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Palmdale approves midyear budget adjustments; settlement and Chimoli Center work drive changes
Summary
Palmdale’s midyear budget added $30.1 million in all-funds revenue largely from multi-year grants, incorporated a $5.5M insurance reimbursement offsetting a $5.4M legal settlement, and reallocated $13.2M to Chimoli Center CIP work; council approved the midyear adjustments unanimously.
Finance staff presented the midyear fiscal-year adjustments to the Palmdale City Council on March 3, reporting an all-funds revenue increase of $30.1 million (primarily multi-year grant carryforwards) and general-fund revenue growth of $6.2 million driven chiefly by an anticipated $5.5 million insurance reimbursement.
Janelle Samson, director of operations, told the council that overall expenditures across funds rose by $1.4 million and that a material driver of the general-fund expenditure change is a legal settlement payment of roughly $5.4 million noted in the midyear package. Samson also described a $13.2 million capital allocation to the Chimoli Center project — $12 million in general funds plus $1.2 million in Measure AV funds — and explained that part of the midyear work is a timing and reclassification move to ensure funds are available for design and solicitation of construction.
Councilmembers requested clearer links between the midyear entries and the five-year capital improvement program (CIP), noting the five-year program had not yet been approved and asking how allocations could be reallocated if priorities change. Staff explained the midyear adjustments cover active capital projects and carryforwards and that the council retains the ability to reprogram funding during the annual budget process.
On questions of revenue trends, staff said most of the $30.1M revenue increase is grant-related and that sales-tax trends would be reported in regular revenue updates. Council members also highlighted longer-term obligations such as anticipated cost-sharing increases for regional transit and the need to preserve reserves. Council approved the midyear adjustment and directed staff to provide clarified CIP linkage and timing for the Chimoli Center work and to ensure transparent public reporting of Measure AV expenditures.
