Twentynine Palms City Council
May 27, 2025

AMENDED AGENDA
(AMENDED AGENDA 2025-2026 Nonprofit Grant Applications
was moved from agenda Item #12 to Item #1)
NOTICE IS HEREBY GIVEN, that the City Council will hold a WORKSHOP on Tuesday, May 27, 2025, at 5:15 P.M. in the City Hall Council Chambers, 6136 Adobe Road, Twentynine Palms, CA 92277 to consider the following:
2025/2026 Nonprofit Grant Applications Presentations

1. 2025/2026 Nonprofit Grant Applicant Workshop Presentations.

RECOMMENDATION: The City Council open the applicant presentations, actively listen, and engage by asking questions regarding the organization’s programs, services, and funding requests.
2025/2026 Nonprofit Grant Applicant Workshop Presentations. - Pdf 5 - 156

TWENTYNINE PALMS CITY COUNCIL

REGULAR MEETING AGENDA
6136 Adobe Road
Twentynine Palms, CA 92277
www.29palms.org
Tuesday, May 27, 2025
NOTICE IS HEREBY GIVEN that the City Council will hold a Regular Meeting on Tuesday, May 27, 2025, at City Hall, 6136 Adobe Road, Twentynine Palms, CA 92277 to consider the following:

REGULAR SESSION AGENDA WITH CLOSED SESSION
6:00 P.M.

CALL TO ORDER
Pledge of Allegiance.

Invocation - Pastor LeeAnn Clarke, 29 Palms Ministerial Association.

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 to the Twentynine Palms High School TASHA Club for Their Participation in the Cash for Trash and Recycling Program.

2. Presentation by Mr. Shane Moussad, Government Relations Manager Local Public Affairs, Southern California Edison.

3. Grant Funding Agreement Presentation.

Grant Funding Agreement Presentation. - Pdf
157 - 172

4. Presentation from Community Events Grant Recipient, Friends of the Twentynine Palms Library, Providing a Report on the Morongo Basin Spell-A-Thon Event.

5. Presentation from Community Events Grant Recipient, Mil-Tree Veteran Project, Providing a Report from "From There to Here: Military and Veteran Expressions" Event.

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

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

7. Approval of Minutes of the City Council Meeting Held on May 13, 2025.

City Council - Regular Meeting with Closed Session - 13 May 2025 - Minutes - Pdf 173 - 178

8. Appropriation Limit FY 2025-26.

RECOMMENDATION: The City Council establish an appropriation limit for Fiscal Year 2025-26 by the adoption of the attached Resolution.

Appropriation Limit FY 2025-26. - Pdf
179 - 185

ITEMS REMOVED FROM CONSENT CALENDAR FOR DISCUSSION

PUBLIC HEARING

9. Ancillary Activities, Businesses, and Entertainment.

RECOMMENDATION: The City Council find the Development Code Amendment exempt from CEQA, approve the Resolution of the Development Code Amendment for Chapter

19.101 Ancillary Uses, Commercial Activities, and Entertainment.

Ancillary Activities, Businesses, and Entertainment. - Pdf 187 - 193

DISCUSSION AND POTENTIAL ACTION ITEMS

10. Preliminary 2-Year Project Phoenix Funds and Sewer Fund Budgets FY 2025-26 & 2026-

27. RECOMMENDATION: Staff is presenting the preliminary Two-Year (Fiscal Year 2025/26 & 2026/27) Budgets for the Project Phoenix Funds and Sewer Fund for initial City Council review and direction.

Preliminary 2-Year Project Phoenix Funds and Sewer Fund Budgets FY 2025-26 & 2026-

27. - Pdf
195 - 212

11. Preliminary Two-Year Special Revenue Funds Budget for Fiscal Year 2025-26 & 2026-

27. RECOMMENDATION: Staff is presenting the preliminary Two-year Special Revenue Funds Budget for Fiscal Year 2025-26 & 2026-27 for initial City Council review and direction.

Preliminary Two-Year Special Revenue Funds Budget for Fiscal Year 2025-26 & 2026-

27. - Pdf
213 - 248

12. First Amendment to City Manager Employment Agreement.

RECOMMENDATION: The City Council adopt the proposed amendment to the City Manager's Employment Agreement.

First Amendment to City Manager Employment Agreement. - Pdf 249 - 252

FUTURE COUNCIL INITIATED ITEMS

1. Discussion on the General Plan Update.

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

3. Discussion on abandoned homes in the community.

4. Discussion on reorganizing the Homeless and Housing Committee.

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

6. Discussion on reviewing policies for non-profits who receive funding from the City.

7. Discussion of a policy regulating the use of City Attorney resources.

8. Discussion on Reach Out Yucca Valley.

9. Discussion on exploring a partnership with Jamboree for affordable housing.

10. Maintained Roads vs. Non-Maintained Roads

11. Discussion on exploring a partnership with Neighborhood Partnership Housing Services (NPHS) for an owner-occupied rehab program.

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

ADJOURN TO CLOSED SESSION
A “Closed” Session of the City Council may be held in accordance with state law which may include, but is not limited to, the following types of items: personnel matters, labor negotiations, security matters, providing instructions to real property negotiators and conference with legal counsel regarding pending litigation. The Closed Session will be held in the City Hall Conference Room located at 6136 Adobe Road, Twentynine Palms, California. Any public comment on Closed Session items will be taken before the Closed Session. Any required announcements or discussion of Closed Session items or actions following the Closed Session will be made in the City Council Chambers, 6136 Adobe Road, Twentynine Palms, California.

1. CLOSED SESSION PURSUANT TO GOVERNMENT CODE §54957 - PUBLIC EMPLOYEES PERFORMANCE EVALUATION, CITY MANAGER.

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 the agenda is hereby certified to have been posted on or before 6:00 p.m., May 21, 2025.

Cindy Villescas CMC, City Clerk Time/Date

STAFF REPORT
TO: City Council
FROM: Recreation Division Manager
FOR MEETING: May 27 2025
SUBJECT: 2025/2026 Nonproft Grant Applicant Workshop Presentations.

RECOMMENDATION:

The City Council open the applicant presentations, actively listen and engage by asking questions regarding the organizations’ programs, services and funding requests.

ORDER OF PROCEDURE:

Request Staff Report (Recreation Division Manager
Presenting)
Council Questions of Staff
Request Public Comment
Council Discussion
Motion/Second
Discussion of Motion
Call the Question
ATTACHMENTS:
• 29-PSP
• Community Learning
Equipping Project, Inc.
• Girls on The Run
• High Desert Community
Foundation
• Inspiration's Edge
• Molding Hearts
• Morongo Basin Unity Home
• Reach Out Morongo Basin
2526
• The 29 Palms Community
Food Pantry

• Theatre 29
• 29 Palms 29ers
BACKGROUND:

This year, the City has developed a dedicated application process tailored specifically for nonprofit organizations seeking funding. In previous years, nonprofit entities submitted funding requests through the Community Development Block Grant (CDBG) application process. Several years ago, the City Council made the decision to allocate CDBG funds toward municipal construction projects, thereby necessitating a separate process for nonprofit funding.

In December and January, information about the grant application process was disseminated to the community through a press release, email, social media, and the City’s website. The application period opened on February 3, 2025, and closed on February 28, 2025. A total of 11 applications were received, amounting to $139,770 in funding requests. Each Fiscal Year, the City designates $50,000 for contributions to nonprofit organizations.

As part of the review process, Staff verified the operating status and nonprofit registry validation of each applicant to ensure eligibility and compliance with funding guidelines. The results of these searches are attached to each application.

ENVIRONMENTAL:

N/A
ALTERNATIVES:

N/A
FISCAL IMPACT:

The City Council allocates $50,000 each fiscal year to provide funding contributions to local non-profit organizations. It is the decision of the City Council to either continue or discontinue this budget item during budget discussions.

STAFF REPORT
TO: City Council
FROM: Finance Director
FOR MEETING: May 27 2025
SUBJECT: Grant Funding Agreement Presentation.

RECOMMENDATION:

No Action required. This item is for information purposes only.

ORDER OF PROCEDURE:

Request Staff Report (City Manager and Finance
Director Presenting)
Council Questions of Staff
Request Public Comment
Council Discussion
Motion/Second
Discussion of Motion
Call the Question
ATTACHMENTS:
• Grant Agreement Template
DRAFT [05.07.2025]-2
BACKGROUND:

Throughout the years, the City has provided financial assistance to various organizations, including non-profit organizations, businesses, and other governmental agencies, for programs and/or events that align with City's goals and mission.

As mentioned during the Strategic Planning workshop, Finance is responsible for the effective and efficient management of the City's financial resources. To that end, in coordination with other City departments and City Attorney, Finance has begun implementing a new grant monitoring process that will enhance the transparency and accountability of City funded programs.

In addition to the processes already in place, which include requesting an invoice and W-9 from fund recipients, Finance has begun requesting that fund recipients sign and agree to the terms outlined in the attached agreement before funds can be disbursed. This agreement is applicable to all organizations receiving City funds, directly or indirectly (i.e., TBID, PAAC, County, etc.), through grants, sponsorships, donations, contributions, etc. This agreement will be required in addition to other covenants and terms stipulated in the recipient's approved grant application, if applicable.

All of the covenants stipulated in the agreement are important; however, City Staff deemed appropriate to highlight the following key requirements:
 1. b. Use of Grant Funds. The Recipient must not use the Grant funds for personal expenses, operating and administrative costs (e.g., salaries, benefits and utilities), unless prior written authorization is obtained from the City, unrelated activities, or any purposes not specified in the approved application. Page 157 of 252  1.d. Standing of Recipient. Prior to the disbursement of Grant funds, the City will review the status of the Recipient with the Secretary of State and Franchise Tax Board to determine whether the Recipient is in good standing.
 1.f. Project Period of Performance. Grant funds must be expended within the time frame set form in the Recipient’s approved application, but in no event beyond six (6) months after the completion of the project, program or event funded. Extensions may be requested in writing in advance. Requests will be considered by the City at its sole discretion.
 1.g. Reimbursement of Unused Funds. If the Recipient requires less funds than the Grant Amount to fulfill the purpose listed in its application, the Recipient must reimburse the City for any unused funds.  2. Insurance requirements. Exceptions apply.
 3.a. Performance Report. The Recipient must submit a detailed report to the City’s Finance Department within four (4) weeks of the final expenditure of Grant funds. The report must include a description of how the funds were used and performance metrics used to measure the success of the program and/or event funded (e.g., number of participants, budget vs. actual costs, number of community members served, etc.).
 3.b. Financial Report and Documentation. The report must include detailed financial records showing how the Grant funds were used. The report must be accompanied by an itemized list of all expenditures funded with the Grant. The list must include the date of purchase, purchase amount, invoice or receipt number, check number, description of purchase, vendor or recipient name, and payment method. The report must be submitted to the City’s Finance Department within four (4) weeks of the final expenditure of Grant funds.
 3.c. Retention of Records. The Recipient must retain all financial and Grant fund-related records for a minimum of three (3) years following the final expenditure of Grant funds. These records must be made available to the City upon request for any audits or reviews to ensure compliance with the terms of the Grant.

Failure to comply with the covenants stipulated in the agreement will result in the recipient being ineligible for future funding from the City.

This is a fairly new process, and the agreement will be revised from time to time as deemed appropriate.

ENVIRONMENTAL:

N/A
ALTERNATIVES:

N/A
FISCAL IMPACT:

N/A

CITY OF TWENTYNINE PALMS

GRANT AGREEMENT
This GRANT AGREEMENT (“Agreement”) is made and effective as of _____________________, between the City of Twentynine Palms (the “City”) and _____________ (the “Recipient”).

WHEREAS, the City is committed to enhancing the quality of life for its residents by supporting community enterprises that increase the resident support, character, or history of Twentynine Palms; and
WHEREAS, the City has established a grant opportunity program to provide financial assistance to non-profit organizations and businesses who provide services or support to residents that align with the City’s goals and benefit the local community; and WHERAS, the grant program encompasses all grants, sponsorships, contributions, and donations funded with City funds, directly or indirectly (i.e., pass-through grants); and WHEREAS, the Recipient has demonstrated experience and capability in its area of expertise and has submitted an application detailing plans for services or support for residents; and
WHEREAS, the City, after careful review and evaluation of the Recipient’s application and approval by the City Council, has decided to award the Recipient a Grant (as defined below); and
WHEREAS, the City and the Recipient wish to set forth their mutual understanding and agreement regarding the terms and conditions of the Grant, including the Recipient’s obligations and responsibilities in using the Grant funds.

NOW, THEREFORE, in consideration of the mutual covenants and promises herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1. Grant Award
The City agrees to provide the Recipient a grant based on its application (“Grant”) in the amount of [Grant Amount Spelled Out] ($[Grant Amount]) (“Grant Amount”), subject to the following conditions and stipulations:
a. Purpose of the Grant
The Grant is provided to support the Recipient in fulfilling the purpose set forth in its application, which is attached hereto for reference only as Exhibit A.

b. Use of Grant Funds
The Grant funds must be used exclusively for the purposes outlined in the Recipient’s application. The Recipient must not use the Grant funds for personal expenses, operating and administrative costs (e.g., salaries, benefits and utilities), unless prior written authorization is obtained from the City, unrelated activities, or any purposes not specified in the approved application.
c. Grant Award Amount
The total Grant amount awarded to the Recipient is [Grant Amount Spelled Out] ($[Grant Amount]), which is the amount approved by the City Council based on Recipient’s application.
d. Standing of Recipient
Prior to the disbursement of Grant funds, the City will review the status of the Recipient with the Secretary of State and Franchise Tax Board to determine whether the Recipient is in good standing.
e. Disbursement of Funds
Upon execution of this Agreement, the City will disburse the Grant Amount to the Recipient in the amounts and according to the timing set forth in the Recipient’s application, unless otherwise set forth by the City in writing. f. Project Period of Performance
Grant funds in this award have a limited period in which they must be expended. Grant funds must be expended within the time frame set form in the Recipient’s approved application, but in no event beyond six (6) months after the completion of the project, program or event funded. Extensions may be requested in writing in advance. Requests will be considered by the City at its sole discretion.
g. Reimbursement of Unused Funds
If the Recipient requires less funds than the Grant Amount to fulfill the purpose listed in its application, the Recipient must reimburse the City for any unused funds. h. Right to Audit
The City reserves the right to audit the Recipient’s financial records related to the Grant to ensure compliance with the terms of this Agreement. The Recipient agrees to provide access to all relevant documents and cooperate fully with any audit conducted by the City or its representatives with five (5) days of a request by the City.

Any discrepancies found during the audit may result in the requirement to return part or all of the Grant funds to the City.

i. Documentation of Financial Transactions
The Recipient must maintain accurate and detailed financial records of all transactions using Grant funds.

All expenditures must be documented with receipts, invoices, proof of payment, and other verifiable records to fully substantiate the use of Grant funds.

The Recipient must ensure that all financial records are retained for a minimum of three (3) years following the final use of Grant funds for potential future audits or reviews.

2. Insurance
To ensure the safety and protection of all parties involved, the Recipient must adhere to the following insurance requirements:
a. General Liability Insurance
The Recipient must obtain general liability insurance coverage in the amount of at least one million dollars ($1,000,000).
b. Insurance Coverage Period
The insurance coverage must be effective from the date Recipient receives Grant funds through the final expenditure of Grant funds.

The Recipient must ensure that there are no gaps in coverage during this period. c. Submission of Insurance Documentation
The Recipient must submit the “Certificate of Insurance” to the City prior to the receipt of the Grant funds.

Failure to provide this document within thirty (30) days following the execution of this Agreement may result in the termination of the Grant and of this Agreement. d. Insurance Policy Requirements
The insurance policy must be issued by an insurance company licensed to do business in the State of California and have a current A.M. Best rating of no less than A. e. Failure to Maintain Insurance
If the Recipient fails to maintain the required insurance coverage, the Recipient may be held personally liable for any claims or damages resulting from the uninsured period.

3. Reporting and Accountability
To ensure transparency and accountability in the use of Grant funds, the Recipient must adhere to the following reporting and accountability requirements:

a. Performance Report
The Recipient must submit a detailed report to the City’s Finance Department within four (4) weeks of the final expenditure of Grant funds. The report must include a description of how the funds were used and performance metrics used to measure the success of the program and/or event funded (e.g., number of participants, budget vs. actual costs, number of community members served, etc.).
b. Financial Report and Documentation
The report must include detailed financial records showing how the Grant funds were used. The report must be accompanied by an itemized list of all expenditures funded with the Grant. The list must include the date of purchase, purchase amount, invoice or receipt number, check number, description of purchase, vendor or recipient name, and payment method. The report must be submitted to the City’s Finance Department within four (4) weeks of the final expenditure of Grant funds.

Upon City’s request, the Recipient must provide legible copies of itemized receipts, invoices, proof of payment and any other relevant documentation to fully substantiate all expenditures using Grant funds.
c. Retention of Records
The Recipient must retain all financial and Grant fund-related records for a minimum of three (3) years following the final expenditure of Grant funds.

These records must be made available to the City upon request for any audits or reviews to ensure compliance with the terms of the Grant.
d. Accountability for Misuse of Funds
If the City determines that the Grant funds were not used in accordance with the approved application or the terms of this Agreement, the Recipient agrees to return any Grant funds not used in accordance with the terms hereof.

Misuse of funds may also result in the Recipient being ineligible for future Grants from the City.
e. Continuous Improvement
Any recommendations for changes to the Grant process or guidelines should be communicated to the City as part of the Recipient’s report.

4. Compliance with Laws
The Recipient must adhere to the following compliance requirements:
a. Adherence to All Applicable Laws
The Recipient must comply with all federal, state, and local laws, regulations, and ordinances.

b. Reporting Non-Compliance
If the Recipient becomes aware of any non-compliance with applicable laws or regulations, they must report it to the City immediately.

The Recipient must work with the City to address and rectify any compliance issues as quickly as possible.

5. Termination
The City reserves the right to terminate this Agreement under certain conditions to ensure the proper use of Grant funds and adherence to the terms outlined. The following provisions apply to the termination of this Agreement.
a. Grounds for Termination
Non-Compliance: The City may terminate this Agreement if the Recipient fails to comply with any of the terms and conditions set forth in this Agreement, including but not limited to the misuse of Grant funds or failure to submit the required report.

Misrepresentation: The City may terminate this Agreement if it is determined that the Recipient provided false, misleading, or incomplete information in their Grant application or any subsequent reports or communications.

Legal Violations: The City may terminate this Agreement if the Recipient violates any federal, state, or local laws, regulations, or ordinances in connection with the use of Grant funds.

Without Cause: The City may terminate this Agreement without cause at any time and thereafter cease to provide Grant funds to the Recipient. b. Notice of Termination
The City will provide written notice to the Recipient of the intent to terminate the Agreement. The notice will specify the grounds for termination, if applicable, and provide the Recipient with an opportunity to respond or rectify the issue within a specified period.

If the Recipient fails to address the grounds for termination to the City’s satisfaction within the specified period, the termination will become effective. c. Return of Funds
Upon termination of this Agreement, the Recipient must return any unused Grant funds to the City within thirty (30) days of the termination notice.

The City may require the Recipient to return all or a portion of the Grant funds already disbursed if it is determined that the funds were not used in accordance with the approved application or the terms of this Agreement.

d. Effect of Termination on Future Grants
Termination of this Agreement may affect the Recipient’s eligibility for future grants from the City.

The City reserves the right to deny future grant applications from the Recipient if the termination was due to non-compliance, misrepresentation, or legal violations. e. Reinstatement
In exceptional circumstances, the City may consider reinstating this Agreement if the Recipient can demonstrate that the grounds for termination have been fully addressed and rectified.

Any request for reinstatement must be submitted in writing to the City Council, providing a detailed explanation and supporting documentation.
f. Continued Obligations
Termination of this Agreement does not relieve the Recipient of their obligation to submit the required report, return unused funds, or comply with any other post-termination requirements specified by the City.
g. Notification of Affected Parties
The Recipient must notify any partners, sponsors, or stakeholders involved in the use of the Grant funds of the termination of this Agreement.

The Recipient must ensure that all communications regarding the termination are accurate and transparent.

6. Indemnification
To protect the City and ensure accountability, the Recipient must adhere to the following indemnification requirements.
a. General Indemnification
The Recipient agrees to indemnify, defend, and hold harmless the City of Twentynine Palms, its officers, officials, employees, agents, and volunteers (collectively, the “Indemnities”) from and against any and all claims, demands, losses, damages, liabilities, costs, and expenses (including reasonable attorneys’ fees and costs of litigation) arising out of or related to:
• The Recipient’s performance or non-performance of its obligations under this Agreement, including the use of Grant funds.
• The City’s performance or non-performance of its obligations under this Agreement.
• Any actual or alleged negligent or intentional acts or omissions by the Recipient, its officers, employees, agents, contractors, or volunteers in connection with the use of Grant funds.

• Any actual or alleged violation of any federal, state, or local laws, regulations, or ordinances by the Recipient in connection with the use of Grant funds. • The termination of this Agreement by City.
b. Third-Party Claims
The Recipient agrees to indemnify, defend, and hold harmless the Indemnities from and against any and all claims, demands, losses, damages, liabilities, costs, and expenses arising from third-party claims related to:
• Bodily injury, death, or property damage occurring in connection with the use of Grant funds.
• Intellectual property infringement or any other proprietary rights violations related to the use of Grant funds.
• Defamation, libel, slander, or invasion of privacy occurring in connection with the use of Grant funds.
c. Insurance Coverage
The Recipient’s obligation to indemnify the City is independent of, and not limited by, any insured coverage obtained by the Recipient.

The Recipient must maintain the required general liability insurance coverage as outlined in this Agreement, and the policy must include coverage for the indemnification obligations specified in this Agreement.
d. Notification and Defense
The City agrees to promptly notify the Recipient in writing of any claim, demand, or lawsuit for which indemnification is sought under this Agreement.

Upon such notification, the Recipient must assume the defense of the claim, demand, or lawsuit with legal counsel reasonably acceptable to the City.

The City retains the right to participate in the defense of any claim, demand, or lawsuit at its own expense.
e. Settlement and Resolution
The Recipient must not settle any claim, demand, or lawsuit for which indemnification is sought under this Agreement without the prior written consent of the City, which consent shall not be unreasonably withheld.

The Recipient must ensure that any settlement does not impose any obligations or liabilities on the City without its prior written consent. f. Survival of Indemnification
The indemnification obligations of the Recipient under this Agreement shall survive the expiration or termination of the Agreement.

These obligations are continuous and remain in effect for as long as the Indemnitees may be subject to any claims, demands, losses, damages, liabilities, costs, or expenses arising out of or related to the Recipient’s performance or non-performance of its obligations under this Agreement.
g. Scope of Indemnification
The indemnification obligations of the Recipient extend to claims arising from the acts or omissions of any contractors, subcontractors, agents, or volunteers acting on behalf of the Recipient in connection with the use of Grant funds.

The Recipient’s indemnification obligations are not limited by any limitations on the amount or type of damages, compensation, or benefits payable by or for the Recipient under any workers’ compensation acts, disability benefits acts, or other employee benefits acts.
h. Waiver of Subrogation
The Recipient waives any right of subrogation against the City, its officers, officials, employees, agents, and volunteers to the extent covered by insurance or self-insurance maintained by the Recipient or the City.
i. Additional Provisions
In the event that any portion of this indemnification provision is found to be unenforceable, the remaining provisions shall continue to be enforceable to the fullest extent permitted by law.

The indemnification obligations under this Agreement are in addition to any other rights or remedies that the City may have at law or in equity.

7. Entire Agreement
a. Integration Clause
This Agreement constitutes the entire agreement between the City and the Recipient regarding the subject matter herein and supersedes all prior negotiations, representations, understandings, and agreements, whether written or oral, between the parties.
b. No Other Representations
The City and the Recipient acknowledge that no representations, warranties, or inducements have been made by either party other than those expressly set forth in this Agreement.

Each party acknowledges that it has not relied on any statements or promises that are not contained in this Agreement.

c. Amendments
Any amendments or modifications to this Agreement must be made in writing and signed by authorized representatives of both the City and the Recipient.

No amendment or modification will be effective unless and until it has been duly executed by both parties.
d. Waivers
No waiver of any provision of this Agreement will be effective unless it is in writing and signed by the party against whom the waiver is sought to be enforced.

The failure of either party to enforce any provision of this Agreement will not be construed as a waiver of that provision or any other provision, nor will any single or partial exercise of any right preclude any other or further exercise of any right under this Agreement.
e. Severability
If any provision of this Agreement is found to be invalid, illegal, or unenforceable, the remaining provisions will continue in full force and effect.

The parties agree to negotiate in good faith to replace any invalid, illegal, or unenforceable provision with a valid, legal, and enforceable provision that, to the maximum extent possible, achieves the original intent of the parties. f. Headings
The headings used in this Agreement are for convenience only and will not affect the interpretation of any of the Agreement’s provisions.
g. Notices
All notices required or permitted under this Agreement must be in writing and delivered to the respective parties at the addresses set forth in this Agreement or to such other address as either party may designate by written notice.

Notices may be delivered by personal delivery, certified mail (return receipt requested), or by a recognized overnight courier service. Notices will be deemed given upon receipt or upon refusal of delivery.

For City: City of Twentynine Palms
6136 Adobe Road
Twentynine Palms, California 92277
Attention: City Clerk
For Recipient: [insert address for Recipient’s notices]

h. Counterparts
This Agreement may be executed in one or more counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument.

Signatures delivered by facsimile or electronic means (such as PDF) will be deemed to have the same effect as original signatures.
i. Authority to Execute
Each party represents and warrants that the person signing this Agreement on its behalf has the requisite authority to do so and to bind the party to the terms and conditions of this Agreement.
j. Binding Effect
This Agreement will be binding upon and inure to the benefit of the parties hereto and their respective heirs, legal representatives, successors, and assigns. k. Further Assurances
Each party agrees to execute and deliver such further documents and to take such further actions as may be necessary or appropriate to carry out the intent and purposes of this Agreement.
l. Force Majeure
Neither party will be liable for any delay or failure to perform its obligations under this Agreement if such delay or failure is due to causes beyond its reasonable control, including acts of God, war, terrorism, strikes, labor disputes, government orders, or any other force majeure event.
m. Independent Contractors
The parties are independent contractors with respect to each other, and nothing in this Agreement shall be construed to create any partnership, joint venture, or agency relationship between them.

Neither party has any authority to act on behalf of or to bind the other party, except as expressly provided in this Agreement.

8. Governing Law
To ensure that the legal framework governing this Agreement is clearly defined, the following provisions outline the governing law and dispute resolution processes. a. Applicable Law
This Agreement shall be governed by, and construed in accordance with, the laws of the State of California, without regard to its conflict of laws principles.

The parties agree that the laws of the State of California will apply to all aspects of this Agreement, including but not limited to the interpretation performance, and enforcement of the Agreement terms.
b. Jurisdiction and Venue
Any legal action or proceeding arising out of or related to this Agreement shall be brought exclusively in the state or federal courts located in San Bernardino County, California.

The parties irrevocably submit to the jurisdiction of such courts for the purposes of any suit, action, or other proceeding arising out of or related to this Agreement. c. Waiver of Jurisdictional Objections
Each party waives any objection to the jurisdiction and venue of any action or proceeding instituted under this Agreement on the grounds of forum non conveniens or any similar doctrine.

The parties agree not to argue or assert that any such court is an inconvenient forum. d. Dispute Resolution
In the event of any dispute, claim, or controversy arising out of or related to this Agreement, the parties agree to attempt in good faith to resolve the dispute through negotiation.

If the parties are unable to resolve the dispute through negotiation within thirty (30) days, they agree to submit the dispute to mediation before a mutually agreed-upon mediator. If the parties cannot agree on a mediator, a mediator will be appointed by the American Arbitration Association (AAA).

If mediation does not resolve the dispute, the parties may then proceed to litigation in the courts specified above.
e. Attorneys’ Fees and Costs
In any legal action or proceeding arising out of or related to this Agreement, the prevailing party shall be entitled to recover its reasonable attorneys’ fees and costs from the non-prevailing party.

This provision shall apply to any appeal of a judgment and to the enforcement of any award or judgment obtained in any such action or proceeding. f. Equitable Relief
The parties agree that a breach of certain provisions of this Agreement may cause irreparable harm for which there is no adequate remedy at law. In such cases, the nonbreaching party shall be entitled to seek injunctive or other equitable relief to prevent or remedy such breach.

Seeking equitable relief shall not preclude the non-breaching party from seeking other remedies available at law or in equity.
g. Cumulative Remedies
The rights and remedies provided in this Agreement are cumulative and not exclusive of any rights or remedies provided by law or in equity.

The exercise of any one remedy shall not preclude the exercise of any other available remedy.
h. Notice of Litigation
The Recipient must notify the City in writing within five (5) business days if they become aware of any actual or potential legal action or proceeding arising out of or related to this Agreement or the use of Grant funds.

Such notice must include a description of the legal action or proceeding and any relevant details.
i. Survival of Obligations
The provisions of this section shall survive the expiration or termination of this Agreement and shall remain in effect until all obligations and liabilities arising under this Agreement have been fully satisfied.
j. Conflict of Laws
In the event of a conflict between any provision of this Agreement and any applicable law or regulation, the law or regulation shall prevail, but the affected provision of this Agreement shall be modified only to the extent necessary to comply with the law or regulation, while preserving the original intent of the parties as closely as possible.

9. Signatory Authority
The following provisions ensure that the individuals signing this Agreement have the necessary authority and provide for the proper execution of this Agreement. a. Authority to Execute
Each party represents and warrants that the person signing this Agreement on its behalf has the requisite authority to do so and to bind the party to the terms and conditions of this Agreement.

For the City, this Agreement must be signed by an authorized representative, such as the City Manager, Mayor, or another designated official.

For the Recipient, this Agreement must be signed by an authorized representative, such as the Executive Director, President, or another designated official of the organization, or by the individual in the case of a personal application.

b. Execution in Counterparts
This Agreement may be executed in one or more counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument.

Signatures delivered by facsimile, email, or other electronic means (such as PDF) will be deemed to have the same effect as original signatures.
c. Binding Effect
This Agreement will be binding upon and inure to the benefit of the parties hereto and their respective heirs, legal representatives, successors, and assigns.

The signatories affirm that they have read and understood the Agreement, and agree to be bound by its terms.

10. Acknowledgement of Terms
By signing this Agreement, both parties acknowledge and agree to the following:
a. Review of Agreement
The parties have reviewed and fully understand the terms and conditions set forth in this Agreement.

The parties have had the opportunity to seek legal counsel or other professional advice as needed before signing this Agreement.
b. Compliance with Terms
The Recipient agrees to comply with all requirements and obligations specified in this Agreement to ensure the proper use of Grant funds.

The City agrees to fulfill its obligations under this Agreement, including the disbursement of Grant funds as specified.
c. Effective Date
This Agreement shall become effective as of the date of the last signature below.

All obligations and responsibilities outlined in this Agreement will commence as of the effective date and continue until all terms have fulfilled or the Agreement is terminated in accordance with its provisions.
[SIGNATURES ON FOLLOWING PAGE]

Signatures for City of Twentynine Palms Grant Agreement By signing below, the parties agree to all the terms and conditions outlined in this Agreement.

This Agreement shall become effective as of the date last signed below.

City of Twentynine Palms
By: _____________________________
[Name], [Title]
Date: ________________________
Recipient
By: _____________________________
[Recipient’s Name], [Title]
Date: ___________________________

TWENTYNINE PALMS CITY COUNCIL
City Council – Regular Meeting with Closed Session MINUTES City Hall, 6136 Adobe Road, Twentynine Palms, CA 92277
www.29palms.org
May 13, 2025

CLOSED SESSION AGENDA
5:30 P.M.

CALL TO ORDER - Mayor Bilderain called the Closed Session to Order at 5:31 p.m.

Roll Call - The following Councilmembers were present: Mintz, Scott, Wright, Bilderain. Councilmember Ramirez arrived at 5:47 p.m.

Adjourn to Closed Session - Mayor Bilderain adjourned to Closed Session at 5:33 p.m.

CLOSED SESSION

1. CLOSED SESSION PURSUANT TO GOVERNMENT CODE §54957 - PUBLIC EMPLOYEES PERFORMANCE EVALUATION, CITY MANAGER.

REGULAR SESSION AGENDA
6:00 P.M.

CALL TO ORDER - Mayor Bilderain called the meeting to order at 6:02 p.m.

Pledge of Allegiance - Mr. Coleman led the Pledge of Allegiance.

Invocation - Fr. Eliseus Uju, Blessed Sacrament Catholic Church, gave the Invocation.

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

Closed Session Announcements - Mayor Bilderain said nothing to report.

Changes to the Agenda -Twentynine Palms Artist Guild Presentation added to the agenda.

ANNOUNCEMENTS
Mayor Bilderain announced 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 the City website and clicking on the "Meeting Agendas" link.

AWARDS, PRESENTATIONS, APPOINTMENTS AND PROCLAMATIONS

2. Presentation to the Youth Council by Senator Rosalice Ochoa Bogh.

DeáJiané McNair, District Representative for Senator Rosalice Ochoa Bogh presented certificates to the Twentynine Palms Youth Council.

City Council - Special Meeting with Closed Session
May 13, 2025

3. Twentynine Palms Artist Guild Spring Arts & Craft Faire.

Cathy Snodgress, Treasurer for the Twentynine Palms Artist Guild, presented an event update and final report.

She said this event was sponsored by the City of Twentynine Palms Grant Program.

COUNCIL COMMENTS AND REPORTS OF MEETINGS ATTENDED
Councilmember Ramirez said that she attended the San Bernardino County Office of Homeless Services roundtable representing our District, Southern California Association of Governments (SCAG) Conference, the City-County Conference sponsored by the County of San Bernardino, California Cadets Military Ball, and the Salute the Troops MCCS event. She also met with two non-profits that specialize in housing development, and multiple constituents regarding various topics.

Councilmember Scott mentioned that he attended the Historic Plaza Chalk Art Festival, the Morongo Basin Community Coalition Meeting, the National Day of Prayer at Veterans Park, and the Twentynine Palms Park and Recreation International Festival at Freedom Plaza.

Councilmember Wright said that he attended the National Day of Prayer three times (twice at Veterans Park and once at the Gospel Fellowship Church) where he took a photo with Mayor Bilderain. He wished a Happy Birthday to everyone who has a birthday in May, Happy Mother's Day to all mothers, and met with constituents. He said he is looking forward to the War Hawks football season.

Mayor Pro-Tem Mintz commented that he attended Mojave Desert Air Quality Management District (MDAQMD) meeting and reminded everyone about the LEAF program, San Bernardino County Transit Authority (SBCTA) meeting, and the San Bernardino City-County Conference.

Mayor Bilderain wished everyone a Happy Birthday in the month of May and wished all mother's Happy Mother's Day. He mentioned that he attended the Commanding General's Leadership Luncheon aboard the Base, The National Day of Prayer Service, the International Festival, and the Historic Plaza Chalk Festival. He participated in Denim Day which supports sexual abuse awareness month and met with citizens and neighbors.

CONSENT CALENDAR

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

5. Approval of Minutes of the City Council Meeting Held on April 22, 2025.

6. 2nd Reading DCA - Chapter 19.02 Authority and Chapter 19.04 The General Plan.

RECOMMENDATION: The City Council find the project exempt from CEQA and adopt the Ordinance approving the Development Code Amendment.

7. Annual Contract with San Bernardino County Sheriff's Department for FY 2025 - 26.

RECOMMENDATION: The City Council approve the annual contract with the San Bernardino County Sheriff's Department for Law Enforcement Services in the amount of $5,428,099, plus incidental costs.

8. Approval of Warrant Register Totaling $1,055,432.70.

9. Retirement Plan Investment Advisory Services Agreement.

RECOMMENDATION: The City Council approve the service agreement with Sage View to provide retirement plan investment advisory services for the City's Deferred Compensation Program.

City Council - Special Meeting with Closed Session
May 13, 2025
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: MINTZ, RAMIREZ, SCOTT, WRIGHT, BILDERAIN
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
ITEMS REMOVED FROM CONSENT CALENDAR FOR DISCUSSION- None.

PUBLIC HEARING – None.

DISCUSSION AND POTENTIAL ACTION ITEMS

10. Presentation of the Preliminary Two-Year General Fund Budget for Fiscal Year 2025-26 & 2026-27.

RECOMMENDATION: Staff is presenting the preliminary two-year General Fund Budget for Fiscal Year 2025-26 & 2026-27 for initial City Council review and direction.

Finance Director Hernandez-Conde provided the Staff Report and Power Point presentation of the two-year General Fund Budget for FY 2025-26 & 2026-27.

Cindy Bernard, Twentynine Palms, questioned the following: when will Strategic Planning be finalized, who put the community survey together and who will conduct the TOT audit.

Mary Jane Binge, Twentynine Palms, asked what is the survey and who sent it out. She inquired how can the community access the survey.

No action required. Receive and file only.

11. Reallocation of Funds to Clean Up Blight.

RECOMMENDATION: The City Council approve reallocating the remaining $30,510 of the Navigation and Resource Center and shower funds to residential, commercial, vacant land, and homeless camp cleanup.

City Manager James presented the Staff Report.

Councilmember Scott suggested that the funds be allocated as follows: $25,000 to PAAC and $25,000 to the Park and Recreation Department for events.

Nick Foley, Twentynine Palms, spoke on behalf of Set Free Church, mention that church volunteers are available and willing to assist with cleaning up property.

Mary Walk, Joshua Tree, commented that she is a therapist in the community and that our homeless could benefit from the showers.

Astrid Johnson, Twentynine Palms, asked if some of the funds could be allocated to help with showers for homeless at Motel 6 once a month. She said that she is still with Morongo Basin Arch and often receives "211" calls from community members throughout the Morongo Basin requesting assistance with rent payments because they have received a "Pay or Quit" and the threat of becoming homeless is an ongoing issue.

City Council - Special Meeting with Closed Session
May 13, 2025
Susan Davis, Twentynine Palms, shared that she is a member of the Morongo Basin Community Coalition (MBCC) and will be presenting their plan for shower services in the future. She requested that the City Council wait until they hear the MBCC presentation before making a decision.

Carrie Kish, Joshua Tree, said that she is an employee of Reach Out Yucca Valley and Morongo Basin Community Coalition. They are working at putting together a plan for healthy cities' initiative and they recently signed an MOU with Community Action Partnership to provide a shower trailer for a minimum of once month and secured funding for the surrounding logistics with the trailer. However additional funding could assist with offering a more dynamic program. They are hoping to present at the next Council meeting and humbly ask that the City Council wait on making a decision.

Daniel Castillo, Yucca Valley, spoke on behalf of Reach Out Yucca Valley, mentioning that he is the program director for the shower project in the community.

Janet Johnston, Joshua Tree, Boardmember of the East Desert Regional Sterring Committee, recommended that the City Council table this item, so they can hear Reach Out Yucca Valley's presentation.

Maryssa Mullens, Twentynine Palms, said that she is with Reach Out Yucca Valley and spoke as a member of the Morongo Basin Coalition. She shared about the positive difference their previous shower event made for participants and humbly asked the City Council table this item until they hear the Reach Out Yucca Valley presentation.

Cindy Bernard, Twentynine Palms, echoed all prior comments and asked for the item to be tabled.

Jenn DeFalco, Twentynine Palms, said on May 4, 2025, she took seventeen unhoused individuals to Motel 6 for a shower, clean clothes, a hot meal, and a snack bag. One shower per month is not enough for someone to maintain a job, and a better solution is needed.

Carlos Blandon, Twentynine Palms, mentioned that in regard to facilities / housing for the unhoused, we already have them and questioned why don't the churches open their doors to help anymore. He said we need to stop the reoccurring abatements, people coming back after we clean them up and fund Code Enforcement so we can stop being reactive and start being proactive.

ACTION: A motion was made by Councilmember Scott to table this item. The motion died due to lack of second.

A motion was made by Councilmember Wright, seconded by Mayor Pro Tem Mintz, that the City Council approve reallocating the remaining $30,510 of the Navigation and Resource Center and shower funds to residential, commercial, vacant land, and homeless camp cleanup.

The above motion was carried by the following:

ROLL CALL VOTE:

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

12. City Manager Contract Amendment.

Link to this Staff Report to be provided prior to consideration of the item.

This item was pulled and tabled to the next City Council meeting.

City Council - Special Meeting with Closed Session
May 13, 2025

FUTURE COUNCIL INITIATED ITEMS

1. Discussion on the General Plan Update.

2. 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.

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

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

5. Discussion on abandoned homes in the community.

6. Discussion on reorganizing the Homeless and Housing Committee.

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

8. Discussion on reviewing policies for non-profits who receive funding from the City.

9. Discussion of a policy regulating the use of City Attorney resources.

13. 10.Revisit allocated funds for the portable showers and Navigation Center.

Councilmember Scott added that he would like a discussion / action item regarding Reach Out Yucca Valley presentation.

Mayor Bilderain seconded the item.

Councilmember Ramirez added that she would like to explore a partnership with Jamboree for affordable housing.

Councilmember Wright seconded the item.

Councilmember Ramirez added that she would like to explore a partnership with Neighborhood Partnership Housing Servies (NPHS) for an owner-occupied rehab program. Councilmember Scott seconded the item.

Mayor Pro Tem Mintz commented that item number 10 can now be removed due to action taken on the item at tonight's meeting.

PUBLIC COMMENTS
Carlos Blandon, Twentynine Palms, spoke about a recent incident that occurred at Freedom Plaza involving a squatter in a brown van harassing people. He encouraged the City Council to join the Governor in setting up an Ordinance to take back our streets. Mayor Bilderain acknowledged that the City Council received his email regarding this incident.

Cindy Bernard, Twentynine Palms, commented that the Community Survey is not on IG, Facebook and was not on the last email blast. She said there is a huge amount of trash along Highway 62, and this is the first thing visitors see and asked if we can encourage residents to bag their trash prior to placing it into the Burrtec bins.

Jenn DelFaco, Twentynine Palms, stated that she wanted to remind the Council to please understand that there are over 200 unhoused individuals in Twentynine Palms and a small fraction of them that spend time at Four Corners and behind Stater Bros. that do a lot of the damage and inconsistences you speak about. The HAPP grant is broken into many brackets, and a small amount of this money goes to help the unhoused on the streets.

Diane Garten, Twentynine Palms, requested that the City remove the seven large sand dunes from Samarkand Road and one sand dune on Calle Todd Road. She said sand has been on the road since the July 2024 flooding and is dangerous for vehicle travel.

A public comment was received via email by the City Clerk to be read into the record regarding City Council conduct during their meetings.

City Council - Special Meeting with Closed Session
May 13, 2025

CITY MANAGER UPDATE
City Manager James provided the following update: the Strategic Plan Community Survey along with other strategic plan documents that were generated during the planning sessions can be accessed from the City website. He acknowledged an enjoyable event at the Historic Plaza, the Sidewalk Chalk Art Festival and the Animal Foster Program has been rekindled, thanks to Michelle, Dom, and the wonderful team at 29 Palms N Paws Animal Shelter. He mentioned the Twentynine Palms Park and Recreation Department is hosting an Emergency Preparedness Event at Freedom Plaza on Saturday, May 17, 2025, at 9:00am.

ADJOURNMENT - Mayor Bilderain adjourned the meeting at 7:56 p.m.

Respectfully submitted,
Christina Benton
Deputy City Clerk

STAFF REPORT
TO: City Council
FROM: Finance Director
FOR MEETING: May 27 2025
SUBJECT: Appropriation Limit FY 2025-26.

RECOMMENDATION:

The City Council establish an appropriation limit for Fiscal Year 2025-26 by the adoption of the attached Resolution.

ORDER OF PROCEDURE:

Request Staff Report (Finance Director Presenting)
Council Questions of Staff
Request Public Comment
Council Discussion
Motion/Second
Discussion of Motion
Call the Question
ATTACHMENTS:
• Resolution No. 25-
• Exhibit A
BACKGROUND:

Proposition 4, co-sponsored by Proposition 13 author Paul Gann and commonly known as the Gann initiative, was passed by California voters in 1979. It established Article XIIIB of the State Constitution and set limits on the growth of most appropriations from tax sources made by the State and affected local government entities. Most local governments and districts are subject to the limit. Starting in the 1980-81 Fiscal Year, Article XIIIB limited annual growth of applicable appropriation levels to calculated percentages, above the previous year's level, based upon regional population growth and the rate of inflation as measured by the lower of the percentage change in the Consumer Price Index, CPI, or California's per capita personal income.

Each year, the City is required to establish a limit on the amount of General Fund monies it may spend. The amount is determined by calculations based on the population and economic changes of the prior calendar year.

Based on the attached calculations, the appropriation limit for Fiscal Year 2025-26 should be set at $83,739,276, which is above the City's projected appropriations for FY 2025-26.

ENVIRONMENTAL:

N/A
ALTERNATIVES:

N/A
FISCAL IMPACT: Page 179 of 252
There is no fiscal impact associated with this item; however, it is important to note that the City is in compliance with the appropriation limit for FY 2025-26.

CITY OF TWENTYNINE PALMS

CITY COUNCIL
RESOLUTION NO. 25-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TWENTYNINE

PALMS, CALIFORNIA, ESTABLISHING ITS PROPOSITION
4 APPROPRIATION LIMIT FOR FISCAL YEAR 2025 - 2026
WHEREAS, each year the City is required to establish a Proposition 4 appropriation limit by resolution; and
WHEREAS, the appropriation limit for 2025 – 2026 has been determined by increasing the 2024 – 2025 appropriation limit by the population and per capita personal income changes as permissible under Article XIIIB, and as set out in Exhibit "A", attached and incorporated here; and
WHEREAS, the documentation set out on Exhibit "A" used to determine this increase has been available since May 2025, at City offices.

NOW, THEREFORE, the City Council resolves and orders that the Proposition 4 appropriation limit for fiscal year 2025 – 2026 shall be $83,739,276.00.

PASSED, APPROVED AND ADOPTED on the 27th day of May 2025.

Steven Bilderain, Mayor
ATTEST:

Cindy Villescas CMC, City Clerk
I, do hereby certify that the foregoing Resolution No. 25-____, was duly adopted by the City Council of the City of Twentynine Palms at a regular meeting thereof held on 27th day of May 2025, by the following vote:

AYES: COUNCILMEMBER:

NOES: COUNCILMEMBER:

ABSENT: COUNCILMEMBER:

ABSTAIN: COUNCILMEMBER:
_________________________________
Cindy Villescas CMC, City Clerk

CITY OF TWENTYNINE PALMS
CALCULATION OF PROPOSITION 4 APPROPRIATIONS LIMIT
January 2018 California Personal
Income increase (3.67%) 1.0367
1/1/2018 Population Increase x 1.0313
Fiscal Year 2018/2019 Proposition 4 Limit $54,159,833
January 2019 California Personal
Income increase (3.85%) 1.0385
1/1/2019 Population Increase x 1.0185
Fiscal Year 2019/2020 Proposition 4 Limit $57,285,519
January 2020 California Personal
Income increase (3.73%) 1.0373
1/1/2020 Population Increase x 1.0255
Fiscal Year 2020/2021 Proposition 4 Limit $60,937,537
January 2021 California Personal
Income increase (5.73%) 1.0573
1/1/2021 Population Increase x 1.0009
Fiscal Year 2021/2022 Proposition 4 Limit $64,487,244
January 2022 California Personal
Income increase (7.55%) 1.0755
1/1/2022 Population Increase x 0.9923
Fiscal Year 2022/2023 Proposition 4 Limit $68,821,989
January 2023 California Personal
Income increase (4.44%) 1.0444
1/1/2023 Population Increase x 0.9906
Fiscal Year 2023/2024 Proposition 4 Limit $71,202,035
January 2024 California Personal
Income increase (3.62%) 1.0362
1/1/2024 Population Increase x 0.9888
Fiscal Year 2024/2025 Proposition 4 Limit $72,953,218
January 2025 California Personal
Income increase (6.44%) 1.0644
1/1/2025 Population Increase x 1.0784
Fiscal Year 2025/2026 Proposition 4 Limit $83,739,276

EXHIBIT A

May 2025
Dear Fiscal Officer:

Subject: Price Factor and Population Information
Appropriations Limit
California Revenue and Taxation Code Section 2227 requires the Department of Finance to transmit an estimate of the percentage change in population to local governments. Each local jurisdiction must use their percentage change in population factor for January 1, 2025, in conjunction with a change in the cost of living, or price factor, to calculate their appropriations limit for fiscal year 2025-26. Attachment A provides the change in California’s per capita personal income and an example for utilizing the price factor and population percentage change factor to calculate the 2025-26 appropriations limit. Attachment B provides the city and unincorporated county population percentage change along with the population percentage change for counties and their summed incorporated areas. The population percentage change data excludes federal and state institutionalized populations and military populations.

Population Percent Change for Special Districts
Some special districts must establish an annual appropriations limit. California Revenue and Taxation Code Section 2228 provides additional information regarding the appropriations limit.

Article XIII B, Section 9(C) of the California Constitution exempts certain special districts from the appropriations limit calculation mandate. The code section and the California Constitution can be accessed at the following website: http://leginfo.legislature.ca.gov/faces/codes.xhtml.

Special districts required by law to calculate their appropriations limit must present the calculation as part of their annual audit. Any questions special districts have on this requirement should be directed to their county, district legal counsel, or the law itself. No state agency reviews the local appropriations limits.

Population Certification
The population certification program applies only to cities and counties. California Revenue and Taxation Code Section 11005.6 mandates Finance to automatically certify any population estimate that exceeds the current certified population with the State Controller’s Office. Finance will certify the higher estimate to the State Controller by June 1, 2025.

Please Note: The prior year’s city population estimates may be revised. The per capita personal income change is based on historical data.

If you have any questions regarding this data, please contact the Demographic Research Unit at (916) 323-4086.

JOE STEPHENSHAW
Director
By:

ERIKA LI
Chief Deputy Director
Attachment

May 2025
Attachment A
A. Price Factor: Article XIII B specifies that local jurisdictions select their cost of living factor to compute their appropriation limit by a vote of their governing body. The cost of living factor provided here is per capita personal income. If the percentage change in per capita personal income is selected, the percentage change to be used in setting the fiscal year 2025-26 appropriation limit is:

Per Capita Personal Income
Fiscal Year Percentage change
(FY) over prior year
2025-26 6.44
B. Following is an example using sample population change and the change in California per capita personal income as growth factors in computing a 2025-26 appropriation limit.
2025-26:

Per Capita Cost of Living Change = 6.44 percent
Population Change = 0.28 percent
Per Capita Cost of Living converted to a ratio: 6.44 + 100 = 1.0644 100
Population converted to a ratio: 0.28 + 100 = 1.0028
100
Calculation of factor for FY 2025-26: 1.0644 x 1.0028 = 1.0674

FISCAL YEAR 2025-26
Attachment B
Annual Percent Change in Population Minus Exclusions*
January 1, 2024 to January 1, 2025 and Total Population January 1, 2025 City County Percent Change 24-25
Population Minus
Exclusions 1-1-24
Population Minus
Exclusions 1-1-25 Total Population 1-1-25
Adelanto City San Bernardino 1.42 36,629 37,150 37,150
Apple Valley Town San Bernardino -0.11 75,339 75,255 75,262 Barstow City San Bernardino -0.55 24,634 24,498 24,811
Big Bear Lake City San Bernardino -0.48 4,977 4,953 4,953 Chino City San Bernardino 1.76 90,123 91,712 95,206
Chino Hills City San Bernardino -0.18 77,452 77,314 77,314 Colton City San Bernardino -0.42 53,505 53,278 53,278
Fontana City San Bernardino 0.96 217,084 219,172 219,172 Grand Terrace City San Bernardino -0.51 12,868 12,803 12,803 Hesperia City San Bernardino 0.54 101,248 101,792 101,792 Highland City San Bernardino 1.16 56,436 57,088 57,088
Loma Linda City San Bernardino -0.19 25,323 25,276 25,322 Montclair City San Bernardino -0.38 37,670 37,526 37,526 Needles City San Bernardino -0.54 4,817 4,791 4,791
Ontario City San Bernardino 0.84 182,875 184,404 184,404 Rancho Cucamonga City San Bernardino 0.44 175,227 175,992 175,992 Redlands City San Bernardino 0.10 73,416 73,488 73,488
Rialto City San Bernardino 1.09 104,426 105,565 105,565 San Bernardino City San Bernardino 0.08 221,218 221,387 222,727 Twentynine Palms City San Bernardino 7.84 14,775 15,934 24,257 Upland City San Bernardino -0.23 79,326 79,140 79,140
Victorville City San Bernardino 0.49 135,981 136,652 141,013 Yucaipa City San Bernardino 0.51 54,561 54,838 54,838
Yucca Valley Town San Bernardino 0.03 22,021 22,027 22,027 Balance of County San Bernardino -0.22 290,454 289,811 297,505 Incorporated San Bernardino 0.54 1,881,931 1,892,035 1,909,919 County Total San Bernardino 0.44 2,172,385 2,181,846 2,207,424 *Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

STAFF REPORT
TO: City Council
FROM: Community Development Director
FOR MEETING: Apr 22 2025
SUBJECT: Ancillary Activities, Businesses, and Entertainment.

RECOMMENDATION:

The City Council find the Development Code Amendment exempt from CEQA, approve the Resolution of the Development Code Amendment for Chapter 19.101 Ancillary Uses, Commercial Activities, and Entertainment.

ORDER OF PROCEDURE:

Request Staff Report (Community Development Director
Presenting)
Council Questions of Staff
Open the Public Hearing
Receive Public Comment
Close the Public Hearing
Council Discussion
Motion/Second
Discussion on Motion
Call the Question
ATTACHMENTS:
• 19.101_Ancillary Uses
Commercial and
Entertainment_draft
BACKGROUND:

Over the course of about a year, Community Development Staff has received numerous requests for special entertainment events, expansions of services of existing businesses, and requests for more than one business to occupy a single structure. The Development Code is not clear in these situations, and assumes - like most Development Codes - that every business stands alone in its own structure or tenant space. Therefore, every shared work space would require a new land use approval, which may be too onerous for smaller businesses to get established. The Planning Commission studied this issue on March 4th, and agreed with Staff that the Development Code should be updated to be more business friendly and to allow for ancillary uses and commercial activities via a simplified process.

Additionally, a strict reading of the Development Code would imply that every instance of live entertainment, would require a new land use permit. Community Development Staff has received several requests for temporary entertainment events on properties that are not fully appropriate for such activities. Several issues have come up in the process of reviewing these requests. In particular, having adequate public access to these events, as well as having a venue that meets current fire and safety regulations, and can accommodate larger crowds are essential criteria for this type of activity. The City Council gave direction to study this issue and to modify the Development Code to allow for Live Entertainment under a simplified process. The Planning Commission conducted a workshop on this subject in November of 2024, and agreed with Staff that the Development Code needs to be updated to allow for Ancillary Live Entertainment. Staff also reached out to the business community and gave two presentations on February 26 and March 6. Attached to this Staff Report is the draft

Ordinance, which would be added to the Development Code in Article 5, "Special Regulated Uses". The definitions would be as follows:
"Ancillary Uses" are owned and operated by the primary business but may not be the primary function of that business. For instance, a hair salon that sells hair care products. There are no restrictions on Ancillary Uses, provided that they are at the same permit level (i.e. general retail and a hair salon require the same type of land use approval, so no additional permit would be required.) "Ancillary Commercial Activities" are separate businesses that are wholly confined within a different business. For instance, a bank leasing space inside of a grocery store. Ancillary Commercial Activities are subject to the following restrictions:

A. The ancillary commercial business are not owned or operated by the primary business.

B. Entrances and exits of the secondary business must be located entirely within the primary business, with no unique means of egress.

C. The secondary business must have the same hours of operation or less as the primary business.

D. Ancillary commercial businesses may not take up more than 25% of the primary business.

Ancillary Commercial Activities would be permitted at a reduction of a land use permit level. For instance, a use requiring an Administrative Use Permit (AUP) would be processed via a Site Plan Review. "Live entertainment" means a musical act (including karaoke), theatrical act (including standup comedy), play, revue, scene, dance act, or combination, performed by 1 or more persons, whether or not they are compensated for the performance, in a privately owned premises that is open to the public, whether or not admission is charged. Live Entertainment does not include Adult Entertainment. “Ancillary Live Entertainment” means “Live Entertainment” that occurs in an establishment where a primary use (restaurant, bar, retail, etc) is already a permitted use. “Live Entertainment Venue” is an establishment whereas “Live Entertainment” is the primary use (i.e theaters, concert halls, etc).
“Live Entertainment Special Event” is a one-time or seasonal event that may include road closures, parking lot enclosures, temporary facilities, etc. See Section 19.34 of the Development Code.

Ancillary Live Entertainment would be subject to the following provisions:

A. The maximum occupancy of the establishment may not be exceeded at any time.

B. The City's noise, lighting, and parking regulations must be obeyed at all times.

C. "Ancillary Live Entertainment" does not include "Adult Oriented" activities.

Instead of a land use permit, the City would implement a licensing program whereas Live Entertainment would be added to an existing business license. Based on assumptions on the number of hours it would take to process the application, along with two safety inspections a year, the application fees are proposed to be $550, with annual renewals at $380. The initial application fee will be due at the time of business license renewal. These fees would be added to the City's Fee Schedule. Violators may be subject to large fines, suspensions, or both.

Staff believes that this modifications to the Development Code will ease the burden on small businesses, but could very well facilitate economic development by helping Twentynine Palms become more of an arts and entertainment destination.

ENVIRONMENTAL:

This Development Code Amendment is exempt from CEQA (common sense exemption).

ALTERNATIVES:

The City Council could decide to keep the current rules in place, or modify any aspect of these recommendations.

FISCAL IMPACT:

None.

City of Twentynine Palms Development Code Article 5, Special Use Regulations Adopted July 26, 2016
Effective August 25, 2016 Page 19.101-1 Automobile and Vehicle Related Uses Chapter 19.101 Ancillary Uses, Commercial Activities, and Entertainment
Sections

19.101.010 Purpose..............................................................................................................19.101-1

19.101.020 Applicability......................................................................................................19.101-1

19.101.030 Ancillary Uses: Permit Required .....................................................................19.101-1

19.101.31 Ancillary Commercial: Permit Required........................................................................

19.101.32 Ancillary Entertainment: License Required

19.101.010 Purpose
It is recognized by the City of Twentynine Palms that commercial and industrial establishments are developing shared workspaces, and offering services beyond the primary purpose of their business. The purpose of this Chapter is to establish regulations for the development and operation of ancillary uses, commercial activities, and live entertainment. The intent of the standards is to regulate these uses for compatibility with surrounding uses.

19.101.020 Applicability
The requirements contained in this Chapter shall apply to ancillary uses, commercial activities, and live entertainment, as specified below, located in existing commercial or industrial uses

19.101.030 Ancillary Uses – Possible Permit Required
Ancillary Uses are owned and operated by the primary business. Provided that the primary business offers additional or ancillary services offered or products sold that are allowed in the same permit level or lower than the primary business, then no permit is required. However, any upgrade in intensity of permit will require the necessary requisite permit. (i.e. a dining counter inside of a grocery market that is owned and operated by the market will not require any additional land use approval, but a retail establishment that adds alcohol sales may require a conditional use permit). There are no limits to ancillary services or products for sale, provided that they do not require expansion of the facilities in which the activities are located.

19.101.030 Ancillary Commercial Business – Possible Permit Required Provided that any new proposed business is located entirely within the physical constraints of another business, then the second business may be permitted with a lower-level of land use approval than would otherwise be approved at the next lower level of land use permit. The following criteria applies to ancillary commercial uses:

A. The ancillary commercial business are not owned or operated by the primary business.

B. Entrances and exits of the secondary business must be located entirely within the primary business, with no unique means of egress.

City of Twentynine Palms Development Code Article 5, Special Use Regulations Adopted July 26, 2016
Effective August 25, 2016 Page 19.101-2 Automobile and Vehicle Related Uses C. The secondary business must have the same hours of operation or less as the primary business.

D. Ancillary commercial businesses may not take up more than 25% of the primary business.

Figure 19.101.030-A

19.101.030 Ancillary Live Entertainment – License Required A. Definitions:
"Live entertainment" means a musical act (including karaoke), theatrical act (including standup comedy), play, revue, scene, dance act, or combination, performed by 1 or more persons, whether or not they are compensated for the performance, in a privately owned premises that is open to the public, whether or not admission is charged. Live Entertainment does not include Adult Entertainment. “Ancillary Live Entertainment” means “Live Entertainment” that occurs in an establishment where a primary use (restaurant, bar, retail, etc) is already a permitted use.

Primary Business
Shared ingress/egress
Ancillary Commercial Business
(owned by others)
Ancillary Use / Service
Area (owned by primary)
Tenant Space (owned by others)
Permitted separately
Separate ingress / egress
Ingress / egress through primary business

City of Twentynine Palms Development Code Article 5, Special Use Regulations Adopted July 26, 2016
Effective August 25, 2016 Page 19.101-3 Automobile and Vehicle Related Uses “Live Entertainment Venue” is an establishment whereas “Live Entertainment” is the primary use (i.e theaters, concert halls, etc).
“Live Entertainment Special Event” is a one-time or seasonal event that may include road closures, parking lot enclosures, temporary facilities, etc. See Section 19.34 of the Development Code.

B. Applicability:

Any commercial or industrial establishment may offer Ancillary Live Entertainment provided a License has been issued by the City of Twentynine Palms.

C. Exemptions:

The following types of establishments are exempt from this section, and may have any sort of Live Entertainment as part of their regular operations:

1. Fraternal Organizations

2. Non-profit institutions such as schools, museums, observatories, art galleries

3. Houses of worship
D. Restrictions:

1. Licenses for Ancillary Live Entertainment are renewable annually upon payment of the appropriate application fee.

2. Inspections will occur twice a year to ensure compliance with regulations.

3. The maximum occupancy of the establishment where ancillary live entertainment is to occur may not be exceeded at any time.

4. Parking for the establishment where ancillary live entertainment may not be exceeded during such events. Section 19.82 of the Development Code may not be violated.

5. The City’s noise ordinance (Section 19.82 of the Development Code) may not be violated.

6. The City’s lighting ordinance (Section 19.80 of the Development Code) may not be violated.

7. No activities that would fall into the description of “Adult Oriented Business” as defined in Section 19.100 of the Development Code are permitted.

8. Excess calls for service from Law Enforcement are a violation of the license.

City of Twentynine Palms Development Code Article 5, Special Use Regulations Adopted July 26, 2016
Effective August 25, 2016 Page 19.101-4 Automobile and Vehicle Related Uses

8. Violations of these regulations may result in fines, suspension of the license, non-renewal of the license, or a combination of all three.

STAFF REPORT
TO: City Council
FROM: Finance Director
FOR MEETING: May 27 2025
SUBJECT: Preliminary 2-Year Project Phoenix Funds and Sewer Fund Budgets FY 2025-26 & 2026-27.

RECOMMENDATION:

Staff is presenting the preliminary Two-Year (Fiscal Year 2025/26 & 2026/27) Budgets for the Project Phoenix Funds and Sewer Fund for initial City Council review and direction.

ORDER OF PROCEDURE:

Request Staff Report (Finance Director Presenting)
Council Questions of Staff
Request Public Comment
Council Discussion
Motion/Second
Discussion of Motion
Call the Question
ATTACHMENTS:
• Preliminary 2-Year Budget
Project Phoenix and Sewer
Fund - Presentation
• Preliminary 2-Year Budgets
Project Phoenix and Sewer
Fund - Worksheets
BACKGROUND:

The Finance Director is presenting the preliminary two-year budgets for Project Phoenix Funds and Sewer Fund for Fiscal Year 2025-26 & 2026-27 for initial Council review and direction. City Council is not required to approve this preliminary budget today; however, the final budget needs to be approved before the beginning of the new fiscal year which begins July 1, 2025.

Project Phoenix Funds account for the activities associated with the City’s downtown revitalization project.

The following projects remain open as of the date of this report:

Project Name Remaining Funding Source
Store Improvements $108,987 General Capital Projects Fund Street Furniture $29,319 General Capital Projects Fund
Multi-Purpose Facility Fixtures $24,651 General Capital Projects Fund Public Art $15,000 General Capital Projects Fund
Engineering Services - Crosswalk $7,500 General Capital Projects Fund TOTAL $185,457

The Project Phoenix Housing fund has a fund balance of $1.1M which is comprised of $660K from bond proceed reserves and $456K from the sale of the hotel property at Project Phoenix and related accumulated interest.

These funds can only be used to fund affordable housing efforts, including legal fees associated with the projects.

The Sewer fund was created to account for the cost of providing sewer services to a limited number of businesses within the relatively new Freedom Plaza. The revenues collected from sewer service fees are used to pay for the operations and maintenance of the sewer collection system including, inspections, pumping, water quality monitoring, and permitting. Operating & Maintenance costs are projected to be $82K in FY 2025-26, while charges for services are expected to be approximately $12K per year. The operating deficit in each year will be subsidized by the General Fund.

Staff is currently working with a project officer from the U.S. Environmental Protection Agency (EPA) to reallocate the STAG 1/STAG 2 grants for the USGS Study. The total cost of the study is projected to be $2.3M, of which $2.2M is expected to be funded with STAG1 and STAG2 grants and contributions from the 29 Palms Water District and USGS. The City is in the process of requesting a cost share waiver for the City's 20% match requirement for Community Grants Program. However, the City still needs approximately $100K to cover the unfunded portion of the project.

The City has begun construction of the Project Phoenix Package Treatment Plant. The construction phase of the project is expected to be $2.2M, which will be funded by a $1.7M grant from the Economic Development Administration (EDA) and $524K from General funds. The project must be completed by September 2026.

ENVIRONMENTAL:

N/A
ALTERNATIVES:

The City Council could reject, add, or reduce any of Staff’s spending recommendations.

FISCAL IMPACT:

Approximately $100K will be needed for the unfunded portion of the USGS study.

CITY OF TWENTYNINE PALMS

AND PHOENIX FUNDS PROJECT PRELIMINARY
2025-26 & 2026-27 SEWER FUND BUDGETS FY

PRELIMINARY TWO-YEAR BUDGET – PROJECT

PHOENIX AND SEWER FUNDS
Budget calendar:

April 4th : Strategic Planning – Departmental Update
April 5th: Strategic Planning – Priority Setting Workshop April 22nd: Budget Committee Review
May 13th: Preliminary General Fund Budget
May 27th: Preliminary Special Revenue Funds Budget
Preliminary Project Phoenix and Sewer Fund Budget
June 10th: Proposed Budgets Adoption
June 24th: Budget Meeting, if needed
May 27, 2025
2

PRELIMINARY TWO-YEAR BUDGET – PROJECT

PHOENIX AND SEWER FUNDS
Outline
• Purpose of Funds
• Summary of Revenue Sources
• Project Phoenix Fund Projects - FY 2025-26
• Sewer Fund Projects
May 27, 2025
3

PRELIMINARY TWO-YEAR BUDGET – PROJECT

PHOENIX AND SEWER FUNDS
Purpose of Funds
• Project Phoenix Funds account for the activities
associated with the City’s downtown revitalization
project.
• Enterprise Fund was created to account for the cost
of providing sewer services to a limited number of
businesses within the relatively new Freedom Plaza
and the user charges by which these costs are
recovered.

May 27, 2025
4

PRELIMINARY TWO-YEAR BUDGET – PROJECT

PHOENIX FUNDS
• Summary of Revenue Sources
Revenue Sources Fiscal Year
2025-26
Reserves $185,457
Housing Funds* $1,116,000
*The Project Phoenix Housing fund has fund balance of $1.1M which is comprised of $660K from bond proceed reserves and $456K from the sale of the hotel property at Project Phoenix and accumulated interest. These funds will be used for affordable housing projects, including legal fees associated with the project(s).

May 27, 2025
5

PRELIMINARY TWO-YEAR BUDGET – PROJECT

PHOENIX FUNDS
• Project Phoenix Fund Projects - FY 2025-26
Project Name Amount
Store Front Improvements $108,987
Street Furniture $29,319
Multi-Purpose Facility Fixtures $24,651
Public Art $15,000
Engineering Services -
Crosswalk
$7,500
TOTAL $185,457
May 27, 2025
6

PRELIMINARY TWO-YEAR BUDGET – SEWER FUND
Capital Spending Amount Funding Source
USGS Study $2,330,289 Grants*/City Funds
PP Package Treatment Plant $2,158,597 EDA Grant/City Match Operating Expenditures $82,200 Sewer Fees/City
Subsidy
TOTAL $4,571,086
The funds for this project have not been secured as of 5/27/25 Sewer Fund Projects
May 27, 2025
7

PRELIMINARY TWO-YEAR BUDGET –SEWER FUND
Items not in the budget
• City match for USGS Study of approximately
$100K
May 27, 2025
8

Questions/Commen
ts
May 27, 2025
9

Thank you
May 27, 2025
10

BUDGETS
FISCAL YEAR 2025-26
AND FISCAL YEAR 2026-27

CITY OF TWENTYNINE PALMS

PROJECT PHOENIX FUNDS

AND SEWER FUND
DRAFT

APPROVED
2/25/25
2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT BUDGET BUDGET THROUGH AMENDED PROPOSED PROPOSED CODE ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET
10-0000 REVENUE
4715 EV Charger Grant 6,695 $ - $ - $ - $ - $ - $
4716 Project Phoenix-JT Visitor Cultural Center 216,358 $ - $ - $ - $ - $ - $ 4718 Prop 68-Project Phoenix Funds 194,454 $ - $ - $ - $ - $ - $ Reserves 88,979 $ 104,016 $ 59,365 $ 240,072 $ 185,457 $ 202,957 $ TOTAL REVENUE 506,486 $ 104,016 $ 59,365 $ 240,072 $ 185,457 $ 202,957 $ 10-DEPT EXPENDITURES
10 14 Project Phoenix
6244 Project Phoenix - Miscellaneous Expense 1,867 $ - $ - $ - $ - $ - $ 6359 Contract & Consulting 884 $ - $ - $ - $ - $ - $
6365 Preliminary Design & Engineering 9,280 $ - $ - $ - $ 7,500 $ - $ 6366 Project Phoenix - Site Improvements 13,559 $ - $ - $ - $ - $ 25,000 $ 6829 EV Charger + City Match 10,585 $ - $ - $ - $ - $ - $ 6830 Project Phoenix - Public Art - $ - $ - $ 15,000 $ 15,000 $ 15,000 $ 6831 Project Phoenix - Store Front Improvements 39,241 $ 102,018 $ 55,434 $ 164,421 $ 108,987 $ 108,987 $ 6833 Project Phoenix - Street Furniture 6,931 $ - $ - $ 29,319 $ 29,319 $ 29,319 $ 6906 Project Phoenix-Multi-Purpose Facility Fixtures 6,632 $ 1,998 $ 3,931 $ $ 31,332 $ 24,651 $ 24,651 TOTAL EXPENDITURES $ 88,979 $ 104,016 $ 59,365 $ 240,072 $ 185,457 $ 202,957

GENERAL CAPITAL PROJECTS FUND
The Capital Improvement Fund tracks grants and projects that aren't related to Community Development Block Grants. 1 5/20/2025
DRAFT

2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT BUDGET BUDGET THROUGH AMENDED PROPOSED PROPOSED CODE ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET
11-0000 REVENUE
4400 Community Development
Block Grant 85,000 $ - $ - $ - $ - $ - $
TOTAL REVENUE 85,000 $ - $ - $ - $ - $ - $
11-1014 EXPENDITURES
6906 Project Phoenix-Multi-Purpose Facility Fixtures 85,000 $ - $ - $ - $ - $ - $ TOTAL EXPENDITURES 85,000 $ - $ - $ - $ - $ - $

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 5/20/2025
DRAFT

2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT BUDGET BUDGET THROUGH AMENDED PROPOSED PROPOSED CODE ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET
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. 3 5/20/2025
DRAFT

2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT BUDGET BUDGET THROUGH AMENDED PROPOSED PROPOSED CODE ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET
77-0000 REVENUE
4245 Interest 18,180 $ 43,943 $ 29,694 $ 25,000 $ 25,000 $ 25,000 $ Bond Reserves 100,219 $ 29,441 $ - $ 1,081,000 $ 1,091,000 $ 1,091,000 $ TOTAL REVENUE 118,399 $ 73,384 $ 29,694 $ 1,106,000 $ 1,116,000 $ 1,116,000 $ 77-1014 EXPENDITURES
6??? Affordable Housing Projects - $ - $ - $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 6841 Legal 25,863 $ 19,473 $ 1,481 $ 26,000 $ 26,000 $ 26,000 $ 6842 Consulting Services 6,020 $ 3,000 $ - $ - $ - $ - $ 6844 Architecture 13,650 $ - $ - $ - $ - $ - $
6865 Property Acquisition 72,866 $ 47,911 $ - $ 80,000 $ 90,000 $ 90,000 $ TOTAL EXPENDITURES 118,399 $ 73,384 $ 1,481 $ 1,106,000 $ 1,116,000 $ 1,116,000 $

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. 4 5/20/2025
DRAFT

2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT BUDGET BUDGET THROUGH AMENDED PROPOSED PROPOSED CODE ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET
80-0000 REVENUE
4252 County ARPA Grant 276,611 $ 502,568 $ - $ - $ - $ - $ 4255 EDA Grant - $ - $ - $ 1,675,680 $ 1,675,680 $ 1,000,000 $ 4316 Transfer In 934,950 $ 65,000 $ 52,500 $ 70,000 $ 70,000 $ 70,000 $ 4880 Charge for Services 14,349 $ 13,004 $ 11,081 $ 12,200 $ 12,200 $ 12,200 $ 4890 Other Revenue - Contributions* - $ - $ - $ - $ 292,792 $ 292,792 $ 4891 Clean Water Planning Loan 526,410 $ 45,717 $ - $ - $ - $ - $ 4892 Federal Earmark - STAG1* - $ - $ - $ - $ 663,224 $ 663,224 $ 4892 Federal Earmark - STAG2* - $ - $ - $ - $ 1,275,000 $ 1,275,000 $ Reserves 63,807 $ 61,998 $ 70,855 $ 544,027 $ 482,917 $ 158,597 $ TOTAL REVENUE 1,816,127 $ 688,287 $ 134,436 $ 2,301,907 $ 4,471,813 $ 3,471,813 $ 80-???? EXPENDITURES
1014-6837 Package Treatment Plant - $ - $ 54,488 $ 2,199,427 $ 2,129,427 $ 1,129,427 $ 1014-6837 Package Treatment Plant - Design 63,807 $ 6,575 $ 16,367 $ 14,294 $ 29,170 $ 29,170 $ 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 $ - $ 2,330,289 - $ $ 2,330,289 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 $ 26,324 $ 88,186 $ 82,200 $ 82,200 TOTAL EXPENDITURES $ 1,432,705 $ 1,663,706 $ 97,179 $ 2,301,907 $ 4,571,086 $ 3,571,086

ENTERPRISE FUND

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. 5 5/20/2025
DRAFT

STAFF REPORT
TO: City Council
FROM: Finance Director
FOR MEETING: May 27 2025
SUBJECT: Preliminary Two-Year Special Revenue Funds Budget for Fiscal Year 2025-26 & 2026-27.

RECOMMENDATION:

Staff is presenting the preliminary Two-year Special Revenue Funds Budget for Fiscal Year 2025-26 & 2026-27 for initial City Council review and direction.

ORDER OF PROCEDURE:

Request Staff Report (Finance Director Presenting)
Council Questions of Staff
Request Public Comment
Council Discussion
Motion/Second
Discussion of Motion
Call the Question
ATTACHMENTS:
• Preliminary SF Budget FY
2025-26 & 2026-27 -
Presentation
• Preliminary Special Revenue
Funds Budget FY 2025-26 &
2026-27 - Worksheets
BACKGROUND:

The City Manager and Finance Director are presenting this preliminary Special Funds Budget for Fiscal Year 2025-26 & 2026-27 for review and comment.

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 toward an intended project or purpose.

The funding for capital improvements, capital maintenance (streets), and other capital related projects are proposed at $20,468,186. Project categories are segregated into the following:

Streets $ 4,050,165
Parks $ 589,001
Safety $ 8,487,403
Other Projects $ 1,507,795
TOTAL $20,468,186
- 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. - Landfill/Land Use Fund: Article 19 Fees for city clean-up & recycling. - 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. - 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.

ENVIRONMENTAL:

Not Applicable
ALTERNATIVES:

The City Council could reject, add, or reduce any of Staff’s spending recommendations.

FISCAL IMPACT:

A balanced budget.

CITY OF TWENTYNINE PALMS

REVENUE FUNDS BUDGET SPECIAL PRELIMINARY
2025-26 & 2026-27 FY

PRELIMINARY TWO-YEAR BUDGET - SPECIAL

REVENUE FUNDS
Budget calendar:

April 4th : Strategic Planning – Departmental Update
April 5th: Strategic Planning – Priority Setting Workshop April 22nd: Budget Committee Review
May 13th: Preliminary General Fund Budget
May 27th: Preliminary Special Revenue Funds Budget
Preliminary Project Phoenix and Sewer Fund Budget
June 10th: Proposed Budgets Adoption
June 24th: Budget Meeting, if needed
2 May 27, 2025

PRELIMINARY TWO-YEAR BUDGET - SPECIAL

REVENUE FUNDS
Outline
• Purpose of Special Revenue Funds
• Summary of Revenue Sources
• RMRA SB1/Gas Tax Revenue History
• Summary of Capital Spending
üStreet Projects
üParks Projects
üSafety Projects
üOther Projects
3 May 27, 2025

PRELIMINARY TWO-YEAR BUDGET - SPECIAL

REVENUE FUNDS
Purpose of Special Revenue Funds
q 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;
q Special revenue funds provide an extra level of accountability and transparency to taxpayers and/or ratepayers that their tax or fee dollars will go toward an intended purpose.
4 May 27, 2025

PRELIMINARY TWO-YEAR BUDGET - SPECIAL

REVENUE FUNDS
• Summary of Revenue Sources
Revenue Sources Fiscal Year
2025-26
Fiscal Year
2026-27
Grants & Contributions $9,267,062 $9,006,241
Tax Revenue $2,113,751 $2,159,315
Property Tax – SA[1] $893,181 $893,835
Fees $560,715 $571,651
General Fund Transfers $185,000 $181,000
Other $102,040 $98,040
[1] Successor
Agency
5 May 27, 2025

PRELIMINARY TWO-YEAR BUDGET - SPECIAL

REVENUE FUNDS
Fiscal Year Amount $ Change % Change
13/14 $965,245
14/15 $850,165 ($115,080) (12%)
15/16 $658,700 ($191,465) (23%)
16/17 $513,641 ($145,059) (22%)
17/18 $736,604 222,963 43%
18/19 $994,720 $258,116 35%
19/20 $1,150,172 $155,452 16%
20/21 $1,190,386 $40,214 3%
21/22 $1,303,335 $112,949 9%
22/23 $1,325,218 $21,883 2%
23/24 $1,405,061 $79,843 6%
24/25* $1,556,102 $151,041 11%
25/26* $1,584,049 $27,947 2%
26/27* $1,614,914 $30,865 2%
RMRA SB1/Gas Tax Revenue
History
*Forecast
6 May 27, 2025

PRELIMINARY TWO-YEAR BUDGET - SPECIAL

REVENUE FUNDS
Capital Spending FY 25/26
Streets $4,050,165
Parks $589,001
Safety $8,487,403
Other Projects $1,507,795
TOTAL $20,468,186
Summary of Capital Spending
Projects not completed during FY 25-26 will be
rolled over to the following fiscal year.
7 May 27, 2025

PRELIMINARY TWO-YEAR BUDGET - SPECIAL

REVENUE FUNDS
Street Projects Amount Funding Source
SR62 Str. Imp. Phase 2B $1,725,000 MLHP/Measure I
Roads Overlay/Chip Seal $1,120,837 SB1/Measure I
Street Repairs & Maintenance $864,328 Gas Tax/Measure I Street Widening – Cholla Ave. $250,000 Curb, Gutter, &
Sidewalk
Street Improvements – Citywide $90,000 Development Impact Fee
TOTAL $4,050,165
8 May 27, 2025

PRELIMINARY TWO-YEAR BUDGET - SPECIAL

REVENUE FUNDS
Park Projects Amount Funding Source
City-wide Channel Trail $439,001 MLHP/Measure I
Luckie Park Lot
Improvements
$150,000 CDBG*
TOTAL $589,001
*Community Development Block Grant
9 May 27, 2025

PRELIMINARY TWO-YEAR BUDGET - SPECIAL

REVENUE FUNDS
Safety Projects Amount Funding Source
Split Rock Bridge $4,132,813 MLHP[1]/Measure I
Hatch/Sullivan Bike Path $3,985,527 General Capital
El Rey Crossing $329,063 Measure I
HSIP Two Mile, Adobe and
Utah
$40,000 MLHP/Measure I
TOTAL $8,487,403
[1] Major Local Highway Program
10 May 27, 2025

PRELIMINARY TWO-YEAR BUDGET - SPECIAL

REVENUE FUNDS
Other Projects Amount Funding
Source
Animal Control - New Shelter $602,980 General Capital
Animal Control - Building
Upgrades
$178,394 General Capital
Senior Center Improvements $280,000 General Capital
Homekey Project $145,421 CDBG
Vehicle Replacement - Animal
Control
$131,000 General Capital
Well Repair $50,000 General Capital
Abatements $50,000 Landfill/Land
Use
Shade Structures - City Hall $45,000 General Capital
Equipment Replacement - Street
Sweeper
$25,000 General Capital
TOTAL $1,507,795 11 May 27, 2025

PRELIMINARY TWO-YEAR BUDGET - SPECIAL

REVENUE FUNDS
Other Special Funds:
v Lighting and Landscaping Assessment Districts – A parcel approved assessment district for the benefit of lighting and landscaping within a specific area.

The two assessments are the Historic Plaza and Desert Vista housing. v Public Access TV Fund – A 1% fee on our cable television bills to pay for the access of information by the public (Public, Educational, and Governmental, PEG, access channel).
v TBID (Tourism Business Improvement District) - A 1.5% fee on our short-term overnight stays in our hotels, motels, and vacation home rentals that benefits the Tourism Marketing, Promotion, and Advertising of our destination. 12 May 27, 2025

PRELIMINARY TWO-YEAR BUDGET - SPECIAL

REVENUE FUNDS
Other Special Funds, continued:
v Landfill/Land Use Fund – Article 19 Fees for city clean up & recycling. v Successor Agency – Tax Increment to pay the bond (principal and interest) associated with Project Phoenix and administration of the successor agency. City has submitted its last & final ROPS, which was approved by the DOF on March 2023. Administrative fee was decrease to $25K starting in FY 2024-25. 13 May 27, 2025

Questions/Commen
ts
14 May 27, 2025

Thank you
15 May 27, 2025

AND FISCAL YEAR 2026-27
FISCAL YEAR 2025-26

CAPITAL PROJECTS FUNDS,

SPECIAL REVENUE FUNDS AND

SUCCESSOR AGENCY FUND
DRAFT

BUDGETS

APPROVED
2/25/25
2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT BUDGET BUDGET THROUGH AMENDED PROPOSED PROPOSED CODE ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET
10-0000 REVENUE
4245 Interest 433 $ - $ - $ - $ - $ - $
4316 Transfer In 3,479,961 $ 399,298 $ 120,000 $ 682,151 $ 185,000 $ 181,000 $ 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 $ - $ - $ - $ - $ - $ 4717 Trails and Greenway Prop 68 790,389 $ 21,964 $ - $ - $ - $ - $ 4719 State Grant - Luckie Park Pool 1,300,000 $ - $ - $ - $ - $ - $ 4728 SBCTA/SCAG - Sullivan Bike Path - $ - $ - $ 3,480,000 $ 3,480,000 $ 3,480,000 $ Reserves 4,244,989 $ 569,186 $ 1,224,469 $ 2,439,802 $ 1,750,901 $ 1,226,507 $ TOTAL REVENUE 9,931,747 $ 1,105,240 $ 1,344,469 $ 6,601,953 $ 5,415,901 $ 4,887,507 $ 10-DEPT EXPENDITURES
6295 Well Repair** 17,454 $ 24,686 $ - $ 50,000 $ 50,000 $ 50,000 $ 6335 Trails Flood Control Plan Prop 68 782,226 $ 24,557 $ 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 $ 80,000 6520 Vehicle Replacement - Code Enforcement $ - $ - $ 51,150 $ 51,150 $ - $ - 6520 Vehicle Replacement - Animal Control $ - $ - $ 131,000 - $ $ 131,000 $ - 6520 Vehicle Replacement $ - $ - $ 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 $ 113,546 $ 716,526 $ 602,980 $ 602,980 6779 Hatch/Sullivan Bike Path $ - $ 6,473 $ 8,204 $ 3,995,527 $ 3,985,527 $ 3,970,527 6781 Split Rock Bridge Design + CM $ 26,278 $ 86,080 $ - $ - $ - $ - 6803 MBTA Project Phoenix Transfer Station $ 3,883 $ 7,591 $ 4,327 $ 8,000 $ 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 $ 45,000 6897 Replace Luckie Park Light Poles $ 14,590 $ 438,554 $ 1,050,598 $ 996,856 $ - $ - 6985 Equipment Replacement Fund $ - $ - $ - $ 35,000 $ 25,000 $ 21,000 6985 Equipment Replacement Fund - PW Mower $ 25,407 $ - $ - $ - $ - $ - 6988 Luckie Park Pool Upgrade $ 5,393,706 $ 11,451 $ - $ - $ - $ - TOTAL EXPENDITURES $ 6,802,349 $ 705,225 $ 1,235,619 $ 6,495,247 $ 5,305,901 $ 4,777,507

GENERAL CAPITAL PROJECTS FUND
The Capital Improvement Fund tracks grants and projects that aren't related to Community Development Block Grants. 1 5/20/2025
DRAFT

2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT BUDGET BUDGET THROUGH AMENDED PROPOSED PROPOSED CODE ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET
11-0000 REVENUE
4316 Transfer In - $ - $ - $ 6,000 $ - $ - $
4400 Community Development
Block Grant - $ 74,500 $ - $ 240,117 $ 150,000 $ 150,000 $ 4400 CDBG - Homekey Program 511,126 $ - $ 41,228 $ 202,049 $ 160,821 $ - $ 4400 CDBG - Luckie Park Pool Deck 230,000 $ - $ - $ - $ - $ - $ 4410 Meal Assistance Program 18,746 $ 37,462 $ (25,004) $ - $ - $ - $ TOTAL REVENUE 759,872 $ 111,962 $ 16,224 $ 448,166 $ 310,821 $ 150,000 $ 11-XXXX EXPENDITURES
6866 Homekey Project - $ 14,000 $ 48,628 $ 194,049 $ 145,421 $ - $ 6905 COVID-19 Meal Assistance Program 18,746 $ 37,462 $ - $ - $ - $ - $ 6988 Luckie Park Pool Project - Construction Management 230,000 $ - $ - $ - $ - $ - $ 6770 Luckie Park Basketball Court, Tennis Courts,
and Ball Courts Resurfacing - $ 74,500 $ - $ - $ - $ - $ 6770 Luckie Park Parking Lot Improvements - $ - $ 7,711 $ 240,117 $ 150,000 $ 150,000 $ 6771 Luckie Park - $ 77 $ - $ - $ - $ - $
TOTAL EXPENDITURES 248,746 $ 126,039 $ 56,339 $ 434,166 $ 295,421 $ 150,000 $

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 5/20/2025
DRAFT

2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT BUDGET BUDGET THROUGH AMENDED PROPOSED PROPOSED CODE ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET
12-0000 REVENUE
4245 Interest 18,193 $ 42,141 $ 25,133 $ 35,000 $ 5,000 $ - $ 4264 Curb, Gutter & Sidewalk Impact
Fees 146,990 $ 34,711 $ - $ - $ - $ - $
Reserves - $ 94,199 $ 461,415 $ 230,000 $ 245,000 $ - $ TOTAL REVENUE 165,183 $ 171,051 $ 486,548 $ 265,000 $ 250,000 $ - $ 12-4043 EXPENDITURES
6655 Street Widening Desing - Cholla Ave 13,118 $ 9,115 $ 468,035 $ 235,000 $ 250,000 $ - $ 6922 Safe Route 2 School Eng/Adm 34,554 $ 161,936 $ 18,513 $ 30,000 $ - $ - $ TOTAL EXPENDITURES 47,672 $ 171,051 $ 486,548 $ 265,000 $ 250,000 $ - $

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 5/20/2025
DRAFT

2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT BUDGET BUDGET THROUGH AMENDED PROPOSED PROPOSED CODE ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET
15-0000 REVENUE
4245 Interest - $ - $ 1,245 $ 2,500 $ 2,500 $ 2,500 $
4267 Development Impact Fees - Streets - $ - $ 91,331 $ 80,000 $ 87,500 $ 92,500 $ TOTAL REVENUE - $ - $ 92,576 $ 82,500 $ 90,000 $ 95,000 $ 15-4043 EXPENDITURES
6534 Street Improvements - $ - $ - $ 82,500 $ 90,000 $ 95,000 $ TOTAL EXPENDITURES - $ - $ - $ 82,500 $ 90,000 $ 95,000 $

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 5/20/2025
DRAFT

2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT BUDGET BUDGET THROUGH AMENDED PROPOSED PROPOSED CODE ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET
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 $ - $ - $ - $ - $ - $
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.

TRAFFIC SAFETY FUND
5 5/20/2025
DRAFT

2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT BUDGET BUDGET THROUGH AMENDED PROPOSED PROPOSED CODE ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET
21-0000 REVENUE
4245 Interest 4,262 $ 9,279 $ 7,136 $ 8,000 $ 5,000 $ 5,000 $ 4432 RMRA SB1 617,860 $ 679,370 $ 509,578 $ 713,973 $ 765,837 $ 792,641 $ Reserves 46,397 $ - $ 14,048 $ - $ - $ - $
TOTAL REVENUE 668,519 $ 688,649 $ 530,762 $ 721,973 $ 770,837 $ 797,641 $ 21-4043 EXPENDITURES
6772 Overlay by Street Crew/Chip Seal 668,519 $ 679,729 $ 530,762 $ 721,973 $ 770,837 $ 797,641 $ TOTAL EXPENDITURES 668,519 $ 679,729 $ 530,762 $ 721,973 $ 770,837 $ 797,641 $ 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.
6 5/20/2025
DRAFT

2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT BUDGET BUDGET THROUGH AMENDED PROPOSED PROPOSED CODE ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET
22-0000 REVENUE
4245 Interest 7,491 $ 9,833 $ 4,733 $ 5,000 $ 5,000 $ 5,000 $ 4439 2103 Funds 225,636 $ 239,478 $ 214,036 $ 261,667 $ 264,817 $ 266,141 $ 4440 2106 Funds 103,353 $ 104,332 $ 88,322 $ 112,640 $ 115,429 $ 116,006 $ 4441 2107 Funds 214,775 $ 216,175 $ 176,113 $ 243,705 $ 249,195 $ 250,441 $ 4442 2107.5 Funds 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 4443 2105 Funds 157,594 $ 159,706 $ 134,795 $ 178,610 $ 182,771 $ 183,685 $ Reserves 85,375 $ 56,930 $ - $ - $ 31,116 $ - $
TOTAL REVENUE 800,224 $ 792,454 $ 623,999 $ 807,622 $ 854,328 $ 827,273 $ 22-4043 EXPENDITURES
5110 Salaries 354,421 $ 371,212 $ 264,870 $ 307,825 321,823 342,086 5235 Vehicle/Cell Allowance 1,656 $ 659 $ 406 $ 480 480 480 5250 Insurance 52,590 $ 58,013 $ 37,798 $ 51,485 50,612 52,587 5251 Retirement 36,100 $ 39,786 $ 28,507 $ 33,396 35,168 37,515 5252 Workers Comp 10,199 $ 10,717 $ 9,455 $ 12,313 12,873 13,684 5253 PTO 12,729 $ 11,422 $ 9,658 $ 13,000 13,000 12,765 6210 Electricity $ 7,818 $ 9,988 $ 5,280 10,000 11,000 10,500 6211 Natural Gas $ 567 $ 196 $ 280 700 500 650
6212 Water $ 328 $ 362 $ 301 600 600 600
6221 Telephone $ 232 $ 302 $ 409 300 500 500
6241 Office Supplies $ 540 $ 40 $ - 800 800 800
6251 Training & Meetings $ - $ - $ - 1,000 500 500
6262 Equipment Repair &
Maintenance $ 59,557 $ 49,287 $ 44,478 65,000 65,000 65,000 6272 Vehicle Repair &
Maintenance $ 31,339 $ 22,563 $ 50,447 48,723 50,000 52,000 6291 Building Repair &
Maintenance $ 2,941 $ 3,513 $ 2,421 4,000 4,000 4,000
6312 Small Equip. & Tools $ 5,619 $ 5,073 $ 2,025 6,000 5,000 5,000 6327 Equipment Lease $ - $ - $ 1,009 - - -
6332 Uniforms $ 3,393 $ 3,427 $ 2,923 4,000 4,000 4,000 6359 Contract Services $ 4,710 $ - $ - - - -
6432 Liability and Property
Insurance $ 41,661 $ 44,228 $ 51,915 52,000 62,400 74,880 6508 Capital Equipment $ 53,450 $ - $ - 50,000 70,000 - 6532 Signs & Striping $ 6,683 $ 3,702 $ 5,788 7,000 7,000 7,000 6534 Road Improvement
& Maintenance $ 286 $ 211 $ 47 5,000 5,000 5,000
6536 Asphalt & Concrete $ 123 $ 9,713 $ 6,681 12,000 11,000 11,000 6537 Emergency Road Work $ 12,930 $ 59 $ 138 3,000 5,000 5,000 6556 Street Lighting-SCE $ 60,434 $ 66,429 $ 48,982 52,000 73,072 76,726 6765 Sign Material $ 29,918 $ 71,552 $ 27,345 37,000 35,000 35,000 6850 Admin Fees Transferred to GF $ 10,000 $ 10,000 $ 7,500 10,000 10,000 10,000 TOTAL EXPENDITURES $ 800,224 $ 792,454 $ 608,663 $ 787,622 $ 854,328 $ 827,273

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 5/20/2025
DRAFT

2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT BUDGET BUDGET THROUGH AMENDED PROPOSED PROPOSED CODE ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET
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 5/20/2025
DRAFT

2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT BUDGET BUDGET THROUGH AMENDED PROPOSED PROPOSED CODE ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET
26-0000 REVENUE
4325 Split Rock Bridge Construction - SBCTA - $ - $ - $ 405,877 $ 419,085 $ 419,085 $ 4326 LTF Art 3 - City-Wide Channel Trail - $ - $ 110,721 $ 420,750 $ 300,750 $ 260,750 $ 4328 Split Rock Bridge Construction - CalTrans - $ - $ 9,397 $ 3,234,665 $ 3,174,665 $ 3,114,665 $ 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 $ - $ - $ 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 $ - $ - $ 4740 Major Local Hwy Program Median HWY 62 186,231 $ - $ - $ - $ - $ - $ 4741 MLHP - SR62 Str. Imp. Phase 2B - $ - $ - $ 375,000 $ 1,500,000 $ 1,500,000 $ TOTAL REVENUE 964,148 $ 171,248 $ 1,087,606 $ 5,821,240 $ 5,394,500 $ 5,294,500 $ 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 $ - $ - $ 6782 Split Rock Bridge Construction $ - $ - $ 41,252 $ 3,640,542 $ 3,593,750 $ 3,533,750 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 $ - $ - 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 - $ $ 1,500,000 $ 1,500,000 6974 City-wide Channel Trail Class I $ - $ 13,779 $ 104,915 $ 420,750 $ 300,750 $ 260,750 TOTAL EXPENDITURES $ 972,125 $ 1,140,097 $ 544,227 $ 4,859,752 $ 5,394,500 $ 5,294,500

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 5/20/2025
DRAFT

2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT BUDGET BUDGET THROUGH AMENDED PROPOSED PROPOSED CODE ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET
27-0000 REVENUE
4245 Interest 29,333 $ 97,714 $ 78,508 $ 70,000 $ 50,000 $ 50,000 $ 4455 Measure I Distribution 638,062 $ 600,090 $ 319,218 $ 674,537 $ 529,702 $ 544,401 $ Reserves - $ - $ - $ 844,358 $ 1,051,675 $ 962,976 $
TOTAL REVENUE 667,395 $ 697,804 $ 397,726 $ 1,588,895 $ 1,631,377 $ 1,557,377 $ 27-4043 EXPENDITURES
6612 HSIP Two Mile, Adobe and Utah 8,498 $ 20,791 $ 61,105 $ 85,000 $ 40,000 $ - $ 6772 Overlay/Chip Seal Work by Street Crew - $ 265,165 $ 195,827 $ 424,000 $ 350,000 $ 350,000 $ 6782 Split Rock Bridge Const Eng/Admin - $ 23,040 $ 12,051 $ 546,081 $ 539,063 $ 530,063 $ 6850 Admin Fees Transferred to GF 10,000 $ 10,000 $ 7,500 $ 10,000 $ 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 $ 8,128 $ 56,250 $ 225,000 $ 225,000 $ 6973 El Rey Crossing Cost Sharing/Admin - $ - $ - $ 329,063 $ 329,063 $ 329,063 $ 6974 City-wide Channel Trail Class I - $ 9,999 $ 22,147 $ 138,501 $ 138,251 $ 113,251 $ TOTAL EXPENDITURES 96,641 $ 357,333 $ 306,758 $ 1,588,895 $ 1,631,377 $ 1,557,377 $ MEASURE "I" FUNDS BUDGET 2010 TO 2040
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.
10 5/20/2025
DRAFT

2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT BUDGET BUDGET THROUGH AMENDED PROPOSED PROPOSED CODE ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET
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.
11 5/20/2025
DRAFT

2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT BUDGET BUDGET THROUGH AMENDED PROPOSED PROPOSED CODE ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET
41-0000 REVENUE
4107 Homeowner
Assessments 12,807 $ 12,810 $ 13,574 $ 13,409 $ 13,744 $ 14,156 $ 4245 Interest 2,202 $ 4,258 $ 2,824 $ 1,500 $ 1,500 $ 1,500 $ Reserves 5,616 $ 2,919 $ - $ 8,644 $ 8,455 $ 8,195 $
TOTAL REVENUE 20,625 $ 19,987 $ 16,398 $ 23,553 $ 23,699 $ 23,851 $ 41-4043 EXPENDITURES
6210 Electricity 400 $ 430 $ 318 $ 478 $ 502 $ 527 $
6212 Water 2,519 $ 1,619 $ 589 $ 2,426 $ 2,547 $ 2,674 $ 6233 Publishing/Notices - $ 238 $ - $ 250 $ 250 $ 250 $ 6260 Graffiti Removal - $ - $ - $ 400 $ 400 $ 400 $
6290 Maintenance Contract 17,706 $ 17,700 $ 13,275 $ 20,000 $ 20,000 $ 20,000 $ TOTAL EXPENDITURES 20,625 $ 19,987 $ 14,182 $ 23,553 $ 23,699 $ 23,851 $

LIGHTING & LANDSCAPING DISTRICT DESERT VISTA
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. 12 5/20/2025
DRAFT

2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT BUDGET BUDGET THROUGH AMENDED PROPOSED PROPOSED CODE ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET
42-0000 REVENUE
4245 Interest 2,678 $ 3,606 $ 2,334 $ 1,500 $ 1,500 $ 1,500 $ 4500 Subscriber
Contributions 22,806 $ 19,303 $ 8,633 $ 24,000 $ 14,000 $ 14,000 $ Reserves 38,203 $ - $ 14,524 $ 46,988 $ 53,357 $ 44,920 $ TOTAL REVENUE 63,687 $ 22,909 $ 25,491 $ 72,488 $ 68,857 $ 60,420 $ 42-0104 EXPENDITURES
6751 Agenda Management 18,455 $ 19,378 $ 20,347 $ 25,453 $ 21,568 $ 22,862 $ 6776 Public Access Website 3,995 $ - $ 4,235 $ 4,235 $ 4,489 $ 4,758 $ 6823 Electronic Equipment 41,237 $ - $ 909 $ 42,800 $ 42,800 $ 32,800 $ TOTAL EXPENDITURES 63,687 $ 19,378 $ 25,491 $ 72,488 $ 68,857 $ 60,420 $

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.
13 5/20/2025
DRAFT

2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT BUDGET BUDGET THROUGH AMENDED PROPOSED PROPOSED CODE ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET
43-0000 REVENUE
4107 Homeowner
Assessments 7,738 $ 8,249 $ 6,338 $ 10,020 $ 10,471 $ 10,995 $ 4245 Interest 26 $ 86 $ 68 $ 50 $ 40 $ 40 $
TOTAL REVENUE 7,764 $ 8,335 $ 6,406 $ 10,070 $ 10,511 $ 11,035 $ 43-4043 EXPENDITURES
6212 Water 1,039 $ 1,136 $ 987 $ 1,500 $ 1,500 $ 1,500 $ 6233 Publishing/Notices - $ 238 $ - $ 250 $ 250 $ 250 $ 6290 Maintenance Contract 6,000 $ 6,000 $ 5,000 $ 8,320 $ 8,761 $ 9,285 $ TOTAL EXPENDITURES 7,039 $ 7,374 $ 5,987 $ 10,070 $ 10,511 $ 11,035 $

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 5/20/2025
DRAFT

Approved
9/24/24
2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT THROUGH THROUGH THROUGH AMENDED PROPOSED PROPOSED CODE THRU SEPT THRU SEPT 4/30/2025 BUDGET BUDGET BUDGET 51-0000 REVENUE
4125 Visit 29! Tourism Fee 390,420 $ 369,678 $ 205,798 $ 375,000 $ 385,000 $ 390,000 $ 4150 Merchandise for Resale 1,300 $ 1,055 $ 760 $ 500 $ 500 $ 500 $ 4245 Interest 10,355 $ 22,171 $ 12,060 $ 5,000 $ 7,000 $ 8,000 $ 4890 Other/Misc. Revenue 1 $ 15 $ - $ - $ - $ - $
Reserves - $ - $ - $ 155,414 $ 161,633 $ 161,512 $
TOTAL REVENUE 402,076 $ 392,919 $ 218,618 $ 535,914 $ 554,133 $ 560,012 $ 51-1013 EXPENDITURES
5110 Salaries 90,057 $ 105,082 $ 60,290 $ 106,974 $ 117,333 $ 121,534 $ 5120 Salaries Part-time 15,745 $ 15,001 $ 6,983 $ 16,380 $ 19,000 $ 19,000 $ 5250 Health Benefits 18,940 $ 20,277 $ 11,401 $ 21,496 $ 20,496 $ 21,623 $ 5251 Retirement Benefits 6,782 $ 8,099 $ 4,781 $ 8,430 $ 9,351 $ 9,734 $ 5252 Workers comp 2,521 $ 3,505 $ 2,691 $ 4,934 $ 5,453 $ 5,621 $ 5254 Unemployment - $ - $ 106 $ 1,000 $ 1,000 $ 1,000 $ 6241 Office Supplies 1,732 $ 2,332 $ 1,650 $ 2,500 $ 2,500 $ 2,500 $ 6244 Miscellaneous 2,192 $ 3,144 $ 890 $ 5,000 $ $ 5,000 $ 5,000 6245 Contingency $ - $ - $ - $ 10,000 $ 10,000 $ 10,000 6251 Meeting & Travel $ - $ - $ 672 $ 200 $ 500 $ 500
6291 Building & Maint $ 1,687 $ 538 $ 396 $ 1,000 $ 1,000 $ 1,000 6343 Video Production $ 8,800 $ - $ - $ - $ - $ -
6344 Broadcast Media & Airports $ 36,996 $ 25,000 $ 39,090 $ 60,000 $ 60,000 $ 60,000 6345 Regional Print Ad's $ 2,730 $ 21,803 $ 3,061 $ 15,000 $ 15,000 $ 15,000 6347 Trade Conventions & Memberships $ 12,450 $ 29,139 $ 2,671 $ 20,000 $ 20,000 $ 20,000 6350 Reporting & Analysis $ - $ 6,000 $ - $ - $ - $ -
6353 Contract Services $ 26,910 $ 10,000 $ 13,521 $ 24,000 $ 24,000 $ 24,000 6356 Internet Marketing & Website Design $ 44,177 $ 35,452 $ 13,864 $ 39,000 $ 40,000 $ 40,000 6360 Special Projects $ - $ - $ - $ - $ - $ -
6371 Community Events/Sponsorships $ 16,968 $ 152,013 $ 80,750 $ 200,000 $ 200,000 $ 200,000 6518 Electronic Equipment $ 578 $ - $ 396 $ - $ - $ -
6841 Legal Services $ 17,660 $ 766 $ 3,016 $ - $ 3,500 $ 3,500 TOTAL EXPENDITURES $ 306,925 $ 438,151 $ 246,229 $ 535,914 $ 554,133 $ 560,012

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 5/20/2025
DRAFT

2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT BUDGET BUDGET THROUGH AMENDED PROPOSED PROPOSED CODE ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET
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.
16 5/20/2025
DRAFT

2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT BUDGET BUDGET THROUGH AMENDED PROPOSED PROPOSED CODE ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET
65-0000 REVENUE
4245 Interest 4,807 $ 9,763 $ 7,392 $ 8,000 $ 6,000 $ 6,000 $ 4252 Recycling Grant - SB1383 - $ 43,262 $ - $ 75,241 $ 75,241 $ 75,241 $ 4257 Code Enforcement Assessments - $ - $ 12,265 $ 20,000 $ 18,000 $ 18,000 $ 4262 Recycling Grant - Beverage Container Recycling 7,239 $ 6,844 $ - $ 6,900 $ 6,500 $ 6,500 $ 4263 Perch Haul/Article 19 Fees 45,727 $ 54,583 $ 39,908 $ 45,000 $ 50,000 $ 50,000 $ 4890 Other/Miscellaneous Revenue 18,304 $ - $ 29,109 $ - $ - $ - $ Reserves 7,882 $ - $ 29,923 $ 104,403 $ 32,842 $ 33,944 $ TOTAL REVENUE 83,959 $ 114,452 $ 118,597 $ 259,544 $ 188,583 $ 189,685 $ 65-1011 EXPENDITURES
6257 Dues & Subscriptions 21,104 $ - $ 4,800 $ 4,800 $ 4,800 $ 4,800 $ 6260 Graffiti removal - $ - $ - $ 5,000 $ 5,000 $ 5,000 $ 6509 Recycling Programs - SB1383 7,338 $ 35,924 $ - $ 75,241 $ 75,241 $ 75,241 $ 6548 Dangerous Building
Abatement 4,800 $ 9,942 $ 62,070 $ 120,000 $ 50,000 $ 50,000 $ 6551 Recycling Programs - Beverage Container 8,372 $ 7,616 $ 6,103 $ 6,900 $ 6,500 $ 6,500 $ 6560 Household Hazardous
Waste Program 22,413 $ 23,142 $ 23,952 $ 25,000 $ $ 25,000 $ 25,000 6562 Mojave Desert JPA $ 19,932 $ 21,308 $ 21,672 $ 22,603 $ 22,042 $ 23,144 TOTAL EXPENDITURES $ 83,959 $ 97,932 $ 118,597 $ 259,544 $ 188,583 $ 189,685

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 5/20/2025
DRAFT

2022-2023 2023-2024 2024-2025 2024-2025 2025-2026 2026-2027

ACCOUNT BUDGET BUDGET THROUGH AMENDED PROPOSED PROPOSED CODE ACTUAL ACTUAL 4/30/2025 BUDGET BUDGET BUDGET
74-0000 REVENUE
4108 Property Taxes 961,452 $ 915,800 $ 235,500 $ 881,672 $ 893,181 $ 893,835 $ TOTAL REVENUE 961,452 $ 915,800 $ 235,500 $ 881,672 $ 893,181 $ 893,835 $ 74-0000 EXPENDITURES
6359 Contract & Consulting SVC 7,633 $ 6,050 $ 3,410 $ 12,272 $ 27,212 $ 17,142 $ 6437 Bond Interest 470,115 $ 457,157 $ 443,022 $ 444,400 $ 429,969 $ 414,653 $ 6801 Bond Principal 375,000 $ 389,555 $ 400,000 $ 400,000 $ 410,000 $ 435,000 $ 6850 Transfer to General Fund 112,273 $ 87,500 $ 25,277 $ 25,000 $ 26,000 $ 27,040 $ TOTAL EXPENDITURES 965,021 $ 940,262 $ 871,709 $ 881,672 $ 893,181 $ 893,835 $

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 5/20/2025
DRAFT

STAFF REPORT
TO: City Council
FROM: City Clerk
FOR MEETING: May 27 2025
SUBJECT: First Amendment to City Manager Employment Agreement.

RECOMMENDATION:

The City Council adopt the proposed amendment to the City Manager's Employment Agreement.

ORDER OF PROCEDURE:

Request Staff Report (Mayor Presenting)
Council Questions of Staff
Request Public Comment
Council Discussion
Motion/Second
Discussion of Motion
Call the Question
ATTACHMENTS:
• First Amendment to City
Manager Employment
Agreement - Stone James 2025
BACKGROUND:

The City Council has been conducting its annual performance evaluation of the City Manager. In connection with the City Manager’s evaluation, the Personnel Subcommittee comprised of the Mayor and Mayor ProTem, was tasked with providing a recommendation for an adjustment to the City Manager’s compensation. Based on the evaluation given to the City Manager by the City Council, the Personnel Subcommittee recommends a 2.5% increase to the City Manager’s salary retroactive to coincide with his employment anniversary date, and a cost of living (COLA) increase in July at the same time, and in the same amount (2.5%), as applicable to all other department heads. The Subcommittee also recommends various adjustments to the benefits the City Manager is provided as follows: a slight increase in vacation leave, addition of $500/month deferred compensation, and flexibility to cash out unused administrative leave. The recommended adjustments are set forth in the attached contract amendment bringing the City Manger’s total salary now to $180,836.24, and following the July COLA adjustment to $185,357.15. Note that the City Manager’s salary is currently the lowest of all city managers in San Bernardino County. Implementing the Personnel Subcommittee’s recommendation would bring the City Manager’s salary more in line with salaries for his position in the County.

ENVIRONMENTAL:

N/A
ALTERNATIVES:

The City Council could choose to modify or not to approve these amendments.

FISCAL IMPACT: Page 249 of 252
N/A

FIRST AMENDMENT TO CITY MANAGER EMPLOYMENT AGREEMENT
This First Amendment to that certain Employment Agreement Dated March 26, 2024 (the “First Amendment”) by and between the CITY OF TWENTYNINE PALMS, a California municipal corporation (“City”) and H. STONE JAMES (“Manager”) is entered between the parties so as to be effective as of May 13, 2025.

RECITALS
A. City and Manager entered that certain agreement (the “Agreement”) dated March 26, 2024, by which City’s City Council (the “City Council”) agreed to employ Manager to serve as the City Manager of the City; and
B. The City Council desires to amend the Agreement as set forth in this First Amendment, and the Parties mutually desire to enter into this First Amendment updating the terms and conditions of Manager’s appointment and employment as the City Manager of the City, while leaving all unaffected provisions of the Agreement unchanged; and NOW THEREFORE, in consideration of the facts recited above, and the covenants, conditions and provisions below, the Parties agree as follows:

COVENANTS
SECTION 1. AMENDMENT TO COMPENSATION. Section 2.1.1 of the Agreement is amended so as to increase Manager’s compensation by 2.5%, and shall read as follows:

2.1.1 Salary. Retroactive so as to be effective commencing the first pay period following March 26, 2025, the City shall pay Manager’s salary in the amount of One Hundred Eighty Thousand Eight Hundred Thirty-Six Dollars and Twenty-Four Cents ($180,836.24) per annum for his services, payable in installments at the same time and in the same manner as the City pays other employees of the City. Manager’s salary shall be subject to customary withholding for taxes and other required deductions.

SECTION 2. AMENDMENT TO BENEFITS. Section 2.2.2, and 2.2.3 of the Agreement are amended, and new Sections 2.2.9 and 2.2.10 are added to the Agreement, so as to amend the benefits provided to Manager, and shall read as follows:

2.2.2 Commencing retroactively to the first pay period following March 26, 2025, Manager shall accrue 4.62 hours per pay period of vacation leave (120 hours per year), and 3.69 hour per pay period of sick leave, in accordance with the policies and procedures applicable to executive management employees (department heads).

2.2.3 Manager shall be allocated a maximum of eighty (80) hours of administrative/personal leave each calendar year. Accrued but unused administrative/personal leave may not be rolled over to the next year.

Administrative/personal leave accrued commencing the first pay period after March 26, 2025, which is unused at the end of any calendar year, will be cashed out at the end of

each calendar year or upon separation from employment at Manager’s then current rate of hourly pay.

2.2.9 In July 2025, Manager shall be entitled to receive the same cost of living (COLA) adjustment to the base salary set forth in Section 2.2.2 as received by executive management employees (department heads).

2.2.10. Commencing retroactively to April 1, 2025, City agrees to deposit Five Hundred Dollars ($500.00) per month as deferred compensation into Manager's Section 457 Deferred Compensation Plan or such other qualified retirement plan as may be designated by Manager as permitted by law.

SECTION 3. UNAFFECTED PROVISIONS REMAIN IN FULL FORCE. All provisions of the Agreement excepting for those expressly amended by this First Amendment, shall remain unchanged and in full force and effect.

IN WITNESS WHEREOF, the parties have entered into this First Amendment to the Agreement as of the date first written above.

CITY OF TWENTYNINE PALMS
By:______________________________
Steven Bilderain
Mayor
ATTEST
_____________________________
Cindy Villescas
City Clerk

APPROVED AS TO FORM
____________________________
A. Patrick Muñoz
City Attorney

MANAGER
By:______________________________
H. Stone James