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Home My WebLink About5B Staff CorrespondenceCity of Palm Springs FISCAL YEAR 2021-2022 PRELIMINARY GENERAL FUND BUDGET APRIL 22, 2021 2 General Fund Revenue FY 21-22 Revenue = $126,928,362 -2.1% below estimated FY 20-21 Revenue City of Palm Springs Preliminary FY 21-22 General Fund Budget MI AJOR G E N ERAL FUND REVENUES The following graph & schedule iden t ify the maj or revenues for the 202 1-22 General Fund Proposed budge t. 202.1 -22 Reven ues as a Per c e nt o f Tota l 2 % 4 % 16% 19 % CATEGOR Y T ransient Occu pa ncy Tax (TOT } P roperty Taxes S ales & Use Taxes Uti lity Users Tax Motor Ve hic le In Lieu Tax Franchise Fees Cannabis Tax & Fees All O t her Sou rces TOTALS ACT UAL 201 9-20 $25 ,491 ,3 19 $25,482 ,084 $20 ,9 2 3 ,634 $7,025 ,604 $5,418 ,600 $3,424 ,7 11 $2,903 ,8 7 8 $30 ,625,431 $1 2 1,295 ,2.6 1 •T r ans ient Occupancy Ta x (TOT ) • Pro p erty Taxes • Util ity Users Tax • Motor Veh ic le I n llieu Ta x • Fr anc h ise Fees • Ca nnab is Tax & Fees • A ll Ot h e1r Sou1rc es 2 2 % EST IMAT ED PROPOS ED % 2020 -2 1 202 1 -2.2 CHANG E $29 ,800 ,000 $30 ,843,000 3.5% $2 7 ,500 ,000 $28 ,509,000 3.7% $22 ,300 ,000 $23 ,080 ,500 3.5% $6 ,278 ,814 $7 297 ,200 1 6.2% $4 ,549 ,363 $5,899,500 29 .7% $2 ,765 ,179 $3,283 600 18 .7% $2 ,203 ,101 $3,600 ,000 63 .4% $34 ,235 , 199 $24 ,4 1 5 ,562 -28 .7% $1 29 ,63 1.656 $126 ,928 ,362 -2 .1% 3 General Fund Expenditures FY 21-22 Expenditures = $126,494,161 +5.8% above FY 18-19 expenditures City of Palm Springs Preliminary FY 21-22 General Fund Budget MIAJOR GEr-!ERA!L FUND EXIPBNDITURIES B,Y CATEGORY The fol lowing graph 8 sclledu i d enfifyrnajor e,,;pe rnd it 1..-e s tor t h e FY W21-22 G ern era l Fund Budget. 1 5% CATEGORY Ge ernl Govem m e nt Poli ce Fi re Parks arnd Recreation C0 P ERS Reseri.•e • T rans e rs OU T OTALS 2021-22 ~miiture.s a.s a Pereent of Total 3% A.CllUAL ACTUAL ACTUAL 20111-18 2018-19 21119 -20 $37,256,635 $39,944,048 $39,36-2.,4 16, $26,0011,925 $30, 1 62 ,965 $34, 149,86'2 15 ,089,146 $,1 6,919 ,802 18,657,5 14 _ 7 ,345,3 119 $7,593,380 _7 ,830,303 $0 $3,000,000 $0 13 ,9~,70 6 $21,908,330 4,074,84 1 $110 05,09730 $119,528,525 $1124,1174,936 31% • Genera1I Gover11m.e11d •Police •!Fire • Park.is a111d R.eoreationi • CalP'BRS Reserve'" •Transfers Out AIDOPT E!IJi PIROPOSED .. 2020-21 2021 -22 CIHAHGE $37,330,379 $4!6, 775,944 23.6 :.'o $33,302,452 $35,155,426 ,5.,11 r .. $17,364,869 $,18 ,581,449 7.2 :t .. $7,13 1 ,780 $9,451,977 .30.6"/o $6,000,000 $6,000,000 0..11 :--.. $12,000,300 $,10,529,365 s6 .7Yo $113 1129,iB00 $1126,494, 161 5.8"/,. "In some fiscal years., lfle contri bution to fue C0 PERS Reserve was made as a transfer f mm ernd of fisca l year carryover balance and no as a budgeted expense. C ommenci ng v.fill FY 20-21 G e ne ral Fund Bud ge , fue I ,,mJo,mm confri ooti on i s identi e d as a li me item budgeted expense .. Refer to tile C0 PERS section fo r a complete discussion on confribuEi ons to lflis rese rve fund .. 4 General Fund Operational Expenditures Proposed budget includes $6,854,591 of line-item appropriations to account for actual costs plus annual increases,and to replace funding eliminated in FY19-20 /FY20-21 budget cycle •City Council –Legislative Analyst/Support;+$40,000 •Information Technology –ERP Software/Telephone System maintenance;+$408,186 [M] •Office of Special Programs –New permitting /rental compliance software and related costs ;+$266,000 City of Palm Springs Preliminary FY 21-22 General Fund Budget 5 General Fund Operational Expenditures •Human Resources –Training /Recruitment expenses;+$32,150 •City Attorney –Increase budget for anticipated annual legalexpenses;+$670,000 [M] •Non-Departmental –Increase budget for anticipatedvacation/sick time conversion (cash-out);+$728,740 [M] •Community/Economic Development –Restore funding for : Business Assistance;+$435,500 Consulting Services;+$100,520 Restore IHub Funding;+$73,000 Restore CVEP Funding;+$62,500 City of Palm Springs Preliminary FY 21-22 General Fund Budget 6 General Fund Operational Expenditures •Visitors Information Center –Increase budget to reopen and fully staff ;+$192,000 [M] •Bureau of Tourism –Increase budget aligned with recommended budget;+$428,000 [M] •Special Events/Contributions –Restore funding for Parades (Festival of Lights,Veteran’s Day,etc.);+$300,000 Events/Contributions/In Kind Services;+$450,000 City of Palm Springs Preliminary FY 21-22 General Fund Budget 7 General Fund Operational Expenditures •Film Festival –Restore funding for : Title Sponsorship;+$350,000 [M] Convention Center fees;+$100,000 [M] •Parks Maintenance –Increase funding for utility costs,palm tree trimming,weekly landscape maintenance;+$963,283 [M] •Recreation –Increase funding for operations, summer/winter/spring camps,etc .;+$117,775 •Tennis Center –Restore funding for maintenance and improvements;+$105,000 City of Palm Springs Preliminary FY 21-22 General Fund Budget 8 General Fund Operational Expenditures •Skate Park –Increase funding +$18,000 (2 options)[M] Continue contract operations limited to skate park use OR Terminate contract and operate with Staff as a Teen Center (open to the public)with +2 part time (0.75FTEs)Recreation Program Assistants to monitor Teen Center and skate park use Maintain separate contract with operator for special programs/events at Skate Park paid by entrance fees for those programs City of Palm Springs Preliminary FY 21-22 General Fund Budget 9 General Fund Operational Expenditures •Swim Center /Demuth Community Center /JOJ Desert Highland Unity Center –Increase funding +$31,425 for reopening and full- time operations •Main Library /Welwood Library –Increase funding +$78,050 for reopening and full-time operations •Animal Shelter –Increase funding for new contract fee and operational costs;+$215,502 [M] •Fire Department –Increase funding for operations,contractual services,parts/supplies and training;$+310,000 City of Palm Springs Preliminary FY 21-22 General Fund Budget 10 General Fund Operational Expenditures •Planning Services –Increase funding for contractual services and historic preservation;+$43,000 •Building &Safety –Increase funding for outside plan check services (paid with fees);+$50,000 [M] •Street Maintenance –Increase funding for recently approved contract for roadside cleanup/transient camp cleanup,graffiti abatement;+$268,900 [M] •Downtown Maintenance/Railroad Station –Increase funding for contractual services;+$17,060 [M] City of Palm Springs Preliminary FY 21-22 General Fund Budget 11 General Fund Operational Expenditures •Homeless Program –Funding of $530,000 was eliminated in FY 20-21 Budget;funding has not been included in draft FY 21-22 Budget; •Council consideration of CV Housing First Program annual pledge of $100,000 to be paid for FY 19-20 and FY 20-21,and FY 21-22? City of Palm Springs Preliminary FY 21-22 General Fund Budget 12 General Fund Personnel Expenditures •Draft FY 21-22 General Fund Budget includes deferred Cost of Living Adjustments (COLAs)with employee associations: Firefighters Association +2% Fire Management Association +2.18% Public Employees Association +2.5% Management Association +2.5% Unrepresented /EX +2.5% City of Palm Springs Preliminary FY 21-22 General Fund Budget 13 General Fund Personnel Expenditures •Draft FY 21-22 General Fund Budget includes funding of 18 vacantpositionsduetoreductioninforceimplementedFY19-20 •Staff also recommends funding for the following 7 positions (6 FTEs) Plans Examiner Account Clerk I Administrative Assistant Assistant Director IT Library Assistant (0.5 FTE) Literacy Coordinator (or 2 Recreation Program Asst’s 0.5 FTE) Recreation Program Assistant (0.5 FTE) City of Palm Springs Preliminary FY 21-22 General Fund Budget 14 CalPERS Pension & OPEB Costs •CalPERS Unfunded Liability increased +$7.1m to $170.8m in FY 18-19;FY 21-22 Annual Pension Cost =$20.5m •OPEB (medical retiree insurance program)Unfunded Liability decreased -$10.2m (due to reduced medical insurance premiums) to $139.5m in FY 18-19;FY 21-22 Annual OPEB Cost =$4.2m •Draft FY 21-22 General Fund Budget includes $6m contribution to CalPERS Reserve Fund •Draft FY 21-22 Airport Fund Budget will include $750,000 contribution to CalPERS Reserve Fund City of Palm Springs Preliminary FY 21-22 General Fund Budget 15 CalPERS Reserve Funds Fiscal Year General Fund Airport Fund Total FY 17-18:$7,250,000 $800,000 $8,050,000 FY 18-19 $3,000,000 $200,000 $3,200,000 FY 19-20 $6,000,000 $500,000 $6,500,000 FY 20-21 $6,000,000 $750,000 $6,750,000 FY 21-22 $6,000,000 $750,000 $6,750,000 Total (6/30/22):$28,250,000 $3,000,000 $31,250,000 City of Palm Springs Preliminary FY 21-22 General Fund Budget 16 Department of Special Programs •Responsible for Vacation Rental program and Cannabis Operations •Annual Vacation Rental Permit Fee =$944 •Established to fund City’s administrative program relating to Vacation Rental properties ($1.7m budget) •Program has increased to over 2,100 Vacation Rental properties •Additional budget is recommended to continue supporting City’s robust program to administer the Vacation Rental program City of Palm Springs Preliminary FY 21-22 General Fund Budget 17 Department of Special Programs Based on 2,112 permits, recommend annual permit fee increase to $1,189 City of Palm Springs Preliminary FY 21-22 General Fund Budget Vacation Rental Enforcement FY 21-22 Personnel (Existing Special Programs staff)$739,238 Personnel (Existing Police /Code Compliance staff)$343,430 Personnel (Existing Finance Department staff)$569,530 Personnel (New Code Compliance Officers)$499,393 Materials,Services,and Supplies $210,252 Vehicles $80,000 Special Charges $69,600 Total Estimated Department Budget $2,511,443 18 Department of Special Programs •Initial Cannabis Operations Application Fee =$4,092 •Renewal fee =$1,000 •Fees do not cover all City costs associated with administering Cannabis Regulatory Compliance •Program has increased to 67 operational cannabis permits •Additional budget is recommended to continue supporting City’s robust program to administer Cannabis Operations program City of Palm Springs Preliminary FY 21-22 General Fund Budget 19 Department of Special Programs To recover costs for new enforcement capacity,recommend increasing fees to $4,325 City of Palm Springs Preliminary FY 21-22 General Fund Budget Cannabis Operations FY 2021/2022 Personnel (Existing Special Programs staff)$130,454 Personnel (Existing Police /Code Compliance staff)$72,463 Personnel (Existing Finance Department staff)$111,889 Personnel (New Code Compliance Officers)$249,697 Materials,Services,and Supplies $87,899 Vehicles $40,000 Special Charges $43,500 Total Estimated Department Budget $735,902 20 Department of Special Programs •To recover costs for entire program,recommend increasing fees to $10,984 based on 67 existing operational permits •Compares to : Desert Hot Springs -$6,450 to $9,250 Cathedral City -$4,500 to $7,500 Santa Ana -$16,782 City of Palm Springs Preliminary FY 21-22 General Fund Budget 21 Schedule for FY 21-22 Budget Approval April 22 Preliminary General Fund Budget May 6 Revised Draft General Fund Budget May 27 All Funds Draft Budgets June 10 Public Hearing -Budget Adoption June 24 Continued Public Hearing –Budget Adoption (if needed) City of Palm Springs Preliminary FY 21-22 General Fund Budget