Palmdale May Delay New City Hall : Government: Citing tight budget and last year’s layoffs, officials say the $12-million project could be postponed.

Palmdale officials on Friday said it may be years before work begins on a proposed $12-million city hall because of continuing money troubles that forced the city last year to lay off employees.

Palmdale officials had hoped to break ground on the project this spring, with supporters arguing the new civic center would spark a renewal of the city’s aging downtown district. The complex would also consolidate city offices that are now scattered across several blocks and expand public seating for City Council hearings to accommodate 240 people.

But some council members say it would be better to spend limited city funds on park programs and sheriff’s deputies instead.

“We don’t want to take money out of the General Fund to pay for a city hall,” said City Councilman David Myers. “My preference would be to wait until we have the money or to downsize the project to fit the amount of the budget we have.”

The issue surfaced Thursday, when council members agreed to spend an additional $100,000 on design costs. Although Myers voted to pay that bill, he reminded colleagues and staff members that the council has not yet approved the new city hall.

“I would ask the staff to walk very carefully until we see how thick the ice is,” Myers said.

Over the past year, the size of the proposed city hall has increased from 45,000 to 50,000 square feet. The cost has also increased, by about $1 million.

When a year ago the council first approved paying for design work, developer fees were expected to cover most of the cost. Approval of the Ritter Ranch and City Ranch developments--totaling more than 12,000 new homes--was expected to pay for a little more than half of the city hall project.

To make up the difference, city staff members have proposed the sale of bonds.

But paying off the bonds could require the city to spend as much as $500,000 a year from the city’s General Fund, which pays for city services, such as police, parks and roads. Although the city would save on office rent, the bond payments pose a financial burden, city officials said.

“We still have to fill in the gap,” Councilman Joe Davies said. “There’s a question as to whether it’s appropriate to float bonds for that or wait a bit. I think the whole picture is such that we will probably delay construction for a while.”

Councilman Jim Root does not want to postpone the project, but he admits he is probably in the minority.

He said inflation is eroding the value of the developers’ $6.9-million contribution. A lengthy delay could also result in higher interest rates and construction costs.

“I want to see the project go forward,” he said. “I’m a big believer in building facilities when you have the opportunity.”

Even so, Root acknowledged it may be tough to justify to residents spending on a new city hall, particularly if it would require cutting back on city services.

“I’ve got to admit that bad economic times have taught us we have to be fiscally conservative,” he said. “If I had to guess, I would say (the new city hall) is probably on the back burner, that it’s probably not the most pressing issue going into this budget cycle.”