ 10,622 $ 3,901 $ 25,000 $ 50,000 $ 25,000 $ 01 0107 6291 Rental Property Maintenance 30,245 $ 5,740 $ 2,026 $ 25,000 $ 29,000 $ 4,000 $ 01 0107 6327 Copiers at City Hall 6,066 $ 1,731 $ 1,321 $ 4,000 $ 2,500 $ (1,500) $ 01 0107 6354 Audit 56,695 $ 55,319 $ 41,984 $ 68,900 $ 68,900 $ - $ 01 0107 6359 Contract Svcs 3,015 $ - $ - $ 10,000 $ 53,000 $ 43,000 $ 01 0107 6359 Contract Svcs - Grant Writing 12,000 $ - $ - $ 20,000 $ 13,000 $ (7,000) $ 01 0107 6359 Contract Svcs-LAFCO (9, $ - 299) $ - $ - $ - $ - $ 01 0107 6370 Lobbyist 84,600 $ 78,600 $ 46,800 $ 86,000 $ 84,000 $ (2,000) $ 01 0107 6372 Property Tax Collection Charges 4 $ 20,679 19,768 $ 67 $ 25,000 $ 25,000 $ - $ 01 0107 6418 PERS Pension UAL - Fire 56,889 $ 1,689,685 $ - $ - $ - $ - $ 01 0107 6419 OPEB Note 5 $ - - $ - $ 25,000 $ - $ (25,000) $ 01 0107 6420 OPEB Retiree Medical Note 6 $ 137,109 136,920 $ 61,704 $ 164,597 $ 164,597 $ - $ 01 0107 6431 Liability and Property Insurance 7 $ 305,075 288,563 $ 357,136 $ 366,236 $ 366,236 $ - $ 01 0107 6501 Citation Processing Fee 6,378 $ 7,720 $ 4,741 $ 7,500 $ 8,000 $ 500 $ 01 0107 6509 Grant Purchases 41,346 $ 13,900 $ 75,200 $ 25,000 $ 85,200 $ 60,200 $ 01 0107 6544 Water Assessment 6,287 $ 5,977 $ 5,919 $ 7,207 $ 7,207 $ - $ 01 0107 6753 Prepay PERS Unfunded Liability 57,314 $ - $ 66,863 $ 66,863 $ 66,863 $ - $ 01 0107 6850 Transfers Out 4,437,476 $ 463,158 $ 115,000 $ 490,000 $ 723,151 $ 233,151 $ 01 0107 6879 ADA Compliance - $ - $ 4,100 $ 40,000 $ 40,000 $ - $ 01 0107 6993 Adopt-A-Street Program 113 $ 129 $ - $ 1,000 $ 1,000 $ - $ 01 0107 6994 Veterans' Day Event - $ - $ - $ - $ - $ - $ TOTAL EXPENDITURES 5,456,278 $ 2,941,204 $ 858,877 $ 1,624,710 $ 1,957,311 $ 332,601 $

NONDEPARTMENTAL
Expenditures of the General Fund that benefits all departments, or are not easily assigned to a particular department are charged to Nondepartmental.
10 2/18/2025 Page 49 of 184
Note 1:

Advertising is a provisional account which is used for advertising personnel openings.

Note 2:

Note 3:

Dues and subscriptions are for those items that are not attributable to a particular department examples are: LAFCO, FCC publications, ASCAP, SANBAG, ICMA/CAL, CMA, ERC and Basin-wide Foundation.

Note 4:

Note 5:

OPEB is an amount the City pays to a third party administrator (PARS, previously CalPERS) to be set aside for future payment of Other Post Employment Benefits or retiree medical costs.

The unfunded liability is calculated every two years by a certified actuary.

Note 6:

Note 7:

Liability and property insurance is the amount the City pays for coverage to the Public Agency Risk Sharing Authority of California (PARSAC) plus the cost of self-insured retention (deductible).

NONDEPARTMENTAL - NOTES
OPEB retiree medical is the amount the City pays each year for the medical premiums of current retirees.

Property tax collection expenditures cover the amount the County charges the City for processing the property tax rolls.

Miscellaneous expenditures are used for various unexpected costs that come up during the year.
11 2/18/2025 Page 50 of 184
2022-2023 2023-2024 2024-2025 2024-2025 2024-2025

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH REVISED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS 01 0108 Expenditures
01 0108 5110 Salaries 92,415 $ 96,012 $ 17,703 $ 26,742 $ 26,742 $ - $ 01 0108 5250 Insurance 9,480 $ 7,297 $ 1,733 $ 2,690 $ 2,690 $ - $ 01 0108 5251 Retirement 9,300 $ 7,270 $ 1,484 $ 2,409 $ 2,409 $ - $ 01 0108 5252 Workers Comp 2,626 $ 2,472 $ 713 $ 1,050 $ 1,050 $ - $ 01 0108 6359 Contract & Consulting SVC 1,200 $ 1,200 $ 1,200 $ 1,250 $ 1,250 $ - $ TOTAL EXPENDITURES 115,021 $ 114,251 $ 22,833 $ 34,141 $ 34,141 $ - $

SUCCESSOR AGENCY
Successor Agency Administrative cost associated with supporting this department. 12 2/18/2025 Page 51 of 184
2022-2023 2023-2024 2024-2025 2024-2025 2024-2025

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH REVISED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS 01 0109 Expenditures
01 0109 5110 Salaries 123,812 $ 138,118 $ 86,863 $ 151,216 $ 151,216 $ - $ 01 0109 5235 Vehicle Allowance - $ 739 $ 692 $ 1,200 $ 1,200 $ - $ 01 0109 5250 Insurance 7,994 $ 8,264 $ 4,868 $ 8,509 $ 8,509 $ - $ 01 0109 5251 Retirement 9,236 $ 10,632 $ 6,846 $ 11,912 $ 11,912 $ - $ 01 0109 5252 Workers Comp 3,609 $ 3,747 $ 3,738 $ 6,048 $ 6,048 $ - $ 01 0109 5253 PTO 5,041 $ 6,640 $ 4,166 $ 8,000 $ 8,000 $ - $ 01 0109 6221 Telephone 599 $ 624 $ 312 $ 643 $ 643 - $
01 0109 6241 Office Supplies 1,744 $ 234 $ - $ 300 $ 300 $ - $ 01 0109 6251 Training & Meetings 151 $ 1,640 $ - $ 4,000 $ 4,000 $ - $ 01 0109 6257 Dues & Subscriptions 109 $ - $ - $ 500 $ 500 $ - $ 01 0109 6279 Internet Connection/TV 25,120 $ 26,283 $ 15,554 $ 27,653 $ 27,654 $ 1 $ 01 0109 6355 Laserfiche, The Box & Malware 12,369 $ 7,867 $ 5,855 $ 8,273 $ 8,273 $ - $ 01 0109 6355 Web Hosting, Splashtop, Adobe & Help Desk 7,281 $ 6,313 $ 16,835 $ 20,906 $ 23,447 $ 2,541 $ 01 0109 6359 Rack Space 68,111 $ 18,441 $ 9,136 $ 14,700 $ 25,000 $ 10,300 $ 01 0109 6518 Electronic Equipment 15,270 $ 14,233 $ 959 $ 19,300 $ 24,300 $ 5,000 $ TOTAL EXPENDITURES 280,446 $ 243,775 $ 155,824 $ 283,160 $ 301,002 $ 17,842 $

IT DEPARTMENT
The IT Department is responsible for providing the infrastructure for automation. It implements the governance for the use of network and operating systems, and it assists all departments by providing them the functionality they need. 13 2/18/2025 Page 52 of 184
2022-2023 2023-2024 2024-2025 2024-2025 2024-2025

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH REVISED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS 01 1010 Expenditures
01 1010 5109 Planning Comm. Salaries 9,600 $ 11,850 $ 6,000 $ 13,500 $ 13,500 $ - $ 01 1010 5110 Salaries 323,212 $ 353,827 $ 180,377 $ 349,194 $ 349,194 $ - $ 01 1010 5250 Insurance 42,581 $ 46,681 $ 22,385 $ 49,093 $ 49,093 $ - $ 01 1010 5251 Retirement 27,992 $ 32,741 $ 16,433 $ 31,378 $ 31,378 $ - $ 01 1010 5252 Workers Comp 9,700 $ 9,268 $ 7,559 $ 14,508 $ 14,508 $ - $ 01 1010 5253 PTO 21,623 $ 1,631 $ 2,597 $ 8,000 $ 5,000 $ (3,000) $ 01 1010 6233 Legal Notices 6,849 $ 8,977 $ 3,526 $ 10,000 $ 10,000 $ - $ 01 10 10 6241 Office Supplies - $ - $ 2,479 $ 4,600 $ 4,600 $ - $ 01 1010 6251 Training & Meetings 35 $ - $ - $ 5,000 $ 5,000 $ - $ 01 1010 6256 Training & Meetings
Planning Commissioners - $ 6,323 $ - $ 6,000 $ 6,000 $ - $ 01 1010 6257 Dues & Subscriptions - $ - $ 14,800 $ 15,000 $ 15,000 $ - $ 01 1010 6291 Building Operation & Maint. - $ 5,446 $ 1,489 $ 4,500 $ 4,500 $ - $ 01 1010 6327 Rent/Lease Equipment 21,170 $ 5,145 $ 2,966 $ 5,195 $ 5,195 $ - $ 01 1010 6359 Contract Services 41,527 $ 5,894 $ 4,589 $ 8,250 $ 8,250 $ - $ 01 1010 6360 Special Department Supplies 1,943 $ 8,745 $ 1,537 $ 2,000 $ 2,500 $ 500 $ 01 1010 6361 Public Arts Advisory Committee 14,788 $ 15,000 $ 1,109 $ 15,000 $ 17,000 $ 2,000 $ 01 1010 6376 Housing & Homelessness Programs 68,322 $ 27,893 $ 24,500 $ 97,010 $ 97,010 $ - $ 01 1010 6504 Mine Inspection 5,590 $ 5,636 $ 3,566 $ 5,500 $ 6,500 $ 1,000 $ 01 1010 6518 Comm. Dev. Software 27,752 $ 25,200 $ 25,200 $ 26,460 $ 26,460 $ - $ TOTAL EXPENDITURES 622,684 $ 570,257 $ 321,112 $ 670,188 $ 670,688 $ 500 $

COMMUNITY DEVELOPMENT
Community Development performs planning duties and oversees the building and code enforcement functions. 14 2/18/2025 Page 53 of 184
2022-2023 2023-2024 2024-2025 2024-2025 2024-2025

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH REVISED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS 01 1011 Expenditures
01 1011 5110 Salaries 122,707 $ 141,186 $ 87,081 $ 152,968 $ 152,968 $ - $ 01 1011 5250 Insurance 12,787 $ 14,351 $ 8,192 $ 14,323 $ 14,323 $ - $ 01 1011 5251 Retirement 9,117 $ 10,837 $ 6,865 $ 12,061 $ 12,061 $ - $ 01 1011 5252 Workers Comp 3,506 $ 3,435 $ 3,337 $ 6,119 $ 6,119 $ - $ 01 1011 5253 Paid Time Off 287 $ 87 $ - $ 1,000 $ 1,000 $ - $ 01 1011 6107 Attorney Fees 14,430 $ 19,110 $ 14,134 $ 15,000 $ 20,000 $ 5,000 $ 01 1011 6221 Telephone 905 $ 1,116 $ 677 $ 1,194 $ 1,194 $ - $ 01 1011 6241 Office supplies 2,496 $ 346 $ 516 $ 1,000 $ 1,000 $ - $ 01 1011 6251 Training & Meetings 8,672 $ 3,877 $ 2,894 $ 6,000 $ 5,000 $ (1,000) $ 01 1011 6257 Dues & Subscriptions - $ - $ 9,386 $ 9,880 $ 9,880 $ - $ 01 1011 6262 Equipment Maintenance &
Operation 71 $ 113 $ - $ 700 $ 700 $ - $
01 1011 6272 Vehicle Maintenance &
Operation 2,262 $ 552 $ 199 $ 1,000 $ 1,000 $ - $
01 1011 6272 Vehicle - Fuel 2,476 $ 1,934 $ 1,162 $ 3,000 $ 2,500 $ (500) $ 01 1011 6332 Uniforms 244 $ 474 $ 474 $ 500 $ 500 $ - $ 01 1011 6359 Contract Services 12,604 $ 9,174 $ - $ 2,000 $ 7,000 $ 5,000 $ 01 1011 6359 Contract Services - Security 32,324 $ 33,988 $ 18,111 $ 38,400 $ 38,400 $ - $ 01 1011 6518 Electronic Equipment - $ - $ - $ 100 $ 100 $ - $ 01 1011 6548 Dangerous Building
Abatement 13,036 $ 16,475 $ 60 $ 3,000 $ 5,000 $ 2,000 $ 01 1011 6549 Illegal Dump Cleanup 2,445 $ 2,300 $ - $ 4,000 $ 4,000 $ - $ TOTAL EXPENDITURES 240,369 $ 259,355 $ 153,088 $ 272,245 $ 282,745 $ 10,500 $

CODE ENFORCEMENT
The Code Enforcement Officer responds to citizen complaints, inspects properties that appear to be unsafe or have violations and issues citations when necessary. Occasionally a property needs to be boarded up or tagged as uninhabitable. 15 2/18/2025 Page 54 of 184
2022-2023 2023-2024 2024-2025 2024-2025 2024-2025

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH REVISED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS 01 1012 Expenditures
01 1012 6362 Building & Safety
Contracts 469,133 $ 374,950 $ 164,871 $ 420,210 $ 366,850 $ (53,360) $ 01 1012 6363 Engineering Contract 137,982 $ 107,685 $ 40,974 $ 130,000 $ 120,000 $ (10,000) $ TOTAL EXPENDITURES 607,115 $ 482,635 $ 205,845 $ 550,210 $ 486,850 $ (63,360) $

BUILDING, SAFETY AND ENGINEERING
Issuance of building permits and the related inspections along with plan checks and review of engineering plans are the main duties of this department. The building contract expenditures are based on 66.7% of the building permit fees collected by the City. 16 2/18/2025 Page 55 of 184
2022-2023 2023-2024 2024-2025 2024-2025 2024-2025

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH REVISED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS 01 1013 Expenditures
01 1013 5120 Salaries 2,154 $ - $ - $ - $ - $ - $
01 1013 5250 Insurance 454 $ - $ - $ - $ - $ - $
01 1013 5251 Retirement 138 $ - $ - $ - $ - $ - $
01 1013 5252 Workers Comp 56 $ - $ - $ - $ - $ - $
01 1013 6210 Utilities SCE, Gas, Water 6,741 $ 1,013 $ 2,097 $ 9,143 $ 5,000 $ (4,143) $ 01 1013 6291 Maintenance 1,370 $ 834 $ 462 $ 1,000 $ 1,000 $ - $ 01 1013 6371 Community Events
and Promotion Art Expo 980 $ - $ - $ - $ - $ - $
01 1013 6373 Economic Development Plan - $ - $ - $ 5,000 $ 5,000 $ - $ TOTAL EXPENDITURES 11,893 $ 1,847 $ 2,559 $ 15,143 $ 11,000 $ (4,143) $

ECONOMIC DEVELOPMENT
Economic Development focuses on attracting tourists and businesses to the City. This involves joint operation of the visitors' center with community events and print as well as internet advertising. 17 2/18/2025 Page 56 of 184
2022-2023 2023-2024 2024-2025 2024-2025 2024-2025

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH REVISED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS 01 2021 Expenditures
01 2021 6252 Overtime 61,312 $ 80,409 $ - $ 72,561 $ 72,561 $ - $ 01 2021 6255 Cal-ID program 35,361 $ 63,264 $ - $ 38,987 $ 38,987 $ - $ 01 2021 6272 Vehicle Maint & Operation 141,543 $ 218,686 $ - $ 125,000 $ 200,000 $ 75,000 $ 01 2021 6359 Contract services - Sheriff 3,902,801 $ 5,180,353 $ 2,700,365 $ 5,460,725 $ 5,460,725 $ - $ 01 2021 6359 CARES Act of 2020/ARPA Reimbursements 710,956 $ - $ - $ - $ - $ - $ 01 2021 6360 Special department supplies 4,134 $ 4,077 $ 830 $ 4,000 $ 4,000 $ - $ 01 2021 6367 Seized Assets Law Enforcement 1,351 $ 2,430 $ - $ - $ 2,000 $ 2,000 $ 01 2021 6378 COPS/SLESA grants 139,497 $ 177,309 $ 32,576 $ 150,000 $ 180,000 $ 30,000 $ TOTAL EXPENDITURES 4,996,955 $ 5,726,528 $ 2,733,771 $ 5,851,273 $ 5,958,273 $ 107,000 $ The City contracts with the San Bernardino County Sheriff for police protection. The contract includes patrol, investigation, school resource officer and all other police duties.

LAW ENFORCEMENT
18 2/18/2025 Page 57 of 184
2022-2023 2023-2024 2024-2025 2024-2025 2024-2025

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH REVISED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS 01 2022 Expenditures
01 2022 5110 Salaries 256,375 $ 307,120 $ 189,786 $ 327,475 $ 327,475 $ - $ 01 2022 5130 Overtime Wages 16,809 $ 24,334 $ 13,788 $ 22,000 $ 22,000 $ - $ 01 2022 5235 Vehicle/Cell Allowance 420 $ 1,200 $ 692 $ 1,200 $ 1,200 $ - $ 01 2022 5250 Insurance 53,197 $ 56,843 $ 35,470 $ 61,034 $ 61,034 $ - $ 01 2022 5251 Retirement 23,335 $ 30,595 $ 19,274 $ 33,095 $ 33,095 $ - $ 01 2022 5252 Workers Comp 6,445 $ 6,795 $ 6,907 $ 13,979 $ 13,979 $ - $ 01 2022 5253 PTO 13,963 $ 3,613 $ 9,549 $ 18,000 $ 18,000 $ - $ 01 2022 6210 Electricity 12,179 $ 12,595 $ 6,283 $ 17,500 $ 15,000 $ (2,500) $ 01 2022 6211 Natural and Propane Gas 8,696 $ 4,512 $ 1,449 $ 9,000 $ 8,000 $ (1,000) $ 01 2022 6212 Water 6,137 $ 9,959 $ 5,709 $ 7,000 $ 10,000 $ 3,000 $ 01 2022 6221 Telephone 2,037 $ 1,632 $ 1,028 $ 1,824 $ 1,824 $ - $ 01 2022 6231 Printing 663 $ 622 $ - $ 1,500 $ 1,500 $ - $ 01 2022 6232 Advertising 2,613 $ 2,997 $ 2,435 $ 3,000 $ 3,000 $ - $ 01 2022 6241 Office Supplies 2,507 $ 2,080 $ 1,490 $ 2,000 $ 2,000 $ - $ 01 2022 6251 Training & Meetings 1,491 $ 1,361 $ 25 $ 4,000 $ 4,000 $ - $ 01 2022 6272 Vehicle Operation & Maint. 7,829 $ 6,551 $ 6,194 $ 6,000 $ 8,000 $ 2,000 $ 01 2022 6272 Vehicle - Fuel 8,807 $ 9,539 $ 4,161 $ 8,400 $ 8,400 $ - $ 01 2022 6290 Grounds Operation & Maint. 196 $ - $ - $ - $ - $ - $ 01 2022 6291 Building Operation & Maint. 10,736 $ 11,344 $ 7,967 $ 9,000 $ 12,000 $ 3,000 $ 01 2022 6312 Small Equipment & Tools 3,261 $ 2,850 $ 259 $ 3,500 $ 3,500 $ - $ 01 2022 6327 Rent/Lease Equipment - $ 1,414 $ 1,028 $ 1,537 $ 1,537 $ - $ 01 2022 6332 Uniforms 3,807 $ 3,352 $ 600 $ 3,500 $ 3,500 $ - $ 01 2022 6359 Contract Services 1,552 $ - $ - $ 3,000 $ 3,000 $ - $ 01 2022 6360 Special Dept. Supplies 5,143 $ 5,360 $ 896 $ 6,000 $ 6,000 $ - $ 01 2022 6422 Veterinary Services 23,979 $ 24,569 $ 8,891 $ 27,563 $ 27,563 $ - $ 01 2022 6423 License Tags 3,456 $ 2,693 $ 1,183 $ 4,000 $ 4,000 $ - $ 01 2022 6424 Animal Disposal 4,800 $ 7,500 $ - $ 9,000 $ 9,000 $ - $ 01 2022 6425 Leashes, Collars etc. 1,697 $ 2,277 $ - $ 2,000 $ 2,500 $ 500 $ 01 2022 6426 Animal Food & Cat Litter 14,299 $ 17,245 $ 9,192 $ 19,000 $ 19,000 $ - $ 01 2022 6518 Electronic Equipment - Tablets 1,128 $ - $ - $ - $ - $ - $ 01 2022 6518 Software - Sheltermanager 383 $ 383 $ - $ 500 $ 500 $ - $ TOTAL EXPENDITURES 497,940 $ 561,335 $ 334,256 $ 625,607 $ 630,607 $ 5,000 $

ANIMAL CONTROL
The department investigates animal complaints, issues licenses and operates the animal shelter. An Animal Control Officer is available 24 hours a day subject to call-out.
19 2/18/2025 Page 58 of 184
2022-2023 2023-2024 2024-2025 2024-2025 2024-2025

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH REVISED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS 01 3031 Expenditures
01 3031 5110 Salaries 103,584 $ 113,838 $ 73,804 $ 124,675 $ 124,675 $ - $ 01 3031 5235 Vehicle/Cell Allowance 1,200 $ 1,200 $ 692 $ 1,200 $ 1,200 $ - $ 01 3031 5250 Insurance 10,959 $ 11,329 $ 6,549 $ 11,424 $ 11,424 $ - $ 01 3031 5251 Retirement 12,671 $ 16,030 $ 10,407 $ 17,628 $ 17,628 $ - $ 01 3031 5252 Workers Comp 3,040 $ 3,338 $ 3,125 $ 4,987 $ 4,987 $ - $ 01 3031 5253 PTO - $ 10,946 $ - $ 6,000 $ 6,000 $ - $
01 3031 6210 Electricity 3,660 $ 4,750 $ 6,517 $ 6,500 $ 9,000 $ 2,500 $ 01 3031 6212 Water 830 $ 823 $ 330 $ 899 $ 899 $ - $
01 3031 6221 Telephone 3,360 $ 3,537 $ 2,324 $ 4,183 $ 4,183 $ - $ 01 3031 6241 Office Supplies 4,624 $ 2,587 $ 1,584 $ 4,500 $ 4,500 $ - $ 01 3031 6251 Training & Meetings 2,942 $ 200 $ - $ 4,000 $ 4,000 $ - $ 01 3031 6257 Dues & Subscriptions 470 $ 510 $ - $ - $ - $ - $ 01 3031 6272 Vehicle Operation & Maint. 5,830 $ 278 $ - $ 6,500 $ 6,500 $ - $ 01 3031 6291 Building Operation & Maint. 5,678 $ 10,016 $ 5,181 $ 10,000 $ 10,000 $ - $ 01 3031 6293 Building Operation &
Maintenance - Preschool 828 $ 1,929 $ 370 $ 1,500 $ 1,500 $ - $ 01 3031 6294 Building Operation &
Maintenance - Theatre 29 1,000 $ 5,070 $ 4,338 $ 1,500 $ 6,000 $ 4,500 $ 01 3031 6327 Rent/Lease Equipment 2,227 $ 2,284 $ 1,466 $ 2,503 $ 2,503 $ - $ 01 3031 6359 Contract Consulting/Booking 14,798 $ 9,688 $ 8,250 $ 9,975 $ 9,975 $ - $ 01 3031 6760 Contributions to Non-profits 20,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ - $ TOTAL EXPENDITURES 197,701 $ 248,353 $ 174,937 $ 267,974 $ 274,974 $ 7,000 $

COMMUNITY SERVICES ADMINISTRATION
Provides administrative oversight of recreation, swimming pool, etc., schedules building use and rental, coordinates events, coordinates CDBG and other capital improvement grants for the parks. 20 2/18/2025 Page 59 of 184
2022-2023 2023-2024 2024-2025 2024-2025 2024-2025

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH REVISED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS 01 3032 Expenditures
01 3032 5110 Salaries-Full Time 201,087 $ 254,217 $ 146,914 $ 264,930 $ 264,930 $ - $ 01 3032 5120 Salaries-Part Time and
Summer youth programs 20,191 $ 27,788 $ 19,930 $ 35,000 $ 35,000 $ - $ 01 3032 5235 Vehicle/Cell Allowance 420 $ 178 $ - $ - $ - $ - $ 01 3032 5250 Insurance 38,094 $ 42,808 $ 21,136 $ 40,740 $ 40,740 $ - $ 01 3032 5251 Retirement 14,892 $ 19,390 $ 11,423 $ 20,895 $ 20,895 $ - $ 01 3032 5252 Workers Comp 5,093 $ 6,584 $ 5,796 $ 11,997 $ 11,997 $ - $ 01 3032 5253 PTO 1,705 $ 1,547 $ 542 $ 2,500 $ 2,500 $ - $ 01 3032 5254 Unemployment Insurance 1,350 $ 10,350 $ - $ 8,000 $ 5,000 $ (3,000) $ 01 3032 6210 Electricity 5,987 $ 8,543 $ 1,356 $ 6,641 $ 9,000 $ 2,359 $ 01 3032 6221 Telephone - $ 457 $ 364 $ 655 $ 655 $ - $
01 3032 6232 Advertising 117 $ 1,541 $ 827 $ 1,800 $ 1,800 $ - $ 01 3032 6241 Office Supplies 440 $ 906 $ 572 $ 2,000 $ 2,000 $ - $ 01 3032 6251 Training & Meetings 6,559 $ 4,932 $ 766 $ 7,000 $ 7,000 $ - $ 01 3032 6253 Awards & Trophies 12,022 $ 8,382 $ 4,734 $ 12,500 $ 12,500 $ - $ 01 3032 6257 Dues & Subscriptions 140 $ 10 $ 465 $ 500 $ 500 $ - $ 01 3032 6262 Equipment Operation & Maint. 281 $ 1,594 $ 734 $ 1,000 $ 1,500 $ 500 $ 01 3032 6262 Equipment - Fuel 2,142 $ 2,650 $ 2,709 $ 2,756 $ 2,756 $ - $ 01 3032 6272 Vehicle Operation & Maint. 8,069 $ 574 $ 625 $ 3,500 $ 3,500 $ - $ 01 3032 6272 Vehicle - Fuel 11,122 $ 4,956 $ 1,226 $ 5,000 $ 5,000 $ - $ 01 3032 6290 Grounds Operation & Maint. 16,798 $ 14,874 $ 9,407 $ 10,000 $ 10,000 $ - $ 01 3032 6291 Building Operation & Maint. 2,145 $ 3,857 $ 1,314 $ 3,000 $ 3,000 $ - $ 01 3032 6292 Minor Building Improv. 98 $ 200 $ 515 $ 1,500 $ 1,500 $ - $ 01 3032 6312 Small Tools 621 $ 108 $ 117 $ 1,000 $ 1,000 $ - $ 01 3032 6332 Uniforms 24,850 $ 24,025 $ 25,670 $ 26,000 $ 28,000 $ 2,000 $ 01 3032 6359 Referees & Umpires 11,186 $ 12,192 $ 7,209 $ 13,000 $ 13,000 $ - $ 01 3032 6360 Special Dept. Supplies 7,579 $ 6,518 $ 4,787 $ 6,500 $ 6,500 $ - $ 01 3032 6369 Instructors Fees 8,333 $ 16,011 $ 5,374 $ 19,000 $ 19,000 $ - $ 01 3032 6509 Sponsorship Purchases - $ - $ 4,434 $ - $ 6,000 $ 6,000 $ TOTAL EXPENDITURES 401,321 $ 475,192 $ 278,946 $ 507,414 $ 515,273 $ 7,859 $

RECREATION DEPARTMENT
Coordinates and oversees youth & adult sports leagues, instructional classes, maintenance of ball fields, summer day camp and other 21 2/18/2025 Page 60 of 184
2022-2023 2023-2024 2024-2025 2024-2025 2024-2025

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH REVISED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS 01 3033 Expenditures
01 3033 5120 Salaries-Temporary
Lifeguards 14,587 $ 49,837 $ 36,198 $ 60,000 $ 60,000 $ - $ 01 3033 5250 Insurance 212 $ 722 $ 525 $ 870 $ 870 $ - $ 01 3033 5252 Workers Comp 399 $ 1,187 $ 1,176 $ 2,400 $ 2,400 $ - $ 01 3033 5254 Unemployment Insurance - $ - $ - $ 1,300 $ 1,300 $ - $ 01 3033 6210 Electricity 7,131 $ 23,236 $ 22,323 $ 26,000 $ 27,000 $ 1,000 $ 01 3033 6211 Natural Gas 2,742 $ 8,535 $ 93 $ 3,710 $ 5,000 $ 1,290 $ 01 3033 6212 Water 2,339 $ 2,707 $ 1,720 $ 3,000 $ 3,000 $ - $ 01 3033 6221 Telephone 631 $ 773 $ 515 $ 800 $ 800 $ - $ 01 3033 6251 Training & Meetings 378 $ 1,358 $ 339 $ 1,700 $ 1,700 $ - $ 01 3033 6262 Equipment operation & Maint. 149 $ 1,487 $ 546 $ 1,500 $ 1,500 $ - $ 01 3033 6290 Grounds Maintenance 240 $ 1,069 $ - $ 1,000 $ 1,000 $ - $ 01 3033 6291 Building & Pool Maint. 10,288 $ 15,513 $ 8,482 $ 15,000 $ 16,000 $ 1,000 $ 01 3033 6292 Minor Building Improvements 1,167 $ 41 $ - $ 500 $ 500 $ - $ 01 3033 6332 Uniforms 704 $ 492 $ 173 $ 1,200 $ 1,200 $ - $ 01 3033 6360 Special Dept. Supplies 7,816 $ 2,561 $ - $ 2,500 $ 2,500 $ - $ TOTAL EXPENDITURES 48,783 $ 109,518 $ 72,090 $ 121,480 $ 124,770 $ 3,290 $

LUCKIE PARK SWIMMING POOL
Operates swimming pool from May Through September and provides lifeguards. The pool is used by the High School swim team from February to May.
22 2/18/2025 Page 61 of 184
2022-2023 2023-2024 2024-2025 2024-2025 2024-2025

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH REVISED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS 01 3034 Expenditures
01 3034 6210 Electricity 15,620 $ 16,665 $ 11,071 $ 18,291 $ 18,291 $ - $ 01 3034 6211 Natural Gas 4,597 $ 2,572 $ 1,002 $ 6,500 $ 6,500 $ - $ 01 3034 6212 Water 4,671 $ 4,793 $ 3,505 $ 5,000 $ 5,500 $ 500 $ 01 3034 6221 Telephone 2,730 $ 3,447 $ 2,530 $ 3,388 $ 3,388 $ - $ 01 3034 6291 Building Operation & Maint. 5,045 $ 7,354 $ 3,335 $ 4,700 $ 6,000 $ 1,300 $ 01 3034 6292 Minor Building Improvements 668 $ 158 $ 455 $ 1,000 $ 1,000 $ - $ 01 3034 6359 Maintenance Contract 17,540 $ 18,085 $ 9,000 $ 18,000 $ 18,000 $ - $ TOTAL EXPENDITURES 50,871 $ 53,074 $ 30,898 $ 56,879 $ 58,679 $ 1,800 $

SENIOR CENTER
Oversee lease agreement between City and County and Reach Out Morongo Basin, a local not-for-profit organization. Staff assists in maintenance and general repair of the building.
23 2/18/2025 Page 62 of 184
2022-2023 2023-2024 2024-2025 2024-2025 2024-2025

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH REVISED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS 01 3035 Expenditures
01 3035 5110 Salaries 55,135 $ 64,057 $ 38,829 $ 67,142 $ 67,142 $ - $ 01 3035 5250 Insurance 11,711 $ 11,250 $ 6,667 $ 11,893 $ 11,893 $ - $ 01 3035 5251 Retirement 3,979 $ 4,770 $ 3,042 $ 5,295 $ 5,295 $ - $ 01 3035 5252 Workers Comp 1,489 $ 1,604 $ 1,550 $ 2,686 $ 2,686 $ - $ 01 3035 6221 Telephone - $ - $ 312 $ - $ 626 $ 626 $
01 3035 6232 Advertising 395 $ 212 $ - $ 500 $ 500 $ - $ 01 3035 6241 Office Supplies 953 $ 270 $ 108 $ 500 $ 500 $ - $ 01 3035 6251 Meeting & Travel 1,258 $ 1,198 $ - $ 1,200 $ 1,200 $ - $ 01 3035 6253 Awards/Trophies 667 $ - $ - $ 1,000 $ 1,000 $ - $ 01 3035 6257 Dues & Subscriptions 1,769 $ 2,026 $ 2,138 $ 2,317 $ 2,317 $ - $ 01 3035 6332 Uniforms 1,145 $ 492 $ 864 $ 1,000 $ 1,000 $ - $ 01 3035 6371 Misc. Community Events 34,429 $ 70,981 $ 29,076 $ 71,500 $ 63,300 $ (8,200) $ 01 3035 6381 Fireworks, July 4 4,216 $ 2,016 $ 2,623 $ 5,000 $ 5,000 $ - $ 01 3035 6382 Rotary Carnival 4,179 $ 4,200 $ - $ 6,000 $ 6,000 $ - $ 01 3035 6383 Youth Boys/Girls Basketball Tournament 15,594 $ 15,179 $ 1,050 $ 16,500 $ 16,500 $ - $ 01 3035 6384 Park 2 Park Bike Ride-JT 55 11,108 $ 4,921 $ 4,812 $ 12,000 $ 11,374 $ (626) $ 01 3035 6385 Desert Oasis Car Show 3,485 $ - $ - $ - $ - $ - $ 01 3035 6386 Pioneer Days 12,333 $ 20,369 $ 45,410 $ 33,000 $ 46,000 $ 13,000 $ 01 3035 6387 Movies in the Park 3,539 $ 2,988 $ 2,098 $ 5,000 $ 5,000 $ - $ 01 3035 6389 Juneteenth Event - $ 2,500 $ - $ 2,500 $ 2,500 $ - $ 01 3035 6994 Veterans' Day Event - $ 2,782 $ - $ - $ 3,000 $ 3,000 $ TOTAL EXPENDITURES 167,384 $ 211,815 $ 138,579 $ 245,033 $ 252,833 $ 7,800 $

COMMUNITY EVENTS
Plans and oversees City sponsored Community Events for the public from conception to clean up. 24 2/18/2025 Page 63 of 184
2022-2023 2023-2024 2024-2025 2024-2025 2024-2025

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH REVISED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS 01 3036 Expenditures
01 3036 6210 Electricity 3,659 $ 4,750 $ 6,517 $ 5,472 $ 9,000 $ 3,528 $ 01 3036 6211 Natural Gas 1,919 $ 186 $ 106 $ 3,000 $ 3,000 $ - $ 01 3036 6212 Water 928 $ 444 $ 243 $ 1,475 $ 1,475 $ - $ 01 3036 6221 Telephone 1,276 $ 1,451 $ 1,005 $ 1,407 $ 1,500 $ 93 $ 01 3036 6291 Building Repair & Maint. 2,167 $ 3,315 $ 4,637 $ 3,500 $ 5,500 $ 2,000 $ TOTAL EXPENDITURES 9,949 $ 10,146 $ 12,508 $ 14,854 $ 20,475 $ 5,621 $

PATRIOTIC HALL
Facility is rented to the public for events. Staff is responsible for scheduling of building and maintenance. 25 2/18/2025 Page 64 of 184
2022-2023 2023-2024 2024-2025 2024-2025 2024-2025

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH REVISED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS 01 3037 Expenditures
01 3037 6210 Electricity 2,566 $ 2,602 $ 3,559 $ 3,448 $ 5,000 $ 1,552 $ 01 3037 6211 Natural Gas 637 $ 337 $ 205 $ 1,190 $ 1,190 $ - $ 01 3037 6212 Water 873 $ 1,109 $ 423 $ 1,355 $ 1,355 $ - $ 01 3037 6291 Building Repair & Maint. 2,439 $ 3,320 $ 1,582 $ 5,000 $ 5,000 $ - $ 01 3037 6292 Minor Building Improvements 50 $ 85 $ - $ 1,700 $ 1,000 $ (700) $ TOTAL EXPENDITURES 6,565 $ 7,453 $ 5,769 $ 12,693 $ 13,545 $ 852 $

LUCKIE PARK ACTIVITY CENTER
Classes are held on an ongoing basis (dance, yoga, Zumba etc.) Facility is rented to the public for events. Staff is responsible for scheduling of building and maintenance.
26 2/18/2025 Page 65 of 184
2022-2023 2023-2024 2024-2025 2024-2025 2024-2025

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH REVISED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS 01 3038 Expenditures
01 3038 5110 Salaries 40,146 $ 22,819 $ 43,359 $ 75,130 $ 75,130 $ - $ 01 3038 5250 Insurance 9,345 $ 5,382 $ 9,682 $ 17,258 $ 17,258 $ - $ 01 3038 5251 Retirement 2,872 $ 1,760 $ 3,418 $ 5,929 $ 5,929 $ - $ 01 3038 5252 Workers Comp 889 $ 468 $ 1,625 $ 3,005 $ 3,005 $ - $ 01 3038 6210 Electricity 62,671 $ 72,777 $ 43,695 $ 65,000 $ 70,000 $ 5,000 $ 01 3038 6211 Natural Gas 7,585 $ 3,728 $ 1,470 $ 7,166 $ 7,166 $ - $ 01 3038 6212 Water 6,154 $ 6,355 $ 3,430 $ 11,520 $ 11,520 $ - $ 01 3038 6221 Telephone 128 $ 351 $ 223 $ 520 $ 520 $ - $ 01 3038 6241 Office Supplies 538 $ 38 $ 684 $ 1,000 $ 1,000 $ - $ 01 3038 6257 Dues & Subscriptions - $ - $ 12,340 $ - $ 12,340 $ 12,340 $ 01 3038 6260 Vandalism - $ - $ 138 $ 1,000 $ 1,000 $ - $ 01 3038 6262 Equipment Operation & Maint - $ - $ 673 $ 5,000 $ 5,000 $ - $ 01 3038 6279 Internet Connection 2,030 $ 2,300 $ 1,380 $ 2,394 $ 2,394 $ - $ 01 3038 6290 Ground Maintenance 2,572 $ 288 $ 1,102 $ 3,000 $ 3,000 $ - $ 01 3038 6291 Building Repair &
Maintenance 13,786 $ 12,852 $ 3,310 $ 7,500 $ 7,500 $ - $ 01 3038 6359 Contract & Consulting 2,789 $ 2,081 $ 1,017 $ 6,272 $ 6,272 $ - $ 01 3038 6360 Special Department Supplies 181 $ 116 $ 129 $ 2,000 $ 2,000 $ - $ 01 3038 6518 Electronic Equipment 868 $ - $ - $ - $ - $ - $ 01 3038 6992 Banners - $ 1,113 $ - $ - $ - $ - $
TOTAL EXPENDITURES 152,554 $ 132,428 $ 127,675 $ 213,694 $ 231,034 $ 17,340 $ Classes are held on an ongoing basis (dance, yoga, Zumba etc.). Facility is rented to the public for events. Staff is responsible for scheduling of building and maintenance.

FREEDOM PLAZA - COMMUNITY CENTER
27 2/18/2025 Page 66 of 184
2022-2023 2023-2024 2024-2025 2024-2025 2024-2025

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH REVISED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS 01 4041 Expenditures
01 4041 5110 Salaries 61,034 $ 115,896 $ 131,682 $ 224,224 $ 224,224 $ - $ 01 4041 5250 Insurance 9,397 $ 20,317 $ 16,819 $ 31,176 $ 31,176 $ - $ 01 4041 5251 Retirement 6,292 $ 12,852 $ 15,654 $ 26,802 $ 26,802 $ - $ 01 4041 5252 Workers Comp 1,453 $ 2,525 $ 4,700 $ 8,969 $ 8,969 $ - $ 01 4041 5253 Paid Time Off 2,152 $ 3,526 $ 7,651 $ 2,000 $ 9,000 $ 7,000 $ 01 4041 6210 Electricity 3,549 $ 3,902 $ 2,112 $ 4,187 $ 4,187 $ - $ 01 4041 6211 Natural Gas 567 $ 196 $ 120 $ 800 $ 800 $ - $ 01 4041 6212 Water 328 $ 362 $ 225 $ 605 $ 605 $ - $
01 4041 6221 Telephone 748 $ 1,739 $ 1,295 $ 2,500 $ 2,500 $ - $ 01 4041 6241 Office Supplies 557 $ 1,325 $ 735 $ 1,500 $ 1,500 $ - $ 01 4041 6251 Training & Meeting - $ - $ - $ 700 $ 700 $ - $ 01 4041 6291 Building Repair & Maint. 730 $ 1,080 $ 4,745 $ 2,500 $ 6,000 $ 3,500 $ 01 4041 6518 Electronic Equipment 4,208 $ - $ - $ - $ - $ - $ 01 4041 6530 Traffic Signal Maintenance - $ 11,936 $ 6,204 $ 12,500 $ 12,500 $ - $ 01 4041 6531 Signal Maintenance - $ 8,685 $ 9,050 $ 12,500 $ 12,500 $ - $ 01 4041 6769 Generator Maint City Wide 57 $ - $ - $ 2,000 $ 2,000 $ - $ 01 4041 6885 National Park Drive Median 18,653 $ 21,900 $ 10,325 $ 20,000 $ 20,000 $ - $ 01 4041 6950 Palm Tree Maintenance 7,326 $ - $ - $ 10,000 $ 10,000 $ - $ 01 4041 6992 Banners/Downtown lights - $ 280 $ - $ - $ - $ - $ TOTAL EXPENDITURES 117,051 $ 206,521 $ 211,317 $ 362,963 $ 373,463 $ 10,500 $

PUBLIC WORKS - ADMINISTRATION
Public works administrative costs associated with the General Fund (Building and grounds). 28 2/18/2025 Page 67 of 184
2022-2023 2023-2024 2024-2025 2024-2025 2024-2025

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH REVISED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS 01 4042 Expenditures
01 4042 5110 Salaries 68,130 $ 70,913 $ 29,140 $ 49,254 $ 49,254 $ - $ 01 4042 5250 Insurance 10,021 $ 11,485 $ 7,644 $ 16,830 $ 16,830 $ - $ 01 4042 5251 Retirement 6,740 $ 7,888 $ 2,249 $ 3,887 $ 3,887 $ - $ 01 4042 5252 Workers Comp 1,693 $ 1,538 $ 954 $ 1,970 $ 1,970 $ - $ 01 4042 5253 Paid Time Off 1,966 $ 1,043 $ - $ 1,000 $ 1,000 $ - $ 01 4042 6262 Equipment Repair Maint 17,542 $ 10,251 $ 7,611 $ 8,000 $ 8,000 $ - $ 01 4042 6262 Equipment - Fuel 3,113 $ 7,904 $ 440 $ 5,000 $ 5,000 $ - $ 01 4042 6332 Uniforms - $ - $ - $ 750 $ 750 $ - $
01 4042 6850 Transfer to Capital Project Equipment 7,435 $ 8,978 $ - $ 33,309 $ 33,309 $ - $ TOTAL EXPENDITURES 116,640 $ 120,000 $ 48,038 $ 120,000 $ 120,000 $ - $

PUBLIC WORKS - STREET SWEEPING
Public works administrative costs associated with the city wide street sweeping services. 29 2/18/2025 Page 68 of 184
2022-2023 2023-2024 2024-2025 2024-2025 2024-2025

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH REVISED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS 01 4045 Expenditures
01 4045 5110 Salaries 246,043 $ 259,625 $ 165,323 $ 285,449 $ 285,449 $ - $ 01 4045 5235 Vehicle/Cell Allowance 420 $ 420 $ 242 $ 420 $ 420 $ - $ 01 4045 5250 Insurance 48,007 $ 51,312 $ 33,069 $ 58,914 $ 58,914 $ - $ 01 4045 5251 Retirement 22,335 $ 25,333 $ 16,212 $ 28,104 $ 28,104 $ - $ 01 4045 5252 Workers Comp 5,682 $ 5,576 $ 5,505 $ 11,418 $ 11,418 $ - $ 01 4045 5253 PTO 336 $ 5,187 $ 736 $ 5,000 $ 5,000 $ - $ 01 4045 6210 Electricity 67,434 $ 77,665 $ 69,476 $ 69,458 $ 69,458 $ - $ 01 4045 6211 Natural Gas 2,771 $ - $ - $ - $ - $ - $
01 4045 6212 Water 5,626 $ 5,988 $ 3,857 $ 9,718 $ 9,718 $ - $ 01 4045 6251 Training & Meetings - $ 735 $ - $ 2,500 $ 2,500 $ - $ 01 4045 6260 Vandalism/ Graffiti Removal 1,139 $ 830 $ 184 $ 3,000 $ 3,000 $ - $ 01 4045 6262 Equipment Operation & Maint. 5,640 $ 16,776 $ 2,265 $ 15,000 $ 15,000 $ - $ 01 4045 6262 Equipment - Fuel - $ - $ 399 $ - $ 1,000 $ 1,000 $ 01 4045 6272 Vehicle Operation & Maint. 1,988 $ 9,140 $ 2,354 $ 3,500 $ 3,500 $ - $ 01 4045 6272 Vehicle - Fuel 4,456 $ 2,717 $ 6,774 $ 5,000 $ 8,000 $ 3,000 $ 01 4045 6290 Grounds Operation & Maint. 61,825 $ 74,592 $ 6,137 $ 75,000 $ 75,000 $ - $ 01 4045 6291 Building Operation & Maint. 14,297 $ 6,103 $ 3,649 $ 8,500 $ 8,500 $ - $ 01 4045 6295 Well Repair - $ 164 $ - $ - $ - $ - $
01 4045 6312 Small Equip. & Tools 4,033 $ 8,085 $ 2,157 $ 7,000 $ 7,000 $ - $ 01 4045 6332 Uniforms 3,045 $ 3,443 $ 3,693 $ 3,600 $ 4,000 $ 400 $ 01 4045 6359 Contract Services - Clean Up - $ - $ - $ - $ - $ - $ 01 4045 6518 Electronic Equipment 2,481 $ - $ - $ - $ - $ - $ 01 4045 6663 Drinking Fountains, Bar-B-Q
Grills & Picnic Benches 10,242 $ 12,012 $ 5,139 $ 12,000 $ 12,000 $ - $ 01 4045 6879 ADA Compliance 22,338 $ - $ - $ - $ - $ - $ TOTAL EXPENDITURES 530,138 $ 565,703 $ 327,171 $ 603,581 $ 607,981 $ 4,400 $

PUBLIC WORKS PARKS MAINTENANCE
Maintains the grounds at the City's five parks: Luckie Park, Veterans Park at City Hall, Knott's Sky Park, the Senior Center and the pocket park at the Historic Plaza.
30 2/18/2025 Page 69 of 184
2022-2023 2023-2024 2024-2025 2024-2025 2024-2025

ACCOUNT DEPARTMENT BUDGET BUDGET THROUGH REVISED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS 35 0000 Revenues
35 00 00 4890 Workers Comp Refund 31,609 $ - $ - $ 20,000 $ - $ (20,000) $ Reserves 10,986 $ 10,105 $ 9 $ - $ 20,000 $ 20,000 $
TOTAL REVENUE 42,595 $ 10,105 $ 9 $ 20,000 $ 20,000 $ - $ 35 0107 Expenditures
35 0107 6436 Claims Settlement 42,595 $ 10,105 $ 9 $ 20,000 $ 20,000 $ - $ TOTAL EXPENDITURES 42,595 $ 10,105 $ 9 $ 20,000 $ 20,000 $ - $

RISK MANAGEMENT
Accounts for the collection of resources, mainly from PARSAC rebates, to use for SIR (Self Insured Retention) and other Risk related 31 2/18/2025 Page 70 of 184
www.hdlcompanies.com | 888.861.0220
Q3 2023*
Q3 2024*
Legend
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
SALES TAX BY MAJOR BUSINESS GROUP *Allocation aberrations have been adjusted to reflect sales activity Restaurants
and
Hotels
Fuel and
Service
Stations
County
and State
Pools
Food
and
Drugs
Autos
and
Transportation
General
Consumer
Goods
Building
and
Construction
Business
and
Industry
CITY OF TWENTYNINE PALMS HIGHLIGHTS TOP 25 PRODUCERS
Published by HdL Companies in Winter 2025

SALES TAX UPDATE

CITY OF TWENTYNINE PALMS
3Q 2024 (JULY - SEPTEMBER)
29 Palms Liquor & Gas
7 Eleven
Adobe Liquor
Arco AM PM
AutoZone
Burger King
Carl’s Jr
Circle K
Del Taco
Denny’s
Desert Auto &
Hardware
Dollar General
Dominos Pizza
Fastrip
Grocery Outlet
Hi Grade Materials Co
IC Auto
Jack in the Box
McDonald’s
O’Reilly Auto Parts
Popeyes
Rite Aid
Santanas Mexican Food
Stater Bros
Taco Bell
Twentynine Palms’ receipts from July
through September were 5.4% below
the third sales period in 2023. Excluding
reporting aberrations, including late
and missing payments, receipts for the
period were down 3.7%.

The effects from the global drop in
crude oil prices led to lower prices at
the gas pump that will persist through
December. This weighed most heavily
on results this quarter. The businessindustry group’s results were an anomaly as most of the outlets in the group fared
well this quarter. The decline in receipts
is the result of a $5,900 tax allocation
from a one-time sale reported last year
that negatively skewed this period’s
results.

Both the food-drug group and general
consumer goods group saw buying
patterns change as consumers moved
from buying things to spending more for
travel and services. When consumers
shopped at local outlets, they were
clearly looking for those with the lowest
prices.

Partially offsetting the declines was the
rise in spending on transport needs,
including auto parts. Restaurants also
fared well as a group. While venues open
more than a year reported a mix of gains
and declines, newer venues continued to
add to the tax base.

The city also benefitted from growth in
the size of the countywide use tax pool.

As a result, the allocation paid out grew
slightly.

Net of aberrations, taxable sales for all
of San Bernardino County were flat over
the comparable period while those of
the Southern California region were
down 2.3%.

TOTAL: $ 350,627
-3.7% 0.0% -2.3%

COUNTY STATE

TWENTYNINE PALMS
3Q2024

TOP NON-CONFIDENTIAL BUSINESS TYPES
Q3 '24
Twentynine Palms
Business Type Change Change Change
County HdL State
Quick-Service Restaurants 78,814 14.1% 2.7% 1.1%
Service Stations 77,810 -13.1% -13.3% -12.8%
Casual Dining 24,025 -3.4% 2.2% 1.1%
Automotive Supply Stores 16,709 8.6% 1.0% -0.7%
Convenience Stores/Liquor 10,792 -5.2% -1.2% -2.1%
Auto Repair Shops 8,182 -8.6% -6.5% -2.5%
Specialty Stores 3,749 -19.3% -3.9% -2.9%
Cigarette/Cigar Stores 3,710 23.0% -3.5% -4.6%
Government/Social Org. 3,494 72.8% 81.2% 1.7%
Receivables/Master Outlets 467 -0.6% 18.8% 28.8%
*Allocation aberrations have been adjusted to reflect sales activity $0
$2,000
$4,000
$6,000
$8,000
Twentynine
Palms
Q3
21 Q3
24 Q3
22 Q3
23 County California
SALES PER CAPITA*
*ADJUSTED FOR

ECONOMIC DATA
3Q 2024 CITY OF TWENTYNINE PALMS SALES TAX UPDATE

STATEWIDE RESULTS
California’s local one cent sales and use tax
receipts during the months of July through
September were 2.3% lower than the
same quarter one year ago after adjusting
for accounting anomalies. The calendar
year third quarter traditionally is noted for
pleasant weather and statewide tourism;
however, taxes fell when compared to a
year ago. As such, it also means a weak
start of the 2024-25 fiscal year for many
California agencies.

Once again, autos-transportation receipts
took a hit and declined 4.8%. This period
marks the seventh consecutive quarter of
downturn for the sector. While used autos
returns and leasing activity have improved,
revenues from new car sales struggled due
to sustained high interest rates, tightened
credit standards, and increased cost of
auto insurance. As such, inventories for
many dealers remain elevated, applying
downward pressure on prices and growth
into 2025.

The summer season is usually an
advantageous time for home repairs and
construction work, however, this industry
is also struggling with high consumer
interest rates and limited access to equity
for homeowners. New projects remain
sidelined as developers await more
favorable investment conditions.

Brick-and-mortar general consumer
retailers pulled back 3.8% - worsened by
lower gas prices. Consumers appear more
interested in lower priced/discounted items
vs higher priced/luxury goods, forcing
merchants to again consider inventory
needs. Additionally, competition from
online merchants is as fierce as ever, as
shoppers look for greater value. With
holiday shopping around the corner, local
store expectations remain soft.

Fuel generating taxpayers had a rough
quarter; a combination of consumption
declines and falling fuel prices thrust
comparisons down by 13%. Further
contraction of national drug store locations
coupled with the steady fall from cannabis
merchants dating back to 2021, caused a
decrease of 2.8% in the food-drugs category.

Expect similar percentage declines for the
upcoming end of 2024 quarter.

Although statewide tourism appears to
have improved over 2023, revenue from
restaurants experienced only a modest gain
of 0.7%, which included a dramatic drop
from fine dining establishments – consistent
with spending trends in other sectors. State
mandated minimum wage requirements
remained a challenge, with higher menu
prices reducing patron visits.

These sluggish results solidify 2024 as a
down year. Recent reductions to the Fed
Funds Rate aren’t considered to help until
later in 2025. Agencies should expect
fiscal year 2024-25 sales taxes to stay flat
or decline slightly as sluggish economic
conditions leave consumers cautious in their
spending patterns, especially for big ticket
items and discretionary products.
,

GENERAL FUND RESERVE POLICY
April 2018

General Fund Reserve Policy

TABLE OF CONTENTS
Report Purpose 1
Proposed Policy Overview 1
Minimum Target Reserve 1
Uses and Restoration of the Reserve 2
Accounting for the Reserve 3
Status Summary: Actual Versus Target 3
Include the Reserve Policy in the Budget Document 4
Discussion 4
The Power of Fiscal Policies 4
Prudent Reserves Reflect Ability to Manage Risk, Not Fiscal Strength Per Se 5 What’s the Right Amount? GFOA Structured Assessment Methodology 5 Alternatives 7
Setting the Minimum Target Reserve at Lower or Higher Amounts than 55% 7 Using a Different Basis for Determining the Reserve 8
Showing the Reserve as “Assigned” in Financial Statements 9 Defining Reserves as the Unrestricted Fund Balance 9
Segregating the Reserve into Separate Components 10
Conclusion 10

APPENDIX
A. Proposed General Fund Reserve Policy A-1
B. General Fund Reserve Risk Factors: GFOA Structured Assessment Methodology B-1 C. Cash Flow Analysis C-1
D. Consultant Background D-1

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April 2018
City of Twentynine Palms

GENERAL FUND RESERVE POLICY
The purpose of this report is to assist the City in developing a General Fund reserve policy for fiscal stability, cash flow and contingencies that will provide a solid foundation for financial decision-making. Provided in Appendix A is the recommended General Fund reserve policy, which covers six key areas:
• Sets the minimum General Fund reserve target using the structured approach developed by the Government Finance Officers Association of the United States and Canada (GFOA) in assessing risk factors (www.gfoa.org/financialpolicies).

Based on this assessment, the recommended target minimum is 55% of operating and debt service expenditures. (As discussed below, while the City does not currently have any General Fund debt service costs, this could change in the future and thus the policy addresses this possibility.)
• Identifies when it is appropriate to use reserves below the target amount. • Provides a strategy for restoring the reserve if it falls below the target minimum. • Presents guidelines for accounting and financial reporting of the reserve. • Discusses other areas where the Council may decide to set reserve amounts. • Compares actual versus target.

PROPOSED POLICY OVERVIEW
Minimum Reserve Target
The recommended policy sets the target minimum unassigned General Fund balance at 55% of operating and debt service expenditures. This is largely based on the structured assessment methodology for setting reserve levels developed by the GFOA in considering a 124 Cerro Romauldo Avenue
San Luis Obispo, CA 93405
805.544.5838  Cell: 805.459.6326
[email protected]
www.bstatler.com
William C. Statler
Fiscal Policy  Financial Planning  Analysis  Training  Organizational Review .
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General Fund Reserve Policy
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city’s exposure to the following eight fiscal risk factors, which are discussed in greater detail later in this report:
• Vulnerability to extreme events and public safety concerns • Revenue source stability
• Expenditure volatility
• Leverage, such as unfunded pensions and asset maintenance • Liquidity (cash flow)
• Dependence of other funds on the General Fund
• Growth: revenue and expenditure imbalance
• Unfunded high priority capital projects
Depending on the results of this assessment, the GFOA methodology provides recommended targets ranging from a minimum of 16.6% of expenditures (60 days cash flow) to circumstances where more than 35% might be warranted. Based on the City’s circumstances, the GFOA’s structured methodology recommends a target higher than 35%.

Based on the City’s need to maintain reserves at 25% just to meet cash flow needs during the year, the recommended policy is 55% to provide appropriate flexibility in addressing economic uncertainties, such as downturns in the economy and external revenue hits (like State takeaways); responding to local disasters; contingencies for unforeseen operating or capital needs; and strategic opportunities.

This compares with the City’s most recent audit results for the fiscal year ended June 30, 2017, where the City had an unassigned General Fund balance of $11.3 million (135.8% of actual expenditures); and the 2017-18 Budget, which projects that the ending unassigned General Fund balance will be $11.5 million (130.1% of expenditures).

Uses and Restoration of the Reserve
In addressing future circumstances where the reserve may be less than the target amount, the proposed policy recommends that the City strive to restore reserves to the policy minimum within five years. As revenues versus expenditures improve, the policy recommends that the City allocate at least half to reserve restoration, with the balance available to fund asset replacements, unfunded liabilities, capital improvement projects, service level restorations or new operating programs.

The policy also addresses circumstances where taking reserves below policy levels would be appropriate in responding to the risks that reserves are intended to mitigate, such as:
• Meeting cash flow needs during the fiscal year.
• Closing a projected short-term revenue-expenditure gap. • Responding to unexpected expenditure requirements or revenue shortfalls. • Making investments in unfunded liability reductions, economic development and revenue base improvements, productivity improvements and other strategic opportunities that will strengthen City revenues, reduce future costs or achieve high-priority City goals.

General Fund Reserve Policy
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• Where a fiscal forecast shows an ongoing structural gap: providing a strategic bridge to the future.

On the other hand, the policy notes that the City should avoid using reserves to fund ongoing costs or projected systemic “gaps.” Stated simply, reserves can only be used once, so their use should be restricted to one-time (or short-term) uses.

Accounting for the Reserve
The policy sets the reserve target based on the unassigned General Fund balance: net of nonspendable, restricted, committed or assigned balances. This intuitively makes sense: nonspendable and externally restricted funds are not readily available to
meet the risks that the reserve is
intended to mitigate. (This is also
the recommended approach by the
GFOA in its publication Financial
Policies).

It should also be net of other
commitments or assignments, so it is
available to meet its intended
purposes.

Based on the unassigned fund
balance, two things can be readily
determined from the audited
financial statements after calculating
the policy target based on actual
operating expenditures:
• Whether the City has achieved
its policy goal.
• And the amount (if any) that
reserves (unassigned fund
balance) exceed or are less than
the policy goal.

Status Summary: Actual Versus Target
Lastly, the policy provides a status summary of the policy target with the actual reserve amount. If the projected reserve is less than the target minimum, the strategy for achieving policy restoration should discussed. This comparison should be updated at least annually and included with the policy.

General Fund Balance Classifications
Under generally accepted accounting principles set
by the Government Accounting Standards Board
(GASB) in Statement No. 54, General Fund balance
is classified into five components:
• Non-Spendable. Amounts that are not in
spendable form, such prepaid items or
inventories.
• Restricted. Amounts subject to externally
enforceable restrictions imposed by outside third
parties.
• Committed. Amounts whose use is constrained
internally by the agency itself for specific
purposes set by the governing body.
• Assigned. Amounts intended for specific
purposes as determined by the governing body
or others it has formally designated.
• Unassigned. Residual classification of
spendable amounts available for other
purposes.

As discussed below, the City’s target reserve should
be reported as part of the “unassigned” fund
balance.

General Fund Reserve Policy
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It should be noted that comparing policy with actual is a useful approach for all fiscal policies in demonstrating effective steward of City assets. It keeps fiscal policies – and compliance with them – on the City’s financial management radar on an ongoing basis.

Include the Reserve Policy in the Budget Document
Key City policies are addressed in the Budget Message. Since having a clearly stated reserve policy has its greatest value during the budget preparation, review and adoption process, this report recommends including the reserve policy in the budget document itself (along with other significant budget and fiscal policies).

DISCUSSION
The Power of Fiscal Policies
As we know from experience over the past 25 years – with the recession and recoveries of 1992-94, 2003-05 and the Great Recession beginning in 2008 – good times come and go.

But an organization’s values shouldn’t. And that’s what fiscal policies are all about:
articulating the agency’s financial management values before they are place under stress.

Stated simply, clearly articulated policies – and being guided by them – are the best way of ensuring long-term fiscal health. While the strength of the local economy and related General Fund revenues are important, no city is immune from economic downturns. In navigating tough fiscal times, effective financial management is the most critical factor for long-term fiscal success; and clearly articulated policies provide an essential framework and foundation for effective decision-making.

Fiscal policies are important in both good times and bad. The roots of fiscal adversity for most governments take hold in the good times, by making commitments that are not sustainable. They rarely surface in the “bad” times, when most agencies act on the “First Rule of Holes” (when you find yourself in one, stop digging).

They are both preventative and curative:
• Clearly articulated policies – and following them – help prevent problems from arising in the good times.
• And provide more effective responses when the inevitable bad times occur.

They are most powerful when it put in place before the need for them arrives, recognizing that not all financial decision-making situations can be reasonably anticipated.

Policies should be set based on the agency wants to be, which may not be where it is today.

However, setting the course for where it wants to be significantly enhances its ability to get there. Accordingly, each policy should include a brief “compliance status.” And if it is not there yet, the policy should provide the agency’s plan for getting there. (As discussed above, the proposed reserve policy includes this component.)

General Fund Reserve Policy
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Policies Versus Plans. Planning is essential for success. However, plans change over time as actual results replace assumptions. But fiscal policies are the “north star” guiding the preparation of plans. They help making tough decisions easier by articulating values before they are put placed under stress by adverse circumstances. An organization can reasonably do something else, but policies are a powerful starting point for asking: but for “this” unexpected circumstance, what would we have otherwise done? Lastly, of all the fiscal policies that cities should set, minimum reserve targets are among the most important.

Prudent Reserves Reflect Ability to Manage Risk, Not Fiscal Strength Per Se Reserves – whether large or small – do not per se reflect on a city’s financial capacity or underlying fiscal strength. There are much better indicators than reserves for this, most notably the ability over time for ongoing revenues to adequately meet day-to-day service needs, capital improvement goals and debt service requirements.

Stated simply, reserves are a risk management tool: how much can things go differently than the organization otherwise thought they would before it must take corrective action? Reserves can also serve as a bridge to the future, providing time to develop and implement thoughtful long-term solutions.

Typical risks that reserves help mitigate include economic uncertainties, such as downturns in the economy and external revenue hits (like State takeaways); responding to local disasters; contingencies for unforeseen operating or capital needs; strategic opportunities; and cash flow.

What’s the Right Amount? It depends on each agency’s unique fiscal circumstances and its capacity for risk. In answering this question, the GFOA has developed a structured assessment methodology for setting reserve levels in considering an agency’s exposure to the following eight fiscal risk factors:

1. Vulnerability to extreme events and public safety concerns. Major extreme events the community could reasonably be subject to and the likelihood and potential magnitude of loss for each event.

2. Revenue source stability. Volatility of each major revenue source based on factors such as past experience and trends with that revenue, characteristics of the tax or rate payers, state or federal revenue takeaways and economic factors.

3. Expenditure volatility. Spikes in expenditures, usually arising from special, nonrecurring circumstances such as lawsuits; critical special projects without a funding source; or new state or federal spending requirements and unfunded mandates.

4. Leverage. Common examples include unfunded pensions and unfunded asset, as well as outstanding bonded indebtedness and compensated absences. Is the source of leverage very large? Does it have an off-setting funding source or asset?

General Fund Reserve Policy
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5. Liquidity (cash flow). Intra-period cash imbalances, such as property taxes that are only received at two major points during the year (December and June).

6. Dependence of other funds. Are there other funds that have a significant dependence on the General Fund?

7. Growth. Is significant growth a realistic possibility in the next three to five years? This includes assessing likely potential marginal costs associated with serving new growth compared with marginal revenues and resulting gaps.

8. Capital projects. Are there high priority projects without a funding source, where reserves may be looked to as a funding source?
As discussed in greater detail in Appendix B, the methodology uses a scale of 5 to 1 in assessing how important reserves are in mitigating each risk:
5: Very important
4: Important
3: Neutral
2: Unimportant
1: Very unimportant
Since there are eight mitigation factors, total scores will range from 8 (the least risk) to 40 points (greatest risk). Along with these eight risk factors, the methodology also considers:
• City size (assumes larger cities have more mitigation strategies than smaller ones) • Other reserve/contingency funds
• Borrowing capacity
Depending on the results of this assessment, the GFOA methodology provides recommended targets ranging from a minimum of 16.6% of expenditures (60 days cash flow) to circumstances where more than 35% might be warranted.

The following summarizes the GFOA’s rating scale.

GFOA Reserve Rating Scale
Rating Target Minimum General Fund Reserve
8 -16 Minimal risk to retain through reserves. Consider target equal to the GFOA minimum recommended reserve of 16.6% (two months cash flow) of revenues/expenditures.
17-24 Low to moderate level of risk to retain through reserves. Consider reserve target of 17% to 25%.
25-31 Moderate to high level of risk to retain through reserves. Consider reserve target of 26% to 35%.

General Fund Reserve Policy
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Rating Target Minimum General Fund Reserve
32-40 High level of risk to retain through reserves. Consider reserve target greater than 35%.

As detailed in Appendix B, the City’s rating under this methodology is 32, which indicates that the target minimum should be higher than 35%.

Five of the assessment factors were largely responsible for this rating:
• Revenue stability
• Expenditure volatility
• Cash flow (see sidebar and
Appendix C)
• Unfunded liabilities
• Unfunded capital projects
The other three factors (vulnerability
to extreme events and public safety
concerns; dependence of other funds
on the General Fund; and growth)
were not significant in this rating.

ALTERNATIVES
Setting the Minimum Target
Reserve at Lower or Higher
Amounts than 55%
Based the GFOA structured
assessment methodology, this report
recommends a minimum target
General Fund balance of 55% of
operating and debt service costs.

However, the Council is the ultimate
“decider” in balancing risks and reserves. Stated simply, the City’s fiscal resources do not exist to amass large fund balances but rather, to deliver important services that help make Twentynine Palms a good place to live, work and play. On the other hand, prudent reserves are essential in helping assure stability in the delivery of services.

Accordingly, the Council could reasonably set reserves at levels that are lower or higher than the recommended target.

Lower Target than 55%. The GFOA assessment methodology recommends a target higher than 35% but does not provide further guidance. A lower target of 40% to 50% would still be Mitigating Cash Flow with TRANS
Along with reserves, cash flow needs can be
addressed by issuing Tax and Revenue
Anticipation Notes (TRANS).

TRANS are short-term borrowings by local
government agencies who are not able to meet
their cash flow needs during the year. They are
typically issued early in the fiscal year and repaid
before year-end.

At one time, many TRANS were issued as an
investment strategy, since the proceeds could be
invested at higher yields than their tax-exempt
interest rate. However, this favorable variance
between interest costs and yields has not been the
case since the Great Recession.

Stated simply, while incurring debt to meet cash
flow needs is an option, it is preferable to avoid it if possible. Moreover, TRANS are not free: there are
financing and interest costs in issuing them.

Appendix C provides a cash flow analysis for the
General Fund, which shows the need for 25% to
cover several low points in the fiscal year, most
notably in November and May prior to the receipt of
property tax revenues (the City’s most important
General Fund revenue source).

General Fund Reserve Policy
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with the GFOA recommended range. However, given that 25% is needed for cash flow purposes alone, reserves lower than 55% would provide limited flexibility for fiscal stability and contingencies.

Higher Target than 55%. Based on surveys provided on the California Society of Municipal Finance Officers’ web site as well as other studies, there are many cities in California that have minimum target reserve policies of 50% or higher, including:
• La Canada Flintridge: 125%
• Stanton: 75%
• La Palma: 60%
• Carpinteria: 55%
• Brisbane, Camarillo, Laguna Nigel, Lomita, Malibu, Mission Viejo, Moraga, Rancho Palos Verdes and San Ramon: 50%
Given the many uncertainties ahead, a target higher than 55% would also be reasonable.

Using a Different Basis for Determining the Reserve
The proposed policy bases the 55% target on annual operating and debt service costs.

However, other options used by California cities include:
• Total expenditures and uses (operating, debt service and capital expenditures, and transfers out)
• Operating expenditures only
• “Normal” annual expenditures (thus including operating costs, less one-time costs such as special studies and plans; debt service; some “normal” capital costs; and transfers out, less any one-time purposes)
• Other combinations of expenditures and uses
• Revenues rather than expenditures
Where the base is narrower (such as just operating expenditures), the same target percentage will result in a smaller reserve; conversely, where the base is broader (including capital, debt service and/or transfers), the same target percentage will result in a larger reserve.

In the case of the City, it makes sense to include both operating and debt service costs in the base:
• Operating costs are included in the base in virtually all cases, which makes sense: this is the “core” cost base of city services that is most at risk; and while sensitive to economic changes and community needs (up or down), it is relatively stable from year to year.

While it is possible that there may be significant one-time costs included in the operating budget, adjusting for this is not recommended: the difference is likely to be immaterial and, more importantly, transparency in calculating the reserve target will be enhanced by “keeping it simple.”

General Fund Reserve Policy
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• Debt service costs are also ongoing contractual obligations (until the principal balance is paid-off); accordingly, it makes sense to include this in the target base as well. As noted above, while the City does not currently have any General Fund debt service costs, this could change in the future. Accordingly, to be proactive in accounting for this possibility, it makes sense to include this as part of the base.

On the other hand, capital projects can vary from year-to-year, and the reserve should be relatively stable. And interfund transfers are internally determined by the City: overall City resources are unaffected by them. (And as a practical matter, the City’s use of transfers out is minimal. For example, they were $192,000 in 2016-17, just 2% of total expenditures and uses.) Accordingly, the recommended policy excludes capital project costs and transfers out, and includes operating and debt service costs, as the basis for determining reserve levels.

Showing the Reserve as “Assigned” in Financial Statements On one hand, it makes intuitive sense to consider the recommended reserve as “assigned” for fiscal stability, cash flow and contingencies. However, these purposes fall into a category that GASB calls “revenue stabilization, working capital needs, contingencies or emergencies;” and unless they are specifically classified as restricted or committed (which would not be appropriate in this case), GASB 54 states that they “… should be reported as unassigned in the general fund.”
Defining Reserves as the Unrestricted Fund Balance
As discussed above, GASB defines organizes the unrestricted General Fund balance (net of non-spendable and restricted amounts) into three categories:
• Committed
• Assigned
• Unassigned
As noted above, GASB 54 indicates that “operating reserves” like these should be classified as “unassigned.” Also, unless the City formally commits or assigns balances for specific purposes, all of the fund balance will be shown as “unassigned” anyway. Moreover, in its structured assessment methodology, the GFOA recommends that the minimum fund balance target be exclusive of other commitments or assignments.

That said, while this report recommends using the unassigned balance, it is not unusual for cities to define reserves for policy purposes as the potentially larger (depending on the size of the amounts classified as committed or assigned) unrestricted balance.

In the City’s case, through June 30, 2017, there is no difference between the unrestricted and unassigned balance: of the $11.3 million in the unrestricted General Fund balance, all of the balance was classified as “unassigned.” Accordingly, the distinction will only be important in the future if the City expands its use of fund balance assignments and commitments. (The proposed policy provides for this.)

General Fund Reserve Policy
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Segregating the Reserve into Separate Components
The proposed policy sets a unified reserve target of 55% to meet the aggregate of the risks it is intended to meet. Since not all factors are likely to come into play at the same time, this approach makes sense: “pooling” purposes serves to lower the overall reserve amount that might otherwise be needed to meet each of the risk factors individually. Moreover, budgeting and accounting for the reserve is simpler and more straightforward, as is communicating its purpose to the community and organization.

That said, there may be some interest in separating the need for the reserve into specific categories. In that case, the following are recommended:
• Cash Flow: 25%
• Fiscal Stability: 15%
• Contingencies/Strategic Opportunities: 15%

CONCLUSION
Establishing a reserve policy – and being guided by it – is one the City’s most important fiscal policies by mitigating financial risks. Based on the results of the GFOA structured assessment methodology, this report recommends that the minimum reserve target be set at 55% of operating and debt service expenditures.

Along with the recommended target, it sets guidelines for when it is appropriate to use reserves below the target amount; restoring the reserve if it falls below the target minimum; accounting and financial reporting of the reserve; and for at least annually comparing actual results versus the target. It also discusses alternatives for the City’s consideration for each of the key recommendations.

William C. Statler
Fiscal Policy  Financial Planning  Analysis  Training  Organizational Review

APPENDIX
A. Proposed General Fund Reserve Policy
B. General Fund Reserve Risk Factors: GFOA Structured Assessment Methodology C. Cash Flow Analysis
D. Consultant Background
. . . . . . . . . . . . . . . . . . . . .

Appendix A: Proposed General Fund Reserve Policy
A-1
Reserves for Fiscal Stability, Cash Flow and Contingencies The City will strive to maintain a minimum unassigned fund balance of at least 55% of operating and debt service expenditures in the General Fund for fiscal stability, cash flow and contingencies/strategic opportunities. This is based on the risk assessment methodology for setting reserve levels developed by the Government Finance Officers Association of the United States and Canada (GFOA) in adequately addressing:
• Revenue source stability, local disasters and other financial hardships or downturns in the local or national economy.
• Contingencies for unseen operating or capital needs, including strategic investment opportunities.
• Unfunded liabilities such as pensions and retiree health obligations. • Dependency of other funds on the General Fund.
• Institutional changes, such as State budget takeaways and unfunded mandates. • Cash flow requirements.

Whenever the City’s General Fund unassigned fund balance falls below this target, the City will strive to restore reserves to this level within five years. As revenues versus expenditures improve, the City will allocate at least half to reserve restoration, with the balance available to fund asset replacements, unfunded liabilities, capital improvement projects, service level restorations or new operating programs.

Circumstances where taking reserves below policy levels would be appropriate include responding to the risks that reserves are intended to mitigate, such as:
• Meeting cash flow needs during the fiscal year.
• Closing a projected short-term revenue-expenditure gap. • Responding to unexpected expenditure requirements or revenue shortfalls. • Making investments in unfunded liability reductions, economic development and revenue base improvements, productivity improvements and other strategic opportunities that will strengthen City revenues, reduce future costs or achieve high-priority City goals. • Where a forecast shows an ongoing structural gap: providing a strategic bridge to the future.

On the other hand, the City should avoid using reserves to fund ongoing costs or projected systemic “gaps.” Stated simply, reserves can only be used once, so their use should be restricted to one-time (or short-term) uses.

Appendix A: Proposed General Fund Reserve Policy
A-2
Future Capital Project or Other Long-Term Goal Assignments or Commitments The Council may also commit or assign specific General Fund balance levels above the reserve target for fleet, facility, technology and equipment replacements; future development of capital projects, unfunded liabilities and similar policy commitments and assignments for future purposes and long-term goals that it determines to be in the best interests of the City.

Other Commitments and Assignments
In addition to the 55% target noted above, unrestricted fund balance levels will be sufficient to meet funding requirements for programs or projects approved in prior years which are carried forward into the new year; debt service reserve requirements; commitments for encumbrances; and other restrictions, commitments or assignments required by contractual obligations, state law or generally accepted accounting principles.

Status: In Compliance. For the last audited financial statements for the fiscal year ended June 30, 2017, the City had an unassigned General Fund balance of $11.3 million (135.8% of actual operating service expenditures); and the 2017-18 Budget projects that the ending unassigned General Fund balance will be $11.5 million (130.1% of operating and debt service expenditures).

Note: The City does not currently have any General Fund debt service costs. However, this could change in the future and thus the policy addresses this possibility and setting the basis for the target minimum as operating and debt service costs.

Appendix B: GFOA Structured Assessment Methodology
B-1
Analyzing the General Fund Reserve Risk Factors
The sections below provide guidance on analyzing the risk factors described in Chapter 4 on general fund reserves. Each heading corresponds to a worksheet in the Excel workbook that is available at www.gfoa.org/financialpolicies. The blue cells in the sheet are entry cells. There should be no need to type in other cells. Complete the sheets starting with the left-most and continue all the way to the final sheet at the right.

The first eight sheets ask you to analyze each risk factor in the book. First, you identify your basic sources of risk. Then you assess the level of risk you face. Next, you identify other available risk mitigation approaches. The sections below provide more specific guidance on how to accomplish this for each risk factor. Finally, you decide how important it is for your government to retain risk through general fund reserves. The level of importance is indicated by assigning a 1 through 5 score, where 5 indicates the greatest need to retain risk. Each sheet contains guidelines to help you decide the most appropriate score for each risk factor.

The ninth and final sheet helps you to zero in on a final reserve target by summarizing the results of the prior eight sheets and bringing in other drivers of reserve size. Note that this sheet does not provide you with a precise suggested target. Rather it suggests a broad range and strategies for arriving at a final target.

Below is more specific guidance for analyzing the risk factors in the first eight sheets.

Vulnerability to Extreme Events and Public Safety Concerns Identify Risks. List out the major extreme events to which the community could reasonably be subjected. This could include both natural and man-made events. Public safety professionals may have a community disaster preparedness plan that could help identify these risks; linking the reserve analysis to such a plan would increase the credibility of the resulting policy.

Assess Risks. Consider the potential magnitude of loss for each event. The magnitude of loss should be based on past experiences with similar extreme events or reasonable estimates based on the disaster preparedness plan (note that the estimate is not necessarily a worst-case scenario).

Identify Other Risk Mitigation Approaches. If extreme events are a serious risk for the community, also consider risk transfer options. Might more comprehensive insurance coverage be a better option than very high levels of fund balance? If the source of risk is man-made, such as the potential for an accident at a hazardous chemical plant, might the chemical company be able to take greater responsibility for the risk they pose to the community? Also consider how quickly federal assistance can be accessed and the speed with which funds spent responding to a disaster might be reimbursed.

Appendix B: GFOA Structured Assessment Methodology
B-2
Assess Necessity of Risk Retention. Assign a score for the importance of risk retention through the use of reserves, when it comes to extreme events.

Revenue Source Stability
Identify Risks. Start by listing out major revenue sources.

Assess Risks. Consider the volatility of each source, based on factors such as past experience and trends with that revenue, characteristics of the tax or rate payers, and economic factors.

Identify Other Risk Mitigation Approaches. Think about other approaches that the government has to deal with declining revenues. This might include means to easily reduce variable costs or the ability to access other sources of funding.

Assess Necessity of Risk Retention. Assign a score for the importance of risk retention through the use of reserves, when it comes to revenue stability.

Expenditure Volatility
Identify Risks. Start by listing sources of potential spikes in expenditure (usually arising from special, non-recurring circumstances) that could be expected to occur within the next three to five years. Examples might include lawsuits against the government or critical special projects without a funding source. Typically, recurring sources of expenditure volatility, such as health care benefit costs, would not be included because they should be dealt with in the context of an annual budget process. An exception to this might be highly variable and difficult-to-predict costs, such as energy or fuel (in the case of a fleet).

Assess Risks. Enumerate a reasonable estimate of the potential cost of each source (i.e., the magnitude of the risk), taking into account the probability of it occurring (i.e., an unlikely event is less of a risk than a more likely event of similar potential loss).

Identify Other Risk Mitigation Approaches. Think about other approaches to dealing with these expenditure spikes. For example, the finance officer may find that some events (like an essential special project) have a very high chance of occurring, but will not occur for a number of years into the future. In this case, the finance officer could suggest a “sinking fund” where the project would be gradually funded over time. This could be made a commitment or assignment within the fund balance to help differentiate it from funds used to manage more uncertain risks. A similar approach could be used for known lawsuits.

Assess Necessity of Risk Retention. Assign a score for the importance of risk retention through the use of reserves, when it comes to expenditure spikes.

Appendix B: GFOA Structured Assessment Methodology
B-3
Leverage
Identify Risks. Start by listing major sources of leverage. Common examples include pensions, unfunded asset maintenance, and debt.

Assess Risks. Then assess each source’s implications for the organization’s future financial flexibility by consider the size of the obligation. Is the source of leverage very large? Does it have an off-setting funding source or asset? Identify Other Risk Mitigation Approaches. It is often better to use other approaches to risk management on these sources of leverage, rather than retaining the risk through reserves. For example, if unfunded asset maintenance is a problem, then the finance officer might use an asset maintenance plan (or other suitable estimate) to demonstrate the magnitude of the risk and encourage the governing board create a special set-aside to begin funding this liability – and avoid managing this risk with general fund reserves. In another example, if unfunded pension liabilities are an issue, the organization should develop a strategy to pay down those liabilities. In this situation, the finance officer could point out how pension liability constrains the financial flexibility of the organization, thereby decreasing the reserve’s ability to manage other types of risk.

Assess Necessity of Risk Retention. Assign a score for the importance of risk retention through the use of reserves, when it comes to leverage.

Liquidity
Identify Risks. List major sources of intra-period cash imbalances. A good example is property taxes that are only received at one or two points during the year.

Assess Risks. Describe the size of the problem created by these sources of imbalance.

Does it have the potential to significantly interfere with operations? Identify Other Risk Mitigation Approaches. To what extent can tools like internal borrowing or tax anticipation notes provide a cost-effective alternative to keeping a reserve?
Assess Necessity of Risk Retention. Assign a score for the importance of risk retention through the use of reserves, when it comes to liquidity.

Other Funds’ Dependency
Identify Risks. Start by listing other funds that have significant dependence on the general fund. Dependence will usually be indicated by regular operating transfers that are an unusually high percentage of the receiving fund’s expenditure budget.

Appendix B: GFOA Structured Assessment Methodology
B-4
Assess Risks. Assess the level of reserves in these other funds. Are reserves low? If so, is this fund subject to potential risks that could require a substantial draw on reserves? If so, is the general fund expected to backstop this fund?
Identify Other Risk Mitigation Approaches. A major point for the finance officer to explore is whether the general fund should be “back stopping” these other funds in the first place. For example, an under-performing enterprise fund may be receiving operating transfers not because it is good public policy, but because the political will has not been mobilized to make the enterprise self-sufficient or to divest of it.

Assess Necessity of Risk Retention. Assign a score for the importance of risk retention through the use of reserves, when it comes to other funds.

Growth
Identify Risks. This factor is only relevant if significant growth is a realistic possibility in the next three to five years. Start by identifying major potential sources of growth.

Assess Risks. Estimate the potential marginal costs associated with serving new growth and compare it to marginal revenues (this information should be available from long-term financial plans and forecasts). If there is a gap due to significant timing differences between when revenue is received from growth and when expenditures are made on services for that growth, then reserve targets could be adjusted to account for that gap.

Identify Other Risk Mitigation Approaches. Special growth or impact fees could be assessed at the time of construction to avoid this risk. For example, if a new development is expected to generate $10M annually in new taxes starting three years in the future (but nothing before then), but costs $7M to service starting in two years, then a reserve (or impact fees) may be needed. If the gap between revenue growth and service expenditures is due to a structural mismatch between costs and revenues (i.e., the growth does not pay for itself), then the government should re-examine its tax-fee structures, service provision methods, and/or land use plans to correct this imbalance.

Assess Necessity of Risk Retention. Assign a score for the importance of risk retention through the use of reserves, when it comes to growth.

Capital Projects
Identify Risks. Use a capital improvement plan to determine if there are high priority projects without a funding source.

Assess Risks. Assess whether decision-makers might consider pay-as-you-go financing, using general fund reserves as at least part of the source.

Appendix B: GFOA Structured Assessment Methodology
B-5
Identify Other Risk Mitigation Approaches. If pay-as-you-go financing is something decision-makers might consider, then the finance officer may wish to broach the possibility of a commitment or assignment for the project so that pay-as-you-go financing does not detract from the general reserve’s ability to manage other risks.

Assess Necessity of Risk Retention. Assign a score for the importance of risk retention through the use of reserves, when it comes to capital projects.

Your Target
Step 1. Determine Your Total Score from the Risk Factors Step 1 on this sheet totals your scores from the foregoing sheets.

Step 2. Preliminary Analysis
In Step 2, find your score in the ranges presented and consult the analytical guidance.

This is preliminary, as the analytical guidance will be refined in the next steps.

Step 3. Consider the Impact of Government Size, Budget Practices, and Borrowing Capacity
In Step 3, you consider additional drivers of fund balance: government size, budget practices, and borrowing capacity. In each blue box, enter the indicated number of positive or negative points for each driver (totaling them for each driver, as might be needed).
• Size of Government. GFOA’s analysis of the thousands of governments that participate in GFOA’s comprehensive annual financial report presentation award program shows a very weak direct relationship between population size and size of fund balance. In fact, a statistical analysis of the data shows that although there is an inverse relationship between population size and size of fund balance, only about between 10% and 20% of the variation in fund balance size between governments can be explained by population.
i Hence, the sheet only provides points for the very largest and smallest governments.
• Budget Practices. The presence of formal or informal contingencies already built into the budget may relieve the need to carry some additional reserves. The finance officer can search directly for the presence of informal contingencies by searching prior years’ budget-versus-actual reports for areas with consistent positive variances – this may indicate areas that are consistently over-budgeted. The finance officer can also look indirectly for contingencies by examining the budgeting system for practices that unintentionally encourage informal contingencies. For example, systems that provide little flexibility for managers to transfer budgets between different accounts will encourage managers to build additional slack into their budget since they do not have the ability to move surpluses in one account to counteract a deficit in another.

Appendix B: GFOA Structured Assessment Methodology
B-6
• Borrowing Capacity. You can evaluate your borrowing capacity by comparing your current level of debt against your financial policy for debt. If no policy standards are in place, consider the rating agency guidelines below.

Standard and Poor’s Debt Ratios and Ranges
ii
Overall Net Debt
per Capita
Overall Net Debt as a %
of Market Value
Debt Service as a %
of Expenditures
Low Below $1,000 Below 3% Below 8%
Moderate $1,000 - $3,000 3% - 6% 8% - 15%
Moderately
High
$3,000 - $5,000 6% - 10% 15% - 20%
High Above $5,000 Above 10% Above 25%
The finance officer should also consider internal borrowing capacity. Inventory reserves in other funds and assess the extent to which these reserves are necessary to deal with the risks with which these funds are faced. If other funds have sizable reserves compared to the risks they are retaining, they could serve as an alternative to larger general fund reserve targets. However, internal borrowing should not be considered an alternative without a strong internal borrowing policy in place.

Step 4. Consider the Impact of Commitments/Assignments, Outsider Perceptions, and Political Support
In Step 4, you consider the drivers of Commitments/Assignments, Outsider Perceptions, and Political Support. Put an “X” in the blue cell next to all the statements that apply to you.
• Commitments or Assignments. Think about all assignments and commitments that impact fund balance. Then assess how constraining those assignment and commitments are and how available that portion of the fund balance might be to retain risk. For instance, a board might “commit” a certain amount to a “rainy day” reserve.

This sort of commitment would be very consistent with the purpose of retaining the types of risk defined in this analysis, and so could be considered part of the total amount of general fund balances available for a reserve. Conversely, an assignment or commitment for asset maintenance or a special project is intended to be spent on a particular use, and therefore is not really available for risk retention. These sorts of uses should be subtracted from the definition of fund balance available for a reserve. • Outsider Perceptions. Take stock of relevant outsider perceptions. What have rating agencies said in the past about your level of reserves? Could failure to carry a certain level of reserves contribute to a ratings downgrade? Also consider citizen perspectives – could having too high of a reserve provoke a backlash? Take these perceptions into account when settling on a final reserve target. • Political Support. A reserve target must be formally adopted by the board in order to do much good. Therefore, consider what might lead to a politically acceptable target level. For instance, governing boards often place great weight on benchmarking studies with similar organizations – a proposed target might garner more support if it is seen as consistent with the practices of comparable governments.

Appendix B: GFOA Structured Assessment Methodology
B-7
Step 5: Putting It All Together
The green cell contains a revised risk score, which takes account of your point totals from Step 3. Using this revised score, revisit the ranges and analytical guidance in Step 2.

Also, consider the boxes you checked in Step 4. Add the advice from these statements to your final analytical guidance from Step 2. Using this advice, you can finalize a reserve target and present it to the board.
i The range comes from using different permutations of the data set, such as removing or including certain outliers.
ii The ratios are taken from David G Hitchcock, Karl Jacob, and James Wiemken, “Key General Obligation Ratio Credit Ranges – Analysis vs. Reality,” Standard & Poor’s: 2008. However, the ranges have been modified slightly by the authors to provide a more streamlined presentation. Specifically, in the original document, the overall net debt per capita “low” range is $1,000 to $2,000 and the “moderate” range is $2,000 to $5,000.

Vulnerability to Extreme Events

1. Identify Risks
What extreme events are you at risk for?
A Fire
B Flood
C Drought
D Earthquake

2. Assess Risks
What is your vulnerability to each extreme event, given past experience? A Low
B Moderate
C High (but City not responsible for water service)
D Low probability; depending on epicenter, losses could be significant

3. Identify other risk mitigation approaches
What options do you have to avoid, reduce, or transfer the risk (i.e., manage it without reserves) A FEMA reimbursement
B FEMA reimbursement
C State drought relief, possible FEMA reimbursement
D FEMA reimbursement
Note: While significant reimbursements from FEMA are likely, it is also likely that there will be significant lags between when recovery costs are incurred and when payments will be received. Lastly, based on experiences in other cities, even under the best of circumstances, it is unlikely that the City will be reimbursed for all recovery costs. And even where costs are largely recovered, there is no reimbursement for lost revenues - like sales tax and TOT - during the disaster and recovery period.

4. Considering the above, how important for you is it to retain the risks of extreme events through reserves ? 3 < Enter your score here
5 Very important. We are subject to extreme events of severe potential magnitude which would require a quick and decisive response from our government. There are few alternative risk management approaches. 4 Important. We are subject to extreme events of severe potential magnitude, but our government does not have an important disaster response role and/or we have other risk management alternatives. 3 Neutral. We do not face an unusually high or low level of risk from extreme events. 2 Unimportant. We are subject to one or two types of significant extreme events and we have other risk management options.
1 Very unimportant. We are subject to very few, if any, potential extreme events of significant potential damage B-8
Appendix B: GFOA Structured Assessment Methodology

Revenue Source Stability

1. Identify Risks
What are your major revenue sources?
A Property Tax (55%)
B Sales Tax (13%)
C TOT (11%)
E Franchise Fees (6%)
F State Takeaways (Always a Threat)
Note: Top 5 revenues account for about 85% of total revenues

2. Assess Risks
How stable are your revenue sources?
A Historically stable but downturn in "Great Recession;" decreased by 8% from FYE 2008 to 2011 B Subject to significant swings with economy; decreased by 16% from FYE 2008 to 2012 C Subject to significant swings with economy; decreased by 9% from FYE 2013 to 2014 D Stable
F Historically significant

3. Identify other risk mitigation approaches
What options do you have to avoid, reduce, or transfer the risk (i.e., manage it without reserves) Limited in all cases

4. Considering the above, how important for you is it to retain the risks of revenue instability through reserves ? 4 < Enter your score here
5 Very important. We rely on just one or two sources of revenue, and they are unstable 4 Important. We rely on unstable sources for a significant portion of our revenue and/or have particular unstable payers as part of our tax base (e.g., sales tax from an industry with volatile sales) 3 Neutral. We do not face an unusually high or low level of risk from revenue instability 2 Unimportant. While some portion of our revenue base has instability, the majority of revenues are pretty stable. 1 Very unimportant. Our revenues are very stable and diverse.

B-9
Appendix B: GFOA Structured Assessment Methodology

Expenditure Volatility

1. Identify Risks
What are sources of potential expenditure spikes?
A Increased pension costs
B Health Insurance Costs
C Unexpected infrastructure repairs
D State/federal mandates

2. Assess Risks
What is the potential cost of these spikes?
A Based on CalPERS investment losses and approved funding methodology changes, very high B Significant
C Unknown
D Moderate

3. Identify other risk mitigation approaches
What options do you have to avoid, reduce, or transfer the risk of these potential spikes? (i.e., manage it without reserves)
A Need to address on ongoing basis
B Need to address on ongoing basis
C Unknown
D Limited (legislative advocacy)

4. Considering the above, how important for you is it to retain the risks of expenditure spikes through reserves ? 5 < Enter your score here
5 Very important. There are expenditure spikes with very high potential to open a significant hole in our budget. 4 Important. We are subject to important potential expenditure spikes, such that we need reserves but we also have other risk mitigation approaches available.
3 Neutral. We do not face an unusually high or low level of risk from expenditure spikes 2 Unimportant. There are one or a few potential spikes but the risk of them occurring is low, the impact not great and/or we have other risk management options.
1 Very unimportant. We have no important risk from expenditure spikes.

B-10
Appendix B: GFOA Structured Assessment Methodology

Leverage

1. Identify Risks
What are major sources of leverage you are subject to?
A Pension liabilities
B OPEB liabilities
C
D

2. Assess Risks
What are the implications of leverage for the organization's financial flexibility? A Higher future costs
B
C
D

3. Identify other risk mitigation approaches
What options do you have to avoid, reduce, or transfer the risk of leverage? (i.e., manage it without reserves) A Need to address these higher cost on an ongoing basis: reserves not an appropriate source of funding B
C
D

4. Considering the above, how important for you is it to retain the risks of leverage through reserves ? 5 < Enter your score here
5 Very important. We are subject to significant leverage and have no other risk management approach 4 Important. We are subject to significant leverage and do not have equally significant offsetting risk management approaches.
3 Neutral. We do not face an unusually high or low level of risk from leverage 2 Unimportant. We have one or two sources of leverage, but these are largely addressed with other risk management strategies.
1 Very unimportant. We have no important sources of leverage that aren't already managed with out reserves.

B-11
Appendix B: GFOA Structured Assessment Methodology

Liquidity

1. Identify Risks
What are your major sources of potential intra-period cash imbalances? A Property tax collections in Nov/Dec/Jan and May (55% of revenues): see cash flow worksheet B Gas and electric franchise payments in April
D Liability insurance and OPEB payments in July
Note: Per cash flow worksheet, 25% cash flow deficit in November

2. Assess Risks
How likely are these risks to occur and what is their potential magnitude? A Ongoing
B Ongoing
C Ongoing

3. Identify other risk mitigation approaches
What options do you have to avoid, reduce, or transfer the risk of liquidity? (i.e., manage it without reserves) A Tax/revenue anticipation notes - but results in added interest costs B Borrow from other funds - but adds "leverage" to them C

4. Considering the above, how important for you is it to retain the risks of liquidity spikes through reserves ? 5 < Enter your score here
5 Very important. We have very important potential intra-period imbalances with few risk management alternatives. 4 Important. We have important potential intra-period imbalances, but do have some off-setting risk management alternatives.
3 Neutral. We do not face an unusually high or low level of risk from intra-period cash imbalances. 2 Unimportant. We have some minor potential intra-period cash imbalances. 1 Very unimportant. Our cash flows are very stable.

B-12
Appendix B: GFOA Structured Assessment Methodology

Other Funds Dependency

1. Identify Risks
What other funds rely on the general fund for an important part of their funding? A Very limited
B
C

2. Assess Risks
How likely is it that these funds will need the general fund to "backstop" them in an emergency? A
B
C

3. Identify other risk mitigation approaches
What options do you have to avoid, reduce, or transfer the risk of other funds' dependency? (i.e., manage it without reserves)
A
B
C

4. Considering the above, how important for you is it to retain the risks of other fund dependency through reserves ?
3 < Enter your score here
5 Very important. A number of funds rely on the general fund for backstopping, with few, if any, risk management alternatives.
4 Important. We have at least some funds that rely on the general fund and this includes reliance for backstopping. 3 Neutral. We do not face an unusually high or low level of risk from other fund dependency. 2 Unimportant. There are a small number of funds that rely on the general fund, and the potential for the general fund to need to backstop them is small.
1 Very unimportant. No other funds rely on the general fund for backstopping.

B-13
Appendix B: GFOA Structured Assessment Methodology

Growth

1. Identify Risks
What are potential major sources of growth in the next three to five years? A Very limited new development opportunities

2. Assess Risks
What is the potential for these sources of growth to cause imbalances in the revenue received from the growth and the expenditures needed to serve it?
A Limited

3. Identify other risk mitigation approaches
What options do you have to avoid, reduce, or transfer the risk of growth? (i.e., manage it without reserves) A Limited, if significant growth does occur

4. Considering the above, how important for you is it to retain the risks of growth through reserves ? 2 < Enter your score here
5 Very important. We expect significant growth with imbalances in the timing of revenues and expenditures 4 Important. We have some growth that will cause imbalances in the timing of revenues and expenditures. 3 Neutral. We do not face an unusually high or low level of risk from growth 2 Unimportant. We have a small potential for future growth and/or only minor potential imbalances in the timing between revenues and expenditures.
1 Very unimportant. We expect no growth or growth will fully pay for itself as expenditures are incurred.

Population as of January 1: Last Ten Years
2017 26,919
2016 26,055
2015 26,141
2014 26,828
2013 26,267
2012 25,817
2011 25,287
2010 25,053
2009 25,745
2008 25,996
2007 25,582
Source: State of California, Department of Finance, Demographic Research Unit http://www.dof.ca.gov/Forecasting/Demographics/Estimates/ B-14
Appendix B: GFOA Structured Assessment Methodology

Capital Projects

1. Identify Risks
What high priority capital projects don't have a funding source? A The City has a significantly underfunded CIP
B
C

2. Assess Risks
What is the likelihood that reserves will be looked to as a funding source for the project? A Likely
B
C

3. Identify other risk mitigation approaches
What options do you have to avoid, reduce, or transfer the risk of capital projects using reserves as a funding source? (i.e., manage it without reserves)
A Not applicable
B
C

4. Considering the above, how important for you is it to retain the risks of unfunded capital projects through reserves ?
5 < Enter your score here
5 Very important. There are very high profile projects with out a funding source and reserves are likely to be considered as a funding source.
4 Important. There are at least some high profile projects where reserves may be called upon to provide at least some of the funding.
3 Neutral. We do not face an unusually high or low level of risk from unfunded high-priority projects 2 Unimportant. High priority capital projects will probably have funding sources, if they don't already. 1 Very unimportant. All high priority capital projects have funding sources.

B-15
Appendix B: GFOA Structured Assessment Methodology

Guiding Your Selection of a Fund Balance Target
Step 1. Determine your total score from the risk factors 32 Your total score from the risk factors (calculated if you entered a score in other sheets) Step 2. Preliminary Analysis
Compare your score from Step 1 to the guidelines below.

Your Score Analytical Guidance
8 - 16
You face minimal risk to retain through reserves. Consider a target equal to the GFOA minimum recommended reserve of 16.6% of revenues/expenditures.
17-24
You face a low to moderate level of risk to retain through reserves. Consider adopting a reserve target somewhat higher than the GFOA minimum (e.g. 17-25% of revenues/expenditures). Since risk is low, do not invest excessive analytical effort in determining an exact target amount. Consider a short, informal benchmarking study with peer agencies to provide guidance. 25-31
You face a moderate to high level of risk to retain through reserves. Consider adopting a target amount of reserves significantly higher than the GFOA recommended minimum (e.g., 26 - 35%). Consider a short, informal benchmarking survey as a starting point, but then analyze your most significant risk factors to make sure they are adequately covered by what the survey suggests is reasonable. 32 - 40 You face a high level of risk to retain through reserves. Consider adopting a much higher target than the GFOA minimum (e.g., greater than 35%). Consider performing a more in-depth analysis of the risks you face to arrive at target level of reserved that provides sufficient coverage.

Step 3. Consider Impact of Government Size, Budget Practices, & Borrowing Capacity For each driver pick which description best fits you and enter the appropriate number of points. 2 Government Size
+2 We are under 50,000 in population
0 We are between 50,000 and 300,000 in population
-4 We are over 300,000 in population
0 Budget Practices
-3 The budget has a formal contingency beyond what is being considered for this reserve. -2 The budget has informal contingencies beyond what is being considered for the reserve. 0 The budget is lean and has no contingencies in it.

B-16
Appendix B: GFOA Structured Assessment Methodology

-2 Borrowing Capacity
-3
We have excellent external and internal borrowing capacity, including a good rating, little existing debt, and political will to use it.
-2
We have some external and/or internal borrowing capacity and political will could be mobilized to use it.
0 We have little or no borrowing capacity.

Step 4. Consider Impact of Commitments/Assignments, Outsider Perceptions & Political Support Place an "X" next to each statement that applies to you.

Commitments and Assignments
We have commitments or assignments that designate fund balance for uses other than retaining the types of risk described in this analysis. If so, these commitments/assignments should not be included in the total reserve used to reach your target.

Outsider Perceptions
Rating agencies have given us a target level of reserve for getting a good rating. If so, use that target in place of or in addition to a benchmarking survey to provide guidance on starting point for your target.

The public is likely to question reserve levels as too high. If so, be sure to document your analysis findings in the other sheets.

Political Support
The governing board places great weight on the policies of comparable jurisdictions. If so, conduct a benchmarking survey that includes governments the board perceives as relevant.

The board places great weight on rating agency recommendations. If so, tie the reserve target recommendation to rating agency recommendations or standards.

The board places great weight on GFOA recommendations. If so, use this analysis and GFOA's Best Practices to support your recommendation.

Step 5. Putting it All Together
A. Consider your adjusted risk score and re-consult the analytical guidance. 32 < Your adjusted risk score (risk score modified with results from Step 3) B. Review results of Step 4.

Review each item you checked from Step 4 and add the advice to your analytical guidance.

C. Proceed with finalizing target
Proceed with setting a final reserve target based on analytical guidance.

B-17
Appendix B: GFOA Structured Assessment Methodology

Appendix C: City of Twentynine Palms Cash Flow, 2017-18 Budget Total % Total July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June

REVENUES
Taxes
Property Tax 2,147,100 24% - - - - 214,700 751,500 214,700 107,400 - 751,500 107,300 - Property Tax - VLF 2,853,700 31% - - - - - - 1,426,800 - - - 1,426,900 - Sales Tax 1,195,000 13% 95,600 95,600 119,500 95,600 95,600 119,500 95,600 95,600 95,600 95,600 95,600 95,600 TOT 1,017,000 11% 50,900 50,900 76,300 76,300 50,900 50,900 152,400 50,900 50,900 101,700 152,400 152,500 Franchise Fees 575,000 6% 14,400 14,400 28,800 43,100 28,800 57,500 28,800 14,400 57,500 229,800 14,400 43,100 Other Taxes 26,700 0% 2,200 2,300 2,300 2,300 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 Total Taxes 7,814,500 86% 163,100 163,200 226,900 217,300 392,200 981,600 1,920,500 270,500 206,200 1,180,800 1,798,800 293,400 Intergovernmental 127,000 1% 10,500 10,500 10,600 10,600 10,600 10,600 10,600 10,600 10,600 10,600 10,600 10,600 Licenses & Permits 160,000 2% 13,400 13,400 13,400 13,400 13,300 13,300 13,300 13,300 13,300 13,300 13,300 13,300 Burrtec/Street Sweeper 120,000 1% 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 Service Charges 295,000 3% 24,500 24,500 24,600 24,600 24,600 24,600 24,600 24,600 24,600 24,600 24,600 24,600 Other Revenues 327,000 4% 27,200 27,200 27,200 27,200 27,200 27,200 27,300 27,300 27,300 27,300 27,300 27,300 Transfers In 232,500 3% 19,300 19,300 19,300 19,400 19,400 19,400 19,400 19,400 19,400 19,400 19,400 19,400 Total Revenues 9,076,000 100% 268,000 268,100 332,000 322,500 497,300 1,086,700 2,025,700 375,700 311,400 1,286,000 1,904,000 398,600

ANNUALCOSTS
General Liability 130,500 130,500
OPEB 126,500 126,500
Non-Profit Org Contrib 47,500 47,500
Cal-ID 30,500 30,500
Other Costs 8,499,400 708,200 708,200 708,300 708,300 708,300 708,300 708,300 708,300 708,300 708,300 708,300 708,300 Total Costs 8,834,400 - 1,043,200 708,200 708,300 708,300 708,300 708,300 708,300 708,300 708,300 708,300 708,300 708,300 NET REVENUES 241,600 (775,200) (440,100) (376,300) (385,800) (211,000) 378,400 1,317,400 (332,600) (396,900) 577,700 1,195,700 (309,700) Cummulative Net 241,600 (775,200) (1,215,300) (1,591,600) (1,977,400) (2,188,400) (1,810,000) (492,600) (825,200) (1,222,100) (644,400) 551,300 241,600 % OF ANNUAL COSTS -9% -14% -18% -22% -25% -20% -6% -9% -14% -7% 6% 3% C-1

Appendix D: Consultant Background
D-1
Bill Statler has extensive experience in organizational review, strategic planning and policy analysis, as well as in a broad range of financial management practices that have received state and national recognition for excellence in financial planning and reporting.

His work ranges from San Luis Obispo (the city that Oprah Winfrey calls the “Happiest City in America”) to volunteer service helping the troubled City of Bell reform their government.

SENIOR FINANCIAL MANAGEMENT EXPERIENCE
Bill Statler has over 30 years of years of senior financial management experience, which included serving as the Director of Finance & Information Technology/City Treasurer for the City of San Luis Obispo for 22 years and as the Finance Officer for the City of Simi Valley for 10 years before that.

Under his leadership, the City of San Luis Obispo received national recognition for its financial planning and reporting systems, including:
• Award for Distinguished Budget Presentation from the Government Finance Officers Association of the United States and Canada (GFOA), with special recognition as an outstanding policy document, financial plan and communications device. San Luis Obispo is one of only a handful of cities in the nation to receive this special recognition.
• Awards for excellence in budgeting from the California Society of Municipal Finance Officers (CSMFO) in all four of its award budget categories: innovation, public communications, operating budgeting and capital budgeting. Again, San Luis Obispo is among a handful of cities in the State to earn recognition in all four of these categories.
• Awards for excellence in financial reporting from both the GFOA and CSMFO for the City’s comprehensive annual financial reports.
• Recognition of the City’s financial management policies as “best practices” by the National Advisory Council on State and Local Budgeting.

The financial strategies, policies and programs he developed and implemented resulted in strengthened community services and an aggressive program of infrastructure and facility improvements, while at the same time preserving the City’s long-term fiscal health.

CONSULTING AND INTERIM ASSIGNMENTS
Long-Term Financial Plans
 City of Salinas
 City of Camarillo
 City of Carpinteria
 City of Pismo Beach
 City of Grover Beach

Appendix D: Consultant Background
D-2
 City of Twentynine Palms
 City of Bell
 Bear Valley Community Services District
Strategic Planning and Council Goal-Setting
In collaboration with the HSM Team
 City of Monrovia
 City of Sanger
 City of Pismo Beach
 City of Bell (Pro Bono)
 City of Willits
Organizational Analysis and Policy Advice
 Organizational Review (Plans/Public Works and Community Services): City of Monterey  Finance Organizational Review: Ventura Regional Sanitation District  Benchmark Analysis: City of Capitola
 Financial Management Improvements: City of Capitola
 Organizational Review: City of Willits (in collaboration with the HSM Team)  Finance Division Organizational Review: Sacramento Metropolitan Fire District  Finance Department Organizational Review: City of Ceres (in collaboration with national consulting firm)
 Financial Management Transition Team and Policy Advice: City of Bell (Pro Bono)  Preparation for Possible Revenue Ballot Measure: City of Monterey  Fund Accounting Review: State Bar of California
 Construction Project Contracting Review: Central Contra Costa Sanitary District  Focused Financial Review: City of Watsonville
 Financial Assessment: City of Guadalupe
 Financial Condition Assessment: City of Grover Beach
 General Fund Reserve Policy: City of Pacific Grove
 General Fund Reserve Policy: City of Lompoc
 General Fund Reserve Policy: City of Willits
 Reserve Policy: State Bar of California
 Budget and Fiscal Policies: City of Santa Fe Springs
Interim Finance Director
 City of Monterey
 San Diego County Water Authority
 City of Capitola
Other Financial Management Services
 Revenue Options Study: Santa Clara Valley Water District  Revenue Options Study: City of Greenfield

Appendix D: Consultant Background
D-3
 Revenue Options Study: City of Pismo Beach
 Cost Allocation Plan: City of Greenfield
 Cost Allocation Plan: City of Guadalupe
 Cost Allocation Plan: City of Port Hueneme
 Cost Allocation Plan: City of Grover Beach
 Cost Allocation Plan Review: State Bar of California
 Cost Allocation Plan Review: City of Ukiah
 Disciplinary Proceedings Cost Recovery Review: State Bar of California  Water and Sewer Rate Reviews: Avila Beach Community Services District  Water and Sewer Rate Reviews: City of Grover Beach
 Solid Waste Rate Review: County of San Luis Obispo, Los Osos and North County Areas  Joint Solid Waste Rate Review: Cities of Arroyo Grande, Grover Beach, Pismo Beach and Oceano Community Services District

PROFESSIONAL LEADERSHIP
• Member, Board of Directors, League of California Cities (League): 2008 to 2010 • Member, California Committee on Municipal Accounting: 2007 to 2010 • Member, GFOA Budget and Fiscal Policy Committee: 2005 to 2009 • President, League Fiscal Officers Department: 2002 and 2003 • President, CSMFO: 2001
• Member, Board of Directors, CSMFO: 1997 to 2001
• Chair, CSMFO Task Force on “GASB 34” Implementation
• Fiscal Officers Representative on League Policy Committees: Community Services, Administrative Services and Environmental Quality: 1992 to 1998 • Chair, Vice-Chair and Senior Advisor for CSMFO Committees: Technology, Debt, Career Development, Professional and Technical Standards and Annual Seminar Committees: 1995 to 2010
• Member, League Proposition 218 Implementation Guide Task Force • Chair, CSMFO Central Coast Chapter: 1994 to 1996

TRAINER
 League of California Cities
 Institute for Local Government
 California Debt and Investment Advisory Commission
 Government Finance Officers Association of the United States and Canada  California Society of Municipal Finance Officers
 Municipal Management Assistants of Southern California and Northern California  National Federation of Municipal Analysts
 Probation Business Manager’s Association
 Humboldt County
 California Association of Local Agency Formation Commissions  American Planning Association

Appendix D: Consultant Background
D-4
Topics included:
• Long-Term Financial Planning
• The Power of Fiscal Policies
• Financial Analysis and Reporting
• Fiscal Health Contingency Planning
• Effective Project Management
• Providing Great Customer Service in
Internal Service Organizations: The
Strategic Edge
• Strategies for Downsizing Finance
Departments in Tough Fiscal Times
• Top-Ten Skills for Finance Officers
• Telling Your Fiscal Story: Tips on
Making Effective Presentations
• What Happened in the City of Bell
and What We Can Learn from It
• Multi-Year Budgeting
• Top Challenges Facing Local
Government Finance Officers
• Fiscalization of Land Use
• Debt Management
• Transparency in Financial
Management: Meaningfully
Community Involvement in the
Budget Process
• Financial Management for NonFinancial Managers
• Preparing for Successful Revenue
Ballot Measures
• Integrating Goal-Setting and the
Budget Process
• Financial Management for Elected
Officials
• 12-Step Program for Recovery from
Fiscal Distress
• Strategies for Strengthening
Organizational Effectiveness
• Budgeting for Success Among
Uncertainty: Preparing for the Next
Downturn

PUBLICATIONS
• Guide to Local Government Finance in California, Solano Press, Second Edition, 2017 (Co-Author)
• Setting Reserve Policies – and Living Within Them, CSMFO Magazine, May 2017 • Presenting the Budget to Your Constituents, CSMFO Magazine, July 2016 • Planning for Fiscal Recovery, Government Finance Review, February 2014 • Managing Debt Capacity: Taking a Policy-Based Approach to Protecting Long-Term Fiscal Health, Government Finance Review, August 2011
• Fees in a Post-Proposition 218 World, League of California Cites, District Attorney's Department Spring Conference, May 2010
• Municipal Fiscal Health Contingency Planning, Western City Magazine, November 2009

Appendix D: Consultant Background
D-5
• Understanding the Basics of County and City Revenue, Institute for Local Government, 2008 (Contributor)
• Financial Management for Elected Officials, Institute for Local Government, 2010 (Contributor)
• Getting the Most Out of Your City’s Current Revenues: Sound Fiscal Policies Ensure Higher Cost Recovery for Cities, Western City Magazine, November 2003 • Local Government Revenue Diversification, Fiscal Balance/Fiscal Share and Sustainability, Institute for Local Government, November 2002 (Co-Author) • Why Is GASB 34 Such a Big Deal?, Western City Magazine, November 2000 • Understanding Sales Tax Issues, Western Cities Magazine, June 1997 • Proposition 218 Implementation Guide, League of California Cities, 1997 (Contributor)

HONORS AND AWARDS
• Cal-ICMA Ethical Hero Award (for service to the City of Bell) • CSMFO Distinguished Service Award for Dedicated Service and Outstanding Contribution to the Municipal Finance Profession
• National Advisory Council on State and Local Government Budgeting: Recommended Best Practice (Fiscal Polices: User Fee Cost Recovery)
• GFOA Award for Distinguished Budget Presentation: Special Recognition as an Outstanding Policy Document, Financial Plan and Communications Device • CSMFO Awards for Excellence in Operating Budget, Capital Improvement Plan, Budget Communication and Innovation in Budgeting
• GFOA Award of Achievement for Excellence in Financial Reporting • CSMFO Certificate of Award for Outstanding Financial Reporting • National Management Association Silver Knight Award for Excellence in Leadership and Management
• American Institute of Planners Award for Innovation in Planning • Graduated with Honors, University of California, Santa Barbara Visit my web site for additional information at www.bstatler.com

STAFF REPORT
TO: City Council
FROM: Finance Director
FOR MEETING: Feb 25 2025
SUBJECT: Financial Report - Fiscal Year 2024-25 Mid-Year Budget Update - Capital Projects Funds and Special Funds.

RECOMMENDATION:

The City Council review and approve the proposed Capital Projects Fund and Special Funds budget amendments for FY 2024-25.

ORDER OF PROCEDURE:

Request Staff Report (Finance Director Presenting)
Council Questions of Staff
Council Discussion
Motion/Second
Discussion of Motion
Call the Question
ATTACHMENTS:
• Mid-Year Update - Spec.

Funds & Capital Projects Funds
- FY 2024-25 - Presentation
• Spec. Revenue Funds &
Capital Projects Fund Budget
Amendments FY 2024-25
BACKGROUND:

Capital Project Funds and Special Funds are funds established by the City Council or other agencies to collect money that must be used for
a specific project or purpose. Special revenue funds provide an extra level of accountability and transparency to taxpayers and/or ratepayers that their tax or fee dollars will go towards an intended purpose.

The mid-year financial report (budget) for Fiscal Year 2024-25 is attached for City Council's review and approval.

The intent of this report is to provide the City Council, Staff, and citizens with an overview of the progress through the first seven months of the fiscal year. All operating Special Funds are on track with expected revenues and expenditures.

Special Funds Revenues:

A total of $3.1M in tax revenue is expected to be received for several special funds, including $803K from Gas Tax, $714K from the Road Maintenance Rehab Account (RMRA) SB1 tax, and $675K from Measure I.

Approximately 39% of the expected tax revenue has been received through January 31, 2025, the remainder is typically collected in the second half of the year (February - June). The projected allocation of $803K from Gas Tax will be spent on street repair and maintenance within existing roadways. Gas Tax funding cannot be used to widen or extend a road. A total of $50K from Gas tax reserves will be used to fund the acquisition of a water truck for Public Works. RMRA SB1 Tax will fund the overlay of various streets throughout the City including Manana Page 111 of 184 Dr., Mojave Ave., Manzanita Ave., Eucalyptus Ave., Estrella Ave., Alpine Ave., among others. Measure I Funds will be used for the engineering and admin costs of various projects including Split Rock bridge, SR62 street widening (Phase 2B) project, Safety Improvement project at Two Mile Road, Adobe Road and Utah Trail, and the Channel at El Rey Avenue. Local Measure I funds will also fund the $144K of pavement preventative maintenance work on approximately 4.26 miles of City roads under the cooperative agreement with San Bernandino County.

Other Special funds include:
- Curb, Gutter, & Sidewalk Impact Fee fund: Impact fees collected are spent on off-site improvements. - Development Impact Fee - Streets: This fund was created to track the collections and use of the new development impact fees collected when building permits are issued for development projects. The fee is charged in relation to the square footage of the proposed structure, as opposed to the repealed Curb, Gutter, & Sidewalk Impact Fee, which was based upon linear street frontage of the property. - Lighting & Landscaping Funds (Desert Vista & Historic Plaza): The assessments collected from these two districts fund street lighting and upkeep of the landscaping around each District's perimeter. - Public Access TV Fund: The City receives funds from the cable television franchise to support public access programs including agenda management software and public access website. - TBID: The main revenue source for this fund is the 1.5% Visit 29! tourism fee intended for marketing the City as a tourism destination. The TBID's budget process follows a fiscal year beginning on October 1st of each year and ending on September 30th of the following calendar year. Through the first quarter of TBID's current fiscal year, TBID fees remain stagnant compared to the same quarter in the prior year. The projected TBID's reserve balance for FY 2023-24 is $427K.
- Successor Agency: The revenues from property tax increments to pay the bonds (principal and interest) associated with Project Phoenix and administration of the Successor Agency.

Capital Projects:

The City has been awarded several grants including $5.0M and $406K from San Bernardino County Transportation Authority (SBCTA) for the SR62 street widening (Phase 2B) project and Split Rock Bridge Project, respectively, $3.5M from CA Transportation Commission for the construction of the Hatch/Sullivan bike path, $3.2M from Caltrans for the construction of the Split Rock bridge, $1.3M from Caltrans for the construction of Safe Routes to Schools project, $421K from the Local Transportation Fund Art 3 for the design of the City-wide Channel Trail, $426K from Caltrans for the safety improvements project at Two Mile Road, Adobe Road and Utah Trail and $240K from San Bernardino County for the resurfacing of various ball courts throughout the City. All these are reimbursable grants, meaning, the City will receive the funds only after it incurs the costs for the approved program/project. Due to the unprecedented labor shortage affecting all governmental agencies, the lead time for grant reimbursements has increased from three to six months. All capital projects that remain open at the end of the current fiscal year will be rolled over into the 2025-26 Fiscal Year budget.

Pending the City Council's approval, $200K will be transfer from the General Fund to the Capital Projects Fund for ADA improvements at the Senior Center. From FY 2019-20 to FY 2022-23, a total of $343K was set aside for reroofing of various City owned facilities, including Patriotic Hall and Racquetball courts. A total of $226K is still available from these reserves. City Staff estimates that $100K of these reserves will be used to replace the roof at the Senior Center. Other than the annual $160K transfer from the General Fund to the Capital Projects Fund for general projects, there are no other funds set aside for building maintenance or major item replacements.

Currently, there are various City owned facilities that need significant repairs/updates; however, the extent of those repairs and their associated costs have not been assessed.

The City is expected to complete the following projects before the end of the current fiscal year:

1. Safe Routes to Schools Project

2. Safety improvements project at Two Mile Road, Adobe Road and Utah Trail

3. Luckie Park Ballfield lights project

4. Pavement preventative maintenance work on approximately 4.26 miles of City roads under the cooperative agreement with San Bernandino County.

5.Vehicle Acquisitions (i.e., Code Enforcement truck, Animal Control vehicle, and a water truck for Public Works).

Current Funding Needs and Challenges:

With the current inflation still at records high, the cost of labor, materials and services has gone up significantly.

These cost increases have left various projects underfunded, such as the new Animal Control shelter and Homekey Project (Elm Street very-low income veteran-only housing units).

In July 2022, the City was awarded $713,255 from the Community Development Block Grant (CDBG) Homekey program administered by the Department of Housing and Community Development (HCD). $511,126.09 was used to acquire the Elm properties (6937, 6939, 6941, and 6943 Elm Avenue)(Properties). The Properties are deed-restricted and shall be used for permanent housing of very low-income veterans. The remaining grant funds, $202,128.91, is being used to rehabilitate the properties.

A portion of the rehabilitation requires bringing at least one of the properties into Americans with Disabilities Act (ADA) compliance. Since this is a federally funded project, the City must comply with Davis-Bacon and ADA requirements. Davis-Bacon and ADA requirements means higher construction and project management costs as well as longer completion times. Due to these challenges, City Staff requested and received an extension to complete the project. The time to complete the Homekey Project was extended from the original date of June 30, 2025 to a new date of March 31, 2026. Since the cost to rehabilitate the properties has proven to be higher than expected, City Staff requested additional funding. Unfortunately, HCD denied additional funding stating no additional funds are available.

The City is working with Charles Abott & Associates to determine how much additional funding will be needed to complete the project. Once grant funds are depleted, additional costs will be funded by the General Fund.

ENVIRONMENTAL:

N/A
ALTERNATIVES:

The City Council could choose to make policy changes on funding.

FISCAL IMPACT:

A balanced Budget.

CITY OF TWENTYNINE PALMS
Fiscal Year 2024-25 Mid-Year Budget Update
Capital Project Funds & Special Funds

2 MID-YEAR BUDGET

ADJUSTMENTS
Schedule:February 25th General Fund Budget, Capital Projects Funds, and Special Revenue Funds.
2/18/2025

SPECIAL FUND UPDATE

ADJUSTMENTS
FY 24/25

PROPOSED
BUDGET
FY 24/25

ADOPTED
BUDGET
Revenue
& Transfers In $16,170,304 $18,120,590 $1,950,286
$16,058,024 $17,018,396 $960,372 Expenditures
& Transfers Out
3 Summary
2/18/2025

SPECIAL FUND REVENUE SOURCES
% RECEIVED YTD (THROUGH JAN. 2025) FY 24/25 PROPOSED BUDGET REVENUE TYPE Tax Revenue $3,072,804 $1,213,084 39%
Grants(1) $9,825,547 $942,484 10%
Other Revenues $704,479 $313,465 44% (2)
General Fund Transfers In $688,151 $80,000 12%
4 (1) Includes $3.5M for Sullivan Bike Path, $3.6M for Split Rock Bridge, $1.0M for Safe Route to School Project, $420K for the design of the City-wide Channel trail, and $375K for Phase 2B of SR62 Street widening. (2) Includes interest income, impact fees, TBID fees, and other misc. revenue. 2/18/2025

TAX REVENUES
% RECEIVED
2024‐25

PROPOSED
BUDGET

YTD (THROUGH
JAN. 2025)
FUND
RMRA SB1(1) $324,653 $713,973 45%Gas Tax $440,772 $802,622 55%Measure I $212,159 $674,537 31% Successor Agency $235,500 $881,672 27%
TOTAL $1,213,084 $3,072,804 39%
5 (1) See (Road Maintenance Rehab Account) RMRA SB1 funded projects in next page. 2/18/2025

GAS/RMRA SB1 TAX REVENUE HISTORY
FY AMOUNT Cumulative Gain/(Loss)
% Change
13/14 $965,24514/15 $850,165 ($115,080) (12%)15/16 $658,700 ($306,545) (23%)16/17 $513,641 ($451,604) (22%)17/18 $736,604 ($228,641) 43% 18/19 $994,720 $29,475 35%
19/20 $1,150,172 $184,927 16%20/21 $1,190,386 $225,141 3%21/22 $1,303,335 $338,090 9%22/23 $1,325,218 $359,973 2%23/24 $1,405,061 $439,816 6% 24/25* $1,516,595 $551,350 8%
6 *Forecast
2/18/2025

RMRA SB1 PROJECTS
RMRA SB1 Projects for FY 24/25: Street Resurfacing
7 Street From To Length (LF) Estimated Cost
Manana Dr. Morongo Rd. Encelia Dr. 2,400 $98,000
Mojave Ave. El Paseo Dr. To End 2,130 $70,000Mojave Ave. Hwy. 62 Old Dale Rd. 1,340 $35,000Manzanita Ave. Hatch Rd. Sullivan Rd. 2,340 $84,000Eucalyptus Ave. Hatch Rd. Sullivan Rd. 2,170 $73,500Estrella Ave. Hatch Rd. Sullivan Rd. 2,005 $56,000Alpine Ave. Hatch Rd. Sullivan Rd. 1,780 $52,500 El Sol Ave. Hatch Rd. Foothill Dr. 2,872 $101,500
Old Dale Rd. Copper Mtn. Rd. Indian Cove Rd. 2,872 $38,500 Adobe Rd. Amboy Rd. Calle Todd Ln. 1,250 $78,400
TOTAL COST $687,400
2/18/2025

OTHER STREET PROJECTS
The City entered into a Cooperative agreement with the San Bernardino County to conduct pavement preventative maintenance work, which includes preparation work and chip seal or leveling course and chip seal, on approximately 4.26 miles of City roads from January 11, 2022 through December 31, 2024. The City’s share for this project was $144K.

County Road
Length
City Road
Length
Road Name Project Limits
Bullion Mountain Road Amboy Rd N/Valley Vista Rd.
1 1
.75M N. Siesta Dr. (PMS CL) .75 .75
N/Indian Tr.

Mesquite Springs Road
Mesquite Springs Road Indian Tr. N/Sunny Sands Dr. (NM) .50 .50 Jos Tr Mon Bdry N/.30M S. 1.01
1 Starlight Dr.

Utah Trail
Valley Vista Road Utah Tr. E/Bullion Mtn Rd.
1 1
TOTAL MILES 4.26 4.25
8 2/18/2025

CAPITAL PROJECTS

PROJECT NAME TOTAL BUDGET
Split Rock Construction $4,186,623 (1)Light Poles $1,150,000 Animal Control Building $200,000
Animal Control – New Shelter $750,000 (2)
Sullivan Bike Path $4,021,000 (1)Safe Routes
2 School Construction $1,452,450 (1)
SR62 Street Widening (Phase 2B) project $4,970,000 (1)
Two Mile, Adobe
& Utah Construction $490,590 (1)
Senior Center Improvements $280,000 (3)Resurfacing of ball courts $240,117 (1)Homekey Project $713,175 (2)City‐wide Channel Trail ‐ Design $569,250 City Hall Structure $45,000
9 (1) Fully or partially funded
by a grant.
(2) Needs additional funding.
(3) Includes $80K for the roof
2/18/2025

SPECIAL FUNDS RESERVES

PROJECTED

RESERVES
FY 2024‐25
FUND
Curb, Gutter, Sidewalk $554,271RMRA SB1 $96,584
Gas Tax $190,479
Measure I $1,395,040
LTF – Article
8 $0
Lighting
& landscaping ‐ DV $75,503
Lighting
& landscaping – HP $2,670
Public Access TV Fund $29,817
TBID $427,209Landfill/Land Use Fund $127,763
10 2/18/2025

EQUIPMENT/VEHICLE REPLACEMENTS
Item Budget Funding SourceCode Enforcement Vehicle $51,150 General Capital Projects Fund Animal Control Vehicle $131,000 General Capital Projects Fund Water Truck $50,000 Gas Tax
11 2/18/2025

FUNDING NEEDS
 Additional funding for the new Animal Control Shelter and Homekey project.
12 2/18/2025

STAFF RECOMMENDATIONS
Staff is recommending the following actions:

1. City Council review and approve the proposed Special Funds and Capital Project Funds budget amendments for FY 2024 ‐25.
13 2/18/2025

FINANCIAL REPORT MID-YEAR UPDATE
Questions?
14 2/18/2025

FINANCIAL REPORT MID-YEAR UPDATE
THANK YOU!
15 2/18/2025

Adopted on
6/11/24
2022-2023 2023-2024 2024-2025 2024-2025 2024-2025

ACCOUNT BUDGET BUDGET THROUGH REVISED PROPOSED
CODE ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS
10-0000 REVENUE
4245 Interest 433 $ - $ - $ - $ - $ - $
4316 Transfer In 3,479,961 $ 399,298 $ 80,000 $ 455,000 $ 682,151 $ 227,151 $ 4321 LEAP Grant 75,400 $ 38,585 $ - $ - $ - $ - $
4322 SB2 Planning Grant 16,838 $ - $ - $ - $ - $ - $
4328 Caltrans/HBP - Split Rock - $ 76,207 $ - $ - $ - $ - $ 4329 HSIPL Neighborhood Grant - PE 23,737 $ - $ - $ - $ - $ - $ 4715 EV Charger Grant 6,695 $ - $ - $ - $ - $ - $
4716 Project Phoenix-JT Visitor Cultural Center 216,358 $ - $ - $ - $ - $ - $ 4717 Trails and Greenway Prop 68 790,389 $ 21,964 $ - $ - $ - $ - $ 4718 Prop 68-Project Phoenix Funds 194,454 $ - $ - $ - $ - $ - $ 4719 State Grant - Luckie Park Pool 1,300,000 $ - $ - $ - $ - $ - $ 4728 SBCTA/SCAG - Sullivan Bike Path - $ - $ - $ - $ 3,480,000 $ 3,480,000 $ Reserves 4,333,968 $ 673,202 $ 1,143,414 $ 6,031,394 $ 2,679,874 $ (3,351,520) $ TOTAL REVENUE 10,438,233 $ 1,209,256 $ 1,223,414 $ 6,486,394 $ 6,842,025 $ 355,631 $ 10-DEPT EXPENDITURES
6295 Well Repair** 17,454 $ 24,686 $ - $ 50,000 $ 50,000 $ - $ 6335 Trails Flood Control Plan Prop 68 782,226 $ 24,557 $ 4,500 $ - $ 4,500 $ 4,500 $ 6351 General Plan/Housing Element Update 70,543 $ 5,329 $ - $ - $ - $ - $ 6351 General Plan/Social Equity Element 30,776 $ 7,853 $ - $ - $ - $ - $ 6512 Re Roof City Buildings 141,919 $ - $ - $ - $ 80,000 $ 80,000 $ 6520 Vehicle Replacement - Code Enforcement - $ - $ 51,150 $ 50,000 $ 51,150 $ 1,150 $ 6520 Vehicle Replacement - Animal Control - $ - $ - $ 105,000 $ 131,000 $ 26,000 $ 6520 Vehicle Replacement - $ - $ 3,294 $ - $ 3,294 $ 3,294 $ 6692 Building Improvement - CD/Finance 156,580 $ 59,177 $ - $ - $ - $ - $ 6692 Building Improvement - Senior Center - $ - $ - $ - $ 200,000 $ 200,000 $ 6694 Animal Control Building 21,606 $ - $ - $ 178,394 $ 178,394 $ - $ 6695 Animal Control - New Shelter - $ 33,474 $ 49,156 $ 716,526 $ 716,526 $ - $ 6779 Hatch/Sullivan Bike Path - $ 6,473 $ 2,943 $ 3,958,875 $ 3,995,527 $ 36,652 $ 6781 Split Rock Bridge Design + CM 26,278 $ 86,080 $ - $ - $ - $ - $ 6803 MBTA Project Phoenix Transfer Station 3,883 $ 7,591 $ 2,606 $ - $ 8,000 $ 8,000 $ 6804 Theatre 29/Pioneer Park Prop 68 47,980 $ - $ - $ - $ - $ - $ 6852 Shade Structures - Luckie Park 69,401 $ - $ - $ - $ - $ - $ 6852 Shade Structures - City Hall - $ - $ - $ 45,000 $ 45,000 $ - $ 6897 Replace Luckie Park Light Poles 14,590 $ 438,554 $ 981,550 $ 997,527 $ 996,856 $ (671) $ 6985 Equipment Replacement Fund - $ - $ - $ 35,000 $ 35,000 $ - $ 6985 Equipment Replacement Fund - PW Mower 25,407 $ - $ - $ - $ - $ - $ 6988 Luckie Park Pool Upgrade 5,393,706 $ 11,451 $ - $ - $ - $ - $ 10 14 Project Phoenix
6244 Project Phoenix - Miscellaneous Expense 1,867 $ - $ - $ - $ - $ - $ 6359 Contract & Consulting 884 $ - $ - $ - $ - $ - $
6365 Preliminary Design & Engineering 9,280 $ - $ - $ - $ - $ - $ 6366 Project Phoenix - Site Improvements 13,559 $ - $ - $ - $ - $ - $ 6829 EV Charger + City Match 10,585 $ - $ - $ - $ - $ - $ 6830 Project Phoenix - Public Art - $ - $ - $ 15,000 $ 15,000 $ - $ 6831 Project Phoenix - Store Front Improvements 39,241 $ 102,018 $ 55,434 $ 164,421 $ 164,421 $ - $ 6833 Project Phoenix - Street Furniture 6,931 $ - $ - $ 29,319 $ 29,319 $ - $ 6906 Project Phoenix-Multi-Purpose Facility Fixtures 6,632 $ 1,998 $ 3,931 $ 31,332 $ 31,332 $ - $ TOTAL EXPENDITURES 6,891,328 $ 809,241 $ 1,154,564 $ 6,376,394 $ 6,735,319 $ 358,925 $ The Capital Improvement Fund tracks grants and projects that aren't related to Community Development Block Grants.

GENERAL CAPITAL PROJECTS FUND
1 2/18/2025 Page 129 of 184
2022-2023 2023-2024 2024-2025 2024-2025 2024-2025

ACCOUNT BUDGET BUDGET THROUGH REVISED PROPOSED
CODE ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS
11-0000 REVENUE
4316 Transfer In - $ - $ - $ - $ 6,000 $ 6,000 $
4400 Community Development
Block Grant 85,000 $ 74,500 $ - $ 240,117 $ 240,117 $ - $ 4400 CDBG - Homekey Program 511,126 $ - $ - $ - $ 202,049 $ 202,049 $ 4400 CDBG - Luckie Park Pool Deck 230,000 $ - $ - $ - $ - $ - $ 4410 Meal Assistance Program 18,746 $ 37,462 $ (25,004) $ - $ - $ - $ TOTAL REVENUE 844,872 $ 111,962 $ (25,004) $ 240,117 $ 448,166 $ 208,049 $ 11-XXXX EXPENDITURES
6866 Homekey Project - $ 14,000 $ 33,228 $ - $ 194,049 $ 194,049 $ 6905 COVID-19 Meal Assistance Program 18,746 $ 37,462 $ - $ - $ - $ - $ 6988 Luckie Park Pool Project - CM 230,000 $ - $ - $ - $ - $ - $ 6770 Luckie Park Basketball Court, Tennis Courts,
and Ball Courts Resurfacing - $ 74,500 $ - $ - $ - $ - $ 6770 Luckie Park Parking Lot Improvements - $ - $ - $ 240,117 $ 240,117 $ - $ 6771 Luckie Park - $ 77 $ - $ - $ - $ - $
11-1014 EXPENDITURES
6906 Project Phoenix-Multi-Purpose Facility Fixtures 85,000 $ - $ - $ - $ - $ - $ TOTAL EXPENDITURES 333,746 $ 126,039 $ 33,228 $ 240,117 $ 434,166 $ 194,049 $

COMMUNITY DEVELOPMENT BLOCK GRANT FUND
Community Development Block Grants (CDBG) are funded by the Federal Government and administered by the County. In order to benefit as many citizens as possible, the funds are used for parks and public buildings. 2 2/18/2025 Page 130 of 184
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ACCOUNT BUDGET BUDGET THROUGH REVISED PROPOSED
CODE ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS
12-0000 REVENUE
4245 Interest 18,193 $ 42,141 $ 18,520 $ - $ 35,000 $ 35,000 $ 4264 Curb, Gutter & Sidewalk Impact
Fees 146,990 $ 34,711 $ - $ - $ - $ - $
Reserves - $ 94,199 $ 13,832 $ 200,000 $ 230,000 $ 30,000 $ TOTAL REVENUE 165,183 $ 171,051 $ 32,352 $ 200,000 $ 265,000 $ 65,000 $ 12-4043 EXPENDITURES
6655 Street Widening Desing - Cholla Ave 13,118 $ 9,115 $ 14,244 $ 200,000 $ 235,000 $ 35,000 $ 6922 Safe Route 2 School Eng/Adm 34,554 $ 161,936 $ 18,108 $ - $ 30,000 $ 30,000 $ TOTAL EXPENDITURES 47,672 $ 171,051 $ 32,352 $ 200,000 $ 265,000 $ 65,000 $

CURB, GUTTER & SIDEWALK IMPACT FEE FUND
This Fund was created to track the collection and use of impact fees collected when building permits are issued. The purpose is to provide off-site 3 2/18/2025 Page 131 of 184
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ACCOUNT BUDGET BUDGET THROUGH REVISED PROPOSED
CODE ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS
15-0000 REVENUE
4245 Interest - $ - $ 547 $ 2,500 $ 2,500 $ - $
4267 Development Impact Fees - Streets - $ - $ 46,108 $ 80,000 $ 80,000 $ - $ TOTAL REVENUE - $ - $ 46,655 $ 82,500 $ 82,500 $ - $
15-4043 EXPENDITURES
6534 Street Improvements - $ - $ - $ 82,500 $ 82,500 $ - $ TOTAL EXPENDITURES - $ - $ - $ 82,500 $ 82,500 $ - $

DEVELOPMENT IMPACT FEE - STREETS FUND
This Fund was created to track the collection and use of development impact fees collected when building permits are issued for development projects.

The fee is charged in relation to the square footage of the proposed structure. The purpose of this fee is to ensure that new development funds the share of transportation facility costs associated with growth. 4 2/18/2025 Page 132 of 184
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ACCOUNT BUDGET BUDGET THROUGH REVISED PROPOSED
CODE ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS
20-0000 REVENUE
4251 Vehicle Code Fines 3,934 $ 605 $ - $ - $ - $ - $
4316 Transfer in 30,000 $ 7,838 $ - $ - $ - $ - $
TOTAL REVENUE 33,934 $ 8,443 $ - $ - $ - $
20-4043 EXPENDITURES
6530 Traffic Signal/Lights-SCE 11,085 $ - $ - $ - $ - $ - $ 6531 Signal Maintenance 18,770 $ - $ - $ - $ - $ - $
TOTAL EXPENDITURES 29,855 $ - $ - $ - $ - $ - $

TRAFFIC SAFETY FUND
The source of revenue is a percentage of traffic fines collected for violations within the City. The funds must be expended in a manner that enhances traffic safety. Funds cannot be used for police salaries. Due to the State reallocating traffic fine collections to the courts, the City has seeing a significant reduction in this revenue source.
5 2/18/2025 Page 133 of 184
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ACCOUNT BUDGET BUDGET THROUGH REVISED PROPOSED
CODE ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS
21-0000 REVENUE
4245 Interest 4,262 $ 9,279 $ 4,629 $ 5,568 $ 8,000 $ 2,432 $ 4432 RMRA SB1 617,860 $ 679,370 $ 324,653 $ 681,832 $ 713,973 $ 32,141 $ Reserves 46,397 $ - $ - $ - $ - $ - $
TOTAL REVENUE 668,519 $ 688,649 $ 329,282 $ 687,400 $ 721,973 $ 34,573 $ 21-4043 EXPENDITURES
6772 Overlay by Street Crew/Chip Seal 668,519 $ 679,729 $ 40,471 $ 687,400 $ 721,973 $ 34,573 $ TOTAL EXPENDITURES 668,519 $ 679,729 $ 40,471 $ 687,400 $ 721,973 $ 34,573 $ ROAD MAINTENANCE REHAB ACCOUNT (RMRA) SB1
RMRA Funds are derived from a per gallon fuel excise tax, diesel fuel sales tax and vehicle registration fee. These funds are used on roads for major work rather then day to day repairs.
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ACCOUNT BUDGET BUDGET THROUGH REVISED PROPOSED
CODE ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS
22-0000 REVENUE
4245 Interest 7,491 $ 9,833 $ 2,713 $ 5,000 $ 5,000 $ - $ 4439 2103 Funds 225,636 $ 239,478 $ 156,934 $ 248,359 $ 261,667 $ 13,308 $ 4440 2106 Funds 103,353 $ 104,332 $ 60,653 $ 105,410 $ 112,640 $ 7,230 $ 4441 2107 Funds 214,775 $ 216,175 $ 124,451 $ 226,621 $ 243,705 $ 17,084 $ 4442 2107.5 Funds 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ - $ 4443 2105 Funds 157,594 $ 159,706 $ 92,734 $ 166,176 $ 178,610 $ 12,434 $ Reserves 85,375 $ 56,930 $ 14,741 $ 8,796 $ - $ (8,796) $ TOTAL REVENUE 800,224 $ 792,454 $ 458,226 $ 766,362 $ 807,622 $ 41,260 $ 22-4043 EXPENDITURES
5110 Salaries 354,421 $ 371,212 $ 180,892 $ 307,825 $ 307,825 - $ 5235 Vehicle/Cell Allowance 1,656 $ 659 $ 277 $ 480 $ 480 - $ 5250 Insurance 52,590 $ 58,013 $ 26,554 $ 51,485 $ 51,485 - $ 5251 Retirement 36,100 $ 39,786 $ 19,407 $ 33,396 $ 33,396 - $ 5252 Workers Comp 10,199 $ 10,717 $ 6,530 $ 12,313 $ 12,313 - $ 5253 PTO 12,729 $ 11,422 $ 8,957 $ 10,000 $ 13,000 3,000 $ 6210 Electricity 7,818 $ 9,988 $ 4,490 $ 7,994 $ 10,000 2,006 $ 6211 Natural Gas 567 $ 196 $ 120 $ 700 $ 700 - $
6212 Water 328 $ 362 $ 225 $ 600 $ 600 - $
6221 Telephone 232 $ 302 $ 265 $ 300 $ 300 - $
6241 Office Supplies 540 $ 40 $ - $ 800 $ 800 - $
6251 Training & Meetings - $ - $ - $ 1,000 $ 1,000 - $
6262 Equipment Repair &
Maintenance 59,557 $ 49,287 $ 43,365 $ 58,000 $ 65,000 7,000 $ 6272 Vehicle Repair &
Maintenance 31,339 $ 22,563 $ 32,873 $ 21,000 $ 48,723 27,723 $ 6291 Building Repair &
Maintenance 2,941 $ 3,513 $ 2,736 $ 4,000 $ 4,000 - $
6312 Small Equip. & Tools 5,619 $ 5,073 $ 1,801 $ 6,000 $ 6,000 - $ 6332 Uniforms 3,393 $ 3,427 $ 2,923 $ 4,000 $ 4,000 - $ 6359 Contract Services 4,710 $ - $ - $ - $ - - $
6432 Liability and Property
Insurance 41,661 $ 44,228 $ 51,915 $ 50,469 $ 52,000 1,531 $ 6508 Capital Equipment 53,450 $ - $ - $ 70,000 $ 50,000 (20,000) $ 6532 Signs & Striping 6,683 $ 3,702 $ 4,117 $ 7,000 $ 7,000 - $ 6534 Road Improvement
& Maintenance 286 $ 211 $ - $ 5,000 $ 5,000 - $
6536 Asphalt & Concrete 123 $ 9,713 $ 6,594 $ 12,000 $ 12,000 - $ 6537 Emergency Road Work 12,930 $ 59 $ 52 $ 3,000 $ 3,000 - $ 6556 Street Lighting-SCE 60,434 $ 66,429 $ 31,803 $ 52,000 $ 52,000 - $ 6765 Sign Material 29,918 $ 71,552 $ 27,330 $ 37,000 $ 37,000 - $ 6850 Admin Fees Transferred to GF 10,000 $ 10,000 $ 5,000 $ 10,000 $ 10,000 - $ TOTAL EXPENDITURES 800,224 $ 792,454 $ 458,226 $ 766,362 $ 787,622 $ 21,260 $

GAS TAX FUND
Also referred to as the Highway Users Tax is derived from $.18 per gallon of gasoline sold. Revenue is divided between the State, cities and counties.

The funds must be spent on street repair and maintenance within the roadway, and cannot be used to widen or extend a road. 7 2/18/2025 Page 135 of 184
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ACCOUNT BUDGET BUDGET THROUGH REVISED PROPOSED
CODE ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS
23-0000 REVENUE
4245 Interest 172 $ 6 $ - $ - $ - $ - $
Reserves - $ 317 $ - $ - $ - $ - $
TOTAL REVENUE 172 $ 323 $ - $ - $ - $ - $
23-4043 EXPENDITURES
6351 Signal Maintenance 5,692 $ 323 $ - $ - $ - $ - $
TOTAL EXPENDITURES 5,692 $ 323 $ - $ - $ - $ - $
TCRF LOAN REPAYMENT SB1
The source of revenue is a loan repayment from the State for the Traffic Congestion Relief Fund (TCRF). TCRF is a percentage of traffic fines collected for violations within the City.
8 2/18/2025 Page 136 of 184
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ACCOUNT BUDGET BUDGET THROUGH REVISED PROPOSED
CODE ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS
26-0000 REVENUE
4325 Split Rock Bridge Construction - SBCTA - $ - $ - $ 405,877 $ 405,877 $ - $ 4326 LTF Art 3 - City-Wide Channel Trail - $ - $ - $ 495,000 $ 420,750 $ (74,250) $ 4328 Split Rock Bridge Construction - CalTrans - $ - $ - $ 3,234,665 $ 3,234,665 $ - $ 4328 Split Rock Bridge Design/ROW - CalTrans 21,673 $ - $ - $ - $ - $ - $ 4329 HSIPL Neighborhood Safety Project - Construction 747,132 $ 77,739 $ - $ - $ - $ - $ 4723 HSIP Cycle 10 Two Mile, Adobe and Utah - $ 6,418 $ 6,000 $ 366,000 $ 366,000 $ - $ 4723 HSIPSL - 5448(011) - Two Mile, Adobe and Utah - PE 7,609 $ - $ - $ - $ - $ - $ 4725 ATP(010) SRS E&P and Final Design CalTrans 1,503 $ - $ - $ - $ - $ - $ 4725 ATP(010) SRS Construction CalTrans - $ 87,091 $ 961,488 $ - $ 1,018,948 $ 1,018,948 $ 4740 Major Local Hwy Program Median HWY 62 186,231 $ - $ - $ - $ - $ - $ 4741 MLHP - SR62 Str. Imp. Phase 2B - $ - $ - $ 375,000 $ 375,000 $ - $ TOTAL REVENUE 964,148 $ 171,248 $ 967,488 $ 4,876,542 $ 5,821,240 $ 944,698 $ 26-4043 EXPENDITURES
6612 HSIPSL - 5448(011) - Two Mile, Adobe and Utah - PE 15,585 $ - $ - $ - $ - $ - $ 6612 HSIP Two Mile, Adobe and Utah - Construction - $ - $ 340,600 $ 366,000 $ 366,000 $ - $ 6782 Split Rock Bridge Construction - $ - $ 4,881 $ 3,640,542 $ 3,640,542 $ - $ 6782 Split Rock Bridge Construction - Design/ROW 21,673 $ - $ - $ - $ - $ - $ 6920 ATP Safe Routes to School Grant PS&E 1,504 $ - $ - $ - $ - $ - $ 6920 ATP Safe Routes to School Construction - $ 1,048,579 $ 57,460 $ - $ 57,460 $ 57,460 $ 6962 HSIPL Neighborhood Safety Project - Construction 747,132 $ 77,739 $ - $ - $ - $ - $ 6970 Median Construction HWY 62 186,231 $ - $ - $ - $ - $ - $ 6971 SR62 Str. Imp. Phase 2B - $ - $ - $ 375,000 $ 375,000 $ - $ 6974 City-wide Channel Trail Class I - $ 13,779 $ 96,942 $ 495,000 $ 420,750 $ (74,250) $ TOTAL EXPENDITURES 972,125 $ 1,140,097 $ 499,883 $ 4,876,542 $ 4,859,752 $ (16,790) $

MAJOR LOCAL HIGHWAY PROGRAM
The Major Local Highway Fund accounts for street projects funded by Major Local Highway Funds received from SBCTA, Cal-Trans or other State 9 2/18/2025 Page 137 of 184
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ACCOUNT BUDGET BUDGET THROUGH REVISED PROPOSED
CODE ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS
27-0000 REVENUE
4245 Interest 29,333 $ 97,714 $ 53,640 $ 40,000 $ 70,000 $ 30,000 $ 4455 Measure I Distribution 638,062 $ 600,090 $ 212,159 $ 674,537 $ 674,537 $ - $ Reserves - $ - $ - $ 780,007 $ 844,358 $ 64,351 $
TOTAL REVENUE 667,395 $ 697,804 $ 265,799 $ 1,494,544 $ 1,588,895 $ 94,351 $ 27-4043 EXPENDITURES
6612 HSIP Two Mile, Adobe and Utah 8,498 $ 20,791 $ 59,563 $ 54,900 $ 85,000 $ 30,100 $ 6772 Overlay/Chip Seal Work by Street Crew - $ 265,165 $ 144,000 $ 424,000 $ 424,000 $ - $ 6782 Split Rock Bridge Const Eng/Admin - $ 23,040 $ 7,567 $ 546,081 $ 546,081 $ - $ 6850 Admin Fees Transferred to GF 10,000 $ 10,000 $ 5,000 $ 10,000 $ 10,000 $ - $ 6962 HSIPL(009) - Neighborhood Safety Engineering/Admin 41,933 $ 10,448 $ - $ - $ - $ - $ 6970 Median Construction HWY 62 36,210 $ 555 $ - $ - $ - $ - $ 6971 SR62 Str. Imp. Phase 2B - $ 17,335 $ 4,484 $ 56,250 $ 56,250 $ - $ 6973 El Rey Crossing Cost Sharing/Admin - $ - $ - $ 329,063 $ 329,063 $ - $ 6974 City-wide Channel Trail Class I - $ 9,999 $ 19,910 $ 74,250 $ 138,501 $ 64,251 $ TOTAL EXPENDITURES 96,641 $ 357,333 $ 240,524 $ 1,494,544 $ 1,588,895 $ 94,351 $ Measure I funds are derived from a one-half percent addition to the sales taxes approved by voters of the county. The funds are for use on roads for major work rather then day-to- day repairs.

MEASURE "I" FUNDS BUDGET 2010 TO 2040
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ACCOUNT BUDGET BUDGET THROUGH REVISED PROPOSED
CODE ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS
32-0000 REVENUE
4245 Interest 5,635 $ 729 $ - $ - $ - $ - $
Reserves 165,507 $ 24,099 $ - $ - $ - $ - $
TOTAL REVENUE 171,142 $ 24,828 $ - $ - $ - $ - $
32-4043 EXPENDITURES
6612 HSIPSL - 5448(011) - Two Mile, Adobe and Utah - Eng/Adm 3,545 $ - $ - $ - $ - $ - $ 6772 Overlay Work by Street Crew 167,597 $ 24,828 $ - $ - $ - $ - $ TOTAL EXPENDITURES 171,142 $ 24,828 $ - $ - $ - $ - $
ARTICLE 8 OF THE PUBLIC UTILITIES CODE
Also known as Local Transportation Funds (LTF), Article 8 gets 1/4 of one percent of sales taxes state-wide. It is distributed based on population. Transit has first call for these funds and what they (MBTA) don't use is made available to cities for street maintenance. Starting in FY 21/22, all LTF funds will be required to go to Transit agencies and the City will no longer receive these funds.

Up until FY 21/22, the City's Public Works Department used to have 30% of their salaries charged against Article 8 Funds. The City's PW Department is responsible for implementing the City's Pavement Management System (PMS), which includes planning, management, purchasing and pavement of the City's Streets.
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ACCOUNT BUDGET BUDGET THROUGH REVISED PROPOSED
CODE ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS
41-0000 REVENUE
4107 Homeowner
Assessments 12,807 $ 12,810 $ 7,048 $ 13,409 $ 13,409 $ - $ 4245 Interest 2,202 $ 4,258 $ 1,007 $ 1,500 $ 1,500 $ - $ Reserves 5,616 $ 2,919 $ 2,894 $ 8,644 $ 8,644 $ - $
TOTAL REVENUE 20,625 $ 19,987 $ 10,949 $ 23,553 $ 23,553 $ - $ 41-4043 EXPENDITURES
6210 Electricity 400 $ 430 $ 175 $ 478 $ 478 $ - $
6212 Water 2,519 $ 1,619 $ 449 $ 2,426 $ 2,426 $ - $
6233 Publishing/Notices - $ 238 $ - $ 250 $ 250 $ - $
6260 Graffiti Removal - $ - $ - $ 400 $ 400 $ - $
6290 Maintenance Contract 17,706 $ 17,700 $ 10,325 $ 20,000 $ 20,000 $ - $ TOTAL EXPENDITURES 20,625 $ 19,987 $ 10,949 $ 23,553 $ 23,553 $ - $ This is an assessment District for a development within the City. The homeowners are charged on their property taxes and the proceeds are used for street lights within the project and upkeep of the landscaping around the perimeter.

LIGHTING & LANDSCAPING DISTRICT DESERT VISTA
12 2/18/2025 Page 140 of 184
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ACCOUNT BUDGET BUDGET THROUGH REVISED PROPOSED
CODE ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS
42-0000 REVENUE
4245 Interest 2,678 $ 3,606 $ 1,672 $ 1,500 $ 1,500 $ - $ 4500 Subscriber
Contributions 22,806 $ 19,303 $ 4,300 $ 24,000 $ 24,000 $ - $ Reserves 38,203 $ - $ 18,610 $ 28,603 $ 46,988 $ 18,385 $ TOTAL REVENUE 63,687 $ 22,909 $ 24,582 $ 54,103 $ 72,488 $ 18,385 $ 42-0104 EXPENDITURES
6751 Agenda Management 18,455 $ 19,378 $ 20,347 $ 25,453 $ 25,453 $ - $ 6776 Public Access Website 3,995 $ - $ 4,235 $ 3,850 $ 4,235 $ 385 $ 6823 Electronic Equipment 41,237 $ - $ - $ 24,800 $ 42,800 $ 18,000 $ TOTAL EXPENDITURES 63,687 $ 19,378 $ 24,582 $ 54,103 $ 72,488 $ 18,385 $

PUBLIC ACCESS TV FUND
The City receives funds from the cable television franchisee to support public access programming. The funds are used for programming and payment for television time.
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ACCOUNT BUDGET BUDGET THROUGH REVISED PROPOSED
CODE ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS
43-0000 REVENUE
4107 Homeowner
Assessments 7,738 $ 8,249 $ 3,640 $ 10,020 $ 10,020 $ - $ 4245 Interest 26 $ 86 $ 37 $ 10 $ 50 $ 40 $
Reserves - $ - $ 478 $ - $ - $ - $
TOTAL REVENUE 7,764 $ 8,335 $ 4,155 $ 10,030 $ 10,070 $ 40 $ 43-4043 EXPENDITURES
6212 Water 1,039 $ 1,136 $ 655 $ 1,500 $ 1,500 $ - $
6233 Publishing/Notices - $ 238 $ - $ 250 $ 250 $ - $
6290 Maintenance Contract 6,000 $ 6,000 $ 3,500 $ 6,000 $ 8,320 $ 2,320 $ TOTAL EXPENDITURES 7,039 $ 7,374 $ 4,155 $ 7,750 $ 10,070 $ 2,320 $

LIGHTING & LANDSCAPING DISTRICTS HISTORIC PLAZA
This is an assessment District for a development within the City. The homeowners are charged on their property taxes and the proceeds are used for street lights within the project and upkeep of the landscaping around the perimeter. 14 2/18/2025 Page 142 of 184
Approved
6/11/24
Approved
9/24/24
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ACCOUNT THROUGH THROUGH THROUGH REVISED PROPOSED
CODE THRU SEPT THRU SEPT 1/31/2025 BUDGET BUDGET ADJUSTMENTS 51-0000 REVENUE
4125 Visit 29! Tourism Fee 390,420 $ 369,678 $ 96,040 $ 350,000 $ 375,000 $ 25,000 $ 4150 Merchandise for Resale 1,300 $ 1,055 $ 490 $ 500 $ 500 $ - $ 4152 Partnership Program - $ - $ - $ - $ - $ - $
4245 Interest 10,355 $ 22,171 $ 6,247 $ 5,000 $ 5,000 $ - $ 4890 Other/Misc. Revenue 1 $ 15 $ - $ - $ - $ - $
Reserves - $ - $ - $ 67,914 $ 155,414 $ 87,500 $
TOTAL REVENUE 402,076 $ 392,919 $ 102,777 $ 423,414 $ 535,914 $ 112,500 $ 51-1013 EXPENDITURES
5110 Salaries 90,057 $ 105,082 $ 32,021 $ 106,974 $ 106,974 $ - $ 5120 Salaries Part-time 15,745 $ 15,001 $ 3,580 $ 16,380 $ 16,380 $ - $ 5250 Health Benefits 18,940 $ 20,277 $ 6,611 $ 21,496 $ 21,496 $ - $ 5251 Retirement Benefits 6,782 $ 8,099 $ 2,550 $ 8,430 $ 8,430 $ - $ 5252 Workers comp 2,521 $ 3,505 $ 1,424 $ 4,934 $ 4,934 $ - $ 5254 Unemployment - $ - $ - $ 1,000 $ 1,000 $ - $
6241 Office Supplies 1,732 $ 2,332 $ 794 $ 3,000 $ 2,500 $ (500) $ 6244 Miscellaneous 2,192 $ 3,144 $ 623 $ 5,000 $ 5,000 $ - $ 6245 Contingency - $ - $ - $ 10,000 $ 10,000 $ - $
6251 Meeting & Travel - $ - $ 182 $ 200 $ 200 $ - $
6291 Building & Maint 1,687 $ 538 $ 100 $ 1,000 $ 1,000 $ - $ 6343 Video Production 8,800 $ - $ - $ - $ - $ - $
6344 Broadcast Media & Airports 36,996 $ 25,000 $ 23,000 $ 40,000 $ 60,000 $ 20,000 $ 6345 Regional Print Ad's 2,730 $ 21,803 $ 161 $ 5,000 $ 15,000 $ 10,000 $ 6347 Trade Conventions & Memberships 12,450 $ 29,139 $ 1,372 $ 20,000 $ 20,000 $ - $ 6350 Reporting & Analysis - $ 6,000 $ - $ - $ - $ - $
6353 Contract Services 26,910 $ 10,000 $ - $ 25,000 $ 24,000 $ (1,000) $ 6356 Internet Marketing & Website Design 44,177 $ 35,452 $ 10,815 $ 45,000 $ 39,000 $ (6,000) $ 6360 Special Projects - $ - $ - $ 10,000 $ - $ (10,000) $ 6371 Community Events/Sponsorships 16,968 $ 152,013 $ 20,000 $ 100,000 $ 200,000 $ 100,000 $ 6518 Electronic Equipment 578 $ - $ 396 $ - $ - $ - $
6841 Legal Services 17,660 $ 766 $ 3,016 $ - $ - $ - $
TOTAL EXPENDITURES 306,925 $ 438,151 $ 106,645 $ 423,414 $ 535,914 $ 112,500 $

TOURISM BUSINESS IMPROVEMENT DISTRICT
The TBID was established in 2017 to levy and collect assessments on all business that are subject to the City's Transit Occupancy Tax to raise funds for marketing the City as a tourism destination. The TBID is funded by a 1.5% Visit 29! Tourism Fee and is managed by a TBID Advisory Board. The TBID's budget process follows the fiscal year beginning on October 1st of each calendar year and ending on September 30th of the following calendar year. 15 2/18/2025 Page 143 of 184
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ACCOUNT BUDGET BUDGET THROUGH REVISED PROPOSED
CODE ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS
62-0000 REVENUE
4252 Coronavirus Local Fiscal Recovery Fund Grant 3,118,608 $ - $ - $ - $ - $ - $ TOTAL REVENUE 3,118,608 $ - $ - $ - $ - $ - $
62-0000 EXPENDITURES
6282 COVID-19 Expenses - $ - $ - $ - $ - $ - $
6850 Transfer Out - Revenue Loss - Government services 3,118,608 $ - $ - $ - $ - $ - $ TOTAL EXPENDITURES 3,118,608 $ - $ - $ - $ - $ - $
THE AMERICAN RESCUE PLAN: CORONAVIRUS LOCAL FISCAL RECOVERY FUND On March 11, 2021, the American Rescue Plan Act (ARPA) was signed into law. The Act established the Coronavirus State and Local Fiscal Recovery Funds to address the COVID-19 public health emergency and its economic impacts. This Fund was created to track the collection and use of funds received through the ARPA of 2021.
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ACCOUNT BUDGET BUDGET THROUGH REVISED PROPOSED
CODE ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS
65-0000 REVENUE
4245 Interest 4,807 $ 9,763 $ 5,037 $ - $ 8,000 $ 8,000 $ 4252 Recycling Grant - SB1383 - $ 43,262 $ - $ 75,241 $ 75,241 $ - $ 4257 Code Enforcement Assessments - $ - $ 12,265 $ - $ 20,000 $ 20,000 $ 4262 Recycling Grant - Beverage Container Recycling 7,239 $ 6,844 $ - $ 6,900 $ 6,900 $ - $ 4263 Perch Haul/Article 19 Fees 45,727 $ 54,583 $ 20,415 $ 45,000 $ 45,000 $ - $ 4890 Other/Miscellaneous Revenue 18,304 $ - $ 29,110 $ - $ - $ - $ Reserves 7,882 $ - $ 4,035 $ 56,603 $ 104,403 $ 47,800 $ TOTAL REVENUE 83,959 $ 114,452 $ 70,862 $ 183,744 $ 259,544 $ 75,800 $ 65-1011 EXPENDITURES
6257 Dues & Subscriptions 21,104 $ - $ 4,800 $ - $ 4,800 $ 4,800 $ 6260 Graffiti removal - $ - $ - $ 2,000 $ 5,000 $ 3,000 $ 6509 Recycling Programs - SB1383 7,338 $ 35,924 $ - $ 75,241 $ 75,241 $ - $ 6548 Dangerous Building
Abatement 4,800 $ 9,942 $ 28,229 $ 52,000 $ 120,000 $ 68,000 $ 6551 Recycling Programs - Beverage Container 8,372 $ 7,616 $ 3,616 $ 6,900 $ 6,900 $ - $ 6560 Household Hazardous $ -
Waste Program 22,413 $ 23,142 $ 17,963 $ 25,000 $ 25,000 $ - $ 6562 Mojave Desert JPA 19,932 $ 21,308 $ 16,254 $ 22,603 $ 22,603 $ - $ TOTAL EXPENDITURES 83,959 $ 97,932 $ 70,862 $ 183,744 $ 259,544 $ 75,800 $

LANDFILL/LAND USE FUND BUDGET
The revenues for this Fund are mainly from the recently approved Article 19 fees from the Waste Disposal Agreement (WDA) to pay for cost associated with abatement programs, recycling programs, and household hazardous waste (HHW). 17 2/18/2025 Page 145 of 184
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ACCOUNT BUDGET BUDGET THROUGH REVISED PROPOSED
CODE ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS
74-0000 REVENUE
4108 Property Taxes 961,452 $ 915,800 $ 235,500 $ 881,672 $ 881,672 $ - $ TOTAL REVENUE 961,452 $ 915,800 $ 235,500 $ 881,672 $ 881,672 $ - $ 74-0000 EXPENDITURES
6359 Contract & Consulting SVC 7,633 $ 6,050 $ 3,410 $ 12,272 $ 12,272 $ - $ 6437 Bond Interest 470,115 $ 457,157 $ 443,022 $ 444,400 $ 444,400 $ - $ 6801 Bond Principal 375,000 $ 389,555 $ 400,000 $ 400,000 $ 400,000 $ - $ 6850 Transfer to General Fund 112,273 $ 87,500 $ 25,000 $ 25,000 $ 25,000 $ - $ TOTAL EXPENDITURES 965,021 $ 940,262 $ 871,432 $ 881,672 $ 881,672 $ - $

SUCCESSOR AGENCY NON-HOUSING
The revenues from property tax increments to pay the bonds (principal and interest) associated with Project Phoenix and administration of the Successor Agency.
18 2/18/2025 Page 146 of 184
2022-2023 2023-2024 2024-2025 2024-2025 2024-2025

ACCOUNT BUDGET BUDGET THROUGH REVISED PROPOSED
CODE ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS
76-0000 REVENUE
4245 Interest 1,488 $ 10 $ - $ - $ - $ - $
Bond Reserves 13,843 $ - $ - $ - $ - $ - $
TOTAL REVENUE 15,331 $ 10 $ - $ - $ - $ - $
76-1014 EXPENDITURES
6244 Miscellaneous Expense - $ 10 $ - $ - $ - $ - $
6359 Project Management 782 $ - $ - $ - $ - $ - $
6366 Site Improvements 706 $ - $ - $ - $ - $ - $
6849 Project Phoenix-City Funds - Community Center 13,843 $ - $ - $ - $ - $ - $ TOTAL EXPENDITURES 15,331 $ 10 $ - $ - $ - $ - $

PROJECT PHOENIX NON-HOUSING
This fund was created to track the activities of the City's downtown revitalization project that consists of public buildings and housing. 19 2/18/2025 Page 147 of 184
2022-2023 2023-2024 2024-2025 2024-2025 2024-2025

ACCOUNT BUDGET BUDGET THROUGH REVISED PROPOSED
CODE ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS
77-0000 REVENUE
4245 Interest 18,180 $ 43,943 $ 20,913 $ 25,000 $ 25,000 $ - $ Bond Reserves 100,219 $ 29,441 $ - $ 1,081,000 $ 1,081,000 $ - $ TOTAL REVENUE 118,399 $ 73,384 $ 20,913 $ 1,106,000 $ 1,106,000 $ - $ 77-1014 EXPENDITURES
6??? Affordable Housing Projects - $ - $ - $ 1,000,000 $ 1,000,000 $ - $ 6841 Legal 25,863 $ 19,473 $ 1,481 $ 26,000 $ 26,000 $ - $ 6842 Consulting Services 6,020 $ 3,000 $ - $ - $ - $ - $ 6844 Architecture 13,650 $ - $ - $ - $ - $ - $
6865 Property Acquisition 72,866 $ 47,911 $ - $ 80,000 $ 80,000 $ - $ TOTAL EXPENDITURES 118,399 $ 73,384 $ 1,481 $ 1,106,000 $ 1,106,000 $ - $

PROJECT PHOENIX HOUSING
This fund was created to track the activities of the City's downtown revitalization project that consists of public buildings and housing. 20 2/18/2025 Page 148 of 184
2022-2023 2023-2024 2024-2025 2024-2025 2024-2025

ACCOUNT BUDGET BUDGET THROUGH REVISED PROPOSED
CODE ACTUAL ACTUAL 1/31/2025 BUDGET BUDGET ADJUSTMENTS
80-0000 REVENUE
4252 County ARPA Grant 276,611 $ 502,568 $ - $ - $ - $ - $ 4255 EDA Grant - $ - $ - $ 1,675,680 $ 1,675,680 $ - $
4316 Transfer In 934,950 $ 65,000 $ 35,000 $ 70,000 $ 70,000 $ - $ 4880 Charge for Services 14,349 $ 13,004 $ 7,777 $ 12,200 $ 12,200 $ - $ 4891 Clean Water Planning Loan 526,410 $ 45,717 $ - $ - $ - $ - $ Reserves 63,807 $ 61,998 $ 9,545 $ 544,027 $ 544,027 $ - $ TOTAL REVENUE 1,816,127 $ 688,287 $ 52,322 $ 2,301,907 $ 2,301,907 $ - $ 80-???? EXPENDITURES
1014-6837 Package Treatment Plant - $ - $ 9,545 $ 2,199,427 $ 2,199,427 $ - $ 1014-6837 Package Treatment Plant - Design 63,807 $ 6,575 $ - $ 14,294 $ 14,294 $ - $ 1014-6865 Package Treatment Plant - Extension - $ 500 $ - $ - $ - $ - $ 0000-6365 Preliminary Design - Collection System 228,307 $ 260,017 $ - $ - $ - $ - $ 0000-6820 Feasibility Study - Collection System 17,061 $ - $ - $ - $ - $ - $ 0000-6821 Funding Plan - Collection System - $ 1,125 $ - $ - $ - $ - $ 0000-6359 Wastewater Treatment Planning 122,522 $ 132,604 $ - $ - $ - $ - $ 0000-6843 Environmental Analysis 129,939 $ 224,824 $ - $ - $ - $ - $ 0000-6821 Funding Plan - Wastewater Treatment Plant 28,586 $ - $ - $ - $ - $ - $ 0000-6837 Wastewater Treatment Plant 248,248 $ 290,913 $ - $ - $ - $ - $ 0000-6359 Outreach 4,831 $ 4,419 $ - $ - $ - $ - $
0000-6822 USGS Study 14,482 $ 14,482 $ - $ - $ - $ - $
0000-6838 Collection System - Full Design 480,307 $ 606,346 $ - $ - $ - $ - $ 0000-6359 Owners Representative & Project Management - $ 26,098 $ - $ - $ - $ - $ 0000-6841 Legal Services 10,132 $ 10,381 $ - $ - $ - $ - $ 0000-6865 Property Acquisition - Wastewater Treatment Plant 3,750 $ 3,750 $ - $ - $ - $ - $ 0000-7980 Depreciation Expense 31,168 $ 31,168 $ - $ - $ - $ - $ 80-4047 Sewer Department
6533 Maintenance 49,565 $ 50,504 $ 14,407 $ 88,186 $ 88,186 $ - $ TOTAL EXPENDITURES 1,432,705 $ 1,663,706 $ 23,952 $ 2,301,907 $ 2,301,907 $ - $

SEWER FUND
This fund was created to account for the cost of providing sewer services to the general public and the user charges by which these costs are recovered.

ENTERPRISE FUND
21 2/18/2025 Page 149 of 184

STAFF REPORT
TO: City Council
FROM: City Manager
FOR MEETING: Feb 25 2025
SUBJECT: Joshua Tree National Park Visitor Center Lease.

RECOMMENDATION:

The City Council authorize the City Manager and City Attorney to amend or rewrite the February 8, 2022, lease between the National Park Service and the City of Twentynine Palms to allow the Joshua Tree National Park Association to assume or otherwise become responsible for all lease obligations needed to ensure Freedom Plaza's Joshua Tree National Park Cultural Center remains operational in the event the National Park Service is forced to suspend visitor center operations. All other lease provisions would substantially remain the same.

ORDER OF PROCEDURE:

Request Staff Report (City Manager Presenting)
Council Questions of Staff
Receive Public Comment
Council Discussion
Motion/Second
Discussion of Motion
Call the Question
ATTACHMENTS:
• 2022-02-08 29PJTNP Cultural
Center Lease Agreement
• 2025-02-19 Joshua Tree
Visitor Center in Twentynine
Palms – Joshua Tree National
Park Association Webpage
• 2025-02-19 Accountability –
Joshua Tree National Park
Association
• 2025-02-19 Staff – Joshua
Tree National Park Association
• 2025-02-19 Board of Directors
– Joshua Tree National Park
Association
• 2025-02-19 Desert Institute
Joshua Tree Visitor Center in
Twentynine Palms – Joshua
Tree National Park Association Page 151 of 184
BACKGROUND:

SUMMARY:

Since January 20th, President Trump and his team have begun closely evaluating and in some cases reducing or eliminating massive amounts of Federal spending. Joshua Tree National Park Superintendent Jane Rodgers is concerned reductions in Federal spending may force the National Park to close the Twentynine Palms Joshua Tree National Park Cultural Center (29JTNPVC). Allowing the Joshua Tree National Park's non-profit (Joshua Tree National Park Association) to assume the 29JTNPVC lease or otherwise become responsible for all National Park Service lease obligations will enable the 29JTNPVC to remain open in the event National Park Servicerelated Federal funding cuts occur.

SITUATION
In February 2022, the City and the National Park Service (NPS) entered into a no-cost lease for the 4,213 square foot building located at 6533 Freedom Way, Twentynine Palms, CA 92277 (attached). The NPS operates the 29JTNPVC in concert with the Joshua Tree National Park Association (JTNPA). The JTNPA (https://joshuatree.org/) has been Joshua Tree National Park's non-profit partner since 1962. Over the last decade, the JTNPA has created a retail experience within their visitor's center in the Town of Joshua Tree and now in Twentynine Palms which attracts thousands of visitors every week. The revenue generated from the wide array of quality Joshua Tree National Park-branded merchandise goes to fund needed improvements within the Joshua Tree National Park (Park). The high volume of visitors the 29JTNPVC attracts to our City's Downtown has been a substantial contributor to the Downtown's economic growth, providing vital revenue to help local businesses survive our difficult summer months.

Recognizing Federal funding cuts may occur in early March, Staff is bringing this urgent item before the City Council. At the time of this Staff Report, City Staff, the City Attorney's office, NPS, and JTNPA are working to produce a lease amendment or entirely new lease which will ensure the JTNPA has the authority to operate the 29JTNPVC in the event the NPS is prohibited from doing so.

ENVIRONMENTAL:

None.

ALTERNATIVES:

The City Council could decide to (i) not modify the current lease, (ii) amend the current lease, or (iii) work to create an entirely new lease between the City and JTNPA.

FISCAL IMPACT:

Economic activity and ultimately general fund revenues would decline if the NPS is forced to close the 29JTNPVC.

JOSHUA TREE NATIONAL PARK CULTURAL CENTER LEASE AND AGREEMENT

BETWEEN THE NATIONAL PARK SERVICE AND

THE CITY OF TWENTYNINE PALMS
THIS LEASE AND AGREEMENT, made and entered into this day of 2022 by and between the City of Twentynine Palms, a municipal corporation hereinafter designated as " City" and the National Park Service, hereinafter designated as " NPS" or " Park." Throughout this Lease and Agreement, the City and NPS may be referred to jointly as " Parties," and individually as a " Party."

WITNESSETH
WHEREAS, the City recognizes that cultural tourism is a significant industry within the City and is critical to its economic stability; and WHEREAS, the City deems it necessary and appropriate, and in the furtherance of the public good, to ensure that both residents and visitors to the community are educated and informed about the natural and cultural history of the area and associated public lands; and
WHEREAS, the City has entered into a Letter of Intent with NPS to construct the Joshua Tree National Park Cultural Center ( defined below) to provide the foregoing services and to allow NPS to use the structure as set forth herein at no cost to NPS; and
WHEREAS, the City desires to enter a 20 -year lease with NPS to meet the mission of the National Park Service in educating park visitors about NPS and supporting resource stewardship towards parks and public lands; and WHEREAS, the Joshua Tree National Park Cultural Center will be located within a larger Community Center Complex ( defined in Exhibit C); and WHEREAS, NPS has identified through planning documents the need for a multi -agency information station to meet increased visitor needs to fulfil the agency' s mission; and
WHEREAS, NPS has lacked an appropriate space to exhibit the historic Campbell Collection in conditions designed to conserve these Native American artifacts; and
WHEREAS, the NPS is authorized to enter into this Lease and Agreement under 40 U. S. Code § 585, as delegated from GSA to the Department of the Interior pursuant to 41 C. F. R. 102- 73. 200( b) and as further defined by FAR 52. 252- (anti - kickback, compliance with applicable law, no segregation, disputes, etc) as set forth in Exhibit D to this Lease and Agreement and incorporated by reference; and 1

WHEREAS, a lease between the City and NPS for the Cultural Center is an extremely cost effective arrangement better to serve the vistors to Joshua Tree National Park and is in the public interest.

NOW, THEREFORE, in consideration of the foregoing recitals and the following terms and conditions, the receipt and sufficiency of which consideration is hereby acknowledged, the Parties agree as follows:

1. The City leases to NPS and NPS hires and leases from the City, on the terms and conditions hereinafter set forth the Joshua Tree National Park Cultural Center the "Cultural Center" or "Premises" or "Building" or "Visitor Center") depicted in Exhibit C ( Site Plan) attached hereto as " Cultural Center", consisting of approximately 4, 213 square feet of space located within the Community Center Complex including without limitation the outdoor space immediately adjacent to the west of the Cultural Center hereinafter designated as the " Garden", depicted in Exhibit C, Twentynine Palms, California, and incorporated herein by this reference, together with the nonexclusive right to use any Common Areas as depicted in Exhibit C hereinafter designated as the " Common Areas".

2. NPS shall have the nonexclusive right to use up to twenty- four (24) un- dedicated and un- reserved parking spaces in the Community Center Complex, or the minimum required by applicable zoning ( collectively, the " NPS Parking Spaces").

Notwithstanding the preceding, ( i) with respect to four (4) of the NPS Parking Spaces in close proximity to the Building, NPS may place signs adjacent to such spaces indicating that they are dedicated and reserved for the Premises provided, however, that NPS acknowledges that such spaces are not actually dedicated and reserved for the Premises and that the City shall have no obligation to enforce any such dedication or reservation) and ( ii) two (2) of the NPS Parking Spaces shall be handicapped spaces in close proximity to the Building. The NPS Parking Spaces may be used by the NPS, its visitors, employees, agents, and contractors, subject to and in accordance with any rules and regulations made pursuant to this Sub -sublease and pertaining thereto.

3. This is a no cost Lease, and NPS shall owe no rental payments or fees to the City.

City shall pay all real property taxes and assessments, if any, levied against the Premises. The Parties acknowledge that the Premises may be exempt from real property taxes and assessments during the Term since the City is a governmental entity and NPS is an agency of the federal government.

4. The term of this Lease and Agreement (the "Term") shall be for a period of twenty (20) years, beginning on the date of the issuance of a Certificate of Occupancy or a Temporary Certificate of Occupancy for the Premises ( the Effective Date") and expiring twenty years thereafter ( the "Expiration Date").

Promptly following the actual Effective Date, City and NPS shall execute a Memorandum, agreed as to form and substance by both parties, confirming the actual Effective Date and Expiration Date, but either Party' sfailure to do so shall not affect the Effective Date or Expiration Date. It is projected that NPS will have a continuing need for the Premises after the expiration of the Term. At the 2

expiration of the initial Term, the City shall offer to NPS a new leasehold interest on the same terms as this Lease and Agreement including a new term of twenty years. At the expiration of any subsequent term permitted by applicable law, City shall offer to NPS a new leasehold interest on the same terms as this Lease and Agreement, unless the City is unable to make such an offer due solely to reasons reasonably beyond the City' scontrol, such as force majeure.

5. The Parties hereto shall comply, as applicable, with the " General Clauses" (GSA Form 3517B) provided in Exhibit D attached hereto and which are hereby incorporated by reference as though fully set forth herein.

6. The Park will, and does hereby undertake to carry on the operational duties associated with the managing of a cultural center, to include: maintaining regular scheduled hours of operation and to set them at the Park' s discretion; providing staff to operate an information desk and to provide interpretive and educational programs; and providing custodial employees to clean the interior of the Building.

7. NPS will serve as the responsible party for scheduling to allow for interpretive and educational activities that will take place within the Cultural Center Building.

8. NPS agrees to contract with utility providers and pay for all utilities related to the operation of the Premises, to include water, trash, recycling, electricity, sewage, natural gas, information technology related services, telephonic related services, and any other utilities typically associated with the operation of a Visitor Center. City will provide for all utilities to be separately metered to the Premises.

9. The Parties shall be responsible for the maintenance, repair, and replacement of the Premises as set forth in the Maintenance Plan attached hereto as Exhibit B and incorporated herein by reference.

10. NPS may install, remove and reinstall, alter, relocate and add NPS Property defined below) without the City' sconsent, except that the installation, removal and/ orreinstallation, alteration, relocation or addition of NPS Property which will materially affect the structural portions of the Building shall require the City' s written approval, which approval shall not be unreasonably withheld, conditioned, or delayed. The term " NPS Property" shall mean collectively:
a) all temporary and permanent exhibits, interpretive displays, audiovisual equipment, theater and auditorium facilities and equipment, trade fixtures, and similar improvements and fixtures, fabricated, constructed, and installed by or on behalf of NPS;
b) all signage fabricated and installed by or on behalf of NPS; c) NPS' movable furniture,
d) all site furnishings fabricated and installed by or on behalf of NPS; and
e) all other equipment provided and/ orfunded by NPS.
3

11. NPS Property shall remain the property of NPS. NPS shall remove all NPS Property when it vacates the Premises and shall repair any damage attributable to the removal of such property except for normal wear and tear.

12. NPS will be allowed to purchase, install and maintain a flag pole and flag on the grounds surrounding the Building. NPS will follow federal flag regulations.

13. The City hereby waives, releases and delegates, and forever relinquishes any right to make a claim against NPS for waste, damages, or restoration arising from or related to:
a) NPS' normal and customary use of the Premises during the Term including any extensions thereof) in accordance with the terms of this Lease and Agreement and;
b) any initial or subsequent alteration to the Premises, including cabling, or removal thereof, during the Term ( including any extensions thereof), where such alterations or removals are performed by the City, or by NPS with the City' s consent, which shall not be unreasonably withheld, conditioned or delayed.

14. NPS agrees to design, fabricate and install temporary exhibits relating to the national park, associated indigenous cultures, and adjacent public lands within 60 days of the opening of the visitor center.

15. NPS agrees to design, fabricate, and install permanent exhibits to complement the Cultural Center within three years of the project' sopening date.

16. This agreement may only be terminated:
a) upon mutual agreement in writing of the Parties, which mutual agreement shall include sufficient time, but in no event shall it be less than 270 days, for NPS to remove all exhibits and installations, and other NPS Property, or;
b) for cause, with cause defined as a material breach of the terms hereof that remains uncured following the resolution process set forth below. The City and NPS agree to work in good faith to resolve any issues that may arise between them, including any issue which either party asserts is a material breach by the other, by providing each other with reasonable written notice of any such issue. Upon receipt of such notice, the parties shall attempt to resolve such issue collaboratively. In the event that after good faith efforts to resolve the issue, one party continues to believe a material breach exists and a satisfactory remedy has not been reached, it may give notice to the other to cure the material breach. The other party shall have 90 days to cure the breach, or if a breach that cannot be cured in 90 days shall have 30 days to commence good faith efforts to cure the breach. If the foregoing timelines are not met, the party providing notice may terminate this agreement prior to the expiration of the 20 year term. Should that occur, the City and Park each agree to provide the other party reasonable notice in writing of the date of termination, which shall not be less than 30 days following the above noted 4

cure period. If the City intends to terminate, this notice shall provide reasonable time, but in no event shall it be less than 270 days, for NPS to remove all exhibits and installations, and other NPS Property.

17. The Parties agree that in order to assess the success of this Lease and Agreement, within one calendar year of the Effective Date, they will meet and confer. This discussion may be in person, by telephone, or virtual.

18. The failure of a Party to insist upon the strict performance of any of the provisions of this Lease and Agreement, or failure to exercise any other right, option, or remedy hereby reserved or as determined by law, shall not be construed as a waiver for the future of any such provisions, rights, options, or remedies, or as a waiver of any subsequent breach thereof.

19. As a unit of the federal government, NPS will not be responsible for carrying liability insurance. Any claims against NPS or the Federal Government will be addressed through the federal tort claim process as specified in the Federal Tort Claim Act. NPS agrees to cooperate, to the extent allowed by law, in the submission of claims pursuant to the Federal Tort Claims Act against the United States for personal injuries or property damage resulting from the negligent or wrongful act or omission of any employee of the United States while acting within the scope of his or her employment, arising out of this Lease and Agreement.

20. The City shall procure from an admitted insurer acceptable to NPS and shall maintain at its cost comprehensive general liability and property damage insurance, including owned or non -owned automobile insurance, covering any and all claims for injury or death to persons or damage to property resulting from City' s acts or omission arising out of or related to City' s performance under this Lease and Agreement. Unless otherwise approved by NPS in writing, all of the required policies of insurance shall:
a) be kept in effect during the term of this Lease and Agreement; b) contain a provision, or be endorsed to require that they not be subject to reduction in coverage, cancellation or termination without thirty (30) days prior written notice having been given to the City;
c) name the United States of America, the National Park Service, and their officers, officials, employees and volunteers as additional insureds, and; d) be primary and not contributing with other insurance available to the City. A certificate or certificates evidencing the foregoing and naming the additional insureds on the liability insurance shall be delivered to and approved by NPS prior to commencement of the services hereunder. The amount of insurance required hereunder for personal injury, general liability, professional liability, automobile liability and property damage shall be no less than One Million Dollars ($ 1, 000,0) per occurrence.

21. The City shall obtain and keep in force during the term hereof a policy or policies of insurance covering loss or damage to the Building in the amount of the full replacement value thereof, providing protection against those perils included 5

within the classification of "all risk" insurance, with increased cost and contingent liability.

22. City covenants that NPS, upon performing its obligations hereunder and subject to all the terms and conditions of this Lease and Agreement, shall peacefully and quietly have, hold and enjoy the Premises throughout the Term, or until this Lease and Agreement is terminated as provided by this Lease and Agreement.

23. J- Iazardous Materials.

23. 1. Definitions.
a) " Applicable Laws" means all present and future
applicable statutes, regulations, requirements, licenses, rules, guidelines, ordinances, codes, permits, orders, decrees, and the like, and all amendments thereto, of any governmental agency or public authority, relating to and/ or affecting the Premises or this Lease. b) For purposes of this Sub -sublease, " Hazardous
Materials" means any material or other substance ( including storage tanks): (i) the presence of which is governed by any Applicable Law as being hazardous or harmful to human health or the environment; (ii) that is or becomes defined as a " hazardous waste," " extremely hazardous waste," " restricted hazardous waste," " hazardous substance," "pollutant," " contaminant," or " toxic contaminant" under any Applicable Laws; (iii) that is toxic, explosive, corrosive, flammable, infectious, ignitable, radioactive, carcinogenic, mutagenic, or otherwise hazardous or is or becomes regulated by any governmental agency or public authority under any Applicable Laws; (iv) the presence of which causes or threatens to cause a nuisance, or poses or threatens to pose a hazard to the environment or to the health or safety of persons; (v) that contains, without limitation of the foregoing, gasoline, diesel fuel or other petroleum hydrocarbons or volatile organic compounds; ( vi) that contains, without limitation of the foregoing, polychlorinated biphenyls ( PCBs), asbestos, asbestos - containing materials, or urea formaldehyde foam insulation; or ( vii) that contains or consists of, without limitation of the foregoing, radon gas.

23.. City' s Responsibilities. On the Effective Date, City shall provide the Premises free of Hazardous Materials, other than Hazardous Materials the presence of which is not in violation of Applicable Laws collectively, "Permitted Hazardous Materials"). If NPS discovers any Hazardous Materials that were located in, on or under the Premises on the Effective Date ( excluding, however, Permitted Hazardous Materials), City shall take, at City' ssole expense, all remedial action required by any Applicable Laws or any applicable judgment, consent decree, settlement or compromise.
6

23. 3. Environmental Indemnity. The City shall indemnify, defend, protect and hold harmless NPS and its officers, directors, members, councilmembers, partners, agents and employees harmless from any and all claims, judgments, damages, penalties, fines, costs, liabilities or losses, including, but not limited to, reasonable attorneys' fees, reasonable investigative and discovery costs, court costs and all other sums which NPS and its agents, officers, directors, members, councilmembers, partners, agents and employees may pay or become obligated to pay on account of any, all and every demand or claim, or assertion of liability, or any claim or action founded thereon which may arise out of or be attributable to the presence or suspected presence of Hazardous Materials ( whether known or unknown) prior to the Effective Date or to the use, generation, storage, release, suspected release, threatened release, discharge, or disposal by the City, or its contractors, subcontractors, agents, and employees, of Hazardous Materials in, on, under, or about the Premises or adjacent property, including without limitation: ( 1) all foreseeable consequential damages; (2) the costs of any required or necessary repair, cleanup or detoxification of the Premises or adjacent property, and the preparation and implementation of any closure, remedial or other required plans; and ( 3) all reasonable costs and expense incurred by NPS or City in connection with clauses ( 1) and ( 2), including but not limited to reasonable consultant, expert, and attorney' sfees. This obligation to indemnify, defend, protect and hold harmless shall survive termination or expiration of this Lease and Agreement.

23. 4 NPS Responsibilities. NPS shall not cause or permit any Hazardous Materials to be brought upon, kept, stored or used in or about the Premises ( excepting only customary types and quantities of office products and cleaning supplies) without the prior written consent of City, which consent shall not be unreasonably withheld, conditioned, or delayed. NPS shall be responsible as provided by Applicable Laws related to the liability of the United States ofAmerica regarding Hazardous Materials.

24. NPS shall act as an independent contractor when providing services under this Agreement and shall not under any circumstances be considered employees of the City. Services will be defined as including the installation of all education and interpretive materials and exhibits within the Cultural Center; interpretive and educational staffing related to Cultural Center operations as well as pubic performances; maintenance and repair as defined in Section 6 of this Agreement as well as in Exhibit A. The Park, its agents or employees will perform the services required herein.

25. Anti -Deficiency Act. Pursuant to 31 U. S. C. §1341 nothing contained in this Agreement shall be construed as binding the NPS to expend in any one fiscal year any sum in excess of appropriations made by Congress, for the purposes 7

of this Agreement for that fiscal year, or other obligation for the further expenditure of money in excess of such appropriations.

26. No officer, official, or employee of the City shall be personally liable to the Park or any successor in interest, in the event of any default or breach by the City for any amount which may become due to the Park or its successor, or for breach of any obligation of the terms of this Agreement.

27. All notices to be given hereunder shall be in writing and shall be deemed to have been given when delivered, if delivered in person, or two business days after mailing if properly addressed and mailed by first class mail.

Notice to the City shall be sent to:

City of Twentynine Palms
6136 Adobe Road
Twentynine Palms, CA 92277
Attn: City Manager
Notice to the Park shall be sent to:

Joshua Tree National Park
74485 National Park Drive
Twentynine Palms, CA 92277
Attn: Superintendent

28. Should any section of any part of this Lease and Agreement be rendered void, invalid or unenforceable by any court of law, any such final determination shall not render void, invalid or unenforceable any other sections or portions of this Agreement unless the City determines in writing that its purpose cannot be accomplished by the remaining provision not so invalidated.

29. This Lease and Agreement has been made and entered into in the State of California, and the laws of the United States and State of California, as applicable, shall govern the validity and interpretation hereof and the performance hereunder.

30. This Lease and Agreement contains the entire understanding of the parties and there are no further or other agreements or understandings, written or oral, in effect between the parties hereto relating to the subject matter hereof. Any prior understanding or agreement of the parties shall not be binding unless set forth herein, and, except to the extent expressly provided for herein, no amendments of this Lease and Agreement may be made without the written consent of both parties hereto.

31. The City or the Park shall not discriminate against any employee or applicant for employment because of race, religion, color, sex, age, or national origin.

The City or the Park shall take appropriate action to ensure that applicants 8

are employed and that employees are treated during their employment without regard to their race, religion, color, sex, age, or national origin.

32. Unless otherwise specified, the following rules of construction and interpretation apply: (1) captions are for convenience and reference only and in no way define or limit the construction of the terms and conditions hereof; (2) use of the term " including" will be interpreted to mean " including but not limited to"; and ( 3) exhibits, attachments, schedules and the like are an integral part of this Lease and Agreement and are incorporated by reference into this Lease and Agreement.

33. City shall complete the form attached hereto as Exhibit E ( Representations and Certifications - GSA Form 3518) and deliver the completed original to NPS concurrently with execution of this Lease. The terms " Lessor" and Government" as used in Exhibit E shall mean and refer to the City and NPS, respectively.

34. Both parties hereby admit that they have read each and every clause in this agreement and fully understand the meaning of the same, and hereby agree that they will comply with all the terms, covenants, and conditions herein set forth.

35. This Lease and Agreement shall not be assigned without the written consent of the City or the Park. It may be amended or modified only by written agreement of the Parties.

Dated: D01/ 4. B4a& 19a
Approved as to orm:

By:

A. Pat c oz, City Attorney
Dated: 2/ 1 /22

FRANK K
Dale: 2022. 0.1
By: LANDS 08: 31: 9 -08000'
National Park Service
Frank Lands, Regional Director
interior Regions 8, 9, 10,2
9

Joshua Tree Visitor Center in Twentynine Palms – Joshua Tree National Park Association 2/19/25, 7:28 PM https://joshuatree.org/services/joshua-tree-cultural-center/ Page 1 of 4 Joshua Tree Visitor Center in
Twentynine Palms
Made possible through a partnership with the City of Twentynine Palms, Joshua Tree National Park’s traditionally associated Native American communities, Joshua Tree National Park, and the Bureau of Land Management, the new Joshua Tree Visitor & Cultural Center is a must-see destination for park Shop Connect Donate
Events  Our Work  Desert Institute  Resources 
Ways To Give  About Us 

Joshua Tree Visitor Center in Twentynine Palms – Joshua Tree National Park Association 2/19/25, 7:28 PM https://joshuatree.org/services/joshua-tree-cultural-center/ Page 2 of 4 visitors.

In addition to the beautiful bookstore and information center, this new Visitor & Cultural Center features an incredible museum space that will feature rotating exhibits celebrating the culture, history, and stories of the Native American communities. The park store is also the perfect place for a special keepsake.

ADDRESS
6533 Freedom Way
Twentynine Palms, CA 92277
Located in downtown Twentynine Palms in the newly completed Freedom Plaza HOURS
8:00 AM to 5:00 PM
The visitor center is open seven days a week!
PHONE
(760) 367-5500

PAYMENT TYPES

Joshua Tree Visitor Center in Twentynine Palms – Joshua Tree National Park Association 2/19/25, 7:28 PM https://joshuatree.org/services/joshua-tree-cultural-center/ Page 3 of 4 The The Joshua Tree National Park Visitor Center in Twentynine Palms accepts payments in the form of cash, checks, debit cards (with a credit card logo), and credit cards (American Express, Discover, Mastercard, & Visa) for purchases in the park store or for the purchase of passes into Joshua Tree National Park.

ACCESSIBILITY

PARKING
The Joshua Tree National Park Visitor Center in Twentynine Palms features ADA-compliant marked parking spaces for the convenience of our guests. This includes parking for vans that require ramp access. The parking spots are available on a first-come, first-served basis. Appropriate placards are required on display in the vehicle at all times.

WHEELCHAIR ACCESS
The visitor center building is wheelchair accessible from the parking area with a curb ramp and inside the visitor center building.

RESTROOMS
The visitor center features restrooms for those that require wheelchair access.

Stalls with wheelchair access are marked with appropriate signage.

ACCESSIBILITY QUESTIONS

Joshua Tree Visitor Center in Twentynine Palms – Joshua Tree National Park Association 2/19/25, 7:28 PM https://joshuatree.org/services/joshua-tree-cultural-center/ Page 4 of 4 All questions regarding accessibility can be directed to the Joshua Tree National Park Association at (760) 367-5525 Monday through Friday only. For weekends, contact the visitor center directly using the number above. We can also be reached by email at [email protected].

Proud Partner
Joshua Tree National Park
Association – proud to be
Joshua Tree National
Park’s primary non-profit
partner since 1962.

Contact
Mail
Joshua Tree National Park
Association
74485 National Park Drive
Twentynine Palms, CA
92277
Email
[email protected]
Phone
(760) 367-5525
Fax
(760) 367-5583

Accountability – Joshua Tree National Park Association 2/19/25, 7:30 PM https://joshuatree.org/accountability/ Page 1 of 4
Accountability
ABOUT
Transparency
Joshua Tree National Park Association is committed to transparency in order to achieve proper accountability. We are providing our annual reports, financial plans, and other relevant information to our donors, members, and the public to show this commitment. If you need any additional information, do not hesitate to contact us at (760) 367-5525 or [email protected].

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Accountability – Joshua Tree National Park Association 2/19/25, 7:30 PM https://joshuatree.org/accountability/ Page 2 of 4
Form 990
Go To Top


Accountability – Joshua Tree National Park Association 2/19/25, 7:30 PM https://joshuatree.org/accountability/ Page 3 of 4
10/1/2022 - 9/30/2023 - Return of Organization Exempt From Income Tax - 2022 10/1/2021 - 9/30/2022 - Return of Organization Exempt From Income Tax - 2021 10/1/2020 - 9/30/2021 - Return of Organization Exempt From Income Tax - 2020 10/1/2019 - 9/30/2020 - Return of Organization Exempt From Income Tax - 2019 10/1/2018 - 9/30/2019 - Return of Organization Exempt From Income Tax - 2018 10/1/2017 - 9/30/2018 - Return of Organization Exempt From Income Tax - 2017 10/1/2016 - 9/30/2017 - Return of Organization Exempt From Income Tax - 2016 10/1/2015 - 9/30/2016 - Return of Organization Exempt From Income Tax - 2015 10/1/2014 - 9/30/2015 - Return of Organization Exempt From Income Tax - 2014 Financial Statements
10/1/2022 - 9/30/2023 - Financial Statements - 9/30/2023 10/1/2021 - 9/30/2022 - Financial Statements - 9/30/2022 10/1/2021 - 9/30/2022 - Financial Statements - 9/30/2022 10/1/2020 - 9/30/2021 - Financial Statements - 9/30/2021 10/1/2019 - 9/30/2020 - Financial Statements - 9/30/2020 10/1/2018 - 9/30/2019 - Financial Statements - 9/30/2019 10/1/2017 - 9/30/2018 - Financial Statements - 9/30/2018 10/1/2016 - 9/30/2017 - Financial Statements - 9/30/2017 10/1/2015 - 9/30/2016 - Financial Statements - 9/30/2016 10/1/2014 - 9/30/2015 - Financial Statements - 9/30/2015

Accountability – Joshua Tree National Park Association 2/19/25, 7:30 PM https://joshuatree.org/accountability/ Page 4 of 4
Proud Partner
Joshua Tree National Park
Association – proud to be
Joshua Tree National Park’s
primary non-profit partner
since 1962.

Contact
Mail
Joshua Tree National Park
Association
74485 National Park Drive
Twentynine Palms, CA
92277
Email
[email protected]
Phone
(760) 367-5525
Fax
(760) 367-5583

Staff – Joshua Tree National Park Association 2/19/25, 7:51 PM https://joshuatree.org/staff/ Page 1 of 4
Executive Staff
Jacqueline Guevara

EXECUTIVE DIRECTOR
Jacqueline Guevara has nearly 30 years
Erin Campbell

DIRECTOR OF RETAIL
Erin Campbell fell in love with Joshua Tree
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Staff – Joshua Tree National Park Association 2/19/25, 7:51 PM https://joshuatree.org/staff/ Page 2 of 4
experience in non-profit management. Her
passion for the desert, coupled with her
extensive background in social services,
makes her a strong advocate for protecting
public lands while promoting education of
diverse audiences about the lands and
their historical, cultural, and recreational
values. A 42-year desert resident,
Jacqueline lived in the Morongo Basin for
20 years before relocating to Desert Hot
Springs, where she currently lives with her
family.
during a visit in 2018. She and her husband
were so drawn to the area that they
immediately relocated and made a home in
Landers. Erin is a wife to Joe Alvarez and
has 5 daughters and 5 grandchildren. She is
a retail expert with over 25 years of
experience in her field. She is also a
fashion designer and is heavily involved in
the local artist community. Her passion for
wildlife and nature gives her a strong
calling to help protect our beautiful
surroundings. Erin is extremely honored to
be a part of the JTNPA team.

Christine Grimes

DIRECTOR OF DEVELOPMENT
Christine Grimes is a Joshua Tree native,
wife, and mother of two. Growing up here,
she spent a lot of her outdoors, exploring
and becoming familiar with the desert’s
unique landscape. Prior to working with
JTNPA, Christine worked for a prestige

Staff – Joshua Tree National Park Association 2/19/25, 7:51 PM https://joshuatree.org/staff/ Page 3 of 4
JTNPA, Christine worked for a prestige
cosmetic company for over 11 years, where
she developed her management,
marketing, and merchandising skills. She
takes great pride in working to protect and
spread awareness about the importance of
preserving sacred places like Joshua Tree
National Park and is thrilled to be a part of
JTNPA!
Always live by the words of Margaret Mead
“never doubt that a small groups of
thoughtful, committed citizens can change
the world.”

Staff – Joshua Tree National Park Association 2/19/25, 7:51 PM https://joshuatree.org/staff/ Page 4 of 4
Proud Partner
Joshua Tree National Park
Association – proud to be
Joshua Tree National Park’s
primary non-profit partner
since 1962.

Contact
Mail
Joshua Tree National Park
Association
74485 National Park Drive
Twentynine Palms, CA
92277
Email
[email protected]
Phone
(760) 367-5525
Fax
(760) 367-5583

Board of Directors – Joshua Tree National Park Association 2/19/25, 7:51 PM https://joshuatree.org/board-of-directors/ Page 1 of 10 Board of Directors
Executive Board
Erin Golden
Adams
Joe Zarki

VICE PRESIDENT
Originally from Maryland, Joe Zarki
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Board of Directors – Joshua Tree National Park Association 2/19/25, 7:51 PM https://joshuatree.org/board-of-directors/ Page 2 of 10

PRESIDENT
Erin Golden Adams grew up in central
Pennsylvania along the Appalachian
Mountains where she first fell in love
with public lands.  She spend her college
years in Washington state, spending her
free time rock climbing, hiking, and as a
wildland firefighter.  After earning her
degree in Biology, she began her career
as the Director of the Desert Institute at
JTNP in 2004.  In the past 15 years, Erin
has worked for the Department of the
Navy all over the world in the fields of
natural resource management, cultural
resources, environmental science, and
most recently in government affairs.  She
is currently the Director of Government
and External Affairs at the Marine Corps
Air Ground Combat Center in
Twentynine Palms.  In her free time, she
enjoys rock climbing, hiking,
overlanding, and cooking.
retired in 2013 after a 38-year career as a
National Park Service ranger he had
stints at Death Valley, Denali, Tuzigoot
National Monument, Yellowstone, and he
served as Chief of Interpretation at
Badlands National Park and at Joshua
Tree (1995-2013). Joe was very active in
fostering curriculum-based education in
the parks and was a co-creator of the
Expedition: Yellowstone! residential
environmental education program. In
1999, he obtained a grant that led to the
creation of the Desert Institute at Joshua
Tree National Park. Since retirement, Joe
has authored a number of publications
including the popular history, Images of
America, Joshua Tree National Park. Long
active in citizen activities, Joe
coordinates Christmas Bird Counts at
Joshua Tree National Park and Morongo
Valley. Together with his wife Marilyn
Lutz, he helps organize butterfly counts
at Joshua Tree National Park and at Big
Bear Lake. Joe volunteers as a bird walk
leader at the Big Morongo Canyon
Preserve and also plays guitar with a
local band, Nobody’s Station.

Board of Directors – Joshua Tree National Park Association 2/19/25, 7:51 PM https://joshuatree.org/board-of-directors/ Page 3 of 10 Dr. Pamela Kersey

SECRETARY
Growing up in northwest Ohio, Pam
enjoyed hiking and jogging through the
area’s tree-filled metro parks. She moved
to California in her late 20s and
immediately fell in love with the diverse
landscape of the Golden State. She has
enjoyed hiking and backpacking in the
Sierra and the deserts. She also took sailing
lessons in San Diego. She started her
nursing career at the age of 20, eventually
becoming a nursing professor. After
completing a doctoral degree in
educational leadership, she moved into
college administration as a dean for about
seven years before retiring. She has
enjoyed a variety of experiences during her
careers in healthcare and education. Pam
has also been an active volunteer for many
years including archeology site
Shai Grabie

TREASURER
Shai is a seasoned economist, M&A
professional, and passionate traveler with a
desire to make a difference. Armed with
his diverse skillset, Shai is determined to
contribute to preserving and growing one
of the nation’s most cherished gems,
Joshua Tree National Park. Alongside his
professional achievements, Shai is also an
aspiring published author, eager to share
his unique experiences and insights with
the world. Despite the formal attire
captured in his photo, Shai’s heart truly
belongs to the great outdoors, where he
finds solace and inspiration.

Board of Directors – Joshua Tree National Park Association 2/19/25, 7:51 PM https://joshuatree.org/board-of-directors/ Page 4 of 10 stewardship, camp nursing, and field
classes. She also teaches field classes for
several local organizations. She and her
husband maintained a second home in
Yucca Valley while living and working in
the San Diego area. They love the desert
and Joshua Tree area so much that they
decided to move here full-time when they
retired in 2021.

Directors
Bill Truesdell
Current Board member Bill Truesdell is a
retired National Park Service employee.

Beginning in 1962, his NPS career included
assignments in Shenandoah, Everglades,
Virgin Islands, Dinosaur, Denali, and
Linda Castro
Linda Castro started with the California
Wilderness Coalition (CalWild) in 2014,
working on the Desert Renewable Energy
Conservation Plan (DRECP). Her role then
expanded to Desert Organizer, and she

Board of Directors – Joshua Tree National Park Association 2/19/25, 7:51 PM https://joshuatree.org/board-of-directors/ Page 5 of 10 Joshua Tree, where he retired from the
position of Chief Interpreter in 1994. After
retirement he continued to be involved
with Park activities as a volunteer,
instructing Elderhostel classes, guiding
Field Institute classes, and later Desert
Institute classes in the Park. About 2005 he
was invited to join the Board of Directors
of the Park Association.
now serves as their Assistant Policy
Director. She works on state-wide issues
related to public lands, but the desert
remains her primary focus. Based in
Southern California, Linda was a military
“brat” who lived in Europe and South
America for a significant portion of her
childhood before arriving in Texas. She
obtained her Bachelors’ degree from
Trinity University in San Antonio, and then
moved to California and obtained her Juris
Doctor degree from Whittier Law School.

She practiced law for years before making
the move to the conservation field. Linda
lives with her family and is an avid tent
camper, backpacker, and hiker. She also
volunteers her time with, and serves on the
Board of a Santa Clarita-based non-profit
that works to protect and restore wild
places and rivers in Southern California.

Board of Directors – Joshua Tree National Park Association 2/19/25, 7:51 PM https://joshuatree.org/board-of-directors/ Page 6 of 10 Sarah Bliss
Sarah Bliss is the Cultural Resources
Manager for the Twenty-Nine Palms Band
of Mission Indians. Working in the Tribal
Historic Preservation Office, she aims to
protect and preserve sites, structures, and
districts that are within the ancestral
territory of the Chemehuevi. While a
California native, she has conducted
archaeological fieldwork in Ireland and
Japan but has always been drawn to the
California Desert. From conducting
archaeological excavations in the
southwest, surveys with the NPS in
northern California, working at a local
science museum, to working for the
Twenty-Nine Palms Band of Mission
Indians has enabled her to receive an array
of skills both in the world of cultural
resource management, but also with
education and outreach.

Brendan
Cummings
Brendan Cummings joined the Center for
Biological Diversity in 1998, where he
currently serves as Conservation Director.

A graduate of Berkeley’s Boalt Hall School
of Law, Brendan has litigated dozens of
Endangered Species Act cases, as well as
cases under the Marine Mammal
Protection Act, Clean Water Act, and
numerous other state and federal statutes.

Prior to working for the Center, Brendan
was in private practice specializing in
environmental and civil-rights litigation.

Board of Directors – Joshua Tree National Park Association 2/19/25, 7:51 PM https://joshuatree.org/board-of-directors/ Page 7 of 10 Jon Michel
Greenwood
Jon, a native of rural Southeast Missouri
near the Mississippi, has immersed himself
in diverse environments, residing in
Louisiana, Texas, and California since
2000. Transitioning from a former
musician and artist, Jon has over 30 years
of experience as an award-winning
technology executive in Fortune 500 and
startup realms, specializing in digital
transformation and innovation,
particularly in graphics and entertainment.

With an extensive career that includes
roles at companies like Paul Hastings LLP,
Hyperloop Transportation, Live Nation
Entertainment, MGA Entertainment, Sony
Music, and Sony Pictures Digital, Jon has
garnered recognition, winning the Los
Angeles Business Journal’s Enterprise CIO
of the Year Award in 2015. Currently
Bob Zimmerman
Bob Zimmerman retired from the practice
of law in Chicago in early 2011. He lives in
both Palm Springs and the Chicago metro
area, although he is emphatically not a
snowbird: he’ll be in Chicago in January
and sometimes be in the desert in August.

He is an active volunteer with Wildlands
Conservancy and with the Desert Institute
of the Association, and is a volunteer and a
former member of the Board and
immediate past President of Mojave Desert
Land Trust. He and his children have been
visiting Joshua Tree National Park since the
mid-1980’s, during its “national
monument” days, and considers the Park
one of his family’s special places. He
appreciates the opportunity to work with
the Association in enhancing the
experience of visitors to the Park.

Board of Directors – Joshua Tree National Park Association 2/19/25, 7:51 PM https://joshuatree.org/board-of-directors/ Page 8 of 10 serving on boards for Kronos Fusion
Energy and the Temecula Art Foundation,
Jon is also the Executive Director of the
Temecula International Film Festival &
Music Festival. He and his wife, Tammy,
are passionate about conservation and
enjoy frequenting Joshua Tree, considering
it their second home. Jon’s dedication to
zero-light pollution in night skies aligns
with his therapeutic appreciation for the
wild. Together, Jon and Tammy reside in
the hills of Temecula Wine Country with
their cattle dogs.

Board of Directors – Joshua Tree National Park Association 2/19/25, 7:51 PM https://joshuatree.org/board-of-directors/ Page 9 of 10 Dr. Gillian Bowser
Gillian Bowser, PhD. received her training
first in the arts at Laguardia High School of
the Arts (then Music and Art) followed by
degrees from Northwestern University
(biology, minor in art), University of
Vermont (Masters in zoology) and
University of Missouri St Louis (PhD in
Biology). She spent most of her career in
the National Park Service working as a
wildlife ecologist at Yellowstone, Grand
Tetons, Badlands, Joshua Tree and Wrangel
St. Elias National Parks. She is currently an
associate faculty at Colorado State
University with honors including American
Association for the Advancement of
Science (AAAS) Senior Fellow. In her spare
time, she plants pollinator gardens, chases
bumblebees (and butterflies), and has a
high-energy cattle dog.

Sevag Kazanci
Sevag Kazanci, Founder & Chief Impact
Officer at Parks Project, grew up
skateboarding, snowboarding, and
camping to escape city life. Post-college, he
worked for notable action sports brands
like O’Neill, Rusty, …Lost, Volcom, and led
apparel and accessories at TOMS Shoes.

After a volunteering weekend in the Santa
Monica Mountains, Sevag and fellow TOMS
employee Keith Eshelman recognized the
challenges of underfunded National Parks.

They founded Parks Project, an outdoor
brand that designs products celebrating
National Parks, following the mantra “leave
it better than you found it.” Parks Project
has donated over $2.5 million to park
conservancies and contributed over 7,000
volunteer hours.

Board of Directors – Joshua Tree National Park Association 2/19/25, 7:51 PM https://joshuatree.org/board-of-directors/ Page 10 of 10 Proud Partner
Joshua Tree National Park
Association – proud to be
Joshua Tree National Park’s
primary non-profit partner
since 1962.

Contact
Mail
Joshua Tree National Park
Association
74485 National Park Drive
Twentynine Palms, CA
92277
Email
[email protected]
Phone
(760) 367-5525
Fax
(760) 367-5583

Joshua Tree Visitor Center in Twentynine Palms – Joshua Tree National Park Association 2/19/25, 7:52 PM https://joshuatree.org/services/joshua-tree-cultural-center/ Page 1 of 4 Joshua Tree Visitor Center in
Twentynine Palms
Made possible through a partnership with the City of Twentynine Palms, Joshua Tree National Park’s traditionally associated Native American communities, Joshua Tree National Park, and the Bureau of Land Management, the new Joshua Tree Visitor & Cultural Center is a must-see destination for park Shop Connect Donate
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