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Home My WebLink AboutPresentation - FY 21-22 Gen Fund BudgetCity of Palm Springs FISCAL YEAR 2021-2022 PRELIMINARY GENERAL FUND BUDGET SECOND REVIEW MAY 6, 2021 2 General Fund Revenue Adjusted revenue for increased VR and Cannabis Fees = +$1,242,345 FY 21-22 Revenue = $128,170,707 -1.1% below estimated FY 20-21 Revenue City of Palm Springs Preliminary FY 21-22 General Fund Budget MAJ OR G E NE RA L FUND REVENUES The follow ing graph & schedule identity the majo r revenues for the 202 1-22 General Fun d Proposed budge t. 202 1 -22 R evenues as a Pe r c e nt of Total 2 % 4 % 16% 19% CAT E GORY T ransient Occupancy Tax (T O T ), P roperty T axes Sales & Use Taxes Uti lity Users Tax Motor Veh ic le In Lieu Tax F ranchise Fees Cannabis Tax & Fees A ll O t her Sou rces T ransfe rs ll n TOTALS ACT UAL 20 1 9-20 $25 ,49 ,319 $25,482 ,084 $20 ,923 ,634 $7 ,025 ,604 $5,418 ,600 $3 ,424,711 $2 ,903 ,878 $21,769 ,998 $8 ,855,433 $12 1,295 ,261 •Trans i ent Oc,c u pancy Tax (TOT) • Property Taxes • Uti l ity Users Tax • Motor Vehic le I n Li eu Ta x • Franc h ise Fees • Cannab is Tax & Fees 2 2 % •A ll Ot h e1r So-urc es EST IMATE D PROPOS E D % 2 020 -21 2021 -22 CHANG E $29 ,800 ,000 $30 ,843 ,000 3.5 % $27,453,500 $28,509 ,000 3.8 % $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%1 $2 ,203, rn1 $3 ,300 ,000 49.8 % $22 ,731 ,699 $25 ,967 ,907 14.2 °/o $1 1 ,550 ,000 $0 $129 ,63 1,656 $128 ,180 ,707 -1.1% I 3 General Fund Expenditures Adjusted expenditures based on prior direction = +$1,528,031 FY 21-22 Expenditures = $128,022,192 +3.2% above FY 19-20 expenditures FY 21-22 Budget = Balanced ($148,515 surplus) City of Palm Springs Preliminary FY 21-22 General Fund Budget MAJIOR GENERAL IFUN D EXPENDITUR ES, BY CATIEGOIRY Th e fo llowing1 ,grap h & sc hedu le td'en tify maj:o r e:x pendlt ures fo r t ll,e FY 2021-22 Ge nera l Fund Budge . 15% CAT EGORY Genera li Gove rn ment Pol i ce F ire IP ark s and Re creatio:n Ca l PERS Re.serve .. T rnl"lsfers Ou t T OTALS $ 2021 -22 Expe111d ·t ure:s as a Percent of Tom i 8,% 37% ACTUAL ACT UAL ACTUA l 2017-18 2:liJ,18-1I91 20191-20 37,256 ,635 $,39,944 ,,048 39 ,3£2,4 16 $.26 , 8'6 11, 925 $-30, 1162 ,,965 _ 34 ,149,862 15 ,08 9,146 $16,9 19,,802 18,657,5 14 $.7 ,345 ,3 119 $7 ,593 ,380 $.7 ,8.30 ,303 0 _ 3,000,,000 0 _ 13,956 ,706 $2 11,908.,,33() 2 ,074 ,84 11 Ill O ,5:09 , 1Jlll1 $119 ,528 52:5 :$112:4 ,1)7 4,936 • General Gov-ernmen t •Police •Fire • Parks and RecreatJion • CalPERS Reserve .. •Transfers Orl!lt ADOP'TIEID PROPOS ED '% 21!1 2.0-21 20211-22 CHANGE $.37.,330 ,379 47 ,473,178 2:7.2:% $33 ,302,452 _ 35 ,98'6 ,223 8.1% $.17 .,364,88.9 118,58 1,44 9 7J]l,% $7 ,131 ,780 9,451,977 32:.5% $6 ,000,000 _6,000 ,00 0 1))1.()),% $12 ,000,300 _ 110,529,365 -12:.J.% $113 ,129i,81ll0 :$128 ,1))12'.2 192 1l.2:% I 4 General Fund Operational Expenditures Discretionary expenditure items: •City Council –Legislative Analyst/Support: $100,000 is included for paid internships or other assistance for all Council Members $50,000 is included as budget for a contract with a state/federal lobbyist The Executive Administrative Assistant (Mayor/City Council)is a funded but vacant position (fully burdened cost of $129,425) City of Palm Springs Preliminary FY 21-22 General Fund Budget 5 General Fund Operational Expenditures •Community/Economic Development: Business Assistance;$435,500:funding could be appropriated forasecondphaseofsmallbusinessassistancegrants,forcommercialrentadjustmentprogram,and other similar purposesasdirectedbyCityCouncil Consulting Services;$100,520:appraisals,financial analysis,initiate tax increment financing tools,etc . IHub /CVEP funding;$337,200:appropriated pending City Councildecisiontocontinueprogram City of Palm Springs Preliminary FY 21-22 General Fund Budget 6 General Fund Operational Expenditures •Special Events/Contributions:$500,000 available for City’s typical grants/sponsorships as identified on spreadsheet Sponsorships: Senior Center;$70,000 Boys &Girls Club;$15,000 Well in the Desert;$25,000 City Events/Parades: Black History Month,July 4th,Festival Of Lights,PSHS Homecoming, Veteran’s Day,Palm Springs Pride =$190,000 Other events (some may not occur)=$200,000 City of Palm Springs Preliminary FY 21-22 General Fund Budget 7 General Fund Operational Expenditures •Skate Park – Continue contract operations limited to skate park use for FY 21-22 –allows for Operator to provide skate park clinics and events through the summer Staff will continue to discuss Teen Center model and joint use of facility for non-skaters with Operator,and propose hybrid model for FY 22-23 City of Palm Springs Preliminary FY 21-22 General Fund Budget 8 General Fund Operational Expenditures •Homeless Program –$530,000 included in budget for $100,000CVHousingFirstProgramannualpledgeleaving$430,000 toleveragewithoutsidefundingfromDesertHealthCareDistrict,Riverside County,etc .,for additional services/programs •Communications -$200,000 included in budget for menu ofoptions: Additional Community Outreach/Media Specialist ($133,153) Communications Consulting Support ($40,000) Social Media Support Services ($200,000 to continue currentservicesforfullyear) City of Palm Springs Preliminary FY 21-22 General Fund Budget 9 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 10 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 Executive Administrative Assistant (proposed change) 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 11 General Fund Personnel Expenditures •Draft FY 21-22 General Fund Budget includes funding of 6 new Code Compliance Officers as previously discussed to provide additional resources for VR Administration and Cannabis Operations Ensures City’s ability to provide coverage by non-sworn staff to be more proactive and responsive Costs recovered through administrative permit fees to VR & Cannabis Operations City of Palm Springs Preliminary FY 21-22 General Fund Budget 12 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 Budget 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 13 (Slides on VR/Cannabis if required) City of Palm Springs Preliminary FY 21-22 General Fund Budget 14 Department of Special Programs •Responsible for Vacation Rental program and Cannabis Operations •Prior to 2016,the Annual Vacation Rental Permit Fee was $234 and did not recover City’s full costs to implement the administrative program relating to Vacation Rentals •November 30,2016 –City Council adopted $900 VR permit fee to recover full costs of program at that time •$1,700,000 budget established as shown on next slide City of Palm Springs Preliminary FY 21-22 General Fund Budget 15 Department of Special Programs City of Palm Springs Preliminary FY 21-22 General Fund Budget Vacation Rental Enfo rce ment Department: Expenses: Vacation Rental Com p I iance Official (2) Code Enforcement Officers (3) Bui ld ing Inspector (1) Police Back-up Vacation Rental Coordinator (1) Vacation Rental Assistants (2) Vacation Rental Hotline Printing, postage & office su pplies LegaJ costs Office space Cell phones, computers, iPads Vehicles (3) Vacation Rental Compliance and M isc. Approximate Annual Expenses $340,000 345,000 115,000 100,000 105,000 170,000 120,000 50,000 501000 501000 501000 105,000 1001000 16 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 17 Department of Special Programs $1,189 fee compares to other Coachella Valley fees that were adopted: •Cathedral City = $1,950 (October 2020) •Rancho Mirage = $1,700 (January 1, 2021) •La Quinta = $1,000 or $1,250 for 5+ bedrooms. City of Palm Springs Preliminary FY 21-22 General Fund Budget 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