News Flash Home
The original item was published from 12/23/2020 2:47:45 PM to 12/24/2022 12:00:02 AM.

News Flash

Press Releases

Posted on: December 23, 2020

[ARCHIVED] State Auditor Ranks Palmdale Among Cities with Lowest Risks of Fiscal Distress in California

The most recent comprehensive financial analysis by the California State Auditor (CSA) revealed that the City of Palmdale has one of the lowest risks of fiscal distress in California.

Of the 453 cities that were analyzed, Palmdale came in at the 410th lowest risk, putting it in the top 10 percent of California cities. 

As part of the CSA’s high-risk local government audit program, the Auditor has established a process for determining whether a local government agency is at risk of fiscal distress. The CSA made its findings public on a dashboard that ranks the fiscal health of 453 California cities from highest to lowest risk, using ten key financial indicators. The dashboard is available at

A statement by California State Auditor Elaine M. Howle, CPA on their website reads, “We recognize that the citizens and the government rely on us to ensure the effective and efficient administration and management of public funds and programs. It is our job to help make sure that California government stays one step ahead. As the State’s independent external auditor, we provide nonpartisan, accurate, and timely assessments of California government’s financial and operational activities in compliance with generally accepted government auditing standards.”

“Being fiscally sound is something our Council has made as a top priority for Palmdale,” said Palmdale Mayor Steve Hofbauer. “Being ranked in the top 10 percent of fiscally strong cities in the state sends a great message to existing and potential new business who are looking to grow or relocate to Palmdale.”

“Thanks to the prudent leadership of our City Council and the commitment they and our staff have to our residents and taxpayers, we are continuing to bring an outstanding level of services and program to our community even in these challenging times,” said Palmdale City Manager J.J. Murphy. “We will continue to work as good stewards of the public’s money, especially in light of the trust placed in us with the passage of Measure AV. Our commitment to you is that we will continue to be fiscally prudent and transparent in order to deliver the best to our residents, businesses, and visitors.”

For more information, visit


Methodology for Ranking California Cities Based on Fiscal Risk

The California State Auditor (State Auditor) analyzed financial information for California cities to identify cities that may be at risk for fiscal distress. They assessed risk by performing various financial comparisons and calculations that they refer to as financial indicators, as discussed in more detail below. They analyzed the finances related to each city’s governmental and business-type activities, including the general fund or main operating fund. 

Their analysis relied upon information from audited financial statements prepared in accordance with generally accepted accounting principles (GAAP) that they obtained through various sources such as city websites, the Federal Audit Clearinghouse, the Electronic Municipal Market Access website, and the California State Controller’s Office (State Controller). They also analyzed unaudited pension related information from the California Public Employees’ Retirement System (CalPERS) and the State Controller.


Financial Indicators

They selected a set of 10 indicators that enabled them to assess each city’s ability to pay its bills in both the short and long term. Specifically, the indicators measure each city’s cash position or liquidity, debt burden, financial reserves, revenue trends, and ability to pay for employee retirement benefits. They used a points-based system to rank and categorize cities as either high, moderate, or low risk for fiscal distress. They weighted the results of the indicators by assigning varying numbers of points to each indicator based on their judgment of each indicator’s relative importance. The table below summarizes the financial indicators and maximum points assigned to each indicator.




Financial Indicators

Points Possible

Palmdale’s Score

1. General Fund Reserves



2. Debt Burden



3. Liquidity



4. Revenue Trends



5. Pension Obligations



6. Pension Funding



7. Pension Costs



8. Future Pension Costs



9. OPEB Obligations



10. OPEB Funding



Maximum Score Possible




For details on methodology, please visit

Facebook Twitter Email

Other News in Press Releases

#FightFentanylAV Campaign Launched

Posted on: March 29, 2023

Big Band Performance at Palmdale Playhouse

Posted on: February 23, 2023

Free Dog and Cat Vaccine Clinic

Posted on: February 17, 2023

Palmdale Equips LASD with e-Citation Tools

Posted on: February 16, 2023

Mental Health Workshops at the Library

Posted on: February 7, 2023

Stone Soul at Palmdale Playhouse

Posted on: February 7, 2023

Rock and Roll at Palmdale Playhouse

Posted on: January 26, 2023

Celebrate Love at Valentine’s Dance

Posted on: January 24, 2023

Holiday Movie Festival at the Library

Posted on: December 22, 2022

Learn About Our City’s Zoning Changes

Posted on: December 22, 2022

MA - SAVES Food and Toy Distribution

Posted on: December 20, 2022

Landlord Training Classes Offered by City

Posted on: December 14, 2022

City Employees Take Down Graffiti

Posted on: December 5, 2022

Celebrate the Holidays at the Library

Posted on: December 1, 2022

Movie Nights Planned at the Library

Posted on: November 7, 2022

Housing Opportunity in Palmdale

Posted on: October 27, 2022

Haunted House Coming to Marie Kerr Park

Posted on: October 5, 2022

Free Spooky Movie Nights in October

Posted on: September 26, 2022

Downtown Revitalization Projects Celebrated

Posted on: September 13, 2022

Homes 4 Families Rainbow Build 2022

Posted on: September 8, 2022

Get Your Art on at Palettes in the Park

Posted on: September 7, 2022

City Hall to Close for Labor Day Holiday

Posted on: September 1, 2022

Smash Mouth Tickets Still Available

Posted on: July 19, 2022

Music in the Parks Returns for 2022

Posted on: June 15, 2022

City of Palmdale Offers Yoga Classes

Posted on: April 26, 2022

MA: Grand Opening - Dutch Bros

Posted on: March 28, 2022

Coach and Bus Recruitment Event

Posted on: March 23, 2022

Lockheed Martin Hiring Event

Posted on: March 11, 2022

Free E-Waste Disposal Event This Saturday

Posted on: February 17, 2022

SAVES Seeks Volunteers

Posted on: November 11, 2021

MA: Veterans Day Ceremony in Palmdale

Posted on: November 10, 2021

Free Paper Shredding Event Coming Up

Posted on: November 9, 2021

MA: Veterans Day Ceremony

Posted on: October 27, 2021

Pumpkin Walk Coming to Massari Park

Posted on: October 19, 2021

Legacy Commons to Host Rummage Sale

Posted on: September 21, 2021

City Hall to Close for Labor Day Holiday

Posted on: September 2, 2021

Get Your Art on at Palettes in the Park

Posted on: August 31, 2021

Miss Juneteenth USA Visits the AV

Posted on: August 9, 2021

TreeCircus Coming to Palmdale

Posted on: July 13, 2021

Fireworks Safety Press Conference

Posted on: June 21, 2021