Twentynine Palms City Council
February 24, 2026

TWENTYNINE PALMS CITY COUNCIL

REGULAR MEETING AGENDA
6136 Adobe Road
Twentynine Palms, CA 92277
www.29palms.org
Tuesday, February 24, 2026
NOTICE IS HEREBY GIVEN, that the City Council will hold a Regular Meeting on Tuesday, February 24, 2026, at City Hall, 6136 Adobe Road, Twentynine Palms, CA 92277 to consider the following:

REGULAR SESSION AGENDA
6:00 P.M.

CALL TO ORDER
Pledge of Allegiance.

Invocation - Pastor Michelle Ronia – Oasis Community Church.

Roll Call.

Closed Session Announcements.

Changes to the Agenda.

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

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

AWARDS, PRESENTATIONS, APPOINTMENTS AND PROCLAMATIONS

1. Presentation to the Twentynine Palms High School Volleyball Team for their Participation in the Cash for Trash and Recycling Program.

2. Public Works Department Update.

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

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

4. Approval of Minutes of the City Council Meeting Held on February 10, 2026.

City Council - Regular Meeting with Closed Session - 10 Feb 2026 - Minutes - Pdf 5 - 8

5. Adopt Resolution No. 26-___ Approving the Updated Retention Schedule. *Resolution will be provided prior to meeting*
RECOMMENDATION:

The City Council adopt a Resolution approving the 2026 updates to the current Retention Schedule.*
Adopt Resolution No. 26-___ Approving the Updated Retention Schedule. *Resolution will be provided prior to meeting* - Pdf
9 - 58

ITEMS REMOVED FROM CONSENT CALENDAR FOR DISCUSSION

PUBLIC HEARING - NONE

DISCUSSION AND POTENTIAL ACTION ITEMS

6. Financial Report - Fiscal Year 2025-26 General Fund Mid-Year Budget Update.

RECOMMENDATION: The City Council:

1. Approve Resolution 26-___ adopting the proposed General Fund Budget amendments for FY 2025-26.

2. Approve the following interfund transfers for FY 2025-26 from the General Fund to the Capital Projects Fund.
 $100,300 for the community survey and consulting services for the sales tax measure.
 $68,000 for the unfunded portion of the Elm Property Improvements.  $10,000 for flood monitoring equipment/cameras.
 $5,000 for fixtures needed for the new Animal Control truck.

Financial Report - Fiscal Year 2025-26 General Fund Mid-Year Budget Update. - Pdf 59 - 153

7. Financial Report - Fiscal Year 2025-26 Mid-Year Budget Update - Capital Projects Funds and Special Revenue Funds.

RECOMMENDATION: The City Council:

1. Approve Resolution No. 26-___ adopting the proposed Capital Projects Fund and Special Revenue Funds budget amendments for FY 2025-26.

2. Approve the following interfund transfers for FY 2025-26 to the Capital Projects Funds from the General Fund.
 $100,300 for the community survey and consulting services for the sales tax measure.
 $68,000 for the unfunded portion of the Elm Property Improvements.  $10,000 for flood monitoring equipment/cameras.
 $5,000 for fixtures needed for the new Animal Control truck Financial Report - Fiscal Year 2025-26 Mid-Year Budget Update - Capital Projects Funds and Special Revenue Funds. - Pdf
155 - 187

8. Financial Report - Fiscal Year 2025-26 Mid-Year Budget Update - Project Phoenix Funds and Enterprise Sewer Fund.

RECOMMENDATION: Staff is recommending the following actions:

1. The City Council approve Resolution No. 26-___ adopting the proposed Project Phoenix Funds and Enterprise Sewer Fund budget amendments for FY 2025-26.

2. The City Council approve the $80K transfer from the General Fund to the Sewer Fund for utility connections needed to operate the Project Phoenix Package Treatment Plant.

Financial Report - Fiscal Year 2025-26 Mid-Year Budget Update - Project Phoenix Funds and Enterprise Sewer Fund. - Pdf
189 - 204

9. Youth-Driven Tile Mural Project within Freedom Plaza RECOMMENDATION: Tonight's agenda item is an opportunity to discuss a potential youth-driven tile mural project to be placed within the Freedom Plaza project.

Youth-driven tile mural project within Freedom Plaza - Pdf 205 - 273

FUTURE COUNCIL INITIATED ITEMS

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

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

3. Discussion on creating a "Recognized Neighborhood Program".

4. Discussion on the new Federal holidays to coincide with the City's holiday schedule.

5. Discussion on the use of City funds for grants and the potential reallocation of housing and homeless funds to grants.

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

CITY MANAGER UPDATE

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

This notice of agenda is hereby certified to have been posted on or before 6:00 p.m. February 19, 2026.

Cindy Villescas CMC, City Clerk Time/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
February 10, 2026

CLOSED SESSION AGENDA
5:30 P.M.

CALL TO ORDER - Mayor Mintz called the Closed Session to order at 5:30 p.m.

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

Adjourn to Closed Session - Mayor Mintz adjourned to Closed Session at 5:31 p.m.

CLOSED SESSION

1. THREAT TO PUBLIC SERVICES OR FACILITIES, Government Code Section 54954.5, Consultation with City Attorney, Patrick Munoz.

REGULAR SESSION AGENDA
6:00 p.m.

CALL TO ORDER - Mayor Mintz called the meeting to order at 6:04 p.m.

Pledge of Allegiance - Ms. Robin Schlosser led the Pledge of Allegiance.

Invocation - LeeAnn Clarke, Twentynine Palms Ministerial Association, gave the Invocation.

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

Closed Session Announcements - Mayor Mintz announced that there was nothing to report from the Closed Session.

Changes to the Agenda - None.

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

AWARDS, PRESENTATIONS, APPOINTMENTS AND PROCLAMATIONS

1. Proclamation Recognizing February 2026 as Black History Month.

Mayor Mintz read the Proclamation and presented it to Elder Brock.

2. City Clerk's Department Update.

Deputy City Clerk Benton provided a department update.

COUNCIL COMMENTS AND REPORTS OF MEETINGS ATTENDED

City Council - Regular Meeting with Closed Session
February 10, 2026
Councilmember Bilderain mentioned that he attended the Ribbon Cutting Ceremony for the Twentynine Palms Food Pantry, he met with constituents and he wished everyone Happy Valentine's Day. He thanked the City Clerk because not only does the department do all the things mentioned in the Update, but she also makes sure the City Council is where they need to be.

Councilwoman Ramirez commented that she attended the Ribbon Cutting Ceremony for the Food Pantry and the CalCities' Desert/Mountain Division meeting.

Councilmember Wright echoed what Councilmember Bilderain said, thanking the City Clerk for keeping them on track on places where they need to be. He mentioned that he attended the Ribbon Cutting Ceremony for the Food Pantry, and he wished his Granddaughter, his oldest son, and his mother a Happy Birthday as they have birthdays in February. He commented that Warhawks Football is getting ready to begin.

Mayor Pro Tem Scott commented that he attended a Black History event at the Glass House Gallery and he met with constituents.

Mayor Mintz reiterated what Councilmembers Bilderain and Wright said thanking the City Clerk and Deputy City Clerk for keeping the City Council on track. He mentioned he attended an SBCTA meeting and the Find Food Bank (Food Pantry) Ribbon Cutting Ceremony.

CONSENT CALENDAR

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

4. Approval of Minutes of the City Council Meeting Held on January 27, 2026.

5. Approval of Warrant Register Totaling $1,081,882.31.

6. Acquisition of 2018 Freightliner M2 Water Truck.

RECOMMENDATION: The City Council approve the purchase of 2018 Freightliner M2 Water Truck in the amount of $63,685.00, plus any delivery fees, from Proven Truck & Equipment, Inc.

7. Adoption of Resolution No. 26-03 to Approve and Adopt the City's Duplication of Benefits Policy and Processes.

RECOMMENDATION: The City Council approve Resolution No. 26-03 to approve and adopt the City of Twentynine Palms' Duplication of Benefits Policy and Processes in accordance with the U.S. Department of Housing and Urban Development.

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

The above motion was carried by the following:

ROLL CALL VOTE:

AYES: BILDERAIN, RAMIREZ, SCOTT, WRIGHT, MINTZ
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
ITEMS REMOVED FROM CONSENT CALENDAR FOR DISCUSSION - NONE.

City Council - Regular Meeting with Closed Session
February 10, 2026

PUBLIC HEARING- NONE

DISCUSSION AND POTENTIAL ACTION ITEMS

8. CalRecycle Local Assistance Grant Fund Expenditure and MOU for Food Recovery Organizations.

RECOMMENDATION: The City Council review and award bid to Best Buy Restaurant Equipment in the amount of $73,751.73 for the purchase of 5 Commercial Freezers, 3 Commercial Refrigerators, and 6 NSF approved wire shelving units with casters. Approve a basic Memorandum of Understanding with the eligible Food Recovery Organizations (FRO) to be prepared by the City Attorney, ensuring the ownership requirements of the grant are met.

City Manager James presented the Staff Report.

ACTION: A motion was made by Councilmember Wright, seconded by Councilwoman Ramirez, to award a bid to Best Buy Restaurant Equipment in the amount of $73,751.73 for the purchase of 5 Commercial Freezers, 3 Commercial Refrigerators, and 6 NSF approved wire shelving units with casters. Approve a basic Memorandum of Understanding with the eligible Food Recovery Organizations (FRO) to be prepared by the City Attorney, ensuring the ownership requirements of the grant are met.

The above motion was carried by the following:

ROLL CALL VOTE:

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

FUTURE COUNCIL INITIATED ITEMS

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

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

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

4. Parking in Residential Areas.

5. Moratorium of Drive-thru facilities in the Downtown area.

6. Discussion on creating a "Recognized Neighborhood Program".

7. Discussion on the new Federal holidays to coincide with the City's holiday schedule.

8. Discussion on the use of City funds for grants and the potential reallocation of housing and homeless funds to grants.

Councilwoman Ramirez asked that Staff remove #2 as they chose to go another route.

PUBLIC COMMENTS
The following addressed the City Council:
 Peter Lang
 Suzanne Lyons
 LeeAnn Clarke
 Gretchen Grunt
 Heather Huguenor
 Alexandra Akins
 Heather Drake
 Joseph Candelaria

City Council - Regular Meeting with Closed Session
February 10, 2026
 Elliott Balsley
 Pauline Pisano

CITY MANAGER UPDATE
City Manager James provided the following updates: the Split Rock Avenue Bridge Project is set to begin tomorrow, February 11, 2026, and will go through the end of December 2026, with the road being closed from Buena Vista Drive to Bagley Avenue and the Luckie Park ADA Parking Lot Improvement Project is set to begin Monday, February 16, 2026.

ADJOURNMENT - Mayor Mintz adjourned the meeting at 7:05 p.m.

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

STAFF REPORT
TO: City Council
FROM: City Clerk
FOR MEETING: Feb 24 2026
SUBJECT: Adopt Resolution No. 26-___ Approving the Updated Retention Schedule. *Resolution will be provided prior to meeting*
RECOMMENDATION:

The City Council adopt a Resolution approving the 2026 updates to the current Retention Schedule.* ORDER OF PROCEDURE:

Request Staff Report (City Clerk Presenting)
Council Questions of Staff
Request Public Comment
Council Discussion
Motion/Second
Discussion of Motion
Call the Question
ATTACHMENTS:
• __ALL Records Retention
Schedules - Exhibit to
Resolution 2026-02-06
BACKGROUND:

Gladwell Governmental Services, Inc. (GGS), an expert in local government records, has been providing support and annual updates to the City’s records retention schedules for many years. These changes are mandated by changes in State or Federal law, and the City must follow the current law.

Current Best Practices is to approve these with appropriate checks and balances (written approval of the Department Head, City Attorney, City Clerk, and City Manager, saving time and money by not placing them on the Council’s agenda for approval, since the changes are mandated by changes in State or Federal law.

GGS reports that 80% of the over 200 Cities in California they support are approving the changes in records retention schedules in a like manner, saving time and money for the organization.

The record destruction approval forms are retained by the City Clerk’s office and are accessible to the public or any Council Member that has an interest in what records retention policies were modified and the underlying law that necessitated the modification.

The purpose of the program is to apply efficient and economical methods to the creation, utilization, maintenance, retention, preservation and disposal of all records managed by the City in accordance with all applicable laws and regulations.

It is standard business practice for California cities to authorize the routine destruction of records that have exceeded their adopted retention period, upon the request of the Department Head and with the Page 9 of 273 consent in writing of the Department Head, City Clerk and City Attorney, which is provided in Section 2 of the Resolution. this is not a new practice, as Twentynine Palms has used a record retention schedule to schedule records destruction for a number of years.

Based on Staff's research, it is also now a standard business practice for California cities to authorize updates to the record retention schedule without further action of the City Council, which is proposed for the City of Twentynine Palms in Section 3 of the attached Resolution.

Adopting such a modification will reduce costs and improve efficiency for the City.

ENVIRONMENTAL:

N/A
ALTERNATIVES:

The City Council could choose not to approve the Resolution updating the Retention Schedule and/or the City's policies in connection with the same and direct Staff to return with a different proposal.

FISCAL IMPACT:

Twentynine Palms will realize savings and efficiency gains.

HOW TO USE RETENTION SCHEDULES
©1995-2026 Gladwell Governmental Services, Inc. (909) 337-3516 - all rights reserved Do not duplicate or distribute without prior written permission A legend explaining the information presented in the retention schedule; please read this for an explanation of every column.

The specified retention period applies regardless of the media of the record: If a record is stored on paper and electronic format (a computer file on a hard drive), all electronic and paper records should be destroyed (or deleted / erased) after the specified period of time has elapsed and authorization to destroy has been obtained.

Copies or duplicates of records should never be retained longer than the prescribed period for the official (original) record, and drafts and copies should be destroyed as soon as they are no longer required.

The term “records” shall include all records as defined by the California Public Records Act.

STRUCTURE: CITY-WIDE, DEPARTMENTS & DIVISIONS
The City-wide retention schedule includes those records all departments have in common (e-mails, letters, memorandums, purchase orders, etc.). These records are NOT repeated in the Department retention schedule, unless that department is the Office of Record.

Each department has a separate retention schedule that describes the records that are unique to their department, or for which they are the Office of Record. The department retention schedules may be organized by Division within that Department. If a record is not listed in your department retention schedule, refer to the City-wide retention schedule, or look in the index to the schedules (provided after approval.)

BENEFITS
This retention schedule has been developed by Diane R. Gladwell, MMC, an expert in Municipal Government records, and will provide the City with the following benefits:
• Reduce administrative expenses, expedite procedures
• Free office space and computer storage space
• Reduce the cost of records storage – paper and electronic • Eliminate duplication of effort within the City
• Find records faster
• Determine what media should be used to store records
AUTHORIZATION TO DESTROY RECORDS (Paper or Electronic Records):

Destruction or deletion of an official (original) record that has exceeded its retention period (and has SUBSTANTIVE CONTENT) must be authorized prior to destruction or deletion. • If there is a minimum retention (“Minimum 2 years"), the destruction / deletion must be authorized before it is destroyed, as it is an official (original) record.

Copies, drafts, notes and non-records (or originals that do NOT have SUBSTANTIVE CONTENT) do NOT require authorization, and can be destroyed “When No Longer Required.” If there is NOT a minimum retention ("When No Longer Required"), it does NOT need to be authorized prior to destruction, as it is a preliminary draft, copy, or the Content is NOT Substantive.

On every page of the schedules (near the top, just under the column headings) are important instructions, including instructions regarding holds on destroying records. “Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or resolution).”

RECORDS RETENTION SCHEDULE LEGEND
©1995 – 2025 Gladwell Governmental Services, Inc. (909) 337-3516 - all rights reserved Do not duplicate or distribute without prior written permission OFR (Office of Record): The department that keeps the Official (original or “record copy”) record for its retention period, then authorizes destruction.

Usually, it is the department that originates the record. The official (original) record may be the paper / hard copy version of the record; however the electronic record may be the official (original) record. See the “Destroy Paper after Imaged & QC’d” below for the Legal Requirements for the electronic record to be the official (original) record.

Records Description: The record series (a group of like records).

Non-Record: Documents, studies, books and pamphlets produced by outside agencies, preliminary drafts not retained in the ordinary course of business.

Retention/Disposition: Active (guideline): How long the file remains in the immediate office area Inactive (guideline): How long the file is in off-site storage, stored electronically in accordance with law (see below) Total Retention: The total number of years the record is retained For file folders containing documents with different retention timeframes, use the document with the longest retention time.

P = Permanent
Indefinite = No fixed or specified retention period; used for databases, because the data fields are interrelated and certain data may require minimum retention.

Vital? = Those records that are needed for basic operations in the event of a disaster.

Media Options (guideline) terms used in State law: Mag = Electronic Computer Magnetic Media (Hard drives, Networks, USB Drives, Cloud, etc.) Mfr = Microforms (aperture cards, microfilm, microfiche, or jackets) Ppr = Paper, Mylar, Linen, “Hard Copy”
OD = Optical Disk or other Unalterable Media which does not allow changes Scan / Import (guideline): “S” indicates the record should be scanned into the document imaging system; “I” indicates the record should be electronically imported into the document imaging system; “M” indicates the record was microfilmed
Destroy Paper after Imaged & QC’d (quality checked) / Trustworthy Electronic Record: “Yes” means the electronic record may serve as the OFFICIAL record (and the paper version may be destroyed, or the record may be electronically generated and never exist in paper format) IF (these are the legal requirements for the electronic record to serve as the official (original) record) the electronic record is also placed on Unalterable Media, Immutable Cloud Media, Optical Disk (OD), DVD-R, CD-R, Blue-ray-R, or WORM, or microfilmed) which is stored in a safe & separate location.

Employees are required to Quality Check (“QC’d”) both the images and the indexes, and ensure the electronic record contains all significant details from the original and be an adequate substitute for the original document for all purposes; other legal mandates may apply.

Legend for legal citations (§: Section) B&P: Business & Professions Code (CA) CBC: California Building Code CC: Civil Code (CA) CCP: Code of Civil Procedure (CA) CCR: California Code of Regulations (CA) CFC: California Fire Code CFR: Code of Federal Regulations (US) EC: Elections Code (CA) EVC: Evidence Code (CA) FA: Food & Agriculture Code FC: Family Code (CA) FTB: Franchise Tax Board (CA) GC: Government Code (CA) H&S: Health & Safety Code (CA) HUD: Housing & Urban Develop. (US) LC: Labor Code (CA) Ops. Cal. Atty. Gen..: Attorney General Opinions (CA) PC: Penal Code (CA) PRC Public Resources Code R&T: Revenue & Taxation Code (CA) UFC: Uniform Fire Code USC: United States Code (US) VC: Vehicle Code (CA) W&I: Welfare & Institutions Code (CA)

RECORDS RETENTION SCHEDULE: CITY-WIDE STANDARDS
(Used By ALL Departments)
Ver. 6.0 Page CW-1
Office of
Record (OFR) Retention No. Records Description Total Retention Vital? Media Options Image:

I=Import
M=Mfr
S=Scan
Destroy
Paper
after
Imaged &
QC'd?
Comments / Reference
Retentions apply to the department that is NOT the Office of Record (OFR), or the "Lead Department". If you are the OFR, refer to your department retention schedule.

Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder.

HOLDS: Litigation, claims, complaints, audits, public records act requests, and/or investigations suspend normal retention periods (retention resumes after settlement or completion).

Lead Dept. CW-001
Affidavits of Publications / Affidavits of Posting
Notices / Legal Advertising / Notices / Proofs of
Publications / Public Hearing Notices
2 years
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Statute of Limitations for some Municipal
Government actions is 3 - 6 months;
CCP§335 337 et seq; GC §§34090,
65009(c)(1)
Lead Dept.
(Managing the
Agreement /
Contract)
CW-002
Agreements / Contracts: ADMINISTRATIVE
FILES (with Grant Funding)
(Correspondence, Insurance Certificates,
Project Administration, Project Schedules,
Certified Payrolls, Invoices, Logs, RFP, etc.)
Completion +
10 years or
After Funding
Agency Audit,
if required,
whichever is
longer
Yes: Before
Completion
Mag,
Mfr, OD,
Ppr
S / I
Yes: After

QC & OD
Upon
Completio
n
Some grant funding agencies require
audits; Statute of Limitations for Errors &
Omissions is 10 years; Published Audit
Standards=4-7 years; Statute of
Limitations: Contracts & Spec's=4 years,
Wrongful Death=comp. + 5 years,
Developers=comp. + 10 years; Statewide
guidelines propose termination + 5 years;
CCP §337 et. seq., 2 CFR 200.334; 2 CFR
200.333; 24 CFR 91.105(h), 92.505, &
570.502(b), 29 CFR 97.42; OMB Circular A133GC §34090
Lead Dept.
(Managing the
Agreement /
Contract)
CW-003
Agreements / Contracts: ADMINISTRATIVE
FILES
(Correspondence, Insurance Certificates,
Project Administration, Project Schedules,
Certified Payrolls, Invoices, Logs, RFP, etc.)
Completion +
10 years
Yes: Before
Completion
Mag,
Mfr, OD,
Ppr
S / I
Yes: After

QC & OD
Upon
Completio
n
City preference; Covers E&O Statute of
Limitations; Published Audit Standards=4-7
years; Statute of Limitations: Contracts &
Spec's=4 years, Wrongful Death=comp. + 5
years, Developers=comp. + 10 years;
Statewide guidelines propose termination +
5 years; CCP §337 et. seq., GC §34090
Lead Dept.
(Managing the
Agreement /
Contract)
CW-004
Agreements / Contracts / Bid Files:

UNSUCCESSFUL BIDS / PROPOSALS /
RESPONSES to RFPs (Request for Proposals)
/ RFQs (Request for Qualifications) that don't
result in a contract
2 years
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
The RFP / RFQ and the successful
proposal becomes part of the agreement or
contract; GC §34090

CITY-WIDE (APPLIES TO ALL DEPARTMENTS)
TWENTYNINE PALMS, CA ©1995-2019 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Adopted: 9/14/2021

RECORDS RETENTION SCHEDULE: CITY-WIDE STANDARDS
(Used By ALL Departments)
Ver. 6.0 Page CW-2
Office of
Record (OFR) Retention No. Records Description Total Retention Vital? Media Options Image:

I=Import
M=Mfr
S=Scan
Destroy
Paper
after
Imaged &
QC'd?
Comments / Reference
Retentions apply to the department that is NOT the Office of Record (OFR), or the "Lead Department". If you are the OFR, refer to your department retention schedule.

Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder.

HOLDS: Litigation, claims, complaints, audits, public records act requests, and/or investigations suspend normal retention periods (retention resumes after settlement or completion).

CITY-WIDE (APPLIES TO ALL DEPARTMENTS)
CW-005
Boards, Commissions, / Committees: External
Organizations - Agendas, Minutes,
Resolutions, / other documents
(e.g. County Board of Supervisors)
When No
Longer
Required

Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD Non-records
Lead Dept. CW-006 Cash Receipts Detail / Backup / Accounts Receivable Detail / Refund Detail 5 years
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Only the Summary is sent to Finance;
meets auditing standards; GC §34090
Lead Dept. CW-007 City Attorney Opinions Minimum 2
years

Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC &OD City preference; GC §34090
Staffing Dept. CW-008
Committees: Ad Hoc Committees, Task Forces,
Employee Staff Meetings / Department Staff
Meetings
Agendas, Minutes, Staff Reports, etc. (If
agendas or minutes are created)
2 years
Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD GC §34090 et seq.

Lead
(Responding)
Dept.

CW-009 Complaints / Concerns from Citizens Minimum 2
years

Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
City preference; Statute of Limitations for
personal property, fraud, etc. is 3 years;
Claims must be filed in 6 months; CCP
§§338 et seq., 340 et seq., 342, GC
§34090
Lead Dept. CW-010 Copies / duplicates of any record
Copies -
When No
Longer
Required

Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD GC §34090.7
TWENTYNINE PALMS, CA ©1995-2019 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Adopted: 9/14/2021

RECORDS RETENTION SCHEDULE: CITY-WIDE STANDARDS
(Used By ALL Departments)
Ver. 6.0 Page CW-3
Office of
Record (OFR) Retention No. Records Description Total Retention Vital? Media Options Image:

I=Import
M=Mfr
S=Scan
Destroy
Paper
after
Imaged &
QC'd?
Comments / Reference
Retentions apply to the department that is NOT the Office of Record (OFR), or the "Lead Department". If you are the OFR, refer to your department retention schedule.

Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder.

HOLDS: Litigation, claims, complaints, audits, public records act requests, and/or investigations suspend normal retention periods (retention resumes after settlement or completion).

CITY-WIDE (APPLIES TO ALL DEPARTMENTS)
Dept. that
Authors
Document
or
Receives the
City's Original
Document
CW-011
Correspondence - ROUTINE
(IF CONTENT relates in a SUBSTANTIVE way
to the conduct of the public's business)
(e.g. e-mail / email with SUBSTANTIVE content,
Letters, Memorandums, Administrative Files,
Chronological, General Files, Reading File,
Working Files, etc.)
IF the Content relates in a SUBSTANTIVE way
to the conduct of the public's business
SUBSTANTIVE synonyms: Significant,
Meaningful, Considerable, Essential
2 years
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Retained 2 years ONLY IF the Content
relates in a substantive way to the conduct
of the public's business; City of San Jose v.

Superior Court (2017) 2 Cal.5th 608 ; GC
§34090
TWENTYNINE PALMS, CA ©1995-2019 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Adopted: 9/14/2021

RECORDS RETENTION SCHEDULE: CITY-WIDE STANDARDS
(Used By ALL Departments)
Ver. 6.0 Page CW-4
Office of
Record (OFR) Retention No. Records Description Total Retention Vital? Media Options Image:

I=Import
M=Mfr
S=Scan
Destroy
Paper
after
Imaged &
QC'd?
Comments / Reference
Retentions apply to the department that is NOT the Office of Record (OFR), or the "Lead Department". If you are the OFR, refer to your department retention schedule.

Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder.

HOLDS: Litigation, claims, complaints, audits, public records act requests, and/or investigations suspend normal retention periods (retention resumes after settlement or completion).

CITY-WIDE (APPLIES TO ALL DEPARTMENTS)
Dept. that
Authors
Document
or
Receives the
City's Original
Document
CW-012
Correspondence - TRANSITORY /
PRELIMINARY DRAFTS, Interagency /
Intraagency Memoranda NOT retained in the
ordinary course of business
Content NOT Substantive, / NOT made /
retained for the purpose of preserving the
informational content for future reference
(e.g. calendars, checklists, e-mail / email,
social media posting, employee directories,
flyers, invitations, instant messaging,
inventories, logs, mailing lists, meeting room
registrations, speaker cards, supply inventories,
telephone messages, text messages,
transmittal letters, thank yous, requests from
other cities, undeliverable envelopes / returned
mail, visitors logs, voice mails, webpages, etc.)
When No
Longer
Required

Mag,
Ppr
Electronic and paper records are
categorized, filed and retained based upon
the CONTENT of the record. Records
where either the CONTENT relates in a
SUBSTANTIVE way to the conduct of the
public's business, or ARE made or
retained for the purpose of preserving the
informational content for future reference
are SAVED by placing them in an
electronic or paper (project) file folder
and retained for the applicable retention
period. If not mentioned here, consult the
City Attorney to determine if a record is
considered transitory / preliminary draft.

GC §§34090, 7927.500, 7928.705. 6252,
6254(a); 64 Ops. Cal. Atty. Gen. 317
(1981)); City of San Jose v. Superior Court
(2017) 2 Cal.5th 608
Lead Dept. CW-013 Deposit Accounts / Trust Accounts / Refundable Deposits
Close + 5
years
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Department preference; meets auditing
standards; GC §34090
Lead Dept. CW-014 Drafts / Notes: Drafts that are revised (retain final version)
When No
Longer
Required

Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
As long as the drafts and notes are not
retained in the "Regular Course of
Business". Consult the City Attorney to
determine if a record is considered a draft.

GC §§34090, 6252, 6254(a) 7927.500,
7928.705
TWENTYNINE PALMS, CA ©1995-2019 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Adopted: 9/14/2021

RECORDS RETENTION SCHEDULE: CITY-WIDE STANDARDS
(Used By ALL Departments)
Ver. 6.0 Page CW-5
Office of
Record (OFR) Retention No. Records Description Total Retention Vital? Media Options Image:

I=Import
M=Mfr
S=Scan
Destroy
Paper
after
Imaged &
QC'd?
Comments / Reference
Retentions apply to the department that is NOT the Office of Record (OFR), or the "Lead Department". If you are the OFR, refer to your department retention schedule.

Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder.

HOLDS: Litigation, claims, complaints, audits, public records act requests, and/or investigations suspend normal retention periods (retention resumes after settlement or completion).

CITY-WIDE (APPLIES TO ALL DEPARTMENTS)
Lead Dept. CW-015 GIS Database / Data / Layers (both City-wide / Specialized)
When No
Longer
Required
Yes
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
The Lead Department should print out
historical documents (or save source data)
prior to replacing the data, if they require
the data or output for historical purposes;
Department Preference (Preliminary
documents); GC §34090 et seq.

Lead Dept.
(Managing the
Grant)
CW-016 Grants (UNSUCCESSFUL Applications,
Correspondence) 2 years
Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD GC §34090
Lead Dept.
(Managing the
Grant)
CW-017
Grants / CDBG (SUCCESSFUL Reports, other
records required to pass the funding agency's
audit, if required)
Applications (successful), grant agreement,
copies of invoices, program rules, regulations /
procedures, reports to grant funding agencies,
correspondence, audit records, completion
records
After Funding
Agency Audit,
if required -
Minimum 5
years

Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Some grant funding agencies require
audits; Statute of Limitations for Errors &
Omissions is 10 years; Published Audit
Standards=4-7 years; Statute of
Limitations: Contracts & Spec's=4 years,
Wrongful Death=comp. + 5 years,
Developers=comp. + 10 years; Statewide
guidelines propose termination + 5 years;
CCP §337 et. seq., 2 CFR 200.334200.333;
24 CFR 91.105(h), 92.505, & 570.502(b),
29 CFR 97.42; OMB Circular A-133; GC
§34090; GC §8546.7
Lead Dept CW-018 Insurance Certificates for City Vendors 11 years Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC'd & OD
City Preference to cover all statute of
limitations; CCP §337; GC §34090
Lead Dept. CW-019 Leave Slips / Time Off Requests
When No
Longer
Required

Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Preliminary drafts not retained in the
Regular Course of Business GC §34090
TWENTYNINE PALMS, CA ©1995-2019 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Adopted: 9/14/2021

RECORDS RETENTION SCHEDULE: CITY-WIDE STANDARDS
(Used By ALL Departments)
Ver. 6.0 Page CW-6
Office of
Record (OFR) Retention No. Records Description Total Retention Vital? Media Options Image:

I=Import
M=Mfr
S=Scan
Destroy
Paper
after
Imaged &
QC'd?
Comments / Reference
Retentions apply to the department that is NOT the Office of Record (OFR), or the "Lead Department". If you are the OFR, refer to your department retention schedule.

Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder.

HOLDS: Litigation, claims, complaints, audits, public records act requests, and/or investigations suspend normal retention periods (retention resumes after settlement or completion).

CITY-WIDE (APPLIES TO ALL DEPARTMENTS)
Lead Dept. CW-020
Material Safety Data Sheet (MSDS) / Safety
Data Sheet (SDS) / Chemical Use Report Form
(/ records of the chemical / substance / agent,
where / when it was used)
30 years
Mag,
Mfr, OD,
Ppr
S / I Yes - After

QC & OD
Previous MSDS may be obtained from a
service; MSDS may be destroyed as long
as a record of the chemical / substance /
agent, where & when it was used is
maintained for 30 years; Applies to qualified
employers; Claims can be made for 30
years for toxic substance exposures; 8
CCR 3204(d)(1)(B)(2 and 3), 29 CFR
1910.1020(d)(1)(i), GC §34090
Lead Dept. CW-021 Newspaper Clippings
When No
Longer
Required

Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Non-records - may be obtained from the
newspaper company; GC §34090
Lead Dept. CW-022 OSHA Inspections / Citations 5 years
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
OSHA requires 5 years; State law requires
2 years; 8 CCR §3203(b)(1), OMB 1220-
0029; GC §34090; LC §6429c
Human
Resources CW-023
Personnel Files (Department-level Files)
Send all originals to Human Resources
Send to
Human
Resources
Upon
Separation or
Transfer
Before
Separation
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Ensure records kept in Department files
comply with City policy (all originals are
sent to Human Resources); GC §34090.7
Lead Dept. CW-024 Personnel Files (Supervisor's Notes)
Shred After
Incorporation
into
Performance
Evaluation or
Documented
Discipline
Before
Annual
Evaluation
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Notes maintained in a separate folder to be
incorporated into performance evaluation,
or to document progressive discipline; GC
§34090 et seq.

Lead Dept. CW-025 Photographs
When No
Longer
Required

Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Preliminary Drafts; destroy unnecessary
photographs. GC §§34090, 6252, 6254(a)
7927.500, 7928.705
TWENTYNINE PALMS, CA ©1995-2019 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Adopted: 9/14/2021

RECORDS RETENTION SCHEDULE: CITY-WIDE STANDARDS
(Used By ALL Departments)
Ver. 6.0 Page CW-7
Office of
Record (OFR) Retention No. Records Description Total Retention Vital? Media Options Image:

I=Import
M=Mfr
S=Scan
Destroy
Paper
after
Imaged &
QC'd?
Comments / Reference
Retentions apply to the department that is NOT the Office of Record (OFR), or the "Lead Department". If you are the OFR, refer to your department retention schedule.

Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder.

HOLDS: Litigation, claims, complaints, audits, public records act requests, and/or investigations suspend normal retention periods (retention resumes after settlement or completion).

CITY-WIDE (APPLIES TO ALL DEPARTMENTS)
Lead Dept. CW-026 Public Relations / Press Releases 2 years Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD GC §34090
Lead Dept.
(Who Ordered
the Appraisal)
CW-027 Real Estate Appraisal Reports: Property NOT
purchased, Loans not funded, etc. 2 years
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Not accessible to the public; Statewide
Guidelines show 2 years; GC §§34090,
6254(h) 7928.705
Lead Dept.
(Who Ordered
the Appraisal)
CW-028 Real Estate Appraisal Reports: Purchased
Property, Funded Loans
Minimum 5
years
Yes: Before
Purchase
Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC &OD
Not accessible to the public until purchase
has been completed; meets municipal
government auditing standards; Statewide
Guidelines show 2 years; GC §§34090,
6254(h) 7928.705
Lead Dept. CW-028.1
Recruitment / Testing File - PART TIME

EMPLOYEES
(Includes Advertisements, Applications for
Unsuccessful Candidates, Interview Notes, Job
Brochures, Test Data, Testing Analysis /
statistical Metric, Job Analysis, Rating Sheets,
Scantrons, etc.)
4 years
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
State Law requires 4 years; Human
Resources retains Full-Time Employee
Recruitments only - send successful
applications to Human Resources; EEOC /
FLSA / ADEA (Age) requires 1-3 years; 29
CFR 1627.3(b)(1)(i), 29 CFR 1602.14 et
seq.2 CCR 11013(c); GC §§12946, 12960,
34090
n/a CW-029
Reference Materials: Policies, Procedures,
Brochures, Flyers, Handbooks, Manuals, Plans
(if not provided in the schedule), Standard
Operating Procedures (SOPs), Studies, Reports
(if not provided in the schedule), Newsletters,
etc.: Produced by OUTSIDE ORGANIZATIONS
(League of California Cities, Chamber of
Commerce, etc.)
When No
Longer
Required

Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD Non-Records
TWENTYNINE PALMS, CA ©1995-2019 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Adopted: 9/14/2021

RECORDS RETENTION SCHEDULE: CITY-WIDE STANDARDS
(Used By ALL Departments)
Ver. 6.0 Page CW-8
Office of
Record (OFR) Retention No. Records Description Total Retention Vital? Media Options Image:

I=Import
M=Mfr
S=Scan
Destroy
Paper
after
Imaged &
QC'd?
Comments / Reference
Retentions apply to the department that is NOT the Office of Record (OFR), or the "Lead Department". If you are the OFR, refer to your department retention schedule.

Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder.

HOLDS: Litigation, claims, complaints, audits, public records act requests, and/or investigations suspend normal retention periods (retention resumes after settlement or completion).

CITY-WIDE (APPLIES TO ALL DEPARTMENTS)
Lead Dept. CW-030
Reference Materials: Policies, Procedures,
Brochures, Flyers, Handbooks, Manuals, Plans
(if not provided in the schedule), Standard
Operating Procedures (SOPs), Studies, Reports
(if not provided in the schedule), Newsletters,
etc.: Produced by YOUR Department
Minimum 2
years

Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Department preference; Statewide
guidelines propose superseded + 2 or 5
years; GC §34090
Lead Dept. CW-031
Reference Materials: Policies, Procedures,
Brochures, Flyers, Handbooks, Manuals, Plans
(if not provided in the schedule), Standard
Operating Procedures (SOPs), Studies, Reports
(if not provided in the schedule), Newsletters,
etc.: Produced by OTHER Departments
When
Superseded
Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD Copies; GC §34090.7
Lead Dept. CW-032 Reports, Studies (Historically significant - e.g., Zoning Studies) P
Mag,
Mfr, OD,
Ppr
S / I
Yes: After

QC & OD
10 years
Administratively and Historically significant,
therefore retained permanently; GC §34090
Lead Dept. CW-033 Reports, Studies (other than Historically significant reports - e.g. Annual Reports) 10 years
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Department preference; Information is
outdated after 10 years; statewide
guidelines propose 2 years; If historically
significant, retain permanently; GC §34090
Lead Dept. CW-034 Special Projects / Subject Files / Issue Files Minimum 2 years
Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD Department Preference; GC §34090 et seq.

Lead Dept. CW-035 Speech Notes / PowerPoint Presentations When No
Longer
Required
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Notes, drafts, or preliminary documents;
GC §34090 et seq.

TWENTYNINE PALMS, CA ©1995-2019 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Adopted: 9/14/2021

RECORDS RETENTION SCHEDULE: CITY-WIDE STANDARDS
(Used By ALL Departments)
Ver. 6.0 Page CW-9
Office of
Record (OFR) Retention No. Records Description Total Retention Vital? Media Options Image:

I=Import
M=Mfr
S=Scan
Destroy
Paper
after
Imaged &
QC'd?
Comments / Reference
Retentions apply to the department that is NOT the Office of Record (OFR), or the "Lead Department". If you are the OFR, refer to your department retention schedule.

Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder.

HOLDS: Litigation, claims, complaints, audits, public records act requests, and/or investigations suspend normal retention periods (retention resumes after settlement or completion).

CITY-WIDE (APPLIES TO ALL DEPARTMENTS)
Lead Dept. CW-036
Surveys / Questionnaires (that the City issues).

If a summary of the data is compiled, the survey
forms are considered a draft / transitory record,
/ can be destroyed as drafts (When No Longer
Required)
2 years
Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD GC §34090
Lead Dept. CW-036.5
Training EMPLOYEE RECORDS (If Records
are Created)
Required Information for all Employee Training:

Employee Name
Training Provider’s Name
Date
Duration (length)
Core Competencies / Skills
Certifications / Qualifications
Separation +
5 years
Mag,
Mfr, OD,
Ppr
S / I
Yes: After

QC & OD
LC §1198.5, 6401.9(f), 6429(c); 8 CCR
§3203 et seq., 29 CFR 1627.3(b)(ii), GC
§§12946, 12960, 34090, 53235.2(b),
53237.2(b); 53238.3(b)
Lead Dept.
(Presenting the
Training)
CW-037
Training Presented by Staff - COURSE

RECORDS
(Attendance Rosters / Sign-in Sheets, Outlines /
Materials; includes Ethics, Fiscal & Financial,
Harassment, Workplace Violence, Safety
Training, Tailgates)
5 years
Mag,
Mfr, OD,
Ppr
S / I
Yes: After

QC & OD
When
Inactive
Department preference; Ethics, Fiscal and
Financial, Harassment & Workplace
Violence Prevention Training is 5 years;
Statewide guidelines propose 7 years;
Calif. Labor Division is required to keep
their OSHA records 7 years;
EEOC/FLSA/ADEA (Age) requires 3 years
for promotion, demotion, transfer, selection,
or discharge; State Law requires 4 2 -3
years for personnel actions; 8 CCR §3203
et seq., 29 CFR 1602.31 1627.3(b)(ii), LC
§6429(c); GC §§12946, 12960, 34090,
53235.2(b); 53237.2(b); 53238.3(b); LC
§6401.9(f),
TWENTYNINE PALMS, CA ©1995-2019 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Adopted: 9/14/2021

Ver. 6.0 RECORDS RETENTION SCHEDULE: ANIMAL CONTROL Page AN-1 Office of
Record
(OFR)
Retention No. Records Description Total
Retention Vital? Media Options
Image:

I=Import
M=Mfr
S=Scan
Destroy
Paper after
Imaged &
QC'd?
Comments / Reference
If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder.

HOLDS: Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion).

ANIMAL CONTROL
Animal
Control AN-001
Animal Cruelty Investigations /
Administrative Hearing Officer Findings,
Dangerous Dog Reports
When Animal
Deceased,
Minimum 3
years
Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD
Department Preference; GC §34090 et
seq.

Animal
Control AN-002 Animal Permits / Registration Database
(Tyler Munis / Enterprise ERP)
Indefinite -
Minimum 3
years
Yes Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD
Department preference; Data is
interrelated; GC §34090
Animal
Control AN-003 Animal Registration Report
When No
Longer
Required

Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD Department preference; GC §34090 Animal
Control AN-003.1 Animals - Record of All Efforts to Contact Owner / Microchip’s Primary Registrant 2 years Yes Mag, Mfr, OD, Ppr S / I Yes: After QC & OD FA §§31108.3 and 31752.1; GC
§34090
Animal
Control AN-004 Bite Reports
When Animal
Deceased,
Minimum 3
years
Yes Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD
Department Preference; GC §34090 et
seq.

Animal
Control AN-005 Complaints - Regarding Animals (Barking, etc.) 3 years Yes Mag, Mfr, OD, Ppr S / I Yes: After QC & OD Department Preference; GC §34090 et
seq.

Animal
Control AN-006 Controlled Substances 3 years Yes Mag, Mfr, OD, Ppr S / I Yes: After QC & OD 3 years is required; B&P 4081; GC
§34090
Animal
Control AN-007 Deposits / Deposit Batch Slips 3 years Mag, Mfr, OD, Ppr S / I Yes: After QC & OD Department preference - meets
municipal government auditing
standards (not all detail is sent to
Finance); GC §34090
Animal
Control AN-008 Impound Notices / Contact Requests
End of
Impound + 3
years

Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD
Department preference; 3 years is
required for animal treatment records;
FA §32003(e), PC §597.1(d); CCP
§§336(a), 337 et. seq., GC §34090
Animal
Control AN-009 Investigations / Problem Files (barking, loose dogs, etc.) 3 years Mag, Mfr, OD, Ppr S / I Yes: After QC & OD Department Preference; GC §34090 et
seq.

VICTORVILLE, CA. ©1995-2019 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Adopted: 9/14/2021

Ver. 6.0 RECORDS RETENTION SCHEDULE: ANIMAL CONTROL Page AN-2 Office of
Record
(OFR)
Retention No. Records Description Total
Retention Vital? Media Options
Image:

I=Import
M=Mfr
S=Scan
Destroy
Paper after
Imaged &
QC'd?
Comments / Reference
If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder.

HOLDS: Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion).

Animal
Control AN-010 Rabies Control Records 3 years Yes Mag, Mfr, OD, Ppr S / I Yes: After QC & OD Department Preference; GC §34090 et
seq.

Animal
Control AN-011 Treatment Records / Euthanasia Records 3 years Yes Mag, Mfr, OD, Ppr S / I Yes: After QC & OD 3 years is required; FA §32003(e), PC
§597.1(d); CCP §§336(a), 337 et.
seq., GC §34090
VICTORVILLE, CA. ©1995-2019 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Adopted: 9/14/2021

RECORDS RETENTION SCHEDULE: BUILDING
(Code Enforcement)
Ver. 6.0 Page BLD-1
Office of
Record
(OFR)
Retention No. Records Description Total
Retention Vital? Media Options
Image:

I=Import
M=Mfr
S=Scan
Destroy
Paper
after
Imaged &
QC'd?
Comments / Reference
If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder.

HOLDS: Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion).

BUILDING
Building BLD-001 Address Files / Building Permits Life of the Structure Yes (all)
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
CBC §§104.6 104.7 and 107.5; GC
§34090
Building BLD-002 Board of Appeals Reports, Minutes P
Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD Department preference; GC §34090
Building BLD-003 Building Permit Database (FileMaker Pro) Indefinite - Permanent Yes
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
CBC §§ 1.8.4.3.1, 104.6 104.7 and
107.5; H&S §19850; GC §34090
Building BLD-004 Building Plans - Cancelled, Expired / Withdrawn Upon
Cancellation,
Expiration, or
Withdrawal

Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
CBC §§ 1.8.4.3.1, 104.6 104.7 and
107.5; H&S §19850; GC §34090
Building BLD-005 Building Plans - Finalled - TENANT

IMPROVEMENTS
Life of the
Structure Yes (all)
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
CBC §§ 1.8.4.3.1, 104.6 104.7 and
107.5; H&S §19850; GC §34090
Building BLD-006
Building Plans - Finalled - INDUSTRIAL,

COMMERCIAL, MULTI-FAMILY DWELLINGS,

PLACES OF PUBLIC ACCOMMODATION
Life of the
Structure Yes (all)
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
CBC §§ 1.8.4.3.1, 104.6 104.7 and
107.5; H&S §19850; GC §34090
Building BLD-007
Building Plans - Finalled - SINGLE FAMILY

RESIDENTIAL - SFR / APPURTENANCES
Energy Calculations, Structural Calculations, Soil
Reports, Geotechnical Reports
Final + 180
days
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
CBC §§ 1.8.4.3.1, 104.6 104.7 and
107.5; H&S §19850; GC §34090
Building BLD-008 California Building Codes / Uniform Building Codes Minimum
While
Ordinance is
in Force
Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD GC §50022.6
Building BLD-009 Certificate of Occupancy (CofO) Life of the Structure Yes (all)
Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD Department Preference; GC §34090
TWENTYNINE PALMS, CA. ©1995-2019 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Adopted: 9/14/2021

RECORDS RETENTION SCHEDULE: BUILDING
(Code Enforcement)
Ver. 6.0 Page BLD-2
Office of
Record
(OFR)
Retention No. Records Description Total
Retention Vital? Media Options
Image:

I=Import
M=Mfr
S=Scan
Destroy
Paper
after
Imaged &
QC'd?
Comments / Reference
If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder.

HOLDS: Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion).

Building BLD-010 Correction Notices, Stop Work Notices Life of the Structure
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Department Preference (Preliminary
Drafts); GC §34090
Building BLD-011 Utility Clearances, School District Clearances When Permit Finalled
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Department Preference (Preliminary
Drafts); GC §34090
Building BLD-012 Plan Check Comments Life of the
Structure
Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD Preliminary Drafts; GC §34090
Building BLD-013 Reports: Building Activity
When No
Longer
Required
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Preliminary drafts (the database can
re-create the reports on demand); GC
§34090
Building BLD-014 Requests / Permissions to Receive Copies of Plans (to / from Architects) 2 years
Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD GC §34090
Building BLD-015 Septic Approvals, Plans / Repair / Percolation Tests P Yes (all)
Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD Department Preference; GC §34090
Building BLD-016 Soil Reports / Geotechnical Reports P Yes (all) Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Department preference; GC §34090,
H&S §19850

BUILDING / CODE ENFORCEMENT
Building /
Code
Enforce.

BLD-017
Code Enforcement / Abatement Case Files /
Citations / Substandard Buildings (Includes
appeals / Code Enforcement Complaint Letters)
When No
Longer
Required -
Minimum 2
years
Yes: Until
Resolution
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Department preference (some cases
are funded by CDBG); Case is open
until satisfactorily resolved (some
cases are not resolved); 2 CFR
200.334; 24 CFR 92.505, 570.490, &
570.502(a), 29 CFR 97.42; OMB
Circular A-110 & A-133; GC §34090
TWENTYNINE PALMS, CA. ©1995-2019 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Adopted: 9/14/2021

RECORDS RETENTION SCHEDULE: BUILDING
(Code Enforcement)
Ver. 6.0 Page BLD-3
Office of
Record
(OFR)
Retention No. Records Description Total
Retention Vital? Media Options
Image:

I=Import
M=Mfr
S=Scan
Destroy
Paper
after
Imaged &
QC'd?
Comments / Reference
If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder.

HOLDS: Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion).

Building /
Code
Enforce.

BLD-018 Liens / Releases P
Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD GC §34090
TWENTYNINE PALMS, CA. ©1995-2019 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Adopted: 9/14/2021

RECORDS RETENTION SCHEDULE: CITY CLERK
(Elections)
Ver. 6.0 Page CC-1
Office of
Record
(OFR)
Retention No. Records Description Total
Retention Vital? Media Options
Image:

I=Import
M=Mfr
S=Scan
Destroy
Paper after
Imaged &
QC'd?
Comments / Reference
If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder.

HOLDS: Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion).

City Clerk CC-001 Agenda Packets: City Council, Successor Agency, Redevelopment Agency P
Mag, Mfr,
OD, Ppr S / I Yes: After QC &OD
Department preference; Includes final
budget and final audit reports / ACFR
CAFR; GC §34090
City Clerk CC-002 Agreements / Contracts - ALL P
Yes: Before
Completion
Mag, Mfr,
OD, Ppr S / I
Yes: After

QC & OD
Upon
Completion
Department Preference; All infrastructure
contracts should be permanent for
emergency preparedness; Statute of
Limitations is 4 years; 10 years for Errors
& Omissions; land records are permanent
by law; CCP §337 et. seq., GC §34090;
Contractor has retention requirements in
48 CFR 4.703
City Clerk CC-003
Bid Packets: Bids / Proposals in response to
RFPs (Request for Proposals) / RFQs
(Request for Qualifications)
2 years Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD
The RFP / RFQ and the successful
proposal becomes part of the agreement
or contract; GC §34090
City Clerk CC-004 Board / Commission / Committee Maddy Act Lists / Vacancy Notices 2 years Mag, Mfr, OD, Ppr S / I Yes: After QC & OD GC §34090 City Clerk CC-005 Board / Commission Applications - (All Advisory Bodies) 2 years Mag, Mfr, OD, Ppr S / I Yes: After QC & OD GC §34090 City Clerk CC-006 City Articles of Incorporation P
Mag, Mfr,
OD, Ppr S / I Yes: After QC &OD Department preference; GC §34090 City Clerk CC-007 City Council, Board / Commission Historical List of Members / Rosters P
Mag, Mfr,
OD, Ppr S / I Yes: After QC &OD Department preference; GC §34090 City Clerk CC-008
Economic Interest Filings (FPPC 700 Series
Forms - Statement of Economic Interests):

ALL
7 years Mag, Mfr,
OD, Ppr S / I Yes: After QC 2 years
City maintains original statements; GC
§81009(d)(e)(f)&(g)
City Clerk CC-009 FPPC Form 801 (Gift to Agency Report) 7 years Mag, Mfr, OD, Ppr S / I Yes: After QC 2 years Must post on website; GC §81009(e) City Clerk CC-010 FPPC Form 802 (Event Ticket / Pass
Distributions Agency Report) 7 years Mag, Mfr, OD, Ppr S / I Yes: After QC 2 years Should post on website for 4 years; GC
§81009(e)
City Clerk CC-011 FPPC Form 803 (Behested Payment Report) 7 years Mag, Mfr, OD, Ppr S / I Yes: After QC 2 years GC §81009(e)

CITY CLERK
TWENTYNINE PALMS, CA. ©1995-2019 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Adopted: 9/14/2021

RECORDS RETENTION SCHEDULE: CITY CLERK
(Elections)
Ver. 6.0 Page CC-2
Office of
Record
(OFR)
Retention No. Records Description Total
Retention Vital? Media Options
Image:

I=Import
M=Mfr
S=Scan
Destroy
Paper after
Imaged &
QC'd?
Comments / Reference
If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder.

HOLDS: Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion).

CITY CLERK
City Clerk CC-012 FPPC Form 804 (Agency Report of New
Positions) P
Mag, Mfr,
OD, Ppr S / I Yes: After QC 2 years FPPC Regulation 18734(c); GC §81009e City Clerk CC-013 FPPC Form 805 (Agency Report of
Consultants) P
Mag, Mfr,
OD, Ppr S / I Yes: After QC 2 years FPPC Regulation 18734(c); GC §81009e City Clerk CC-014 FPPC Form 806 (Agency Report of Public Official Appointments) 7 years Mag, Mfr, OD, Ppr S / I Yes: After QC 2 years Must post on website; 2 CCR
18702.5(b)(3); GC §34090; GC §81009(e)
City Clerk /
Elections CC-015 Campaign Filings (FPPC 400 Series Forms / Form 501): UNSUCCESSFUL CANDIDATES 5 years Mag, Mfr, OD, Ppr S / I Yes: After QC 2 years Candidates without committees are not
required to file their statements, reports or
copies online or electronically; Paper
must be retained for at least 2 years; GC
§81009(b)&(g)
City Clerk /
Elections CC-016
Campaign Filings (FPPC 400 Series Forms /
Form 501): SUCCESSFUL CANDIDATES
(Elected Officials)
P
Mag, Mfr,
OD, Ppr S / I Yes: After QC 2 years
Department Preference; as of January 1,
2025, the FPPC is the Filing Officer for
87200 filers; City maintains copies only;
original statements are filed with FPPC;
GC §81009(f)&(g)
City Clerk /
Elections CC-017
Campaign Filings (FPPC 400 Series Forms):

THOSE NOT REQUIRED TO FILE ORIGINAL
WITH CITY CLERK (copies)
4 years Mag, Mfr,
OD, Ppr S / I Yes: After QC 2 years
Paper must be retained for at least 2
years; GC §81009(f)&(g)
City Clerk /
Elections CC-018
Campaign Filings (FPPC 400 Series Forms):

OTHER COMMITTEES (PACS - not candidatecontrolled)
7 years Mag, Mfr,
OD, Ppr S / I Yes: After QC 2 years
Paper must be retained for at least 2
years; GC §81009(c)&(g)
City Clerk /
Elections CC-019
Candidate File: Nomination Papers, Candidate
Statement Forms, etc. - SUCCESSFUL

CANDIDATES
Term of
Office + 4
years
Mag, Ppr
Statewide guidelines proposes 4 years for
successful candidates, 2 years for
unsuccessful; CA law states term of office
and 4 years after the expiration of term for
Nomination Papers and does not
delineate between the two; EC §17100

CITY CLERK / ELECTIONS - CONSOLIDATED
TWENTYNINE PALMS, CA. ©1995-2019 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Adopted: 9/14/2021

RECORDS RETENTION SCHEDULE: CITY CLERK
(Elections)
Ver. 6.0 Page CC-3
Office of
Record
(OFR)
Retention No. Records Description Total
Retention Vital? Media Options
Image:

I=Import
M=Mfr
S=Scan
Destroy
Paper after
Imaged &
QC'd?
Comments / Reference
If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder.

HOLDS: Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion).

CITY CLERK
City Clerk /
Elections CC-020
Candidate File: Nomination Papers, Candidate
Statement Forms, etc. - UNSUCCESSFUL

CANDIDATES
Election + 4
years
Mag, Ppr
Department Preference; Statewide
guidelines proposes 4 years for
successful candidates, 2 years for
unsuccessful; CA law states term of office
and 4 years after the expiration of term for
Nomination Papers and does not
delineate between the two; EC §17100
City Clerk /
Elections CC-021
Elections - GENERAL, WORKING /
ADMINISTRATION Files (Correspondence,
Applications to fill a Vacancy on the City
Council, Precinct Maps, County Election
Services, Candidate Statements to be printed
in the Sample Ballot, Polling Locations /
Precinct Board Members, Notices, Postings,
etc.)
Minimum 2
years
Mag, Ppr GC §34090
City Clerk /
Elections CC-022 Elections - HISTORICAL (Sample ballot, copies of resolutions, final results) P
Mag, Mfr,
OD, Ppr S No Retained for Historical Value, GC §34090
City Clerk /
Elections CC-022.1
Elections - Petitions (Initiative, Recall /
Referendum) - IF INSUFFICIENT - IF
Examined by Proponents
Final
Examination
+ 1 year after
petition
examination
Ppr
Not accessible to the public; The 8 month
retention applies after election results, or
final examination if no election, unless
there is a legal or FPPC proceeding. EC
§§17200(b)(3), 17400
City Clerk /
Elections CC-022.2
Elections - Petitions (Initiative, Recall /
Referendum) - IF INSUFFICIENT - NOT
Examined by Proponents
Determinatio
n of
Insufficiency
+ 8 months
Ppr
Not accessible to the public; The 8 month
retention applies after the City Clerk
makes the determination of insufficiency /
examines the petitions. unless there is a
legal or FPPC proceeding. EC
§§17200(b)(3), 17400
TWENTYNINE PALMS, CA. ©1995-2019 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Adopted: 9/14/2021

RECORDS RETENTION SCHEDULE: CITY CLERK
(Elections)
Ver. 6.0 Page CC-4
Office of
Record
(OFR)
Retention No. Records Description Total
Retention Vital? Media Options
Image:

I=Import
M=Mfr
S=Scan
Destroy
Paper after
Imaged &
QC'd?
Comments / Reference
If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder.

HOLDS: Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion).

CITY CLERK
City Clerk /
Elections CC-022.3 Elections - Petitions (Initiative, Recall / Referendum) - IF SUFFICIENT Results + 8
months Ppr
Not accessible to the public; The 8 month
retention applies after election results, or
final examination if no election, unless
there is a legal or FPPC proceeding. EC
§§17200(b)(3), 17400
City Clerk CC-023 Elections - Petitions (Initiative, Recall / Referendum)
Results + 8
months, or
Final
Examination
+ 1 year after
petition
examination if
petition is
insufficient
Ppr
Not accessible to the public; The 8 month
retention applies after election results, or
final examination if no election, unless
there is a legal or FPPC proceeding. EC
§§17200(b)(3), 17400
(End of Elections Section)
City Clerk CC-024
Historical Records, Photographs, / Historical
Projects (e.g. Incorporation, City Seal, Awards
of significant historical interest, etc.)
P
Mag, Mfr,
OD, Ppr S / I
Yes: After

QC & OD
No
City Clerk determines historical
significance; records can address a
variety of subjects and media. Some
media (e.g. audio and video tape) may be
limited because of the media's life
expectancy; GC §34090
City Clerk CC-025 Minutes: City Council, Successor Agency, Redevelopment Agency P
Mag, Mfr,
OD, Ppr S / I
Yes: After

QC & OD
No
GC §34090
City Clerk CC-026 Oath of Office: City Council, Planning Commission Members
Separation +
4 years
Mag, Mfr,
OD, Ppr S / I Yes: After QC'd & OD
Department Preference; Statute of
Limitations: Public official misconduct is
discovery of offense + 4 years, GC
§§36507, 34090; PC §§801.5, 803(c); 29
USC 1113
City Clerk CC-027 Ordinances P
Mag, Mfr,
OD, Ppr S / I
Yes: After

QC & OD
No
GC §34090
TWENTYNINE PALMS, CA. ©1995-2019 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Adopted: 9/14/2021

RECORDS RETENTION SCHEDULE: CITY CLERK
(Elections)
Ver. 6.0 Page CC-5
Office of
Record
(OFR)
Retention No. Records Description Total
Retention Vital? Media Options
Image:

I=Import
M=Mfr
S=Scan
Destroy
Paper after
Imaged &
QC'd?
Comments / Reference
If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder.

HOLDS: Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion).

CITY CLERK
City Clerk CC-028 Proclamations / Certificates of Recognition 2 years Mag, Mfr, OD, Ppr S / I Yes: After QC & OD Department Preference; GC §34090 City Clerk CC-028.5
Prop. 218 proceedings / Property-based Fee
Increases: Notices, Mailing Lists, Ballots /
protest letters
2 years Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD GC §53753(e)(2); 53755(d) City Clerk CC-029 Public Records Requests 2 years Mag, Mfr, OD, Ppr S / I Yes: After QC & OD GC §34090
City Clerk CC-030 Recorded Documents / Real Property: Deeds, Easements, Rights of Way, etc. P
Mag, Mfr,
OD, Ppr S / I
Yes: After

QC & OD
No
GC §34090
City Clerk CC-031
City Council (/ associated bodies): Recordings
- AUDIO RECORDINGS of Meetings / Audio
Tapes
Minimum 10
years

Mag
OD
Department preference; Required for 30
days; GC §54953.5(b)
City Clerk CC-032
City Council (/ associated bodies): Recordings -
VIDEO RECORDINGS of Meetings / Video
Tapes
Minimum 10
years

Mag
OD
Department preference; Video tapes
recordings of meetings are required for 90
days; GC §34090.6
City Clerk CC-033 Records Destruction Authorization Forms / Certifications P
Mag, Mfr,
OD, Ppr S / I Yes: After QC'd & OD Department preference; GC §34090 City Clerk CC-033.5
Redistricting Web Page / Council District
Boundary Web Page (Map, Redistricting
Process, Agendas, Calendars, Notice, etc.)
10 years Mag, Ppr EC §21160(i); GC §34090
City Clerk CC-034 Resolutions: City Council, Successor Agency, Redevelopment Agency P
Mag, Mfr,
OD, Ppr S / I
Yes: After

QC & OD
No
GC §34090
City Clerk CC-034.5 Secretary of State Statement of Facts / Registry of Public Agencies 2 years Mag, Mfr, OD, Ppr S / I Yes: After
QC & OD GC §34090
City Clerk CC-035 Vehicle Titles "Pink Slips" Upon Sale of Vehicle
Mag, Mfr,
OD, Ppr S / I Provided to new owner upon sale; GC §34090 TWENTYNINE PALMS, CA. ©1995-2019 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Adopted: 9/14/2021

Ver. 5.0 RECORDS RETENTION SCHEDULE: CITY MANAGER Page CM-1 Office of
Record
(OFR)
Retention No. Records Description Total
Retention Vital? Media Options
Image:

I=Import
M=Mfr
S=Scan
Destroy
Paper after
Imaged &
QC'd?
Comments / Reference
If the record is not listed here, refer to the Retention for City-Wide Standards .

Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder.

HOLDS: Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion).

CITY MANAGER
City
Manager CM-001 City Manager Correspondence (Interoffice, Citizens, Organizations, etc.) Minimum 2
years
Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD Department Preference; GC §34090 City
Manager CM-002
Projects, Programs, Subject / Issues (Issues
/ projects will vary over time - e.g. Hotels,
Developments, etc.)
Minimum 2
years
Yes: While
Active
Issues
Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD Department Preference; GC §34090 City
Manager CM-003 Updates / Newsletters (Council) 2 years Mag, Mfr, OD, Ppr S / I Yes: After QC & OD GC §34090 TWENTYNINE PALMS, CA ©1995-2019 Gladwell Governmental Services, Inc. (909) 337-3516 - all rights reserved Do not duplicate or distribute without prior written permission Adopted: 9/14/2021

RECORDS RETENTION SCHEDULE: ENGINEERING
(Capital Improvement Projects, Private Development, Transportation) Ver. 6.0 Page ENG-1
Office of
Record (OFR) Retention No. Records Description Total Retention Vital? Media Options Image:

I=Import
M=Mfr
S=Scan
Destroy
Paper
after
Imaged &
QC'd?
Comments / Reference
If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder.

HOLDS: Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion).

ENGINEERING / CAPITAL IMPROVEMENT PROJECTS
Engineering /
Capital
Improvement
Projects
ENG-001
Bonds: CIP Labor / Materials, Performance
Bonds, Letters of Credit, Encroachment
Permit Bonds, etc.
(Desert Knoll, Turtle Rock, etc.)
Release of
Bond / Letter
of Credit
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Securities (Performance Bonds, Letters of
Credit, CD's, etc.) are released after the
Notice of Completion is issued and replaced
with the Warranty Bond, which is released 1
year after the Notice of Completion date.

GC §34090
Engineering /
Capital
Improvement
Projects
ENG-002
Capital Improvement Projects (CIP):

Administration File
Project Administration, Certified Payrolls,
Construction Manager's Logs, Daily
Inspections, Daily Logs, Hazardous
Materials Plans, Meeting Minutes, Photos,
Project Schedules, Progress meetings,
Punch Lists, Real Estate Appraisals, RFIs
/ Responses, Soil Reports, Studies,
Submittals, Successful Proposal, Surveys,
etc.

Completion +
10 years or
After Funding
Agency
Audit, if
required,
whichever is
longer
Yes: Until
Completed
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Some grant funding agencies require audits;
Statute of Limitations for Errors & Omissions
is 10 years; Published Audit Standards=4-7
years; Statute of Limitations: Contracts &
Spec's=4 years, Wrongful Death=comp. + 5
years, Developers=comp. + 10 years;
Statewide guidelines propose termination +
5 years; CCP §337 et. seq., GC §34090
Engineering /
Capital
Improvement
Projects
ENG-003
Capital Improvement Projects (CIP):

Permanent File
Specifications / Addenda, Change Orders,
CEQA / Environmental Documents - EIRs,
Negative Declarations, Exemptions,
Materials Testing Reports, etc.

P
Yes: Until
Completed
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Department preference; retained for disaster
preparedness purposes; Statewide
guidelines propose Permanent for
Infrastructure plans; Final environmental
determinations are required to be kept a
"reasonable period of time"; 14 CCR
§15095(c); CCP §337 et. seq., GC §34090
City Clerk ENG-004 Deeds, Easements, Right of Ways
Copies -
When No
Longer
Required
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Send all originals to the City Clerk; GC
§34090.7
TWENTYNINE PALMS, CA. ©1995-2019 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Adopted: 9/14/2021

RECORDS RETENTION SCHEDULE: ENGINEERING
(Capital Improvement Projects, Private Development, Transportation) Ver. 6.0 Page ENG-2
Office of
Record (OFR) Retention No. Records Description Total Retention Vital? Media Options Image:

I=Import
M=Mfr
S=Scan
Destroy
Paper
after
Imaged &
QC'd?
Comments / Reference
If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder.

HOLDS: Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion).

Engineering /
Capital
Improvement
Projects
ENG-005
Drawings, Maps, Plans / Record Drawings,
Large-Format Drawings, Survey Record
Maps, Capital Improvement Project "AsBuilt"
P Yes (all)
Mag,
Mfr, OD,
Ppr
S / I
Yes: After

QC & OD
No
Drafts should be destroyed; Some maps are
also retained by Planning; Selected maps
are retained in Public Works for
administrative purposes; GC §34090,
34090.7
Engineering /
Capital
Improvement
Projects
ENG-006 Improvement Plans (Includes Grading) P
Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD Department Preference; GC §34090
Engineering /
Capital
Improvement
Projects
ENG-007 Master Plans: Bikeway, Parking,
Pavement, Transportation, etc. P
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Department preference; Drafts should be
destroyed; GC §34090
Engineering /
Capital
Improvement
Projects
ENG-007.1
Solid Waste Reduction / AB 939
Compliance / SB 1383 Compliance
(Organic Waste Collection / Recycling)
10 years
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Department preference; SB 1383
compliance is required for 5 years; 14 CCR
§ 18995.2; GC §34090

ENGINEERING / (PRIVATE DEVELOPMENT)
Engineering /
Private Dev. ENG-008 Benchmarks P
Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD Department Preference; GC §34090
Engineering /
Private Dev. ENG-009
Correspondence - Regulatory Agencies
Not Related to a CIP (State / Federal
Agencies, EPA, Health Department, etc.)
Minimum 10
years
Yes: While
Active
Issues
Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC
Department preference; Some
correspondence from Regulatory Agencies
need to be retained for long periods of time;
GC §34090
Engineering /
Private Dev. ENG-010 Design / Construction Standards - Authored by the City P Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD Department Preference; GC §34090
Engineering /
Private Dev. ENG-011 Developer's Bonds / Security
Close or
Default + 5
years
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Department Preference; meets auditing
standards; GC §34090, 26 CFR 31.6001-1
TWENTYNINE PALMS, CA. ©1995-2019 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Adopted: 9/14/2021

RECORDS RETENTION SCHEDULE: ENGINEERING
(Capital Improvement Projects, Private Development, Transportation) Ver. 6.0 Page ENG-3
Office of
Record (OFR) Retention No. Records Description Total Retention Vital? Media Options Image:

I=Import
M=Mfr
S=Scan
Destroy
Paper
after
Imaged &
QC'd?
Comments / Reference
If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder.

HOLDS: Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion).

Engineering /
Private Dev. ENG-012
Encroachment Permits / Excavation
Permits: Temporary (Street Permits,
Temporary Construction, Sidewalk
Repairs, Traffic Control, Transportation
Permits, Utility Cuts, etc.)
Includes Insurance Certificates
Final /
Completion +
2 years
Yes: Until
Completion
Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD GC § 34090
Engineering /
Private Dev. ENG-013
Encroachments - Permanent
(Permanent structures in the City's Right of
Way)
P
Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD Department Preference; GC §34090
Engineering /
Private Dev. ENG-014
Engineering Studies / Surveys -
Geotechnical / Soil Reports / Hydrology
Reports / Preliminary Studies / Project
Assessments
P
Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD Department Preference; GC §34090
Engineering /
Private Dev. ENG-015 Parcel Maps / Tract Maps P Yes (all) Mag,
Mfr, OD,
Ppr
S / I
Yes: After

QC & OD
No
Drafts should be destroyed; Some maps are
also retained by Planning; Selected maps
are retained in Public Works for
administrative purposes; GC §34090,
34090.7
Building ENG-016 Plan Checks for Building Permits
When No
Longer
Required
Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD CBC §§104.6 104.7 and 107.5; GC §34090
Engineering /
Private Dev. ENG-017
Private Development Projects / Job Files:

Administration File / Construction
Inspection
Construction Inspections,
Correspondence, Daily Logs, Inspector's
Records, Photos, Soil Reports, etc.

Completion +
10 years
Yes: Until
Completed
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Statute of Limitations for Errors & Omissions
is 10 years; Statute of Limitations: Contracts
& Spec's=4 years, Wrongful Death=comp. +
5 years, Developers=comp. + 10 years; CCP
§337 et. seq., GC §34090
TWENTYNINE PALMS, CA. ©1995-2019 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Adopted: 9/14/2021

RECORDS RETENTION SCHEDULE: ENGINEERING
(Capital Improvement Projects, Private Development, Transportation) Ver. 6.0 Page ENG-4
Office of
Record (OFR) Retention No. Records Description Total Retention Vital? Media Options Image:

I=Import
M=Mfr
S=Scan
Destroy
Paper
after
Imaged &
QC'd?
Comments / Reference
If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder.

HOLDS: Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion).

Engineering /
Private Dev. ENG-018
Private Development Projects / Job Files:

Permanent Files
Certificate of Acceptance / Approval
(copy), Dedications, Abandonments,
Drainage, Driveway, Private Lab
Verifications, Testing Lab Final Reports,
etc.

P
Yes: Until
Completed
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Department preference; retained for disaster
preparedness purposes; GC §34090

ENGINEERING / TRANSPORTATION
Engineering /
Transportation ENG-019 Traffic Calming Requests / Stop Sign Surveys (Speed Humps, etc.) 2 years Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD Department preference; GC §34090
Police or Sheriff ENG-020 Traffic Collision Reports
Copies -
When No
Longer
Required
Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD copies; GC §34090.7
Engineering /
Transportation ENG-021 Arborist Tree Reports 10 years
Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD Department preference; GC §34090
Engineering /
Transportation ENG-022 Sidewalk Assessment 10 years
Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD Department preference; GC §34090
Engineering /
Transportation ENG-023 Traffic Congestion Management Plans / Transportation Management Plans / TMPs 10 years Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD Department preference; GC §34090
Engineering /
Transportation ENG-024 Schedule for Pavement Overlays P Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD Department preference; GC §34090
Engineering /
Transportation ENG-025 Traffic Counts 10 years
Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD Department preference; GC §34090
TWENTYNINE PALMS, CA. ©1995-2019 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Adopted: 9/14/2021

RECORDS RETENTION SCHEDULE: ENGINEERING
(Capital Improvement Projects, Private Development, Transportation) Ver. 6.0 Page ENG-5
Office of
Record (OFR) Retention No. Records Description Total Retention Vital? Media Options Image:

I=Import
M=Mfr
S=Scan
Destroy
Paper
after
Imaged &
QC'd?
Comments / Reference
If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder.

HOLDS: Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion).

Engineering /
Transportation ENG-026 Traffic Signal Timing Plans
Current Plan
Superseded
+ 5 years
Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD Department preference; GC §34090
Engineering /
Transportation ENG-027 Traffic Speed Surveys / Stop Sign Warrants 10 years Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Department preference (required every 5
years, but can be extended to 7 or 10 years);
GC §34090
TWENTYNINE PALMS, CA. ©1995-2019 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Adopted: 9/14/2021

RECORDS RETENTION SCHEDULE: FINANCE
(Business License, Payroll, Purchasing)
Ver. 8.0 Page FIN-1
Office of
Record
(OFR)
Retention No. Records Description Total
Retention Vital? Media Options
Image:

I=Import
M=Mfr
S=Scan
Destroy
Paper after
Imaged &
QC'd?
Comments / Reference
If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder.

HOLDS: Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion).

FINANCE
Finance FIN-001 1099's / 1096's / DE542 (California Report of Independent Contractors) 5 years Mag, Mfr, OD, Ppr S / I Yes: After QC & OD Department Preference; IRS: 4 years
after tax is due or paid (longer for
auditing & contractor delinquency); Ca.

FTB: 3 years; 26 CFR §31.6001-1(e)(2),
R&T §19530, GC §34090; 29 USC 436
Finance FIN-002
Accounts Payable / Invoices / Backup /
Warrants
(Includes Invoices, Travel Expense
Reimbursements, etc.)
7 years Yes: Until
Paid
Mag, Mfr,
OD, Ppr S / I
Yes: After
QC & OD 5
years
May contain employee or contractor
reimbursement; GC §34090; GC
§§34090, 60201(d)(12)
Finance FIN-003
Accounts Receivable: Revenue - Our
Invoices to Outside Entities, Transient
Occupancy Tax (TOT), etc.
5 years Yes: Until
Paid
Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD
Department preference; Meets auditing
standards; GC §34090 et seq.

Finance FIN-004 Audit Work Papers
When No
Longer
Required
Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD
Preliminary drafts / content not
substantive; GC §34090
Finance FIN-005
Audits - Final / Annual Comprehensive
Financial Report (ACFR) CAFR
(Consolidated Annual Financial Report /
Annual Financial Statements / Single
Audits
P
Mag, Mfr,
OD, Ppr S / I
Yes: After

QC & OD
No
Department Preference; GC §34090
Finance FIN-006
Audits - Single Audits, Grant Audits, IRS
Audits, Transportation Audits, PERS Audit,
etc.
5 years Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD
Department Preference (meets
municipal government auditing
standards); GC §34090
Finance FIN-007 Bank Deposits 5 years Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD
Department Preference; Meets auditing
standards; Published articles show
disposal + 7 years for security
brokerage slips; statewide guidelines
propose permanent; FTC Reg's rely on
"self-enforcement"; GC§§ 34090,
43900
TWENTYNINE PALMS, CA. ©1995-2019 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Adopted: 9/14/2021

RECORDS RETENTION SCHEDULE: FINANCE
(Business License, Payroll, Purchasing)
Ver. 8.0 Page FIN-2
Office of
Record
(OFR)
Retention No. Records Description Total
Retention Vital? Media Options
Image:

I=Import
M=Mfr
S=Scan
Destroy
Paper after
Imaged &
QC'd?
Comments / Reference
If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder.

HOLDS: Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion).

Finance FIN-008
Bank Statements / Trustee Statements,
Fiscal Agent Statements, Investment
Account Statements, Bank Reconciliations
5 years Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD
Department Preference; meets auditing
standards; GC §34090, 26 CFR 31.6001-
1 Finance FIN-009
Bonds / Bond Sales / Official Statements /
Transcripts / Certificates of Participations
(COPs) - Includes Continuing Disclosure
Reports
See Bank Statements for statement
retention.

Fully
Defeased +
10 years
Yes: Until
Maturity
Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD
Department Preference; Statute of
Limitations for bonds, mortgages, trust
deeds, notes or debentures is 6 years;
Bonds issued by local governments are
10 years; IRS bond auditing regulations
state, "…material records should
generally be kept for as long as the
bonds are outstanding, plus 3 years
after the final redemption date of the
bonds; There are specific requirements
for disposal of unused bonds; CCP
§§336 et seq. 337.5(a); 26 CFR 1.6001-
1(e): 26 CFR § 1.148-5(d)(6)(iii)(E); GC
§43900 et seq.

Finance FIN-010 Budgets - Final P
Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD Department Preference; GC §34090 Finance FIN-011 Budgets Work Papers
When No
Longer
Required
Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD Preliminary drafts; GC §34090 Finance FIN-012
Cash Receipts / Daily Cash Summaries /
Cashiers Reports / Cash Reports / Petty
Cash / Credit Cards
5 years Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD
Department preference; Meets auditing
standards; GC §34090 et seq.

Finance FIN-013 Checks / Warrants (Cashed) 5 years Mag, Mfr, OD, Ppr S / I Yes: After QC & OD
May contain Fire District independent
contractor's compensation, expense
reimbursement, or District credit card
records; Meets municipal government
auditing standards; GC § 34090
TWENTYNINE PALMS, CA. ©1995-2019 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Adopted: 9/14/2021

RECORDS RETENTION SCHEDULE: FINANCE
(Business License, Payroll, Purchasing)
Ver. 8.0 Page FIN-3
Office of
Record
(OFR)
Retention No. Records Description Total
Retention Vital? Media Options
Image:

I=Import
M=Mfr
S=Scan
Destroy
Paper after
Imaged &
QC'd?
Comments / Reference
If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder.

HOLDS: Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion).

Finance FIN-014
Checks deposited to Bank (City scans
them for the Bank, rather than physically
taking the checks to the bank to deposit
them.)
Follow Bank
Instructions
Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD
These are bank instruments, and not
City records; per bank agreement.

Finance FIN-015 Escheat (Unclaimed money / uncashed
checks) 5 years Mag, Mfr, OD, Ppr S / I Yes: After QC & OD Department preference; All tangible
property held by government agencies
escheats after 3 years; Statute of
Limitations is 1 year for seized property;
CCP §§340(d), 1519; GC §34090
Finance FIN-016 Financial Services Database (AccuFund)
Indefinite -
Minimum 7
years
Yes Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD
Data Fields / Records are interrelated;
meets municipal government auditing
standards (matches accounts payable);
GC §34090
Finance FIN-017 Fixed Assets 5 years Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD
Department Preference (bond auditing
purposes; IRS regulations state,
"…material records should generally be
kept for as long as the bonds are
outstanding, plus 3 years after the final
redemption date of the bonds"); 26 CFR

1.6001-1(e); GC §34090
Finance FIN-018 Investment Policy Superseded
+ 5 years
Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD Department Preference; GC §34090 Finance FIN-019 Investment Reports / Backup 5 years Mag, Mfr, OD, Ppr S / I Yes: After QC & OD Department Preference; GC §34090 Finance FIN-020
Investments / Arbitrage / Certificate of
Deposit / Investment Bonds (Receipts /
Advisor Reports / Trade Tickets / LAIF
(Local Agency Investment Fund))
5 years Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD
Department Preference; Meets auditing
standards; Published articles show
disposal + 7 years for security
brokerage slips; statewide guidelines
propose permanent; FTC Reg's rely on
"self-enforcement"; GC§§ 34090,
43900
TWENTYNINE PALMS, CA. ©1995-2019 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Adopted: 9/14/2021

RECORDS RETENTION SCHEDULE: FINANCE
(Business License, Payroll, Purchasing)
Ver. 8.0 Page FIN-4
Office of
Record
(OFR)
Retention No. Records Description Total
Retention Vital? Media Options
Image:

I=Import
M=Mfr
S=Scan
Destroy
Paper after
Imaged &
QC'd?
Comments / Reference
If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder.

HOLDS: Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion).

Finance FIN-021 Journal Entries / Journal Vouchers 5 years Mag, Mfr, OD, Ppr S / I Yes: After QC & OD
Department Preference; meets auditing
standards; GC §34090, 26 CFR 31.6001-
1 Finance FIN-022
Reports, Finance Reports created from
Database: General Ledger, Subsidiary
Ledgers, Reconciliations, Registers,
Transaction Histories, Balance Sheets,
Revenue / Expenditure Reports, etc.
(MONTHLY / PERIODIC)
When No
Longer
Required
Yes Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD
Department preference (The Financial
System Database is the original; reports
are considered drafts or copies); GC
§34090
Finance FIN-023
Reports: Annual State / Federal: State
Controller's Report, Local Government
Compensation Report, Gas Tax, MOE
(Maintenance of Effort) Report, Street
Report, etc.
5 years Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD
Department Preference; Meets auditing
standards; GC §34090
Finance FIN-024 W-9s
Vendor
Inactive + 3
years
Minimum 5
years
Yes: Until
Paid
Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD
Department Preference (meets IRS
municipal government auditing
standards); GC §34090; 29 USC 436

FINANCE / BUSINESS LICENSE
Finance /
Business
License
BL-001 Business License / Permit Database
(AccuFund)
Indefinite -
Minimum 5
years
Yes Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD
Data Fields / Records are interrelated;
meets municipal government auditing
standards; GC §34090
Finance /
Business
License
BL-002
Business License Applications / Permits
(ALL Revenue / Regulatory, Massage
Establishment, Taxi, Solicitor, etc.)
Includes ABC License, Fictious Business
Name Certificates, Sales Permits, etc.)
Close of
Business + 5
years
Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD
Department preference (meets
municipal government auditing
standards); GC §34090 et seq.

Finance /
Business
License
BL-003 Business License Renewals
When No
Longer
Required
Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD Preliminary Drafts; GC §34090 et seq.

TWENTYNINE PALMS, CA. ©1995-2019 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Adopted: 9/14/2021

RECORDS RETENTION SCHEDULE: FINANCE
(Business License, Payroll, Purchasing)
Ver. 8.0 Page FIN-5
Office of
Record
(OFR)
Retention No. Records Description Total
Retention Vital? Media Options
Image:

I=Import
M=Mfr
S=Scan
Destroy
Paper after
Imaged &
QC'd?
Comments / Reference
If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder.

HOLDS: Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion).

FINANCE / PAYROLL
Finance /
Payroll PAY-001 CalPERS Reports - Annual Valuation Reports, Actuarial Valuation Reports 5 years Mag, Mfr, OD, Ppr S / I Yes: After QC & OD Department Preference; GC §§34090,
60201(d)(12)
Finance /
Payroll PAY-002
DE-6, DE-7, DE-9, DE-43, W-3, / DE-166,
941 Forms, IRS 5500 Forms (Employee
Benefit Plans), PERS / FICA / Medicare
Adjustments - Quarterly Payroll Tax
Returns / OASDI, Federal Tax Deposits,
Adjustments, etc.
5 years Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD
Department Preference; IRS: 4 yrs after
tax is due or paid; Ca. FTB: 3 years;
Articles show 7 years; IRS Reg
§31.6001-1(e)(2), R&T §19530; 29CFR
516.5 - 516.6, 29USC 436, GC
§§34090, 60201(d)(12)
Finance /
Payroll PAY-003 Deferred Compensation (City Statements) 5 years Mag, Mfr, OD, Ppr S / I Yes: After QC & OD Produced by Deferred Comp. Provider;
consistent with proposed statewide
guidelines; GC §§34090, 60201(d)(12),
26 CFR 31.6001.1
Finance /
Payroll PAY-004 Employee Payroll Files - Includes W-4s Separation + 5 years Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD
Department preference; Meets
municipal government auditing
standards; W-4s are required four years
after the due date of such tax for the
return period to which the records
relate, or the date such tax is paid,
whichever is the later. 26 CFR 31-6001-
1; GC §§34090, 60201(d)(12)
Finance /
Payroll PAY-005
Employee Verifications (responses to
outside banks, mortgage brokers, / others
about an employee's employment status)
When No
Longer
Required
Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD
Non-records / Content Not Substantive,
therefore there is no obligation to retain
responses; GC §§34090 et seq., 60201
et seq.

Finance /
Payroll PAY-006 Garnishments
Satisfied + 5
years, or
Separation of
Employee
Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD
GC §§34090, 60201(d)(12), 26 CFR

31.6001.1
Finance /
Payroll PAY-007 Payroll Database (Tyler Munis / Enterprise ERP )
Indefinite -
Minimum 7
years
Yes Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD
Data Fields / Records are interrelated;
meets municipal government auditing
standards; GC §34090
TWENTYNINE PALMS, CA. ©1995-2019 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Adopted: 9/14/2021

RECORDS RETENTION SCHEDULE: FINANCE
(Business License, Payroll, Purchasing)
Ver. 8.0 Page FIN-6
Office of
Record
(OFR)
Retention No. Records Description Total
Retention Vital? Media Options
Image:

I=Import
M=Mfr
S=Scan
Destroy
Paper after
Imaged &
QC'd?
Comments / Reference
If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder.

HOLDS: Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion).

Finance /
Payroll PAY-008 Payroll Reports - Periodic Bi-weekly
Payroll Report 7 years Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD
Department preference; Meets
municipal government auditing
standards; PERS Circular letter 200-051-
17; GC §§34090, 60201(d)(12)
Finance /
Payroll PAY-009 Time Sheets / Time Cards / Overtime Sheets / Overtime Cards 5 years Mag, Mfr, OD, Ppr S / I Yes: After QC & OD Department preference; Meets auditing
standards (audit + 4 years); IRS
requires 4 years; Ca. requires 2 yr min.;
FTB keeps 3 years; Most Employees
provide digital signatures when they
submit their timecards, but some in
Public Works and Community Services
do not (another employee enters their
time); IRS Reg §31.6001-1(e)(2), R&T
§19530; LC § 1174(d); 29 CFR 516.5;
29 CFR 516.5 & 516.6(c); GC §§34090,
60201(d)(12)
Finance /
Payroll PAY-010 W-2's 5 years Mag, Mfr, OD, Ppr S / I Yes: After QC & OD Department preference for Grant
Auditing Purposes; Meets municipal
government auditing standards; GC
§§34090, 60201(d)(12)

FINANCE / PURCHASING
Finance /
Purchasing PUR-001 Purchase Order Database
Indefinite -
Minimum 7
years
Yes Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD
Data Fields / Records are interrelated;
meets municipal government auditing
standards; GC §34090
Finance /
Purchasing PUR-002 Purchase Orders / Backup 5 years Mag, Mfr, OD, Ppr S / I Yes: After QC & OD Department preference; Meets
municipal government auditing
standards and Statute of Limitations for
contracts; CCP §337 et. seq.,; GC
§34090
TWENTYNINE PALMS, CA. ©1995-2019 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Adopted: 9/14/2021

RECORDS RETENTION SCHEDULE: HUMAN RESOURCES
(Risk Management)
Ver. 8.0 Page HR-1
Office of
Record
(OFR)
Retention No. Records Description Total
Retention Vital? Media Options
Image:

I=Import
M=Mfr
S=Scan
Destroy
Paper after
Imaged &
QC'd?
Comments / Reference
If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder.

HOLDS: Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion).

HUMAN RESOURCES
Human
Resources HR-001 Benefit Plan Documents (Optical, Dental, etc.) Duration of
the Contract
+ 2 years
Yes: For
Duration of
Contract
Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD
EEOC / ADEA (Age) requires 1 year after
benefit plan termination; 29 CFR
1627.3(b)(1)(2); 29 USC 1027; GC §34090
Human
Resources HR-002
Classification / Reorganization Studies (for
employee classifications / department
structures)
Minimum 3
years
Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD
Department preference; Bureau of
National Affairs recommends 2 years for
all supplementary Personnel records;
Wage rate tables are 1 or 2 years; State
requires 2 years; 29 CFR 516.6, 29 CFR
1602.14, GC §§12946, 12960, 34090
Human
Resources HR-003 Compensation Surveys / Studies Minimum 3 years Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD
Department preference; Bureau of
National Affairs recommends 2 years for
all supplementary Personnel records;
Wage rate tables are 1 or 2 years; State
requires 2 years; 29 CFR 516.6(2), 29
CFR 1602.14, GC §§12946, 12960, 34090
Human
Resources HR-004 Contracts for Investigators Completion + 5 years Yes: Before
Completion
Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD
Department preference; Statute of
Limitations for contractual obligations is 4
years; CCP §§337. 337.1(a), 337.15, 343;
GC §34090
Human
Resources HR-005
California Civil Rights Department (CRD) /
Department of Fair Employment / Housing
(DFEH / EEOC) Claims / Harassment Claims
Final
Disposition +
5 years
Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD
All State and Federal laws require
retention until final disposition of formal
complaint; State requires 4 2 years after
"fully and finally disposed"; 2 CCR
1101(c); GC §§12946, 12960, 34090
Human
Resources HR-006 DMV Pull Notices
When
Superseded
or Upon
Separation
Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD Department Preference; GC §34090 TWENTYNINE PALMS, CA. ©1995-2019 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Adopted: 9/14/2021

RECORDS RETENTION SCHEDULE: HUMAN RESOURCES
(Risk Management)
Ver. 8.0 Page HR-2
Office of
Record
(OFR)
Retention No. Records Description Total
Retention Vital? Media Options
Image:

I=Import
M=Mfr
S=Scan
Destroy
Paper after
Imaged &
QC'd?
Comments / Reference
If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder.

HOLDS: Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion).

Human
Resources HR-007 Drug / Alcohol Test Results (All - Positives / Negatives) 5 years Mag, Mfr, OD, Ppr S / I Yes: After QC & OD Department preference; D.O.T. Requires 5
years for positive tests, 1 year for negative
tests; EEOC/FLSA/ADEA (Age) requires 3
years physical examinations; State Law
requires 2 years; 29 CFR 1627.3(b)(1)(v),
GC §§12946, 12960, 34090; 49 CFR
655.71 et seq.; 49 CFR 382.401 et seq.
49 CFR 653.71
Human
Resources HR-008 Employee Investigations Separation + 4 3 years Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD
All State and Federal laws require
retention until final disposition of formal
complaint; State requires 4 2 years after
"fully and finally disposed"; 2 CCR
1101(c); GC §§12946, 12960, 34090
Human
Resources HR-009
Ethics Training Certificates, Fiscal and
Financial, / Harassment Prevention Training
Certificates
Separation +
5 years
Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD GC §§34090, 53235.2(b); LC §1198.5 Human
Resources HR-010 I-9s Separation + 3 years
Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD
Required for 1 year from termination or 3
years from hiring, whichever is later;
EEOC / FLSA / ADEA (Age) requires 3
years for "any other forms of employment
inquiry"; State Law requires 2 -3 years; 8
CFR 274a.2; 29 CFR 1627.3(b)(1); GC
§§12946, 12960, 34090
Human
Resources HR-011 Job Descriptions / Classification Specifications Minimum
Superseded
+ 4 3 years
Mag, Mfr,
OD, Ppr S / I
Yes: After
QC & OD 1
year
Department Preference; statute of
limitations for EEOC/FLSA/ADEA (Age)
requires 3 years for promotion, demotion,
transfer, selection, or discharge; State Law
requires 4 2 -3 years; 29 CFR 1602.31 &
1627.3(b)(ii), GC §§12946, 12960, 34090
TWENTYNINE PALMS, CA. ©1995-2019 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Adopted: 9/14/2021

RECORDS RETENTION SCHEDULE: HUMAN RESOURCES
(Risk Management)
Ver. 8.0 Page HR-3
Office of
Record
(OFR)
Retention No. Records Description Total
Retention Vital? Media Options
Image:

I=Import
M=Mfr
S=Scan
Destroy
Paper after
Imaged &
QC'd?
Comments / Reference
If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder.

HOLDS: Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion).

Human
Resources HR-012 OSHA Logs - 200, 300, 301, 301A 5 years Mag, Mfr, OD, Ppr S / I Yes: After QC & OD OSHA requires 5 years; State law requires
2 years; 8 CCR 14300.33; 8 CCR
§3203(b)(1), GC §34090.7; LC §6429c
Human
Resources HR-013
Personnel Files - Employee Confidential
File
Includes Application, Benefit Enrollment
Forms, Harassment Prevention Training
Certificates, Evaluations, Grievances, I-9s,
Policies, Personnel Action Forms,
Settlement Agreements, etc.

Required Information for all Employee
Training:

Employee Name
Training Provider’s Name
Date
Duration (length)
Core Competencies / Skills
Certifications / Qualifications
Separation +
6 years
Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD
Department Preference; statute of
limitations for retirement benefits is 6
years from last action; EEOC/FLSA/ADEA
(Age) requires 3 years for promotion,
demotion, transfer, selection, or discharge;
State Law requires 4 2-3 years; 29 CFR
1602.31 & 1627.3(b)(1), GC §§ 3105,
12946, 12960, 34090; 53237.2(b), LC
§1198.5
Human
Resources HR-014
Personnel Files - Medical File (all
employees)
Pre-employment Medical Clearances, ADA
Accommodations, Fit for Duty, etc.

Separation +
30 years or
Termination
of Benefits
(whichever is
longer)
Yes: Until
Separation
Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD
Department preference; Files maintained
separately; Claims can be made for 30
years for toxic substance exposure; 8 CCR
§3204(d)(1) et seq., 8 CCR 5144, 8 CCR
15400.2; 29 CFR 1910.1020(d)(1)(i), GC
§§12946, 12960, 34090
TWENTYNINE PALMS, CA. ©1995-2019 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Adopted: 9/14/2021

RECORDS RETENTION SCHEDULE: HUMAN RESOURCES
(Risk Management)
Ver. 8.0 Page HR-4
Office of
Record
(OFR)
Retention No. Records Description Total
Retention Vital? Media Options
Image:

I=Import
M=Mfr
S=Scan
Destroy
Paper after
Imaged &
QC'd?
Comments / Reference
If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder.

HOLDS: Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion).

Human
Resources HR-015
Recruitment / Testing File - FULL TIME

EMPLOYEES
(Includes Advertisements, Applications for
Unsuccessful Candidates, Interview Notes,
Job Brochures, Test Data, Testing Analysis /
statistical Metric, Job Analysis, Rating
Sheets, Scantrons, etc.)
4 3 years
Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD
Department preference State Law
requires 4 2 - 3 years; (Part Time
Employee Recruitments are retained by
the Department, except for the Successful
Application); EEOC / FLSA / ADEA (Age)
requires 1-3 years; 29 CFR 1627.3(b)(1)(i),
29 CFR 1602.14 et seq.2 CCR 11013(c);
GC §§12946, 12960, 34090
Human
Resources HR-016 Studies / Surveys Conducted on Behalf of the City (Sick Leave, Attrition, Benefits, etc.) When No
Longer
Required
Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD
Content not substantive; Preliminary drafts
not retained in the ordinary course of
business; GC §34090
Human
Resources HR-016.5
Verifications of Employment, Child Support,
etc. (From lenders / other outside
companies)
When No
Longer
Required
Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD
Not as Agency record / Content does NOT
relate in a substantive way to the conduct
of the public's business; GC §34090 et
seq
Human
Resources HR-017 Workers Compensation Claim Runs 5 years Mag, Mfr, OD, Ppr S / I Yes: After QC & OD Department preference (meets municipal
government auditing standards); GC
§34090
Human
Resources HR-018
Workers Compensation Claims / Long Term
Disability Claims (Includes all Accident,
Incident, / Injury Reports from Employees)
Separation +
30 years or
Termination
of Benefits
(whichever is
longer)
Yes: Until
Separation
Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD
Department preference; Files maintained
separately; Claims can be made for 30
years for toxic substance exposure; 8 CCR
§3204(d)(1) et seq., 8 CCR 5144, 8 CCR
15400.2; 29 CFR 1910.1020(d)(1)(i), GC
§§12946, 12960, 34090
Human
Resources HR-018.5
Workplace Violence – Hazard identification,
evaluation, correction, incident logs,
investigations. training, etc.
5 years Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD LC §6401.9(f), GC §34090 TWENTYNINE PALMS, CA. ©1995-2019 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Adopted: 9/14/2021

RECORDS RETENTION SCHEDULE: HUMAN RESOURCES
(Risk Management)
Ver. 8.0 Page HR-5
Office of
Record
(OFR)
Retention No. Records Description Total
Retention Vital? Media Options
Image:

I=Import
M=Mfr
S=Scan
Destroy
Paper after
Imaged &
QC'd?
Comments / Reference
If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder.

HOLDS: Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion).

HUMAN RESOURCES / RISK MANAGEMENT
Human
Resources /
Risk Manage.

HR-019
Claims / Civil / Liability
Includes final Settlement Agreements
Final
Resolution +
5 years
Yes: Until
Resolution
Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD
Department Preference; Covers various
statute of limitations; CCP §§ 337 et seq.;
GC §§ 911.2, 34090, 34090.6; PC §832.5
Human
Resources /
Risk Manage.

HR-020 Incident Reports / Accident Reports /
Potential Claims (where no claim was filed) 2 years Mag, Mfr, OD, Ppr S / I Yes: After QC & OD GC §34090 Human
Resources /
Risk Manage.

HR-021
Incident Reports where a Loss of Property
was incurred that can be recovered
(Vandalism, Vehicle Accidents, etc.)
5 years Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD
Department Preference (meets auditing
standards); GC §34090
Human
Resources /
Risk Manage.

HR-022 Safety Meetings (all) 5 years Mag, Mfr,
OD, Ppr S / I Yes: After QC & OD
OSHA requires 5 years; State law requires
2 years; 8 CCR §3203(b)(1), OMB 1220-
0029; GC §34090; LC §6429c
TWENTYNINE PALMS, CA. ©1995-2019 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Adopted: 9/14/2021

Ver. 6.0 RECORDS RETENTION SCHEDULE: PARKS AND RECREATION Page P&R-1 Office of
Record
(OFR)
Retention No. Records Description Total
Retention Vital? Media Options
Image:

I=Import
M=Mfr
S=Scan
Destroy
Paper
after
Imaged &
QC'd?
Comments / Reference
If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder.

HOLDS: Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion).

PARKS AND RECREATION
Parks &
Recreation REC-001 Evaluations / Surveys (of Recreation programs) When No
Longer
Required
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Content Not Substantive / Preliminary
drafts / Transitory records; GC §34090
Parks &
Recreation REC-002 Facility Use Requests / Facility Use Applications / Permits (includes ABC Permits, where required) 2 years Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD GC §34090 et. seq.

Parks &
Recreation REC-003
Program Development Files / Activity Files /
Program Files / Special Programs /
After School / Children's Programs/ Cultural Arts /
Pre-School / Sports / Seniors, etc.

Minimum 2
years
Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD Department preference; GC §34090
Parks &
Recreation REC-004 Receipts (Handwritten / Computer) 2 years Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD GC §34090 et. seq.

Parks &
Recreation REC-005 Recreation Database / Class Registration Database (Book King)
Indefinite -
Minimum 2
years
Yes
Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD Data is interrelated; GC §34090
Parks &
Recreation REC-006
Registration / Applications / Liability Forms /
Release of Liability Forms / Photo Releases /
Waivers of Liability / Permissions: Camps, Field
Trips, Authorization to give Medicine, etc.
2 years
Yes:

During
Class or
Program
Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD GC §34090
Parks &
Recreation REC-007 Rosters / Sign-in / Sign-Out Sheets for classes / programs 2 years
Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD GC §34090
Parks &
Recreation REC-008 Schedules / Hours
When No
Longer
Required
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Content not substantive; Preliminary
drafts not retained in the ordinary course
of business; GC §34090
Parks &
Recreation REC-009 Special Events: City-sponsored, Private Special Event Permits (ALL) Minimum 2
years
Yes:

Before
Completion
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Department Preference; GC §34090 et.
seq.

TWENTYNINE PALMS, CA. ©1995-2019 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Adopted: 9/14/2021

Ver. 6.0 RECORDS RETENTION SCHEDULE: PARKS AND RECREATION Page P&R-2 Office of
Record
(OFR)
Retention No. Records Description Total
Retention Vital? Media Options
Image:

I=Import
M=Mfr
S=Scan
Destroy
Paper
after
Imaged &
QC'd?
Comments / Reference
If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder.

HOLDS: Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion).

Parks &
Recreation REC-010 Sponsorships for Events 2 years
Yes:

During
Class or
Program
Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD GC §34090
Parks &
Recreation REC-011 Volunteer Background Clearances / SSCI 2 years Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD GC §34090 et. seq.

Parks &
Recreation REC-012 Volunteers / Waivers
Inactive /
Separation +
3 years

Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Department preference (Courts treat
volunteers as employees);
EEOC/FLSA/ADEA (Age) requires 3 years
for promotion, demotion, transfer,
selection, or discharge; 29 CFR 1602.31
& 1627.3(b)(1)(i)&(ii), GC §§12960, 34090
TWENTYNINE PALMS, CA. ©1995-2019 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Adopted: 9/14/2021

Ver. 8.0 RECORDS RETENTION SCHEDULE: PLANNING Page PL-1 Office of
Record
(OFR)
Retention No. Records Description Total
Retention Vital? Media Options
Image:

I=Import
M=Mfr
S=Scan
Destroy
Paper
after
Imaged &
QC'd?
Comments / Reference
If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder.

HOLDS: Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion).

PLANNING
Planning PL-001
Address File / Planning Project Files -
Approved Permanent Entitlements
(Includes Associated CEQA Noticing, Conditions of
Approval, Environmental Determinations, Staff
Reports, Plans)
Examples: Conditional Use Permits (CUPs),
Parcel Maps, Administrative Use Permits, Site
Plans, Tentative Subdivisions, Variances, Zone
Changes, etc.

P Yes
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Department preference; Final environmental
determinations are required to be kept a
"reasonable period of time"; 14 CCR
§15095(c); GC§§34090, 34090.7
Planning PL-001.5 Planning Project Files - Cancelled / Expired / Withdrawn
Minimum
Cancellation,
Expiration or
Withdrawal +
2 years
Yes
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Department preference; Preliminary drafts
not retained in the ordinary course of
business; GC §34090
Planning PL-002
Address File / Planning Project Files -
Approved Permanent Entitlements
Undeliverable Envelopes
When No
Longer
Required
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Preliminary drafts / Content Not Substantive
(the mailing list and notice is retained);
GC§§34090, 34090.7
Planning PL-003 Annexations / Boundaries / Consolidations /

LAFCO P
Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD Land Records; GC §34090
Planning PL-004 Census, Demographics
When No
Longer
Required
Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD (Non-Records - Census Bureau is OFR)
Planning PL-005
Correspondence relating to Planning Projects (e.g.
zoning verification letters, CEQA, reasonable
accommodation determinations, working files,
letters, memorandums, etc.)
2 years
Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD GC §34090 et seq.

TWENTYNINE PALMS, CA. ©1995-2019 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Adopted: 9/14/2021

Ver. 8.0 RECORDS RETENTION SCHEDULE: PLANNING Page PL-2 Office of
Record
(OFR)
Retention No. Records Description Total
Retention Vital? Media Options
Image:

I=Import
M=Mfr
S=Scan
Destroy
Paper
after
Imaged &
QC'd?
Comments / Reference
If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder.

HOLDS: Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion).

Planning PL-006
Encroachment Permits / Excavation Permits:

Temporary (Street Permits, Temporary
Construction, Sidewalk Repairs, Traffic Control,
Transportation Permits, Utility Cuts, etc.)
Includes Insurance Certificates
Final /
Completion +
2 years
Yes: Until
Completion
Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD GC § 34090
Planning PL-007
Environmental Determinations: Environmental
Impact Reports (EIRs), Negative Declarations,
etc.) / CEQA
Inside City boundaries
P
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Usually filed in the project file; Final
environmental determinations are required to
be kept a "reasonable period of time"; 14
CCR §15095(c); GC §34090
Planning PL-007.1
Environmental Determinations: Environmental
Impact Reports (EIRs), Negative Declarations,
etc.) / CEQA
Correspondence / Staff Notes that provide
insight into the project / the agency’s CEQA
compliance with respect to the project
Project
Approval or
Denial + 2
years
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Not all internal communications and notes
are required to be saved; "E-mails that do not
provide insight into the project or the
agency’s CEQA compliance with respect to
the project — are not within the scope of
section 21167.6, subdivision (e) and need
not be retained; Golden Door Properties,
LLC v. Superior Court of San Diego County
(2020) 53 Cal.App.5th 733;; PRC 21167.6
GC §34090
Planning PL-008
Environmental Determinations: Environmental
Impact Reports (EIRs), Negative Declarations,
etc.) / CEQA
Outside City boundaries
When No
Longer
Required
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Non-records; EIRs and Negative
Declarations within the City Boundaries are
with the project file
Planning PL-009 General Plan, Elements / Amendments P
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
City Clerk Maintains all Agenda Packets
Permanently; GC §34090.7
Planning PL-010 Long Range Planning / Planning Studies P Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Usually filed in the project file; Final
environmental determinations are required to
be kept a "reasonable period of time"; 14
CCR §15095(c); GC §34090
TWENTYNINE PALMS, CA. ©1995-2019 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Adopted: 9/14/2021

Ver. 8.0 RECORDS RETENTION SCHEDULE: PLANNING Page PL-3 Office of
Record
(OFR)
Retention No. Records Description Total
Retention Vital? Media Options
Image:

I=Import
M=Mfr
S=Scan
Destroy
Paper
after
Imaged &
QC'd?
Comments / Reference
If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder.

HOLDS: Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion).

Planning PL-011 Master Plans, Specific Plans, Land Use Plans / Amendments P
Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD Department preference; GC §34090
Planning PL-012 Materials Boards
When No
Longer
Required
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Preliminary drafts not retained in the ordinary
course of business; GC §34090
Planning PL-013 Parade Event Permits 2 years
Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD GC §34090
Planning PL-014 Planning Commission

AGENDAS / AGENDA PACKETS P
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Department preference; Original Staff
Reports are filed in the project file; GC
§34090
Planning PL-015
Planning Commission:

Recordings - AUDIO RECORDINGS of Meetings /
Audio Tapes
Minimum 10
years

Mag
OD
Department preference; Audio Required for
30 days; GC §54953.5(b); video tapes
recordings of meetings are required for 90
days; GC §34090.7
Planning PL-015
Planning Commission:

Recordings - VIDEO RECORDINGS of Meetings /
Video Tapes
Minimum 10
years

Mag
OD
Department preference; Audio Required for
30 days; GC §54953.5(b); video tapes
recordings of meetings are required for 90
days; GC §34090.7
Planning PL-016 Planning Commission

MINUTES / RESOLUTIONS / BYLAWS P
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Department preference; Original Staff
Reports are filed in the project file; GC
§34090
Planning PL-017 Planning Commission
Oaths of Office P
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Department preference; Original Staff
Reports are filed in the project file; GC
§34090
Planning PL-018 Planning Commission
Speaker Slips
When No
Longer
Required
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Preliminary drafts not retained in the ordinary
course of business; GC §34090
TWENTYNINE PALMS, CA. ©1995-2019 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Adopted: 9/14/2021

Ver. 8.0 RECORDS RETENTION SCHEDULE: PLANNING Page PL-4 Office of
Record
(OFR)
Retention No. Records Description Total
Retention Vital? Media Options
Image:

I=Import
M=Mfr
S=Scan
Destroy
Paper
after
Imaged &
QC'd?
Comments / Reference
If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder.

HOLDS: Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion).

Planning PL-019 Pre-Applications / Preliminary Review Application (When a Form is Completed) 2 years
Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD GC §34090 et seq.

Planning PL-020
Temporary Use Permits / Temporary Signs /
Banner Permits, etc. (Approved / Unapproved)
Christmas Tree Lots, Pumpkin Lots, etc.

Expiration +
2 years
Yes:

During
Event
Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD Department preference; GC§§34090
Planning PL-021 Vacation Home Rental Permits Close + 2
years
Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD Department preference; GC §34090
Planning PL-022 Zoning Maps (Historically Significant) P Yes (all) Mag,
Mfr, OD,
Ppr
S / I
Yes: After

QC & OD
No
Department Preference; GC §34090
Planning PL-023 Zoning Ordinance Amendments / Zone Changes P Yes Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Department Preference (copies); GC
§34090.7
TWENTYNINE PALMS, CA. ©1995-2019 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Adopted: 9/14/2021

RECORDS RETENTION SCHEDULE: PUBLIC WORKS
(ALL DIVISIONS)
Ver. 6.0 Page PW-1
Office of
Record (OFR) Retention No. Records Description Total Retention Vital? Media Options Image:

I=Import
M=Mfr
S=Scan
Destroy
Paper
after
Imaged &
QC'd?
Comments / Reference
If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder.

HOLDS: Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion).

PUBLIC WORKS
Public Works PW-001 AQMD Permits (Generators, etc.) Issue Date + 5 years
Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD 40 CFR 70.6; GC §34090
Public Works PW-002 Arborist Tree Reports 10 years
Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD Department preference; GC §34090
Public Works PW-003 Audits: DMV / CHP 5 years
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Consistent with CHP requirements;
OSHA requires 1 year; 8 Ca. Code Reg.
§ 3203(b)(1); GC § 34090
Public Works PW-004 Catch Basin Cleaning Logs (Dailies / Weekly / Service Repairs) 5 years
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
For compliance with NPDES and Clean
Water requirements; WC §13263.2(b) et
seq.; 40 CFR 122.41(j)(2)GC §34090
Public Works PW-005 CHP Inspection / Bit Program / Operator Daily Records (ODRs) (RTA System) 2 years
Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD GC §34090; 13 CCR 1234(3)
Public Works PW-006 Crosswalk Light Inspections 2 years Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD GC §34090
Public Works PW-007 Generator Operation Logs / Inspections 5 years Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
AQMD Rule 1470; Form 400–E–13a
instructions; GC §34090
Public Works PW-008 Graffiti Abatement 5 years
Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD GC §34090
Public Works PW-009 Operations / Maintenance Manuals (O&M Manuals)
Life of
Facility or
Equipment
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Department Preference; GC §34090 et.
seq.

TWENTYNINE PALMS, CA. ©1995-2019 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Adopted: 9/14/2021

RECORDS RETENTION SCHEDULE: PUBLIC WORKS
(ALL DIVISIONS)
Ver. 6.0 Page PW-2
Office of
Record (OFR) Retention No. Records Description Total Retention Vital? Media Options Image:

I=Import
M=Mfr
S=Scan
Destroy
Paper
after
Imaged &
QC'd?
Comments / Reference
If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder.

HOLDS: Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion).

Public Works PW-010 Pesticide Applications 2 years
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Department Preference (agricultural
pesticide records are required for 2
years); GC §34090; 3 CCR 6623; 40 CFR
110.3(d) , 40 CFR 171.11 et seq.

Public Works PW-011
Pre-Trip Inspections / Vehicle Safety Checks /
Daily Vehicle Inspections / Daily Equipment
Checks (ODRs)
2 years
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
13 CCR 1234(e); VC 34505.5(c); 49 CFR
396.11; GC §34090
Public Works PW-012 Schedule for Pavement Overlays P
Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD Department preference; GC §34090
Public Works PW-013 Sidewalk Assessment 10 years
Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD Department preference; GC §34090
Public Works PW-014 Stormwater: NPDES Monitoring Reports 3 years Mag,
Mfr, OD,
Ppr
S / I
Yes: After

QC & OD
5 years
Department preference; Monitoring
records required for 3 years; 40 CFR
§§122.21, 122.41
Public Works PW-015 Stormwater: NPDES Permits / Water Quality Permits P
Yes: Until
Expiration
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Department Preference to conform with
Statewide Guidelines; Monitoring records
required for 3 years; 40 CFR §§122.21,
122.41; CCP §337 et seq.

Public Works PW-016 Tire Disposal / Waste Manifests P
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Department preference (considered
Hazardous Waste Manifests); GC §34090
Public Works PW-017 Transportation Permits (Wide Load Permits, Heavy Load Permits, etc.) 2 years
Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD GC §34090
Public Works PW-018 Underground Service Alerts (USA's) / Dig Alerts 3 years Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Department Preference; EPA FAQs
recommend Life of the Tank; applies to
both Tier I and Tier II Tanks; (Tier II tanks
are required to have an integrity test
every 20 years); GC §34090
TWENTYNINE PALMS, CA. ©1995-2019 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Adopted: 9/14/2021

RECORDS RETENTION SCHEDULE: PUBLIC WORKS
(ALL DIVISIONS)
Ver. 6.0 Page PW-3
Office of
Record (OFR) Retention No. Records Description Total Retention Vital? Media Options Image:

I=Import
M=Mfr
S=Scan
Destroy
Paper
after
Imaged &
QC'd?
Comments / Reference
If the record is not listed here, refer to the Retention for City-Wide Standards Retentions begin when the act is completed, and imply a full file folder (e.g. last document + 2 years), since destruction is normally performed by file folder.

HOLDS: Litigation, complaints, claims, public records act requests, audits and/or investigations suspend normal retention periods (retention resumes after settlement or completion).

Public Works PW-019 Used Oil Disposal Manifests 3 years Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
22 CCR 66266.130(c)(5), H&S
§25250.18(b), 25250.19(a)(3) et seq.

Public Works PW-020
Vehicle / Equipment History Files
Maintenance, Smog Certificates, Registrations,
Inspections, Testing of Push-out Windows,
Emergency Doors, etc.

Disposal of
Vehicle or
Equipment +
2 years
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Department Preference; If a motor
carrier, required for 18 months after
vehicle is sold; CHP requires life of
vehicle; OSHA requires 1 year; 8 CCR §
3203(b)(1); 49 CFR 396.21(b)(1); 49 CFR
396.3; CCP §337 et. seq., 3 CCR 1234(f);
GC §34090
Division
Providing
Service / Work
PW-021
Work Orders / Service Requests - CRM / CMMS
DATABASE (Computerized Maintenance
Management System)
Indefinite -
Minimum 5
years
Yes
Mag,
Mfr, OD,
Ppr
S / I Yes: After
QC & OD Data is interrelated; GC §34090
Division
Providing
Service / Work
PW-022
Work Orders / Service Requests - All
Information Entered in CRM / CMMS Database
(Paper drafts)
When No
Longer
Required
Yes
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
Preliminary drafts (the database is the
original); GC §34090
Division
Providing
Service / Work
PW-023
Work Orders / Service Requests / "Dailies"- NOT
entered in CRM / CMMS Database (/ partial
information entered into CMMS Database)
(Division providing service retains originals;
Division requesting service is considered a copy)
5 years Yes
Mag,
Mfr, OD,
Ppr
S / I Yes: After

QC & OD
City Preference; CCP §§338 et seq., 340
et seq., 342, GC §, GC §34090
TWENTYNINE PALMS, CA. ©1995-2019 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Adopted: 9/14/2021

STAFF REPORT
TO: City Council
FROM: Finance Director
FOR MEETING: Feb 24 2026
SUBJECT: Financial Report - Fiscal Year 2025-26 General Fund Mid-Year Budget Update.

RECOMMENDATION:

The City Council:

1. Approve Resolution 26-___ adopting the proposed General Fund Budget amendments for FY 2025-26.

2. Approve the following interfund transfers for FY 2025-26 from the General Fund to the Capital Projects Fund.  $100,300 for the community survey and consulting services for the sales tax measure.  $68,000 for the unfunded portion of the Elm Property Improvements.  $10,000 for flood monitoring equipment/cameras.
 $5,000 for fixtures needed for the new Animal Control truck.

ORDER OF PROCEDURE:

Request Staff Report (Finance Director Presenting)
Council Questions of Staff
Receive Public Comment
Council Discussion
Motion/Second
Discussion of Motion
Call the Question
ATTACHMENTS:
• General Fund Budget
Adjustments FY 2025-26
• Reso No. 26 - General Fund
Adjustments FY 2025-26
• General Fund Mid-Year
Update Presentation for FY
2025-26
• Twentynine Palms 3Q25
Newsletter
• Twentynine Palms General
Fund Reserve Policy Report
BACKGROUND:

The mid-year financial report and budget adjustments for FY 2025-26 are attached for City Council's review and approval. The mid-year financial report reflects the current cash balances, year-to-date revenues and expenditures, current year reserves, and a "snapshot" of the upcoming fiscal year budget. The intent of this report is to provide the City Council, Staff, and citizens with an overview of the financial condition of the City through mid-year.

Cash Balances:

Through December 2025, the City has a total of $19.8M in cash and investment balances, which have remained steady since the fiscal year ending June 30, 2025. To maximize the City's resources, the City Treasurer invests temporary idle cash into investments approved under the City's investment policy. As of December 31, 2025, the City has the following investments: Local Agency Investment Fund (LAIF) - $10.0M, earning an average of 4.2% during the last quarter of 2025; Certificate of Deposit - $5.2M, earning an average of 3.7% in December 2025, and U.S. Treasury Bills - $1.3M, earning an average of 4.0% in December 2025.

Operating Revenues:

From July 2025 to early February 2026, a total of $7.8M, or 51.8%, of the total estimated operating revenue, excluding transfers in and reserves, was collected. 53.1% of the City's top operating revenues including Property tax, Property Tax in lieu of Vehicle License Fee (VLF), Sales tax, and TOT have been received. TOT for the first two quarters in the fiscal year (July 2025 to December 2025) increased by 7.4% compared to the same period last fiscal year. Sales tax revenue is expected to remain stagnant for the current and upcoming fiscal year (see attached HDL's Sales Tax Update).

In terms of operating revenue adjustments, Property taxes and Property tax in lieu of VLF were adjusted downwards by $35.9K and $17.8K, respectively, due to the original estimates being lower than the revised projections provided by the San Bernardino County in January 2026. The City's net taxable assessed values for FY 2025-26 are projected to be 4.6% higher compared to the prior year. This increase is relatively lower compared to FY 2022-23 and FY 2023-24, when property tax values increased by 11.16% and 12.01%, respectively. The City's allocation share of the unitary 1% general tax levy for FY 2025-26, pursuant to AB454, was adjusted upwards by $33.6K to be in line with the County's revised estimates. Investment yields, although slightly lower than the prior year, continue to generate favorable investment income for the City. Year-to-date investment income has exceeded projections by $18.4K, as such the budget for investment income was adjusted upwards by $80K. The City receives funds through the Citizens' Option for Public Safety (COPS) program for front-line law enforcement services. The funds are restricted for eligible front-line law enforcement activities, must supplement existing services, and cannot be used to supplant any existing funds. These funds are allocated to cities, counties and five police protection districts on a population basis. COPS funding for FY 2025-26 is projected to be $21.6K higher than original estimates, as such the proposed budget was adjusted upwards by that amount.

Operating Expenditures:

From July 2025 to early February 2026, a total of $7.0M, or 54.7%, of the total estimated operating expenditures, excluding transfers out, has been spent or encumbered. Staff is requesting a total of $210.4K in operating expenditure adjustments to account for unforeseen changes during the current fiscal year. The top expenditure adjustments are as follows:
 Law Enforcement - $255.3K: On November 12, 2025, the City Council approved the revised annual contract with the San Bernardino County Sheriff’s Department for Law Enforcement Services for Fiscal Year 2025-26 in the amount of $5.8M. The revised contract cost was $255.3K higher than the original budget.
 Supplies and materials - $25K: These funds will be used for printed materials and advertisement to support community outreach efforts for the 1% sales tax measure.  Legal Fees - $22K: An adjustment to legal fees has been requested to account for an increase in Code enforcement case reviews as well as legal guidance for homeless encampments due to changes in case law and State laws and Ordinances.
 Utilities - $20.5K: Electricity demand at various facilities, including City's parks and the Community Center at Freedom Plaza, continue to be on the rise.
 Vehicle Maintenance - $14.8K: One of the Parks vehicles and one of the Animal Control trucks needed immediate repairs to continue operating. These trucks are vital to the operation of each department.

 Equipment Maintenance - $6.8K: One of the EV charging stations at Freedom Plaza is in need of repairs. The requested adjustment includes parts and labor, which can only be obtained from the original manufacturer.
 Building Repairs - $5K: The funds are needed to cover the cost of water leak repairs at the Community Development building.
 Salaries & Benefits - $(67.7K): As a result of significant medical rate increases in 2026, health benefits were adjusted upwards by $18.8K. Depending on the type of plan (e.g., single, 2-party, family), actual medical rates for 2026 were between 10.8% and 15.6% higher compared to the prior year; these rates were between 5.3% and 9.6% higher than originally budgeted for. During the current fiscal year, the City Council approved a one-time longevity payment to qualifying employees, which resulted in an increase of $5.2K in salaries and benefits. Salaries and benefits have also been adjusted downwards by $91.8K to account for the net impact of the retirements of the Community Services Director and Assistant Planner and subsequent promotion of the Recreation Division Manager.  Liability & Property Insurance - $(41.4K): Actual insurance rates were lower than originally projected.  Events - $(13.4K): The JT55 event was cancelled due to unforeseen circumstances reducing the budget by $17.4K; however, the Veterans' Day event budget is recommended to be increased by $4K to account for unanticipated cost increases for the event.
 Contract & Consulting - $(10K): The Sales tax feasibility analysis has been approved by City Council and will be accounted for in the Capital Projects Fund.

Transfers In/Out:

In addition to the transfers already approved in the original adopted budget, City Staff is requesting a total of $183.3K in transfers from the General Fund to the Capital Projects funds for the following purposes:
 $100.3K - Community survey and consulting services associated with the feasibility of and community outreach for the sales tax measure.
 $68K - Unfunded portion of the Elm Property improvements  $10K - Flood monitoring equipment and cameras. The total projected cost is expected to be approximately $35K, which $25K will be funded by a County grant.
 $5K - Additional fixtures needed for the new Animal Control truck For a more complete list of all the proposed adjustments, please refer to the attached General Fund Budget worksheets for FY 2025-26.

Reserves:

The unrestricted and unassigned reserve balance for the General Fund as of June 30, 2025 is $12.8M, or 97%, of actual operating expenditures, which is in line with the City's current reserve policy of 50-55%. Staff is projecting an unassigned fund balance of $12.3M for FY 2025-26, which equates to 84% of the City's total operating expenditures, a ratio that is in line with the City's reserve policy. Based on a General Fund Reserve assessment conducted in 2018 by hired Consultant, William C. Statler, the City needs to maintain reserves at 25% of operating and debt service expenditures just to meet cash flows during the year. To provide appropriate flexibility in addressing economic uncertainties, such as downturns in the economy, responding to local disasters, and contingencies for unforeseen operating or capital needs, the City Council adopted a reserve policy of 50-55% of operating and debt service expenditures, which is segregated into the following components:

1. Cash Flows: 25%

2. Fiscal Stability: 15%

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

Fiscal 2026-27 "Snapshot":

Staff is projecting a surplus of only $296K for FY 2026-27, which is mainly driven by a moderate and conservative increase in revenues, as well as a 3% increase in Salaries, and 5% increase in Law Enforcement contract services. The General Fund budget for FY 2026-27 will be reevaluated and presented to City Council in June 2026 for review and approval.

ENVIRONMENTAL:

Not Applicable.

ALTERNATIVES:

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

FISCAL IMPACT:

A balanced budget.

Approved
6/10/2025
2022-2023 2023-2024 2024-2025 2025-2026 2025-2026 2025-2026

BUDGET BUDGET BUDGET THROUGH ADOPTED PROPOSED
ACTUAL ACTUAL ACTUAL 2/11/2026 BUDGET BUDGET ADJUSTMENTS Total Revenue and Transfers In $ 16,988,823 $ 14,901,267 $ 15,317,251 $ 7,840,668 $ 14,809,263 $ 15,146,151 $ 336,888 Total Expenditures and Transfers Out $ 16,009,631 $ 14,475,029 $ 13,918,396 $ 8,122,534 $ 14,671,792 $ 15,145,482 $ 473,690 Net Revenue (Loss) $ 979,192 $ 426,238 $ 1,398,855 $ (281,866) $ 137,471 $ 669 $ (136,802) Fund Balance Classification
Nonspendable $ 93,963 $ 93,963 $ 126,303 $ 93,963 $ 126,303 Restricted $ 406,426 $ 431,729 $ 434,442 $ 466,423 $ 591,913 Assigned $ 2,011,441 $ 396,982 $ 104,612 $ 150,000 $ 73,449 Unassigned $ 9,098,342 $ 11,103,632 $ 12,758,932 $ 11,157,428 $ 12,349,483 Total Fund Balance 11,610,172 $ 12,026,306 $ 13,424,289 $ - $ 11,867,814 $ 13,141,148 Total Operating Expenditures (1) $ 11,564,720 $ 14,002,893 $ 13,189,356 $ 14,416,792 $ 14,631,863 Reserves (%) (2) 79% 79% 97% 77% 84%
City's Reserve Policy 50-55% 50-55% 50-55% 50-55% 50-55% (1) Exclusive of Transfers Out
(2) Operating Reserves = Unassigned Fund Balance/Total Operating Expenditures FISCAL YEAR 2025-2026

CITY OF TWENTYNINE PALMS

GENERAL FUND BUDGET

AS AMENDED

SUMMARY

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

ACCOUNT BUDGET BUDGET BUDGET THROUGH ADOPTED PROPOSED
CODE R E V E N U E ACTUAL ACTUAL ACTUAL 2/11/2026 BUDGET BUDGET ADJUSTMENTS 01 0000 4101 000 Property Taxes: Current and Prior Year $ 2,715,614 $ 3,092,764 $ 3,243,784 $ 1,966,163 3,409,464 3,373,535 $ (35,929) 01 0000 4106 000 Property Tax / VLF $ 3,794,419 $ 4,250,176 $ 4,498,487 $ 2,352,825 4,723,410 4,705,649 $ (17,761) 01 0000 4110 000 Property Transfer Fees $ 76,031 $ 61,222 $ 5,667 $ - 59,771 59,771 $ - 01 0000 4115 000 Utility Unitary Tax $ 155,668 $ 177,984 $ 183,957 $ 549 160,000 193,634 $ 33,634 01 0000 4120 000 Sales & Use Tax $ 1,562,276 $ 1,538,338 $ 1,561,763 $ 743,902 1,553,459 1,553,459 $ - 01 0000 4125 000 Transient Occupancy Tax $ 2,346,125 $ 2,237,285 $ 2,172,174 $ 1,065,845 1,900,000 1,900,000 $ - 01 0000 4140 000 Franchise Fees $ 930,375 $ 969,861 $ 1,006,962 $ 301,347 911,325 911,325 $ - 01 0000 4145 000 Business License Fees $ 69,387 $ 74,185 $ 75,424 $ 44,645 70,000 70,000 $ - 01 0000 4155 000 Motor Vehicle In-Lieu Tax $ 28,378 $ 32,518 $ 44,584 $ 43,232 40,000 43,232 $ 3,232 01 0000 4200 000 Animal Control Revenue $ 81,486 $ 98,533 $ 86,045 $ 46,826 85,000 85,000 $ - 01 0000 4220 000 Planning & Engineering Fees $ 282,413 $ 201,542 $ 262,632 $ 156,933 200,000 200,000 $ - 01 0000 4224 000 Building & Road Permits $ 710,752 $ 561,818 $ 526,153 $ 358,347 550,000 550,000 $ - 01 0000 4245 000 Interest $ 288,409 $ 359,440 $ 477,540 $ 218,378 200,000 280,000 $ 80,000 01 0000 4252 000 Grant Revenue $ 41,540 $ 2,400 $ 91,855 $ - 50,000 50,000 $ - 01 0000 4272 000 Rent $ 72,418 $ 71,564 $ 65,207 $ 53,167 65,000 65,000 $ - 01 0000 4288 000 Burrtec/Street Sweeper $ 100,000 $ 120,000 $ 120,000 $ 80,000 120,000 120,000 $ - 01 0000 4603 000 Swimming Pool $ 19,528 $ 40,664 $ 48,367 $ 19,007 25,500 25,500 $ - 01 0000 4605 000 Recreation Fees $ 107,001 $ 116,169 $ 112,394 $ 67,522 100,000 100,000 $ - 01 0000 4608 000 Park & Rec Event Fees $ 73,914 $ 54,144 $ 52,496 $ 31,550 50,000 50,000 $ - 01 0000 4610 000 Project Phoenix Community Center $ - $ 7,122 $ 6,180 $ 7,298 5,000 8,000 $ 3,000 01 0000 4611 000 EV Charging Fees $ 24,287 $ 33,668 $ 36,927 $ 22,390 30,000 30,000 $ - 01 0000 4702 000 Police Grants $ 165,306 $ 186,305 $ 194,820 $ 201,633 180,000 201,633 $ 21,633 01 0000 4703 000 SRO Contract $ 88,217 $ 118,403 $ 118,181 $ - 114,824 125,603 $ 10,779 01 0000 4890 000 Miscellaneous $ 151,577 $ 127,634 $ 67,324 $ 35,456 110,000 95,000 $ (15,000) 01 0000 4911 Fair Market Value Adjustment $ (189,774) $ 249,923 $ 212,181 $ - - - $ - 01 0000 4XXX Reserves/COPS Deferred Rev $ - $ - $ - $ - 30,510 283,810 $ 253,300 TOTAL REVENUE $ 13,695,347 $ 14,783,662 $ 15,271,104 $ 7,817,015 14,743,263 15,080,151 $ 336,888 TRANSFER IN:
01 0000 4316 000 Admin Fees $ 132,273 $ 107,500 $ 45,277 $ 23,000 $ 46,000 $ 46,000 $ - 01 0000 4316 ARPA Revenue Loss Transfer $ 3,118,608 $ - $ - $ - $ - $ - $ - TOTAL TRANSFER IN $ 3,250,881 $ 107,500 $ 45,277 $ 23,000 $ 46,000 $ 46,000 $ -

TOTAL REVENUE AND
TRANSFERS IN $ 16,946,228 $ 14,891,162 $ 15,316,381 $ 7,840,015 $ 14,789,263 $ 15,126,151 $ 336,888 All revenue that is not designated to go to another fund is General Fund revenue.

GENERAL FUND REVENUE BUDGET
This revenue is used to pay for the general expenditures of the City.

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

ACCOUNT BUDGET BUDGET BUDGET THROUGH ADOPTED PROPOSED
CODE DEPARTMENT ACTUAL ACTUAL ACTUAL 2/11/2026 BUDGET BUDGET ADJUSTMENTS 01 0101 City Council $ 61,329 $ 59,426 $ 56,866 33,001 80,206 80,206 $ - 01 0102 City Administration $ 552,109 $ 518,961 $ 568,667 351,472 595,711 588,350 $ (7,361) 01 0103 City Attorney $ 111,185 $ 135,902 $ 229,912 60,710 180,000 180,000 $ - 01 0104 City Hall $ 175,774 $ 224,099 $ 188,346 138,862 240,126 240,126 $ - 01 0105 Finance $ 276,914 $ 288,316 $ 382,358 248,808 431,253 432,356 $ 1,103 01 0106 City Clerk $ 162,067 $ 196,829 $ 213,596 155,965 268,445 270,026 $ 1,581 01 0107 Nondepartmental $ 5,456,278 $ 2,941,204 $ 1,750,448 914,959 1,642,941 1,870,321 $ 227,380 01 0108 Successor Administration $ 115,021 $ 114,251 $ 37,677 24,184 38,251 38,379 $ 128 01 0109 IT Department $ 280,446 $ 243,775 $ 284,196 165,704 299,351 302,500 $ 3,149 01 1010 Community Development $ 622,684 $ 570,257 $ 533,060 318,859 572,468 587,111 $ 14,643 01 1011 Code Enforcement $ 240,369 $ 259,355 $ 285,534 208,020 326,160 350,133 $ 23,973 01 1012 Building, Safety & Eng. $ 607,115 $ 482,635 $ 437,657 254,078 481,850 481,850 $ - 01 1013 Economic Development $ 11,893 $ 1,847 $ 2,827 5,707 9,000 9,000 $ - 01 2021 Law Enforcement $ 4,996,955 $ 5,726,529 $ 5,838,689 3,408,043 6,058,667 6,313,949 $ 255,282 01 2022 Animal Control $ 497,940 $ 561,335 $ 610,658 380,819 678,655 693,325 $ 14,670 01 3031 Community Services $ 197,701 $ 248,353 $ 256,419 199,232 315,531 323,250 $ 7,719 01 3032 Recreation Department $ 401,321 $ 475,192 $ 469,669 248,095 553,314 448,546 $ (104,768) 01 3033 Luckie Park Pool $ 48,783 $ 109,518 $ 121,498 61,208 145,393 145,393 $ - 01 3034 Senior Center $ 50,871 $ 53,074 $ 55,700 36,847 61,981 61,981 $ - 01 3035 Community Events $ 167,384 $ 211,815 $ 237,389 131,241 232,162 221,157 $ (11,005) 01 3036 Patriotic Hall $ 9,949 $ 10,146 $ 16,251 7,068 19,250 19,250 $ - 01 3037 Luckie Park Activity Center $ 6,565 $ 7,453 $ 9,368 5,181 13,573 13,573 $ - 01 3038 Project Phoenix Community Center $ 152,554 $ 132,428 $ 226,083 134,771 232,349 251,714 $ 19,365 01 4041 Public Works Administration $ 117,051 $ 206,521 $ 367,723 228,413 400,437 405,176 $ 4,739 01 4042 Public Works Street Sweeping $ 116,640 $ 120,000 $ 120,000 56,751 120,000 120,000 $ - 01 4045 Parks Maintenance $ 530,138 $ 565,703 $ 616,935 343,883 654,718 677,810 $ 23,092 35 0107 Risk Management $ 42,595 $ 10,105 $ 870 653 20,000 20,000 $ - TOTAL EXPENDITURES $ 16,009,631 14,475,029 13,918,396 8,122,534 14,671,792 15,145,482 $ 473,690

GENERAL FUND EXPENDITURE SUMMARY
General or operating expenditures provide basic services throughout the City and are charged to the General Fund.

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

ACCOUNT DEPARTMENT BUDGET BUDGET BUDGET THROUGH ADOPTED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL ACTUAL 2/11/2026 BUDGET BUDGET ADJUSTMENTS 01 0101 Expenditures
01 0101 5110 000 Salaries $ 29,258 $ 28,793 $ 29,035 $ 16,535 $ 44,775 $ 44,775 $ - 01 0101 5250 000 Insurance $ 14,440 $ 14,913 $ 14,559 $ 8,271 $ 14,399 $ 14,399 $ - 01 0101 5251 000 Retirement $ 2,770 $ 2,975 $ 2,534 $ 1,568 $ 4,241 $ 4,241 $ - 01 0101 5252 000 Workers Comp $ 776 $ 704 $ 824 $ 651 $ 1,791 $ 1,791 $ - 01 0101 6251 000 Training & Meetings $ 14,085 $ 12,041 $ 9,914 $ 5,976 $ 15,000 $ 15,000 $ - TOTAL EXPENDITURES $ 61,329 $ 59,426 $ 56,866 $ 33,001 $ 80,206 $ 80,206 $ -

CITY COUNCIL
The City Council is the Legislative body that governs the City and is made up of five elected members who meet regularly on the second and fourth Tuesday of each month.

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

ACCOUNT DEPARTMENT BUDGET BUDGET BUDGET THROUGH ADOPTED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL ACTUAL 2/11/2026 BUDGET BUDGET ADJUSTMENTS 01 0102 Expenditures
01 0102 5110 000 Salaries $ 372,304 $ 371,164 $ 419,775 $ 245,939 $ 400,455 $ 400,945 $ 490 01 0102 5235 000 Vehicle/Cell Allowance $ 5,763 $ 3,304 $ 7,560 $ 4,653 $ 6,540 $ 6,540 $ - 01 0102 5250 000 Insurance $ 45,617 $ 34,974 $ 50,380 $ 32,119 $ 50,655 $ 52,785 $ 2,130 01 0102 5251 000 Retirement $ 40,069 $ 34,888 $ 40,405 $ 24,707 $ 46,303 $ 46,303 $ - 01 0102 5252 000 Workers Comp $ 11,119 $ 10,420 $ 12,946 $ 10,906 $ 16,018 $ 16,037 $ 19 01 0102 5253 000 Paid Time Off $ 16,078 $ 31,993 $ 15,482 $ 17,750 $ 30,000 $ 30,000 $ - 01 0102 6221 000 Telephone $ - $ 1,022 $ 1,354 $ 544 $ 1,740 $ 1,740 $ - 01 0102 6241 000 Office Supplies $ - $ - $ - $ 1,154 $ 2,000 $ 2,000 $ - 01 0102 6244 000 Miscellaneous $ - $ 3,801 $ 729 $ 6 $ 1,500 $ 1,500 $ - 01 0102 6251 000 Training & Meetings $ 11,574 $ 6,694 $ 17,887 $ 11,584 $ 15,000 $ 15,000 $ - 01 0102 6258 000 Staff Education Reimbursement $ - $ - $ 805 $ 1,109 $ 12,500 $ 12,500 $ - 01 0102 6359 000 Contract & Consulting $ 3,822 $ 1,501 $ 1,344 $ 1,001 $ 13,000 $ 3,000 $ (10,000) 01 0102 6359 041 Contract & Consulting - Outreach $ 45,010 $ 19,200 $ - $ - $ - $ - $ - 01 0102 6518 000 Electronic Equipment $ 753 $ - $ - $ - $ - $ - $ - TOTAL EXPENDITURES $ 552,109 $ 518,961 $ 568,667 $ 351,472 $ 595,711 $ 588,350 $ (7,361) Council and supports the day to day operations of the City. City Manager 83%, Executive Assistant 63%, Human Resources 98%, and Office Assistant 100%.

CITY ADMINISTRATION
City Manager and administrative staff carry out policies set by the City

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

ACCOUNT DEPARTMENT BUDGET BUDGET BUDGET THROUGH ADOPTED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL ACTUAL 2/11/2026 BUDGET BUDGET ADJUSTMENTS 01 0103 Expenditures
01 0103 6107 000 City Attorney $ 111,185 $ 135,902 $ 229,912 $ 60,710 $ 180,000 $ 180,000 $ - TOTAL EXPENDITURES $ 111,185 $ 135,902 $ 229,912 $ 60,710 $ 180,000 $ 180,000 $ -

CITY ATTORNEY
The City Attorney acts as legal advisor to the City Council and the Successor Agency.

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

ACCOUNT DEPARTMENT BUDGET BUDGET BUDGET THROUGH ADOPTED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL ACTUAL 2/11/2026 BUDGET BUDGET ADJUSTMENTS 01 0104 Expenditures
01 0104 6210 000 Electricity $ 22,311 $ 24,676 $ 25,438 $ 15,989 $ 27,508 $ 27,508 $ - 01 0104 6211 000 Gas $ 4,401 $ 3,158 $ 3,367 $ 1,530 $ 5,775 $ 5,775 $ - 01 0104 6212 000 Water $ 18,808 $ 23,701 $ 26,222 $ 14,949 $ 26,180 $ 26,180 $ - 01 0104 6221 000 Telephone $ 10,655 $ 10,553 $ 12,736 $ 6,331 $ 13,752 $ 13,752 $ - 01 0104 6291 000 Building Operations & Main $ 11,793 $ 52,793 $ 9,924 $ 4,737 $ 15,000 $ 15,000 $ - 01 0104 6359 000 Contract & Consulting Services $ 26,580 $ 28,130 $ 29,714 $ 14,527 $ 31,112 $ 31,112 $ - 01 0104 6442 Internal Loan $ - $ - $ - $ - $ 40,000 $ 40,000 $ - 01 0104 6441 Debt Svc Interest Payment $ 38,206 $ 36,939 $ 39,066 $ 37,592 $ 37,592 $ 37,592 $ - 01 0104 6442 Debt Svc Principal Payment $ 43,020 $ 44,149 $ 41,879 $ 43,207 $ 43,207 $ 43,207 $ - TOTAL EXPENDITURES $ 175,774 $ 224,099 $ 188,346 $ 138,862 $ 240,126 $ 240,126 $ -

CITY HALL
This Department supports the cost associated with the daily operations of City Hall.

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

ACCOUNT DEPARTMENT BUDGET BUDGET BUDGET THROUGH ADOPTED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL ACTUAL 2/11/2026 BUDGET BUDGET ADJUSTMENTS 01 0105 Expenditures
01 0105 5110 000 Salaries $ 177,343 $ 185,530 $ 263,845 $ 166,788 $ 274,585 $ 274,585 $ - 01 0105 5235 000 Vehicle Allowance $ 289 $ 248 $ 1,098 $ 676 $ 1,518 $ 1,518 $ - 01 0105 5250 000 Insurance $ 21,214 $ 19,901 $ 28,767 $ 18,376 $ 31,163 $ 32,266 $ 1,103 01 0105 5251 000 Retirement $ 15,804 $ 15,497 $ 20,326 $ 13,314 $ 21,887 $ 21,887 $ - 01 0105 5252 000 Workers Comp $ 5,134 $ 5,123 $ 8,003 $ 7,144 $ 10,983 $ 10,983 $ - 01 0105 5253 000 Paid Time Off $ 2,603 $ 11,398 $ 6,911 $ 8,842 $ 17,000 $ 17,000 $ - 01 0105 6241 000 Office Supplies $ 1,843 $ 2,172 $ 842 $ 1,753 $ 2,500 $ 2,500 $ - 01 0105 6251 000 Training & Meetings $ 2,819 $ 5,829 $ 1,687 $ 2,170 $ 6,000 $ 6,000 $ - 01 0105 6257 000 Dues & Subscriptions $ 8,400 $ 9,315 $ 7,725 $ 715 $ 9,000 $ 9,000 $ - 01 0105 6359 000 Contract & Consulting $ 5,371 $ 151 $ 425 $ - $ 2,000 $ 2,000 $ - 01 0105 6518 000 Computer Software
& Hardware $ 17,932 $ 14,795 $ 18,106 $ 11,800 $ 27,057 $ 27,057 $ - 01 0105 6554 000 Payroll Service $ 18,162 $ 18,357 $ 24,623 $ 17,230 $ 27,560 $ 27,560 $ - TOTAL EXPENDITURES $ 276,914 $ 288,316 $ 382,358 $ 248,808 $ 431,253 $ 432,356 $ 1,103

FINANCE DEPARTMENT
The Finance Department accounts for financial activities including payroll accounts payable, the receipt of monies, issuance of business licenses, preparation of the annual budget, and annual audits.

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

ACCOUNT DEPARTMENT BUDGET BUDGET BUDGET THROUGH ADOPTED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL ACTUAL 2/11/2026 BUDGET BUDGET ADJUSTMENTS 01 0106 Expenditures
01 0106 5110 000 Salaries $ 109,099 $ 122,251 $ 128,993 $ 104,316 $ 166,928 $ 168,428 $ 1,500 01 0106 5235 000 Vehicle/Cell Allowance $ 2,280 $ 1,535 $ 1,176 $ 724 $ 1,176 $ 1,176 $ - 01 0106 5250 000 Insurance $ 10,578 $ 10,825 $ 11,081 $ 7,628 $ 12,895 $ 12,916 $ 21 01 0106 5251 000 Retirement $ 13,361 $ 17,212 $ 16,792 $ 12,695 $ 20,637 $ 20,637 $ - 01 0106 5252 000 Workers Comp $ 3,185 $ 3,321 $ 4,219 $ 4,659 $ 6,677 $ 6,737 $ 60 01 0106 5253 000 Paid Time Off $ - $ 2,216 $ 8,810 $ 7,063 $ 10,000 $ 10,000 $ - 01 0106 6221 000 Telephone $ - $ 623 $ 625 $ 272 $ 636 $ 636 $ - 01 0106 6233 000 Legal Notices $ 7,787 $ 6,224 $ 1,850 $ 1,769 $ 8,000 $ 8,000 $ - 01 0106 6241 000 Office Supplies $ 1,237 $ 679 $ 861 $ 637 $ 1,000 $ 1,000 $ - 01 0106 6244 000 Miscellaneous $ 44 $ - $ 141 $ 145 $ 500 $ 500 $ - 01 0106 6251 000 Training & Meetings $ 5,281 $ 5,509 $ 7,259 $ 4,050 $ 8,500 $ 8,500 $ - 01 0106 6257 000 Dues & Subscriptions $ 6,292 $ 6,946 $ 7,138 $ 4,335 $ 7,910 $ 7,910 $ - 01 0106 6257 Subscription Software $ - $ 4,950 $ 5,198 $ 5,457 $ 5,458 $ 5,458 $ - 01 0106 6349 000 Marketing $ - $ 14,168 $ 14,439 $ 1,605 $ 17,000 $ 17,000 $ - 01 0106 6360 000 Special Department
Supplies $ - $ 370 $ - $ - $ 500 $ 500 $ -
01 0106 6405 000 Redistricting $ - $ - $ 610 $ 610 $ 628 $ 628 $ - 01 0106 6411 000 Elections $ 2,923 $ - $ 4,404 $ - $ - $ - $ - TOTAL EXPENDITURES $ 162,067 $ 196,829 $ 213,596 $ 155,965 $ 268,445 $ 270,026 $ 1,581 The City Clerk records and retains the records of the City Council, Planning Commission and other City activities. 35% of the Deputy City Clerk' salaries and related benefits is allocated to the City Clerk's budget

CITY CLERK

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

ACCOUNT DEPARTMENT BUDGET BUDGET BUDGET THROUGH ADOPTED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL ACTUAL 2/11/2026 BUDGET BUDGET ADJUSTMENTS 01 0107 Expenditures
01 0107 6231 000 Printing $ 2,268 $ 1,926 $ 2,528 $ 1,448 $ 3,200 $ 28,200 $ 25,000 01 0107 6232 000 Advertising Note 1 $ 3,258 $ - $ - $ - $ 2,000 $ 2,000 $ - 01 0107 6241 000 Office Supplies $ 17,411 $ 10,563 $ 11,518 $ 5,243 $ 14,000 $ 12,000 $ (2,000) 01 0107 6242 000 Postage $ 9,334 $ 5,714 $ 6,778 $ 3,524 $ 10,000 $ 8,000 $ (2,000) 01 0107 6243 000 Credit Card Admin Fees $ 55,981 $ 59,462 $ 63,065 $ 31,425 $ 64,000 $ 64,000 $ - 01 0107 6244 000 Miscellaneous Note 2 $ 21,143 $ 34,984 $ 18,642 $ 11,684 $ 35,500 $ 30,000 $ (5,500) 01 0107 6246 000 Cafeteria Plan Costs $ 1,425 $ 1,395 $ 1,267 $ 705 $ 2,500 $ 2,500 $ - 01 0107 6257 000 Dues & Subscriptions Note 3 $ 91,382 $ 19,444 $ 32,765 $ 11,646 $ 37,051 $ 37,051 $ - 01 0107 6259 000 Dues, League of Cal. Cities $ 12,432 $ 12,272 $ 12,622 $ 10,312 $ 13,127 $ 13,127 $ - 01 0107 6281 000 Emergency/Safety Management $ 7,268 $ 10,622 $ 7,655 $ 4,674 $ 40,000 $ 30,000 $ (10,000) 01 0107 6291 000 Rental Property Maintenance $ 30,245 $ 5,740 $ 12,130 $ 5,641 $ 25,000 $ 25,000 $ - 01 0107 6327 000 Copiers at City Hall $ 6,066 $ 1,731 $ 2,313 $ 1,508 $ 2,500 $ 2,500 $ - 01 0107 6354 000 Audit $ 56,695 $ 55,319 $ 59,440 $ 44,047 $ 79,684 $ 79,684 $ - 01 0107 6359 000 Contract Svcs $ 3,015 $ - $ 13,569 $ 14,949 $ 41,000 $ 41,000 $ - 01 0107 6359 200 Contract Svcs - Grant Writing $ 12,000 $ - $ - $ - $ 25,000 $ 25,000 $ - 01 0107 6359 000 Contract Svcs-LAFCO $ (9,299) $ - $ - $ - $ - $ - $ - 01 0107 6370 000 Lobbyist $ 84,600 $ 78,600 $ 81,600 $ 54,382 $ 89,600 $ 89,600 $ - 01 0107 6372 000 Property Tax Collection Charges 4 $ 19,768 $ 20,679 $ 20,662 $ 93 $ 25,000 $ 25,000 $ - 01 0107 6418 000 PERS Pension UAL - Fire $ 56,889 $ 1,689,685 $ - $ - $ - $ - $ - 01 0107 6420 000 OPEB Retiree Medical Note 6 $ 136,920 $ 137,109 $ 127,677 $ 58,553 $ 169,535 $ 169,535 $ - 01 0107 6431 000 Liability and Property Insurance 7 $ 288,563 $ 305,075 $ 357,136 $ 389,515 $ 446,420 $ 405,000 $ (41,420) 01 0107 6501 000 Citation Processing Fee $ 6,378 $ 7,720 $ 7,474 $ 3,400 $ 8,000 $ 8,000 $ - 01 0107 6509 000 Grant Purchases $ 41,346 $ 13,900 $ 91,855 $ - $ 50,000 $ 50,000 $ - 01 0107 6544 000 Water Assessment $ 6,287 $ 5,977 $ 5,919 $ 5,953 $ 7,567 $ 7,567 $ - 01 0107 6753 000 Prepay PERS Unfunded Liability $ 57,314 $ - $ 66,863 $ 141,257 $ 191,257 $ 191,257 $ - 01 0107 6850 000 Transfers Out $ 4,437,476 $ 463,158 $ 723,151 $ 115,000 $ 230,000 $ 493,300 $ 263,300 01 0107 6879 000 ADA Compliance $ - $ - $ 23,819 $ - $ 30,000 $ 30,000 $ - 01 0107 6993 000 Adopt-A-Street Program $ 113 $ 129 $ - $ - $ 1,000 $ 1,000 $ - TOTAL EXPENDITURES $ 5,456,278 $ 2,941,204 $ 1,750,448 $ 914,959 $ 1,642,941 $ 1,870,321 $ 227,380

NONDEPARTMENTAL
Expenditures of the General Fund that benefits all departments, or are not easily assigned to a particular department, are charged to Nondepartmental.

Note 1:

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

Note 2:

Note 3:

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

Note 4:

Note 5:

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

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

Note 6:

Note 7:

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

Miscellaneous expenditures are used for various unexpected costs that come up during the year.

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

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

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

ACCOUNT DEPARTMENT BUDGET BUDGET BUDGET THROUGH ADOPTED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL ACTUAL 2/11/2026 BUDGET BUDGET ADJUSTMENTS 01 0108 Expenditures
01 0108 5110 000 Salaries $ 92,415 $ 96,012 $ 29,941 $ 18,476 $ 29,993 $ 30,004 $ 11 01 0108 5250 000 Insurance $ 9,480 $ 7,297 $ 3,078 $ 2,010 $ 3,191 $ 3,308 $ 117 01 0108 5251 000 Retirement $ 9,300 $ 7,270 $ 2,579 $ 1,620 $ 2,648 $ 2,648 $ - 01 0108 5252 000 Workers Comp $ 2,626 $ 2,472 $ 879 $ 753 $ 1,169 $ 1,169 $ - 01 0108 6359 000 Contract & Consulting SVC $ 1,200 $ 1,200 $ 1,200 $ 1,325 $ 1,250 $ 1,250 $ - TOTAL EXPENDITURES $ 115,021 $ 114,251 $ 37,677 $ 24,184 $ 38,251 $ 38,379 $ 128

SUCCESSOR AGENCY
Successor Agency Administrative cost associated with supporting this department.

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

ACCOUNT DEPARTMENT BUDGET BUDGET BUDGET THROUGH ADOPTED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL ACTUAL 2/11/2026 BUDGET BUDGET ADJUSTMENTS 01 0109 Expenditures
01 0109 5110 000 Salaries $ 123,812 $ 138,118 $ 150,909 $ 97,605 $ 162,282 $ 162,282 $ - 01 0109 5235 000 Vehicle Allowance $ - $ 739 $ 1,200 $ 739 $ 1,200 $ 1,200 $ - 01 0109 5250 000 Insurance $ 7,994 $ 8,264 $ 8,221 $ 5,003 $ 8,064 $ 8,064 $ - 01 0109 5251 000 Retirement $ 9,236 $ 10,632 $ 11,897 $ 7,784 $ 12,929 $ 12,929 $ - 01 0109 5252 000 Workers Comp $ 3,609 $ 3,747 $ 4,629 $ 4,346 $ 6,491 $ 6,491 $ - 01 0109 5253 000 Paid Time Off $ 5,041 $ 6,640 $ 4,166 $ 8,476 $ 8,000 $ 8,000 $ - 01 0109 6221 Telephone $ 599 $ 624 $ 573 $ 272 662 662 $ - 01 0109 6241 000 Office Supplies $ 1,744 $ 234 $ - $ - $ 300 $ 300 $ - 01 0109 6251 Training & Meetings $ 151 $ 1,640 $ 2,077 $ - $ 1,000 $ 1,000 $ - 01 0109 6257 000 Dues & Subscriptions $ 109 $ - $ - $ 985 $ - $ 985 $ 985 01 0109 6279 Internet Connection/TV $ 25,120 $ 26,283 $ 26,128 $ 14,126 $ 25,966 $ 28,322 $ 2,356 01 0109 6355 000 IT Related Items $ 19,650 $ 14,180 $ 30,393 $ 17,016 $ 31,457 $ 29,365 $ (2,092) 01 0109 6359 000 Rack Space $ 68,111 $ 18,441 $ 15,660 $ 8,668 $ 19,000 $ 20,200 $ 1,200 01 0109 6518 000 Electronic Equipment $ 15,270 $ 14,233 $ 28,343 $ 684 $ 22,000 $ 22,700 $ 700 TOTAL EXPENDITURES $ 280,446 $ 243,775 $ 284,196 $ 165,704 $ 299,351 $ 302,500 $ 3,149

IT DEPARTMENT
The IT Department is responsible for providing the infrastructure for automation. It implements the governance for the use of network and operating systems, and it assists all departments by providing them the functionality they need.

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

ACCOUNT DEPARTMENT BUDGET BUDGET BUDGET THROUGH ADOPTED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL ACTUAL 2/11/2026 BUDGET BUDGET ADJUSTMENTS 01 1010 Expenditures
01 1010 5109 000 Planning Comm. Salaries $ 9,600 $ 11,850 $ 10,500 $ 3,600 $ 13,500 $ 13,500 $ - 01 1010 5110 000 Salaries $ 323,212 $ 353,827 $ 310,794 $ 191,530 $ 326,810 $ 325,645 $ (1,165) 01 1010 5250 000 Insurance $ 42,581 $ 46,681 $ 38,400 $ 23,218 $ 40,243 $ 44,996 $ 4,753 01 1010 5251 000 Retirement $ 27,992 $ 32,741 $ 28,317 $ 18,279 $ 30,067 $ 28,969 $ (1,098) 01 1010 5252 000 Workers Comp $ 9,700 $ 9,268 $ 9,415 $ 8,410 $ 13,613 $ 13,566 $ (47) 01 1010 5253 000 Paid Time Off $ 21,623 $ 1,631 $ 2,614 $ 8,510 $ 6,000 $ 13,200 $ 7,200 01 1010 6221 000 Telephone $ - $ - $ 146 $ 272 $ 700 $ 700 $ - 01 1010 6233 000 Legal Notices $ 6,849 $ 8,977 $ 7,386 $ 2,709 $ 10,000 $ 10,000 $ - 01 1010 6241 000 Office Supplies $ - $ - $ 3,440 $ 2,016 $ 4,600 $ 4,600 $ - 01 1010 6251 000 Training & Meetings $ 35 $ - $ - $ - $ 4,000 $ 4,000 $ - 01 1010 6256 000 Training & Meetings
Planning Commissioners $ - $ 6,323 $ - $ - $ 6,500 $ 6,500 $ - 01 1010 6257 000 Dues & Subscriptions $ - $ - $ 14,800 $ 14,800 $ 15,750 $ 15,750 $ - 01 1010 6291 000 Building Operation & Maint. $ - $ 5,446 $ 2,517 $ 6,134 $ 4,500 $ 9,500 $ 5,000 01 1010 6327 000 Rent/Lease Equipment $ 21,170 $ 5,145 $ 5,093 $ 2,994 $ 5,402 $ 5,402 $ - 01 1010 6359 000 Contract Services $ 41,527 $ 5,894 $ 7,943 $ 4,710 $ 9,000 $ 9,000 $ - 01 1010 6360 000 Special Department Supplies $ 1,943 $ 8,745 $ 2,925 $ 1,443 $ 2,500 $ 2,500 $ - 01 1010 6361 000 Public Arts Advisory Committee $ 14,788 $ 15,000 $ 16,978 $ 2,551 $ 20,000 $ 20,000 $ - 01 1010 6376 000 Housing & Homelessness Programs $ 68,322 $ 27,893 $ 40,992 $ - $ 25,000 $ 25,000 $ - 01 1010 6504 000 Mine Inspection $ 5,590 $ 5,636 $ 5,600 $ 2,483 $ 6,500 $ 6,500 $ - 01 1010 6518 000 Comm. Dev. Software $ 27,752 $ 25,200 $ 25,200 $ 25,200 $ 27,783 $ 27,783 $ - TOTAL EXPENDITURES $ 622,684 $ 570,257 $ 533,060 $ 318,859 $ 572,468 $ 587,111 $ 14,643 Community Development performs planning duties and oversees the building and code enforcement functions.

COMMUNITY DEVELOPMENT

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

ACCOUNT DEPARTMENT BUDGET BUDGET BUDGET THROUGH ADOPTED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL ACTUAL 2/11/2026 BUDGET BUDGET ADJUSTMENTS 01 1011 Expenditures
01 1011 5110 000 Salaries $ 120,729 $ 140,481 $ 151,935 $ 98,308 $ 160,602 $ 160,602 $ - 01 1011 5130 000 Overtime Wages $ 1,978 $ 705 $ 147 $ 292 $ 1,500 $ 1,500 $ - 01 1011 5250 000 Insurance $ 12,787 $ 14,351 $ 13,986 $ 8,461 $ 13,837 $ 13,837 $ - 01 1011 5251 000 Retirement $ 9,117 $ 10,837 $ 11,998 $ 7,882 $ 12,806 $ 12,806 $ - 01 1011 5252 000 Workers Comp $ 3,506 $ 3,435 $ 4,242 $ 3,782 $ 6,484 $ 6,484 $ - 01 1011 5253 000 Paid Time Off $ 287 $ 87 $ 230 $ - $ 1,000 $ 1,000 $ - 01 1011 6107 000 Attorney Fees $ 14,430 $ 19,110 $ 35,335 $ 40,471 $ 28,000 $ 50,000 $ 22,000 01 1011 6221 000 Telephone $ 905 $ 1,116 $ 1,161 $ 588 $ 1,194 $ 1,194 $ - 01 1011 6241 000 Office supplies $ 2,496 $ 346 $ 834 $ 114 $ 1,000 $ 1,000 $ - 01 1011 6251 000 Training & Meetings $ 8,672 $ 3,877 $ 6,026 $ 6,614 $ 6,000 $ 7,000 $ 1,000 01 1011 6257 000 Dues & Subscriptions $ - $ - $ 9,836 $ 10,432 $ 10,000 $ 11,000 $ 1,000 01 1011 6262 000 Equipment Maintenance &
Operation $ 71 $ 113 $ - $ 24 $ 700 $ 700 $ -
01 1011 6272 000 Vehicle Maintenance &
Operation $ 2,262 $ 552 $ 199 $ 355 $ 1,000 $ 1,000 $ - 01 1011 6272 101 Vehicle - Fuel $ 2,476 $ 1,934 $ 2,313 $ 1,168 $ 2,500 $ 2,500 $ - 01 1011 6332 000 Uniforms $ 244 $ 474 $ 2,146 $ 890 $ 1,000 $ 1,000 $ - 01 1011 6359 000 Contract Services $ 12,604 $ 9,174 $ 2,950 $ 20 $ 2,000 $ 2,000 $ - 01 1011 6359 000 Contract Services - Security $ 32,324 $ 33,988 $ 36,508 $ 17,656 $ 36,027 $ 37,000 $ 973 01 1011 6548 000 Dangerous Building
Abatement $ 13,036 $ 16,475 $ 5,688 $ 10,863 $ 36,510 $ 36,510 $ - 01 1011 6549 000 Illegal Dump Cleanup $ 2,445 $ 2,300 $ - $ 100 $ 4,000 $ 3,000 $ (1,000) TOTAL EXPENDITURES $ 240,369 $ 259,355 $ 285,534 $ 208,020 $ 326,160 $ 350,133 $ 23,973

CODE ENFORCEMENT
The Code Enforcement Officer responds to citizen complaints, inspects properties that appear to be unsafe or have violations and issues citations when necessary. Occasionally a property needs to be boarded up or tagged as uninhabitable.

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

ACCOUNT DEPARTMENT BUDGET BUDGET BUDGET THROUGH ADOPTED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL ACTUAL 2/11/2026 BUDGET BUDGET ADJUSTMENTS 01 1012 Expenditures
01 1012 6362 000 Building & Safety
Contracts $ 469,133 $ 374,950 $ 348,628 $ 206,453 $ 366,850 $ 366,850 $ - 01 1012 6363 000 Engineering Contract $ 137,982 $ 107,685 $ 89,029 $ 47,625 $ 115,000 $ 115,000 $ - TOTAL EXPENDITURES $ 607,115 $ 482,635 $ 437,657 $ 254,078 $ 481,850 $ 481,850 $ -

BUILDING, SAFETY AND ENGINEERING
Issuance of building permits and the related inspections along with plan checks and review of engineering plans are the main duties of this department. The building contract expenditures are based on 66.7% of the building permit fees collected by the City.

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

ACCOUNT DEPARTMENT BUDGET BUDGET BUDGET THROUGH ADOPTED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL ACTUAL 2/11/2026 BUDGET BUDGET ADJUSTMENTS 01 1013 Expenditures
01 1013 5120 000 Salaries $ 2,154 $ - $ - $ - $ - $ - $ - 01 1013 5250 000 Insurance $ 454 $ - $ - $ - $ - $ - $ - 01 1013 5251 000 Retirement $ 138 $ - $ - $ - $ - $ - $ - 01 1013 5252 000 Workers Comp $ 56 $ - $ - $ - $ - $ - $ - 01 1013 6210 Utilities SCE, Gas, Water $ 6,741 $ 1,013 $ 1,893 $ 5,143 $ 3,000 $ 3,000 $ - 01 1013 6291 000 Maintenance $ 1,370 $ 834 $ 934 $ 564 $ 1,000 $ 1,000 $ - 01 1013 6371 000 Community Events
and Promotion Art Expo $ 980 $ - $ - $ - $ - $ - $ -
01 1013 6373 000 Economic Development Plan $ - $ - $ - $ - $ 5,000 $ 5,000 $ - TOTAL EXPENDITURES $ 11,893 $ 1,847 $ 2,827 $ 5,707 $ 9,000 $ 9,000 $ -

ECONOMIC DEVELOPMENT
Economic Development focuses on attracting tourists and businesses to the City. This involves joint operation of the visitors' center with community events and print as well as internet advertising.

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

ACCOUNT DEPARTMENT BUDGET BUDGET BUDGET THROUGH ADOPTED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL ACTUAL 2/11/2026 BUDGET BUDGET ADJUSTMENTS 01 2021 Expenditures
01 2021 6252 000 Overtime $ 61,312 $ 80,409 $ 77,944 $ 17,713 $ 95,000 $ 95,000 $ - 01 2021 6255 000 Cal-ID program $ 35,361 $ 63,265 $ - $ 29,908 $ 30,506 $ 30,506 $ - 01 2021 6272 000 Vehicle Maint & Operation $ 141,543 $ 218,686 $ 172,695 $ 29,345 $ 200,000 $ 200,000 $ - 01 2021 6359 000 Contract services - Sheriff $ 3,902,801 $ 5,180,353 $ 5,354,105 $ 3,293,098 $ 5,536,661 $ 5,791,943 $ 255,282 01 2021 6359 000 CARES Act of 2020/ARPA Reimbursements $ 710,956 $ - $ - $ - $ - $ - $ - 01 2021 6360 000 Special department supplies $ 4,134 $ 4,077 $ 4,527 $ 1,320 $ 4,500 $ 4,500 $ - 01 2021 6367 000 Seized Assets Law Enforcement $ 1,351 $ 2,430 $ - $ - $ 2,000 $ 2,000 $ - 01 2021 6378 000 COPS/SLESA grants $ 139,497 $ 177,309 $ 229,418 $ 36,659 $ 190,000 $ 190,000 $ - TOTAL EXPENDITURES $ 4,996,955 $ 5,726,529 $ 5,838,689 $ 3,408,043 $ 6,058,667 $ 6,313,949 $ 255,282

LAW ENFORCEMENT
The City contracts with the San Bernardino County Sheriff for police protection. The contract includes patrol, investigation, school resource officer and all other police duties.

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

ACCOUNT DEPARTMENT BUDGET BUDGET BUDGET THROUGH ADOPTED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL ACTUAL 2/11/2026 BUDGET BUDGET ADJUSTMENTS 01 2022 Expenditures
01 2022 5110 000 Salaries $ 256,375 $ 307,120 $ 330,242 $ 216,646 $ 350,480 $ 351,710 $ 1,230 01 2022 5130 000 Overtime Wages $ 16,809 $ 24,334 $ 25,685 $ 15,431 $ 27,000 $ 27,000 $ - 01 2022 5235 Vehicle/Cell Allowance $ 420 $ 1,200 $ 1,200 $ 739 $ 1,200 $ 1,200 $ - 01 2022 5250 000 Insurance $ 53,197 $ 56,843 $ 63,852 $ 40,734 $ 71,394 $ 74,823 $ 3,429 01 2022 5251 000 Retirement $ 23,335 $ 30,595 $ 33,538 $ 22,054 $ 35,940 $ 35,902 $ (38) 01 2022 5252 000 Workers Comp $ 6,445 $ 6,795 $ 8,595 $ 7,822 $ 15,099 $ 15,148 $ 49 01 2022 5253 000 Paid Time Off $ 13,963 $ 3,613 $ 10,519 $ 10,775 $ 15,000 $ 15,000 $ - 01 2022 6210 000 Electricity $ 12,179 $ 12,595 $ 11,184 $ 6,725 $ 13,225 $ 13,225 $ - 01 2022 6211 000 Natural and Propane Gas $ 8,696 $ 4,512 $ 4,402 $ 2,648 $ 4,738 $ 4,738 $ - 01 2022 6212 000 Water $ 6,137 $ 9,959 $ 12,530 $ 6,570 $ 13,650 $ 13,650 $ - 01 2022 6221 000 Telephone $ 2,037 $ 1,632 $ 1,788 $ 772 $ 1,915 $ 1,915 $ - 01 2022 6231 000 Printing $ 663 $ 622 $ 1,065 $ - $ 1,500 $ 1,500 $ - 01 2022 6232 000 Advertising $ 2,613 $ 2,997 $ 3,250 $ 1,451 $ 3,500 $ 3,500 $ - 01 2022 6241 000 Office Supplies $ 2,507 $ 2,080 $ 2,696 $ 1,976 $ 3,000 $ 3,000 $ - 01 2022 6251 000 Training & Meetings $ 1,491 $ 1,361 $ 2,842 $ 170 $ 4,000 $ 4,000 $ - 01 2022 6272 000 Vehicle Operation & Maint. $ 7,829 $ 6,551 $ 9,990 $ 2,636 $ 8,500 $ 18,500 $ 10,000 01 2022 6272 101 Vehicle - Fuel $ 8,807 $ 9,539 $ 8,891 $ 4,504 $ 11,000 $ 11,000 $ - 01 2022 6290 000 Grounds Operation & Maint. $ 196 $ - $ - $ - $ - $ - $ - 01 2022 6291 Building Operation & Maint. $ 10,736 $ 11,344 $ 12,411 $ 3,301 $ 13,000 $ 13,000 $ - 01 2022 6312 000 Small Equipment & Tools $ 3,261 $ 2,850 $ 2,421 $ 638 $ 3,500 $ 3,500 $ - 01 2022 6327 000 Rent/Lease Equipment $ - $ 1,414 $ 1,515 $ 1,020 $ 1,614 $ 1,614 $ - 01 2022 6332 000 Uniforms $ 3,807 $ 3,352 $ 3,090 $ 964 $ 4,000 $ 4,000 $ - 01 2022 6359 000 Contract Services $ 1,552 $ - $ 370 $ - $ 3,000 $ 3,000 $ - 01 2022 6360 000 Special Dept. Supplies $ 5,143 $ 5,360 $ 5,647 $ 1,039 $ 6,000 $ 6,000 $ - 01 2022 6422 000 Veterinary Services $ 23,979 $ 24,569 $ 22,925 $ 16,004 $ 30,400 $ 30,400 $ - 01 2022 6423 000 License Tags $ 3,456 $ 2,693 $ 3,012 $ 2,445 $ 4,000 $ 4,000 $ - 01 2022 6424 000 Animal Disposal $ 4,800 $ 7,500 $ 4,800 $ 2,400 $ 9,000 $ 9,000 $ - 01 2022 6425 000 Leashes, Collars etc. $ 1,697 $ 2,277 $ 2,550 $ 183 $ 2,500 $ 2,500 $ - 01 2022 6426 000 Animal Food & Cat Litter $ 14,299 $ 17,245 $ 19,250 $ 11,172 $ 20,000 $ 20,000 $ - 01 2022 6518 Electronic Equipment - Tablets $ 1,128 $ - $ - $ - $ - $ - $ - 01 2022 6518 Software - Shelter manager $ 383 $ 383 $ 398 $ - $ 500 $ 500 $ - TOTAL EXPENDITURES $ 497,940 $ 561,335 $ 610,658 $ 380,819 $ 678,655 $ 693,325 $ 14,670

ANIMAL CONTROL
The department investigates animal complaints, issues licenses and operates the animal shelter. An Animal Control Officer is available 24 hours a day subject to call-out.

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

ACCOUNT DEPARTMENT BUDGET BUDGET BUDGET THROUGH ADOPTED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL ACTUAL 2/11/2026 BUDGET BUDGET ADJUSTMENTS 01 3031 Expenditures
01 3031 5110 000 Salaries $ 103,584 $ 113,838 $ 127,871 $ 64,666 $ 137,613 $ 110,370 $ (27,243) 01 3031 5235 000 Vehicle/Cell Allowance $ 1,200 $ 1,200 $ 1,200 $ 46 $ 1,200 $ 46 $ (1,154) 01 3031 5250 000 Insurance $ 10,959 $ 11,329 $ 11,167 $ 8,459 $ 11,006 $ 14,618 $ 3,612 01 3031 5251 000 Retirement $ 12,671 $ 16,030 $ 18,057 $ 5,484 $ 19,525 $ 9,118 $ (10,407) 01 3031 5252 000 Workers Comp $ 3,040 $ 3,338 $ 3,935 $ 3,840 $ 5,504 $ 4,415 $ (1,089) 01 3031 5253 000 Paid Time Off $ - $ 10,946 $ - $ 42,581 $ 6,000 $ 50,000 $ 44,000 01 3031 6210 000 Electricity $ 3,660 $ 4,750 $ 8,183 $ 4,257 $ 9,450 $ 9,450 $ - 01 3031 6212 000 Water $ 830 $ 823 $ 688 $ 444 $ 944 $ 944 $ - 01 3031 6221 000 Telephone $ 3,360 $ 3,537 $ 3,985 $ 1,633 $ 4,392 $ 4,392 $ - 01 3031 6241 000 Office Supplies $ 4,624 $ 2,587 $ 3,201 $ 1,421 $ 3,500 $ 3,500 $ - 01 3031 6251 000 Training & Meetings $ 2,942 $ 200 $ 18 $ - $ - $ - $ - 01 3031 6257 000 Dues & Subscriptions $ 470 $ 510 $ 470 $ 230 $ - $ - $ - 01 3031 6272 000 Vehicle Operation & Maint. $ 5,830 $ 278 $ 328 $ 51 $ 4,545 $ 4,545 $ - 01 3031 6291 000 Building Operation & Maint. $ 5,678 $ 10,016 $ 7,038 $ 4,054 $ 9,000 $ 9,000 $ - 01 3031 6293 000 Building Operation &
Maintenance - Preschool $ 828 $ 1,929 $ 784 $ 478 $ 1,500 $ 1,500 $ - 01 3031 6294 000 Building Operation &
Maintenance - Theatre 29 $ 1,000 $ 5,070 $ 4,396 $ 111 $ 4,000 $ 4,000 $ - 01 3031 6327 000 Rent/Lease Equipment $ 2,227 $ 2,284 $ 2,459 $ 1,630 $ 2,628 $ 2,628 $ - 01 3031 6359 000 Contract Consulting/Booking $ 14,798 $ 9,688 $ 8,974 $ 8,106 $ 10,474 $ 10,474 $ - 01 3031 6760 000 Contributions to Non-profits $ 20,000 $ 50,000 $ 50,000 $ 50,000 $ 75,000 $ 75,000 $ - 01 3031 6761 000 Youth Council $ - $ - $ 3,665 $ 1,741 $ 9,250 $ 9,250 $ - TOTAL EXPENDITURES $ 197,701 $ 248,353 $ 256,419 $ 199,232 $ 315,531 $ 323,250 $ 7,719

COMMUNITY SERVICES ADMINISTRATION
Provides administrative oversight of recreation, swimming pool, etc., schedules building use and rental, coordinates events, coordinates CDBG and other capital improvement grants for the parks.

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

ACCOUNT DEPARTMENT BUDGET BUDGET BUDGET THROUGH ADOPTED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL ACTUAL 2/11/2026 BUDGET BUDGET ADJUSTMENTS 01 3032 Expenditures
01 3032 5110 000 Salaries-Full Time $ 195,250 $ 250,833 $ 257,013 $ 116,621 $ 277,139 $ 193,939 $ (83,200) 01 3032 5120 000 Salaries-Part Time and
Summer youth programs $ 20,191 $ 27,788 $ 25,706 $ 24,066 $ 40,000 $ 40,000 $ - 01 3032 5130 000 Overtime Wages $ 5,837 $ 3,384 $ 6,659 $ 762 $ 8,000 $ 8,000 $ - 01 3032 5235 Vehicle/Cell Allowance $ 420 $ 178 $ - $ - $ - $ - $ - 01 3032 5250 000 Insurance $ 38,094 $ 42,808 $ 38,192 $ 17,310 $ 42,606 $ 31,000 $ (11,606) 01 3032 5251 000 Retirement $ 14,892 $ 19,390 $ 20,321 $ 9,754 $ 22,105 $ 15,471 $ (6,634) 01 3032 5252 000 Workers Comp $ 5,093 $ 6,584 $ 7,267 $ 5,161 $ 13,006 $ 9,678 $ (3,328) 01 3032 5253 000 Paid Time Off $ 1,705 $ 1,547 $ 542 $ - $ 2,500 $ 2,500 $ - 01 3032 5254 000 Unemployment Insurance $ 1,350 $ 10,350 $ - $ 2,255 $ 5,000 $ 5,000 $ - 01 3032 6210 000 Electricity $ 5,987 $ 8,543 $ 6,126 $ 1,756 $ 8,970 $ 8,970 $ - 01 3032 6221 Telephone $ - $ 457 $ 625 $ 311 $ 688 $ 688 $ - 01 3032 6232 000 Advertising $ 117 $ 1,541 $ 1,573 $ - $ 1,800 $ 1,800 $ - 01 3032 6241 000 Office Supplies $ 440 $ 906 $ 969 $ 68 $ 1,500 $ 1,500 $ - 01 3032 6251 000 Training & Meetings $ 6,559 $ 4,932 $ 1,015 $ 2,346 $ 7,000 $ 5,000 $ (2,000) 01 3032 6253 000 Awards & Trophies $ 12,022 $ 8,382 $ 7,725 $ 7,700 $ 12,000 $ 10,000 $ (2,000) 01 3032 6257 000 Dues & Subscriptions $ 140 $ 10 $ 465 $ 467 $ 500 $ 500 $ - 01 3032 6262 000 Equipment Operation & Maint. $ 281 $ 1,594 $ 884 $ (821) $ 1,500 $ 1,500 $ - 01 3032 6262 101 Equipment - Fuel $ 2,142 $ 2,650 $ 388 $ 178 $ 4,000 $ 3,000 $ (1,000) 01 3032 6272 000 Vehicle Operation & Maint. $ 8,069 $ 574 $ 4,332 $ 1,959 $ 3,500 $ 3,500 $ - 01 3032 6272 101 Vehicle - Fuel $ 11,122 $ 4,956 $ 2,209 $ 940 $ 6,000 $ 4,500 $ (1,500) 01 3032 6290 000 Grounds Operation & Maint. $ 16,798 $ 14,874 $ 10,170 $ 1,143 $ 15,000 $ 15,000 $ - 01 3032 6291 000 Building Operation & Maint. $ 2,145 $ 3,857 $ 3,823 $ 1,342 $ 3,500 $ 3,500 $ - 01 3032 6292 000 Minor Building Improv. $ 98 $ 200 $ 568 $ - $ 1,500 $ 1,500 $ - 01 3032 6312 000 Small Tools $ 621 $ 108 $ 244 $ 41 $ 1,000 $ 1,000 $ - 01 3032 6332 000 Uniforms $ 24,850 $ 24,025 $ 27,005 $ 18,030 $ 30,000 $ 30,000 $ - 01 3032 6359 000 Referees & Umpires $ 11,186 $ 12,192 $ 11,394 $ 10,324 $ 13,000 $ 13,000 $ - 01 3032 6360 000 Special Dept. Supplies $ 7,579 $ 6,518 $ 7,229 $ 5,491 $ 6,500 $ 6,500 $ - 01 3032 6369 000 Instructors Fees $ 8,333 $ 16,011 $ 14,946 $ 8,455 $ 19,000 $ 19,000 $ - 01 3032 6509 000 Sponsorship Purchases $ - $ - $ 12,279 $ 12,436 $ 6,000 $ 12,500 $ 6,500 TOTAL EXPENDITURES $ 401,321 $ 475,192 $ 469,669 $ 248,095 $ 553,314 $ 448,546 $ (104,768)

RECREATION DEPARTMENT
Coordinates and oversees youth & adult sports leagues, instructional classes, maintenance of ball fields, summer day camp and other

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

ACCOUNT DEPARTMENT BUDGET BUDGET BUDGET THROUGH ADOPTED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL ACTUAL 2/11/2026 BUDGET BUDGET ADJUSTMENTS 01 3033 Expenditures
01 3033 5120 000 Salaries-Temporary
Lifeguards $ 14,587 $ 49,837 $ 51,180 $ 33,541 $ 65,000 $ 65,000 $ - 01 3033 5250 000 Insurance $ 212 $ 722 $ 742 $ 527 $ 943 $ 943 $ - 01 3033 5252 000 Workers Comp $ 399 $ 1,187 $ 1,215 $ 1,203 $ 2,600 $ 2,600 $ - 01 3033 5254 000 Unemployment Insurance $ - $ - $ - $ - $ 1,300 $ 1,300 $ - 01 3033 6210 000 Electricity $ 7,131 $ 23,236 $ 34,096 $ 13,921 $ 34,000 $ 34,000 $ - 01 3033 6211 000 Natural Gas $ 2,742 $ 8,535 $ 9,539 $ 224 $ 11,000 $ 11,000 $ - 01 3033 6212 000 Water $ 2,339 $ 2,707 $ 3,246 $ 1,992 $ 3,150 $ 3,150 $ - 01 3033 6221 000 Telephone $ 631 $ 773 $ 1,171 $ 884 $ 1,200 $ 1,200 $ - 01 3033 6251 000 Training & Meetings $ 378 $ 1,358 $ 1,062 $ 689 $ 1,500 $ 1,500 $ - 01 3033 6262 000 Equipment operation & Maint. $ 149 $ 1,487 $ 946 $ 65 $ 1,500 $ 1,500 $ - 01 3033 6290 000 Grounds Maintenance $ 240 $ 1,069 $ - $ - $ 1,000 $ 1,000 $ - 01 3033 6291 000 Building & Pool Maint. $ 10,288 $ 15,513 $ 14,148 $ 8,002 $ 18,000 $ 18,000 $ - 01 3033 6292 000 Minor Building Improvements $ 1,167 $ 41 $ 608 $ - $ 500 $ 500 $ - 01 3033 6332 000 Uniforms $ 704 $ 492 $ 1,236 $ - $ 1,200 $ 1,200 $ - 01 3033 6360 000 Special Dept. Supplies $ 7,816 $ 2,561 $ 2,309 $ 160 $ 2,500 $ 2,500 $ - TOTAL EXPENDITURES $ 48,783 $ 109,518 $ 121,498 $ 61,208 $ 145,393 $ 145,393 $ -

LUCKIE PARK SWIMMING POOL
Operates swimming pool from May Through September and provides lifeguards. The pool is used by the High School swim team from February to May.

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

ACCOUNT DEPARTMENT BUDGET BUDGET BUDGET THROUGH ADOPTED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL ACTUAL 2/11/2026 BUDGET BUDGET ADJUSTMENTS 01 3034 Expenditures
01 3034 6210 000 Electricity $ 15,620 $ 16,665 $ 17,839 $ 11,699 $ 19,206 $ 19,206 $ - 01 3034 6211 000 Natural Gas $ 4,597 $ 2,572 $ 2,621 $ 1,819 $ 6,500 $ 4,500 $ (2,000) 01 3034 6212 000 Water $ 4,671 $ 4,793 $ 5,414 $ 4,380 $ 5,775 $ 7,775 $ 2,000 01 3034 6221 000 Telephone $ 2,730 $ 3,447 $ 4,603 $ 3,749 $ 4,500 $ 4,500 $ - 01 3034 6291 000 Building Operation & Maint. $ 5,045 $ 7,354 $ 6,768 $ 4,688 $ 6,000 $ 6,000 $ - 01 3034 6292 000 Minor Building Improvements $ 668 $ 158 $ 455 $ 12 $ 1,000 $ 1,000 $ - 01 3034 6359 000 Maintenance Contract $ 17,540 $ 18,085 $ 18,000 $ 10,500 $ 19,000 $ 19,000 $ - TOTAL EXPENDITURES $ 50,871 $ 53,074 $ 55,700 $ 36,847 $ 61,981 $ 61,981 $ -

SENIOR CENTER
Oversee lease agreement between City and County and Reach Out Morongo Basin, a local not-for-profit organization. Staff assists in maintenance and general repair of the building.

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

ACCOUNT DEPARTMENT BUDGET BUDGET BUDGET THROUGH ADOPTED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL ACTUAL 2/11/2026 BUDGET BUDGET ADJUSTMENTS 01 3035 Expenditures
01 3035 5110 000 Salaries $ 51,978 $ 62,288 $ 67,221 $ 43,258 $ 70,595 $ 70,595 $ - 01 3035 5130 000 Overtime Wages $ 3,157 $ 1,457 $ 270 $ 178 $ 2,000 $ 2,000 $ - 01 3035 5250 000 Insurance $ 11,711 $ 11,250 $ 11,691 $ 7,174 $ 12,525 $ 13,100 $ 575 01 3035 5251 000 Retirement $ 3,979 $ 4,770 $ 5,308 $ 3,458 $ 5,631 $ 5,631 $ - 01 3035 5252 000 Workers Comp $ 1,489 $ 1,604 $ 1,989 $ 1,771 $ 2,904 $ 2,904 $ - 01 3035 5253 000 Paid Time Off $ - $ 312 $ 1,045 $ 896 $ 500 $ 1,500 $ 1,000 01 3035 6221 000 Telephone $ - $ - $ 573 $ 272 $ 657 $ 657 $ - 01 3035 6232 000 Advertising $ 395 $ 212 $ 192 $ - $ 500 $ 500 $ - 01 3035 6241 000 Office Supplies $ 953 $ 270 $ 454 $ 141 $ 500 $ 500 $ - 01 3035 6251 000 Meeting & Travel $ 1,258 $ 1,198 $ - $ 1,724 $ 1,200 $ 2,000 $ 800 01 3035 6253 000 Awards/Trophies $ 667 $ - $ - $ - $ 800 $ 800 $ - 01 3035 6257 000 Dues & Subscriptions $ 1,769 $ 2,026 $ 2,956 $ - $ 3,150 $ 3,150 $ - 01 3035 6272 000 Vehicle Operation & Maint. $ - $ - $ 135 $ - $ 200 $ 200 $ - 01 3035 6332 000 Uniforms $ 1,145 $ 492 $ 864 $ - $ 1,000 $ 1,000 $ - 01 3035 6371 000 Misc. Community Events $ 34,429 $ 70,981 $ 55,049 $ 25,146 $ 28,500 $ 28,500 $ - 01 3035 6381 000 Fireworks, July 4 $ 4,216 $ 2,016 $ 9,356 $ 326 $ 5,000 $ 5,000 $ - 01 3035 6382 000 Rotary Carnival $ 4,179 $ 4,200 $ 4,842 $ - $ 5,500 $ 5,500 $ - 01 3035 6383 000 Youth Boys/Girls Basketball Tournament $ 15,594 $ 15,179 $ 12,495 $ - $ 16,500 $ 16,500 $ - 01 3035 6384 000 Park 2 Park Bike Ride-JT 55 $ 11,108 $ 4,921 $ 11,719 $ 120 $ 17,500 $ 120 $ (17,380) 01 3035 6385 000 Desert Oasis Car Show $ 3,485 $ - $ - $ - $ - $ - $ - 01 3035 6386 000 Pioneer Days $ 12,333 $ 20,369 $ 44,568 $ 38,123 $ 47,000 $ 47,000 $ - 01 3035 6387 000 Movies in the Park $ 3,539 $ 2,988 $ 4,162 $ 1,760 $ 4,500 $ 4,500 $ - 01 3035 6389 000 Juneteenth Event $ - $ 2,500 $ 2,500 $ - $ 2,500 $ 2,500 $ - 01 3035 6994 000 Veterans' Day Event $ - $ 2,782 $ - $ 6,894 $ 3,000 $ 7,000 $ 4,000 TOTAL EXPENDITURES $ 167,384 $ 211,815 $ 237,389 $ 131,241 $ 232,162 $ 221,157 $ (11,005)

COMMUNITY EVENTS
Plans and oversees City sponsored Community Events for the public from conception to clean up.

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

ACCOUNT DEPARTMENT BUDGET BUDGET BUDGET THROUGH ADOPTED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL ACTUAL 2/11/2026 BUDGET BUDGET ADJUSTMENTS 01 3036 Expenditures
01 3036 6210 000 Electricity $ 3,659 $ 4,750 $ 8,183 $ 4,256 $ 9,450 $ 9,450 $ - 01 3036 6211 000 Natural Gas $ 1,919 $ 186 $ 314 $ 163 $ 1,000 $ 1,000 $ - 01 3036 6212 000 Water $ 928 $ 444 $ 516 $ 359 $ 1,200 $ 1,200 $ - 01 3036 6221 000 Telephone $ 1,276 $ 1,451 $ 1,806 $ 1,183 $ 2,100 $ 2,100 $ - 01 3036 6291 000 Building Repair & Maint. $ 2,167 $ 3,315 $ 5,432 $ 1,107 $ 5,500 $ 5,500 $ - TOTAL EXPENDITURES $ 9,949 $ 10,146 $ 16,251 $ 7,068 $ 19,250 $ 19,250 $ -

PATRIOTIC HALL
Facility is rented to the public for events. Staff is responsible for scheduling of building and maintenance.

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

ACCOUNT DEPARTMENT BUDGET BUDGET BUDGET THROUGH ADOPTED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL ACTUAL 2/11/2026 BUDGET BUDGET ADJUSTMENTS 01 3037 Expenditures
01 3037 6210 000 Electricity $ 2,566 $ 2,602 $ 5,352 $ 3,204 $ 5,250 $ 5,250 $ - 01 3037 6211 000 Natural Gas $ 637 $ 337 $ 506 $ 286 $ 900 $ 900 $ - 01 3037 6212 000 Water $ 873 $ 1,109 $ 1,044 $ 659 $ 1,423 $ 1,423 $ - 01 3037 6291 000 Building Repair & Maint. $ 2,439 $ 3,320 $ 2,466 $ 1,032 $ 5,000 $ 5,000 $ - 01 3037 6292 000 Minor Building Improvements $ 50 $ 85 $ - $ - $ 1,000 $ 1,000 $ - TOTAL EXPENDITURES $ 6,565 $ 7,453 $ 9,368 $ 5,181 $ 13,573 $ 13,573 $ -

LUCKIE PARK ACTIVITY CENTER
Classes are held on an ongoing basis (dance, yoga, Zumba, etc.) Facility is rented to the public for events. Staff is responsible for scheduling of building and maintenance.

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

ACCOUNT DEPARTMENT BUDGET BUDGET BUDGET THROUGH ADOPTED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL ACTUAL 2/11/2026 BUDGET BUDGET ADJUSTMENTS 01 3038 Expenditures
01 3038 5110 000 Salaries $ 40,146 $ 22,819 $ 75,787 $ 48,487 $ 78,863 $ 78,863 $ - 01 3038 5250 000 Insurance $ 9,345 $ 5,382 $ 16,983 $ 10,412 $ 18,181 $ 19,046 $ 865 01 3038 5251 000 Retirement $ 2,872 $ 1,760 $ 5,948 $ 3,873 $ 6,294 $ 6,294 $ - 01 3038 5252 000 Workers Comp $ 889 $ 468 $ 2,061 $ 1,819 $ 3,154 $ 3,154 $ - 01 3038 6210 000 Electricity $ 62,671 $ 72,777 $ 77,915 $ 51,984 $ 73,500 $ 85,000 $ 11,500 01 3038 6211 000 Natural Gas $ 7,585 $ 3,728 $ 4,305 $ 1,778 $ 7,524 $ 6,024 $ (1,500) 01 3038 6212 000 Water $ 6,154 $ 6,355 $ 7,129 $ 4,330 $ 6,673 $ 8,173 $ 1,500 01 3038 6221 000 Telephone $ 128 $ 351 $ 383 $ 160 $ 546 $ 546 $ - 01 3038 6241 000 Office Supplies $ 538 $ 38 $ 713 $ - $ 1,000 $ 1,000 $ - 01 3038 6257 000 Dues & Subscriptions $ - $ - $ 12,340 $ 135 $ - $ - $ - 01 3038 6260 000 Vandalism $ - $ - $ 138 $ - $ 1,000 $ 1,000 $ - 01 3038 6262 000 Equipment Operation & Maint $ - $ - $ 3,374 $ 5,382 $ 10,500 $ 17,500 $ 7,000 01 3038 6279 000 Internet Connection $ 2,030 $ 2,300 $ 2,380 $ 1,400 $ 2,514 $ 2,514 $ - 01 3038 6290 000 Ground Maintenance $ 2,572 $ 288 $ 1,123 $ - $ 3,000 $ 3,000 $ - 01 3038 6291 000 Building Repair &
Maintenance $ 13,786 $ 12,852 $ 13,203 $ 2,944 $ 13,500 $ 13,500 $ - 01 3038 6359 Contract & Consulting $ 2,789 $ 2,081 $ 2,172 $ 1,226 $ 3,500 $ 3,500 $ - 01 3038 6360 Special Department Supplies $ 181 $ 116 $ 129 $ 117 $ 2,000 $ 2,000 $ - 01 3038 6518 Electronic Equipment $ 868 $ - $ - $ - $ - $ - $ - 01 3038 6992 000 Banners $ - $ 1,113 $ - $ 724 $ 600 $ 600 $ - TOTAL EXPENDITURES $ 152,554 $ 132,428 $ 226,083 $ 134,771 $ 232,349 $ 251,714 $ 19,365

FREEDOM PLAZA - COMMUNITY CENTER
Classes are held on an ongoing basis (dance, yoga, Zumba, etc.). Facility is rented to the public for events. Staff is responsible for scheduling of building and maintenance.

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

ACCOUNT DEPARTMENT BUDGET BUDGET BUDGET THROUGH ADOPTED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL ACTUAL 2/11/2026 BUDGET BUDGET ADJUSTMENTS 01 4041 Expenditures
01 4041 5110 000 Salaries $ 61,034 $ 115,896 $ 228,146 $ 152,462 $ 242,102 $ 245,606 $ 3,504 01 4041 5250 000 Insurance $ 9,397 $ 20,317 $ 28,841 $ 17,737 $ 31,010 $ 31,755 $ 745 01 4041 5251 000 Retirement $ 6,292 $ 12,852 $ 27,155 $ 18,000 $ 28,840 $ 29,190 $ 350 01 4041 5252 000 Workers Comp $ 1,453 $ 2,525 $ 5,876 $ 5,321 $ 9,684 $ 9,824 $ 140 01 4041 5253 Paid Time Off $ 2,152 $ 3,526 $ 11,402 $ 5,366 $ 9,000 $ 9,000 $ - 01 4041 6210 000 Electricity $ 3,549 $ 3,902 $ 3,067 $ 2,163 $ 4,396 $ 4,396 $ - 01 4041 6211 000 Natural Gas $ 567 $ 196 $ 306 $ 103 $ 800 $ 800 $ - 01 4041 6212 000 Water $ 328 $ 362 $ 386 $ 335 $ 605 $ 605 $ - 01 4041 6221 000 Telephone $ 748 $ 1,739 $ 2,281 $ 1,130 $ 2,500 $ 2,500 $ - 01 4041 6241 000 Office Supplies $ 557 $ 1,325 $ 813 $ 911 $ 1,500 $ 1,500 $ - 01 4041 6291 000 Building Repair & Maint. $ 730 $ 1,080 $ 6,626 $ 1,602 $ 6,500 $ 6,500 $ - 01 4041 6518 000 Electronic Equipment $ 4,208 $ - $ - $ - $ - $ - $ - 01 4041 6530 000 Traffic Signal Maintenance $ - $ 11,936 $ 13,928 $ 7,411 $ 12,500 $ 12,500 $ - 01 4041 6531 000 Signal Maintenance $ - $ 8,685 $ 17,896 $ 5,502 $ 18,000 $ 18,000 $ - 01 4041 6769 000 Generator Maint City Wide $ 57 $ - $ - $ - $ 2,000 $ 2,000 $ - 01 4041 6885 000 National Park Drive Median $ 18,653 $ 21,900 $ 17,700 $ 10,325 $ 20,000 $ 20,000 $ - 01 4041 6950 000 Palm Tree Maintenance $ 7,326 $ - $ 3,300 $ - $ 10,000 $ 10,000 $ - 01 4041 6992 000 Banners/Downtown lights $ - $ 280 $ - $ 45 $ 1,000 $ 1,000 $ - TOTAL EXPENDITURES $ 117,051 $ 206,521 $ 367,723 $ 228,413 $ 400,437 $ 405,176 $ 4,739

PUBLIC WORKS - ADMINISTRATION
Public works administrative costs associated with the General Fund (Building and grounds).

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

ACCOUNT DEPARTMENT BUDGET BUDGET BUDGET THROUGH ADOPTED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL ACTUAL 2/11/2026 BUDGET BUDGET ADJUSTMENTS 01 4042 Expenditures
01 4042 5110 000 Salaries $ 68,130 $ 70,913 $ 49,751 $ 28,564 $ 49,135 $ 49,687 $ 552 01 4042 5250 000 Insurance $ 10,021 $ 11,485 $ 12,426 $ 6,668 $ 17,521 $ 18,584 $ 1,063 01 4042 5251 000 Retirement $ 6,740 $ 7,888 $ 3,881 $ 2,445 $ 3,922 $ 3,966 $ 44 01 4042 5252 000 Workers Comp $ 1,693 $ 1,538 $ 1,233 $ 1,027 $ 1,965 $ 1,987 $ 22 01 4042 5253 Paid Time Off $ 1,966 $ 1,043 $ 1,604 $ - $ 2,000 $ 2,000 $ - 01 4042 6262 000 Equipment Repair Maint $ 17,542 $ 10,251 $ 44,560 $ 10,470 $ 15,000 $ 15,000 $ - 01 4042 6262 101 Equipment - Fuel $ 3,113 $ 7,904 $ 440 $ 7,577 $ 5,000 $ 8,000 $ 3,000 01 4042 6332 000 Uniforms $ - $ - $ 216 $ - $ 457 $ 457 $ - 01 4042 6850 000 Transfer to Capital Project Equipment $ 7,435 $ 8,978 $ 5,889 $ - $ 25,000 $ 20,319 $ (4,681) TOTAL EXPENDITURES $ 116,640 $ 120,000 $ 120,000 $ 56,751 $ 120,000 $ 120,000 $ -

PUBLIC WORKS - STREET SWEEPING
Public works administrative costs associated with the city wide street sweeping services.

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

ACCOUNT DEPARTMENT BUDGET BUDGET BUDGET THROUGH ADOPTED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL ACTUAL 2/11/2026 BUDGET BUDGET ADJUSTMENTS 01 4045 Expenditures
01 4045 5110 000 Salaries $ 246,043 $ 259,625 $ 287,546 $ 186,353 $ 298,958 $ 303,868 $ 4,910 01 4045 5235 000 Vehicle/Cell Allowance $ 420 $ 420 $ 420 $ 258 $ 420 $ 420 $ - 01 4045 5250 000 Insurance $ 48,007 $ 51,312 $ 57,606 $ 35,183 $ 61,058 $ 63,704 $ 2,646 01 4045 5251 000 Retirement $ 22,335 $ 25,333 $ 28,224 $ 18,495 $ 29,537 $ 30,163 $ 626 01 4045 5252 000 Workers Comp $ 5,682 $ 5,576 $ 6,971 $ 6,650 $ 11,958 $ 12,155 $ 197 01 4045 5253 000 Paid Time Off $ 336 $ 5,187 $ 1,678 $ 2,349 $ 5,000 $ 5,000 $ - 01 4045 6210 000 Electricity $ 67,434 $ 77,665 $ 103,640 $ 56,050 $ 95,000 $ 104,000 $ 9,000 01 4045 6211 000 Natural Gas $ 2,771 $ - $ - $ - $ - $ - $ - 01 4045 6212 000 Water $ 5,626 $ 5,988 $ 7,999 $ 6,265 $ 6,287 $ 8,500 $ 2,213 01 4045 6251 000 Training & Meetings $ - $ 735 $ 320 $ - $ 2,000 $ 1,000 $ (1,000) 01 4045 6260 000 Vandalism/ Graffiti Removal $ 1,139 $ 830 $ 1,242 $ - $ 1,000 $ 1,000 $ - 01 4045 6262 000 Equipment Operation & Maint. $ 5,640 $ 16,776 $ 14,817 $ 1,431 $ 15,000 $ 15,000 $ - 01 4045 6262 101 Equipment - Fuel $ - $ - $ 699 $ 1,115 $ 1,000 $ 2,000 $ 1,000 01 4045 6272 000 Vehicle Operation & Maint. $ 1,988 $ 9,140 $ 5,580 $ 7,125 $ 5,000 $ 10,000 $ 5,000 01 4045 6272 101 Vehicle - Fuel $ 4,456 $ 2,717 $ 13,346 $ 6,496 $ 13,000 $ 13,000 $ - 01 4045 6290 000 Grounds Operation & Maint. $ 61,825 $ 74,592 $ 57,079 $ 6,474 $ 75,000 $ 75,000 $ - 01 4045 6291 000 Building Operation & Maint. $ 14,297 $ 6,103 $ 4,815 $ 5,212 $ 8,500 $ 8,500 $ - 01 4045 6295 000 Well Repair $ - $ 164 $ 1,540 $ - $ 2,000 $ 1,500 $ (500) 01 4045 6312 000 Small Equip. & Tools $ 4,033 $ 8,085 $ 8,430 $ 311 $ 7,000 $ 7,000 $ - 01 4045 6332 000 Uniforms $ 3,045 $ 3,443 $ 3,693 $ 3,467 $ 4,000 $ 4,000 $ - 01 4045 6518 000 Electronic Equipment $ 2,481 $ - $ - $ - $ - $ - $ - 01 4045 6663 000 Drinking Fountains, Bar-B-Q
Grills & Picnic Benches $ 10,242 $ 12,012 $ 11,290 $ 649 $ 13,000 $ 12,000 $ (1,000) 01 4045 6879 000 ADA Compliance $ 22,338 $ - $ - $ - $ - $ - $ - TOTAL EXPENDITURES $ 530,138 $ 565,703 $ 616,935 $ 343,883 $ 654,718 $ 677,810 $ 23,092

PUBLIC WORKS PARKS MAINTENANCE
Maintains the grounds at the City's five parks: Luckie Park, Veterans Park at City Hall, Knott's Sky Park, the Senior Center, and the pocket park at the Historic Plaza.

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

ACCOUNT DEPARTMENT BUDGET BUDGET BUDGET THROUGH ADOPTED PROPOSED CODE ACTIVITY DETAIL ACTUAL ACTUAL ACTUAL 2/11/2026 BUDGET BUDGET ADJUSTMENTS 35 0000 Revenues
35 00 00 4890 000 Workers Comp Refund $ 31,609 $ - $ - $ - $ - $ - $ - Reserves $ 10,986 $ 10,105 $ 870 $ 653 $ 20,000 $ 20,000 $ - TOTAL REVENUE $ 42,595 $ 10,105 $ 870 $ 653 $ 20,000 $ 20,000 $ - 35 0107 Expenditures
35 0107 6436 000 Claims Settlement $ 42,595 $ 10,105 $ 870 $ 653 $ 20,000 $ 20,000 $ - TOTAL EXPENDITURES $ 42,595 $ 10,105 $ 870 $ 653 $ 20,000 $ 20,000 $ -

RISK MANAGEMENT
Accounts for the collection of resources, mainly from PARSAC rebates, to use for SIR (Self Insured Retention) and other Risk related

CITY OF TWENTYNINE PALMS

CITY COUNCIL RESOLUTION
NO. 26-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TWENTYNINE PALMS, CALIFORNIA, ADOPTING THE CITY’S GENERAL FUND
BUDGET ADJUSTMENTS FOR FISCAL YEAR 2025-2026
WHEREAS, the City Manager and Finance Director have prepared a Proposed amended General Fund Budget for the City of Twentynine Palms for Fiscal Year 2025- 2026; and
WHEREAS, during the course of business for the Fiscal Year 2025-2026, the City Council authorized purchases of goods and services that were known to be in excess of the amounts budgeted; and
WHEREAS, those purchases were made with the knowledge that there were sufficient balances available in the various funds to cover the costs involved; and WHEREAS, the intent of the City Council was to appropriate the necessary funds at a later date; and
WHEREAS, the City Council has deliberated, discussed, debated, and made changes to the Proposed Amended Budget for the City of Twentynine Palms for Fiscal Year 2025-2026.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TWENTYNINE PALMS, CALIFORNIA, RESOLVES AS FOLLOWS:

Section 1. Adoption. The City Council of the City of Twentynine Palms hereby adopts and approves the adjustments to the General Budget for Fiscal Year 2025-2026, which is attached as Exhibit “A” and incorporated by reference to this Resolution for Fiscal Year Ending June 30, 2026.

Section 2. Legal Level of Budgetary Control. The legal level of budgetary control is at the fund level. The City Manager is authorized to transfer appropriations between accounts within the fund as long as the total adopted budget allocation of that fund is not exceeded.

Section 3. Transfers. Transfers from fund to fund will require approval of the City Council, if not approved in the budget.

PASSED, APPROVED, AND ADOPTED on the 24th day of February 2026.

Daniel L. Mintz, Sr., Mayor
ATTEST:

Cindy Villescas, City Clerk

I hereby certify that the foregoing Resolution No. 26-___ was duly adopted by the City Council of the City of Twentynine Palms at a regular meeting thereof, held on the 24th day of February 2026, by the following vote of the Council:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

Cindy Villescas, City Clerk

CITY OF TWENTYNINE PALMS
Fiscal Year 2025-26 Mid-Year Budget Update
General Fund (GF)

MID-YEAR BUDGET

AMENDMENTS
Schedule:

February 24th General Fund, Capital Projects Funds,
Special Revenue Funds, Project Phoenix Funds,
and Sewer Fund 2/18/2026
2 Page 97 of 273

MID-YEAR UPDATE OUTLINE
 Cash Balances
 YTD vs. Proposed Budget
 YTD Revenues vs. Budget
 YTD Expenditures vs. Budget
 General Fund Budget Adjustments Summary
 Top Revenue Adjustments
 Net Taxable Assessed Value History
 Top Expenditure Adjustments
 Transfers Out Adjustments
 Fund Balance Summary
 Operating Revenues vs. Operating Expenditures
 Fiscal 2027-27 “Snapshot”
 Presentation Summary
 Staff Recommendations 2/18/2026
3 Page 98 of 273

CASH BALANCES
Cash Balances as of 12/31/25:
• Checking Account (GF & SF) – $3.4M
• Successor Agency - $252K
• Investments:
o LAIF - $10.0M
o CDs - $5.2M
o U.S. Treasury Bills - $1.3M 2/18/2026
4 Page 99 of 273
GF YTD VS. PROPOSED BUDGET
CY %
25/26 Proposed
YTD Actuals* Budget
Revenues & Transfers In $7,840,668 $15,146,151 52%
Expenditures & Transfers Out $8,122,534 $15,145,482 54% Summary
*Actuals through 2/11/2026 2/18/2026
5 Page 100 of 273
YTD* REVENUES VS BUDGET
Prop Tax Prop Tax in
Lieu of VLF Sales Tax TOT Other Taxes Franchise
Planning
Fees/Building
Permits
Parks & Rec.

Fees
Animal
Control Fees Other
FY 25-26 Budget $3,373,535 $4,705,649 $1,553,459 $1,900,000 $296,637 $911,325 $820,000 $183,500 $85,000 $967,236 YTD Actuals $1,966,163 $2,352,825 $743,902 $1,065,845 $43,781 $301,347 $559,925 $125,377 $46,826 $611,024 % Received 58% 50% 48% 56% 15% 33% 68% 68% 55% 63%
0%
10%
20%
30%
40%
50%
60%
70%
80%
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000 2/18/2026
6 *Actuals through 2/11/2026, excludes reserves and transfers in

YTD* EXPENDITURES VS BUDGET
City Council City
Administration
NonDepartmentalCommunity
Development
Code
Enforcement
Building,
Safety, & Eng.

Law
Enforcement Animal Control PWAdmin/Streets
Community
Services/Parks
FY 25-26 Budget $80,206 $2,051,737 $1,890,321 $596,111 $350,133 $481,850 $6,313,949 $693,325 $525,176 $2,162,674 YTD Actuals $33,001 $1,145,705 $915,612 $324,566 $208,020 $254,078 $3,408,043 $380,819 $285,164 $1,167,526 % Used 41% 56% 48% 54% 59% 53% 54% 55% 54% 54%
0%
10%
20%
30%
40%
50%
60%
70%
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000 2/18/2026
7 *Actuals through 2/11/2026

GF BUDGET ADJUSTMENTS SUMMARY
Adjustments
25/26 Proposed
Budget
25/26 Adopted
Budget
$14,809,263 $15,146,151 * $336,888 Revenues, Reserves
& Transfers In
$14,671,792 $15,145,482 $473,690 Expenditures &
Transfers Out
SURPLUS $137,471 $669 $(136,802)
*Includes $283,810 from reserves for various projects 2/18/2026 8 Page 103 of 273

TOP REVENUE ADJUSTMENTS
Adjustments
25/26 Proposed
Budget
25/26 Adopted
Revenue Type Budget
Property Taxes $3,409,464 $3,373,535 $(35,929)
Property Tax in Lieu of VLF $4,723,410 $4,705,649 $(17,761) (1) Utility Unitary Tax $160,000 $193,634 $33,634
Interest $200,000 $280,000 $80,000
COPS Funds(2) $180,000 $201,633 $21,633
(1) VLF = Vehicle License Fee
(2) Citizens’ Option for Public Safety (COPS) program - Restricted funds received by local agencies for eligible law enforcement expenditures. 2/18/2026 9 Page 104 of 273

CITY OF TWENTYNINE PALMS NET

TAXABLE ASSESSED VALUE HISTORY
Fiscal Year Secured Unsecured SBE Nonunitary Net Total AV % Change 2014-15 $802,424,517 $20,937,193 $252,649 $823,614,359 2.70% 2015-16 $819,140,029 $22,126,150 $252,649 $841,518,828 2.17% 2016-17 $829,433,547 $19,046,841 $252,649 848,733,037 0.86% 2017-18 $841,474,081 $18,405,803 $252,649 $860,132,533 1.34% 2018-19 $874,065,397 $17,581,904 $252,649 $891,899,950 3.69% 2019-20 $908,885,222 $18,715,010 $257,656 $927,857,888 4.03% 2020-21 $949,184,759 $18,295,839 $257,656 $967,738,254 4.30% 2021-22 $1,003,153,814 $19,892,321 $257,656 1,023,303,791 5.74% 2022-23 $1,116,657,102 $20,612,032 $257,656 $1,137,526,790 11.16% 2023-24 $1,250,121,084 $23,415,937 $620,877 $1,274,157,898 12.01% 2024-25 $1,324,338,304 $23,639,751 $620,877 $1,348,598,932 5.84% 2025-26 $1,386,759,892 $23,323,130 $620,877 $1,410,703,899 4.6% Source: Secured, Unsecured and Utility Values from San Bernardino County for each fiscal year, as complied by HdL. Coren & Cone. 2/18/2026
10 Page 105 of 273

TOP EXPENDITURE ADJUSTMENTS
Expenditure Type Amount Description
Law Enforcement $255,282 Sheriff’s contract amendment
Supplies and materials $25,000 Community outreach materials for Sales Tax Measure Legal Fees $22,000 Code Enforcement attorney fees
Utilities $20,500 Electricity cost increases at Parks & Freedom Plaza Vehicle Maintenance $14,815 Vehicle repairs for A/C truck and Parks truck Equipment Maintenance $6,825 EV Charger repairs
Building Repairs $5,000 Water leak repairs at Comm. Development building Events $4,000 Unanticipated costs increases for Veterans’ Day event Net impact of CY retirements and promotion, one-time
longevity payments, and unanticipated medical rate increases.

Salaries and Benefits $(67,714)
Liability & Property Insurance $(41,420) Actual insurance rates were lower than budgeted Events $(17,380) Cancellation of JT55 Event
Contract & Consulting $(10,000) Sales tax feasibility analysis TOTAL $216,908 2/18/2026
11 Page 106 of 273

TRANSFERS OUT ADJUSTMENTS
Expenditure Type Amount Description Funding Source
Community Survey and consulting services Reserves
for sales tax measure.

Contract & Consulting $100,300
Contract & Consulting $68,000 Elm Property Improvements Reserves Flood monitoring Equipment/Cameras CY revenues (1) Electronic Equipment $10,000 Vehicle $5,000 Fixtures for new Animal Control vehicle Reserves Package Treatment Plant utility connections Reserves (2) Utility Connections $80,000 TOTAL $263,300 2/18/2026
12 (1) Estimated project cost:
$25K – County grant
$10K - City
$35K
(2) To be discussed in more detail in the Sewer Fund presentation

FUND BALANCE SUMMARY
FY 2025-26
Actual
FY 2024-25
Actual
FY 2023-24
Actual
FY 2022-23
Actual
FY 2021-22
Fund Balance Classification Actual
Nonspendable – Land held for resale $93,963 $93,963 $93,963 $126,303 $126,303 (1) Restricted $372,700 $406,426 $431,729 $434,442 $591,913 (2) Assigned $3,599,844 $2,011,441 $396,982 $104,612 $73,449 (3) Unassigned $6,575,462 $9,098,342 $11,103,632 $12,758,932 $12,349,483 Total Fund Balance $10,641,969 $11,610,172 $12,026,306 $13,424,289 $13,141,148 Total Operating Expenditures $10,359,957 $11,564,720 $14,002,893 $13,189,356 $14,631,863 (4) Operating Reserves (% of Expend) 63% 79% 79% 97% 84% (5) City’s Reserve Policy 60-65% 50-55% 50-55% 50-55% 50-55% (1) Land purchased from the Successor Agency as part of the Lear Traffic Signal Installation, and prepaids. (2) Funds received through the Citizens’ Option for Public Safety (COPS) program and Seized Assets Funds restricted to fund frontline municipal police services. (3) Amounts the City Council assigns to use for a specific purpose. (4) Exclusive of Transfers Out.
(5) Reserves = Unassigned Fund balance/Total Expenditures. 2/18/2026 13 Page 108 of 273
OPERATING REVENUES VS. OPERATING

EXPENDITURES
FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26* FY 26-27* Revenue $11,748,812 $12,468,327 $13,726,956 $14,783,662 $15,271,104 $14,796,341 $15,347,179 Expenditures $9,005,382 $10,327,536 $11,450,264 $12,299,308 $13,097,501 $14,581,863 $15,108,844 $-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
Revenue Expenditures 2/18/2026
14 *Budget

2026-27 SNAPSHOT
26/27 FORECAST
Revenues & Transfers In $15,388,195
Expenditures & Transfers Out $15,092,228
SURPLUS $295,967 2/18/2026
15 Page 110 of 273

PRESENTATION SUMMARY
 Overall, the City’s operating budget is performing well through mid-year;
 Cash and Reserves are strong;
 Revenue and expenditures are within expectations;
 Fiscal 2025-26 Budget will be balanced. 2/18/2026
16 Page 111 of 273

STAFF RECOMMENDATIONS
Staff is recommending the following actions:

1. The City Council review and approve the proposed General Fund Budget amendments for FY 2025-26.

2. Approve the following inter-fund transfers for FY 2025-26:

From the General Fund to the Capital Projects Fund ($183,300). • $100,300 - Community Survey and consulting services for sales tax measure. • $68,000 – Unfunded portion of the Elm Property Improvements. • $10,000 - Flood monitoring equipment/cameras.
• $5,000 - Fixtures for new Animal Control truck. 2/18/2026 17 Page 112 of 273

PROPOSED BUDGET ADJUSTMENTS
Questions? 2/18/2026
18 Page 113 of 273

PROPOSED BUDGET ADJUSTMENTS
THANK YOU! 2/18/2026
19 Page 114 of 273
www.hdlcompanies.com | 888.861.0220
Q3 2024*
Q3 2025*
Legend
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
SALES TAX BY MAJOR BUSINESS GROUP *Allocation aberrations have been adjusted to reflect sales activity Business
and
Industry
Autos
and
Transportation
General
Consumer
Goods
Food
and
Drugs
County
and State
Pools
Fuel and
Service
Stations
Restaurants
and
Hotels
CITY OF TWENTYNINE PALMS HIGHLIGHTS TOP 25 PRODUCERS
Published by HdL Companies in Winter 2026

SALES TAX UPDATE

CITY OF TWENTYNINE PALMS
3Q 2025 (JULY - SEPTEMBER)
29 Palms Liquor & Gas
7 Eleven
Adobe Liquor
Arco AM PM
AutoZone
Benny’s
Burger King
Castanedas Mexican
Food
Circle K
Del Taco
Desert Auto &
Hardware
Dollar General
Dollar Tree
Dominos Pizza
Family Dollar
Fastrip
Grocery Outlet
Hi Grade Materials Co
Jack in the Box
McDonald’s
O’Reilly Auto Parts
Parker’s Building Supply
Popeyes
Stater Bros
Taco Bell
Twentynine Palms’ receipts from July
through September were 11.1% above
the third sales period in 2024. Excluding
reporting aberrations, actual sales were
up 2.1%.

The general consumer goods sector
reported a modest increase when
compared to the year-ago period.

Consumer demand in terms of dining
out was characterized by a shift towards
savings, with diners trading down for
less expensive dining option.

In the third quarter of 2025, revenue
from fuel-service stations declined due
to refinery issues and volatile markets.

Store closures had a negative impact on
revenue from food-drugs.

The autos-transportation category
experienced a sluggish sales quarter.

The business-industry sector was
negatively impacted by the lingering
impact of tariffs which increased costs
for many businesses.

In the third quarter of 2025 (3Q25),
California’s economy continued an
extended slowdown characterized by
a sluggish labor market and significant
fiscal challenges, but also a booming,
high-growth AI and aerospace sector.

The City’s share of the countywide
use tax pool increased 10.6% when
compared to the same period in the prior
year.

Net of aberrations, taxable sales for San
Bernardino County grew 5.4% over the
comparable time-period; the Southern
California region was up 1.8%.

TOTAL: $ 361,765

2.1% 5.4% 1.9%

COUNTY STATE

TWENTYNINE PALMS
3Q2025

TOP NON-CONFIDENTIAL BUSINESS TYPES
Q3 '25
Twentynine Palms
Business Type Change Change Change
County HdL State
Quick-Service Restaurants 75,670 -7.0% -1.8% -1.1%
Service Stations 73,254 -5.9% -4.2% -5.0%
Casual Dining 27,046 2.9% 2.3% 2.0%
Automotive Supply Stores 17,779 6.7% 7.1% -3.8%
Convenience Stores/Liquor 11,077 2.6% 3.4% -1.5%
Auto Repair Shops 5,593 -29.0% -2.3% -6.2%
Specialty Stores 4,174 13.6% 5.4% -2.1%
Cigarette/Cigar Stores 3,734 0.0% 4.5% -3.4%
Government/Social Org. 3,202 -12.0% -32.8% 2.1%
*Allocation aberrations have been adjusted to reflect sales activity

REVENUE BY BUSINESS GROUP
Twentynine Palms This Quarter*
15%
Pools
31%
Restaurants
7%
Autos/Trans.
8%
Cons.Goods
10%
Food/Drug
20%
Fuel
9%
Others
*ADJUSTED FOR

ECONOMIC DATA
3Q 2025 CITY OF TWENTYNINE PALMS SALES TAX UPDATE

STATEWIDE RESULTS
California’s local one-cent sales and use tax
receipts for July through September were

1.9% higher than the same quarter last year,
after adjusting for accounting anomalies.

While growth appears modest, calendar
year 2025 remains on pace to rebound
following two years of declines. Combined
with second-quarter activity, the summer
period posted a 1% improvement over the
2024 season.

Sustained consumer trends reflected a
willingness to spend while remaining costconscious and prioritizing value. Online retailers, reporting to both businessindustry and countywide use tax pools (depending on inventory location at
purchase), recorded the strongest gains.

This momentum extended to brick-andmortar retailers, which also posted modest improvements. Seasonal “back-to-school”
activity boosted men’s and family apparel
along with shoe stores, lifting the General
Goods sector and enhancing expectations
for the upcoming holiday shopping period.

Tax receipts from restaurants edged higher,
supported by households’ continued desire
to eat out. Despite balancing higher menu
prices, tip fatigue, and tighter margins,
casual dining establishments generated the
largest gains. Overall, summer performance
appeared stable but lacked the tourism
surge many had hoped for.

Offsetting positive results was a decline
in revenue from fuel-service stations—
marking the 10th out of the last 11 quarters
with negative year-over-year change.

This trend is largely tied to West Texas
Intermediate (WTI) crude oil prices, which
hit their lowest monthly levels since 2021.

While lower gas prices may encourage
spending in other categories, potential oil
refinery closures in the coming year could
keep per-gallon prices elevated.

The food and drug sector continued its
downward trend as grocers remitted fewer
taxes, reflecting the challenge of generating
taxable revenue amid rising food prices.

Drug store filings have declined throughout
the year, driven partly by increased access
to medications through e-commerce
platforms and a contraction in physical store
footprints due to over-saturation and chain
bankruptcies.

Two sectors poised to benefit from
lower short-term interest rates—autostransportation and building-construction— repeated a pattern of lackluster returns.

A minor uptick came from new auto
sales and leasing, while building material
suppliers struggled during the summer, likely
creating pent-up demand for repairs and
improvements ahead.

With the Federal Reserve considering
additional rate changes in early 2026,
optimism for improved consumer financing
conditions and stronger sales tax receipts
remains. As national tariff and trade talks
ease, inflationary pressures will continue to
shape spending behavior. For now, calendar
year 2025 closes with sluggish but stable
performance, awaiting broader economic
shifts.

GENERAL FUND RESERVE POLICY
April 2018

General Fund Reserve Policy

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

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

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April 2018
City of Twentynine Palms

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The following summarizes the GFOA’s rating scale.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Vulnerability to Extreme Events

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

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

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

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

Revenue Source Stability

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

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

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

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

B-9
Appendix B: GFOA Structured Assessment Methodology

Expenditure Volatility

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

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

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

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

B-10
Appendix B: GFOA Structured Assessment Methodology

Leverage

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

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

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

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

B-11
Appendix B: GFOA Structured Assessment Methodology

Liquidity

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

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

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

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

B-12
Appendix B: GFOA Structured Assessment Methodology

Other Funds Dependency

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

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

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

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

B-13
Appendix B: GFOA Structured Assessment Methodology