Twentynine Palms council approves midyear budget adjustments, OKs transfers for senior center and equipment

The Twentynine Palms City Council on March 4 approved midyear adjustments to the city's fiscal 2024'25 general fund and capital/special-funds budgets after a presentation from Finance Director Abigail Hernandez showing the city remains in a positive cash position.

Hernandez told the council the city had about $18.5 million in cash and investments at midyear and outlined proposed adjustments that together still forecast a $92,000 surplus for the fiscal year. She recommended transfers to cover higher-than-anticipated vehicle costs, set aside money for a street-sweeper reserve and fund improvements at the senior center. The council voted unanimously to adopt the adjustments.

Hernandez said the city's cash is invested across several vehicles and remains readily available for operating needs. She identified the largest revenue changes as a proposed $406,000 increase in property-tax receipts and roughly $100,000 more in property-tax in-lieu (vehicle license fee) revenue, offset in part by a decline in building- and permit-related receipts. She also noted a modest $60,000 increase in grant revenue from flexible CDBG/CIRA-type funds.

The council-approved transfers and adjustments discussed in the presentation included: - A requested transfer to support improvements at the senior center (council heard a $200,000 transfer proposal). - Additional funding for city vehicles; the animal-control vehicle budget was increased by $26,000 above the original estimate. - A $35,000 request related to the street-sweeper reserve and continuing contract payments. - A $6,000 transfer from the general fund to the CDBG fund to cover unreimbursed Homekey project expenditures.

Hernandez also reviewed the city's reserve policy, noting the council in recent years set a target range of 50%'55% of operating expenditures for general reserves; she reported current reserves are within and above that range.

Councilmembers asked staff for clarification on several line items: the cost of software subscriptions to operate donated charging stations at Freedom Plaza (Hernandez said the city must pay a three-year subscription for the chargers after the initial subscription expires), the timing of the strategic-planning session, and details related to Homekey funding. On Homekey, Hernandez said the $613,000 grant received in 2022 is likely insufficient given rising costs; staff have requested an extension to March 2026 and will pursue additional funding, but federal or state grants are not guaranteed.

Votes at a glance: - Consent calendar: approved 5'00. - SCAG delegate designation (item 6): approved 5'00 (delegate names/details as recorded in the meeting record were not specified). - General Fund midyear budget adjustments (item 7): approved 5'00. - Capital projects and special funds midyear update (item 8): approved 5'00.

Why it matters: The midyear changes preserve the city's balanced budget position while moving one-time and capital funds toward needed purchases and facility improvements. The Homekey project funding shortfall and the recurring software/subscription costs for donated chargers were identified as items that will require future attention from council and staff.

What's next: Staff will implement the approved transfers and return with further detail at budget hearings and the strategic planning session; they will also continue to seek additional grants or reimbursements for the Homekey project and provide updated cost estimates for items already underway.