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Twentynine Palms finance director outlines modest surplus, warns of sheriff contract pressures; council approves $65,000 interfund transfer
Summary
The city’s finance director presented preliminary FY26–27 budget revisions showing a small projected surplus but revenue pressure from slower assessed‑value growth and a potentially costly sheriff’s contract; council approved a $65,000 transfer to the capital projects fund and trimmed contributions to nonprofits.
The Twentynine Palms finance director presented preliminary revisions to the city’s FY26–27 budgets, forecasting a modest $11,000 surplus compared with prior estimates and flagging several expense pressures that could affect future years.
Director of Finance Abigail told the council that lower growth in taxable assessed values and expected increases — including a recommended 5% increase in the sheriff’s contract and a 3.1% cost‑of‑living adjustment for wages — are straining operating revenues. She said the city’s reserve is projected at about $12.2 million and urged using reserves only for one‑time projects or emergencies.
Key changes and recommendations: the preliminary package includes adjustments for the sheriff’s contract (the director cautioned final figures were pending a sheriff’s meeting), a 3.1% COLA for employees, increases in insurance and pension liabilities, a suggested $30,000 membership to join a regional housing trust, and a $5,000 increase for the youth council. To help balance the projection, staff recommended cost‑saving measures and restored the nonprofit contribution line to $50,000 (down from $75,000 the prior year).
Public comment and council discussion: Residents raised concerns about removing a separate Juneteenth event line from the FY26–27 budget and the reduction in nonprofit funding. Staff replied that the city will continue some activities associated with holidays even without a dedicated line item and that the RFP process for Juneteenth produced only one incomplete application; staff encouraged nonprofits to pursue outside grant funding.
Interfund transfer approved: Council voted to approve an additional interfund transfer of $65,000 from the general fund to the capital projects fund for FY25–26. The motion passed by roll call (approved 5–0).
What happens next: Staff will present special‑revenue and SOAR fund revisions at an upcoming May meeting and return for a public hearing and adoption of General Fund revisions at the second May meeting. The finance director emphasized the need to wait for final sheriff’s contract numbers before adding new recurring expense items.
No motion was made at the meeting to restore the Juneteenth line item; staff suggested partnership with community organizations and alternate funding strategies.
