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Home My WebLink AboutPresentation - Draft BudgetCity of Palm Springs FISCAL YEAR 2021-2022 DRAFT COMPREHENSIVE BUDGET MAY 27, 2021 2 General Fund Revenue Reduced revenue to eliminate increased VR Fees = -$506,443 FY 21-22 Revenue = $127,664,264 -1.5% below estimated FY 20-21 Revenue City of Palm Springs Preliminary FY 21-22 General Fund Budget 3 General Fund Expenditures Adjusted expenditures accordingly = -$506,819 FY 21-22 Expenditures = $127,515,372 +2.8% above FY 19-20 expenditures FY 21-22 Budget = Balanced ($148,891 surplus) City of Palm Springs Preliminary FY 21-22 General Fund Budget 4 General Fund Operational Expenditures Discretionary expenditure items: •Community/Economic Development: IHub /CVEP funding;$337,200 appropriated pending City Council decision to continue program $125,000 CVEP Membership $212,500 iHub Management Fee City of Palm Springs Preliminary FY 21-22 General Fund Budget 5 General Fund Personnel Expenditures •Draft FY 21-22 General Fund Budget includes funding of 18 vacant positionsduetoreductioninforceimplementedFY19-20 •Staff also recommends funding for the following 7 positions (6 FTEs) Plans Examiner Account Clerk I Executive Administrative Assistant Assistant Director IT Library Assistant (0.5 FTE) Literacy Coordinator (=2 Recreation Program Asst’s 0.5 FTE) Recreation Program Assistant (0.5 FTE) •Staff will initiate recruitment process on some of these positionsintendingforhiringdateafterJuly1 City of Palm Springs Preliminary FY 21-22 General Fund Budget 6 General Fund Personnel Expenditures •NEW:Staff recommends deferring increase to VR Permit Fees at this time pending further evaluation of full program costs and on- going monitoring of hotline calls and ability to provide proactive investigations FY 21-22 Budget includes 1 Code Officer Thur-Sun 2pm –1am and 1 Code Supervisor Sun-Wed 11am-9pm to be funded with FY 20-21 salary savings carried over into FY 21-22 to assist with VR operations and provide better coverage on 7-day basis City of Palm Springs Preliminary FY 21-22 General Fund Budget 7 General Fund Personnel Expenditures •FY 21-22 Budget continues to include increased cannabis permit fee to $10,984 to cover full cost of administrative program 2 Code Officers to provide required annual facility inspections, respond to complaints,and proactively monitor for odors 1 Code Officer assigned shift Mon-Thur 10am-9pm 1 Code Officer assigned shift Fri-Mon 11am-10pm •Alternatively the cannabis permit fee can be increased to $4,325 to cover just the additional cost of the 2 Code Officers +1 vehicle City of Palm Springs Preliminary FY 21-22 General Fund Budget 8 FY 21-22 Allocated Positions & Compensation Plan •FY 21-22 Plan increases General Fund allocated positions +4 (1 Code Compliance Supervisor,3 Code Compliance Officers) •FY 21-22 Plan also increases Airport Fund allocated positions +2 (1 Maintenance Supervisor,1 Executive Program Administrator) •FY 21-22 Plan allocates 516 FTEs •24 FTEs remain allocated but unfunded (frozen) City of Palm Springs Preliminary FY 21-22 General Fund Budget 9 FY 21-22 All Other Funds Budget •FY 21-22 other Fund revenue =$163,447,716 •FY 21-22 other Fund expenditures =$176,806,308 •Deficit of ($13,358,592)is related to capital funding and resolved through carryover balance City of Palm Springs Preliminary FY 21-22 General Fund Budget 10 Recycling Fund (125) •Revenue fixed through recycling fee in solid waste charges (14¢to24¢/month for residential)based on tonnage of solid wastedisposedatlandfill,as more waste is diverted recycling feesdecrease •Fund provides budget for 1.5 FTEs (Sustainability Manager &Assistant)and all recycling program costs •FY 21-22 revenue =$125,500 •FY 21-22 expenditures =$371,575 –will utilize available FundBalance,ultimately General Fund will be required to subsidize City of Palm Springs Preliminary FY 21-22 General Fund Budget 11 Sustainability Fund (138) •Revenue fixed through sustainability fee in solid waste charges(40¢to 77¢/month for residential)based on tonnage of solidwastedisposedatlandfill,as more waste is diverted sustainabilityfeesdecrease •Fund provides budget for 0.5 FTEs (Sustainability Manager &Assistant)and all sustainability program costs •FY 21-22 revenue =$384,500 •FY 21-22 expenditures =$437,309 –will utilize all available FundBalance,ultimately General Fund will be required to subsidize City of Palm Springs Preliminary FY 21-22 General Fund Budget 12 Public Art Fund (150) •Revenue generated by fee on building permits,varies on #and type of permits issued •Fund provides budget for all public art program costs (no staff) •FY 21-22 revenue =$181,000 •FY 21-22 expenditures =$382,900 –will utilize available Fund Balance •Can traditionally rely on $275,000 +/-annually for public art City of Palm Springs Preliminary FY 21-22 General Fund Budget 13 Quimby Fund (152) •Revenue generated by fee on building permits,varies on #of permits issued •Fund provides budget for new park projects (no staff) •FY 21-22 revenue =$650,000 •FY 21-22 expenditures =$650,000 and is allocated to the Demuth Dog Park Project as part of the City’s 50%grant match (combined with appropriation from FY 20-21 Quimby Fund) City of Palm Springs Preliminary FY 21-22 General Fund Budget 14 Measure J Fund (260) •Revenue generated through Measure J 1¢sales tax •FY 20-21 revenue estimated at $16,000,000 exceeding budget by $10,000,000 •City Council cancelled $2,800,000 transfer to General Fund •City Council refinanced Downtown Project Bond,reducing this year’s debt payment by $2,400,000 •FY 20-21 available revenue =$15,200,000 City of Palm Springs Preliminary FY 21-22 General Fund Budget 15 Measure J Fund (260) •Measure J Commission FY 20-21 recommended appropriations: Street Repairs:$6,000,000 (was part of consent agenda) Community Projects:$1,000,000 (TBD at discretion of Commission) Playground Surfacing:$275,000 Demuth Park Restrooms:$285,764 Desert Highland Park Restrooms:$210,000 •FY 20-21 remaining balance =$7,200,000 +/-carry over into nextFY21-22 City of Palm Springs Preliminary FY 21-22 General Fund Budget 16 Measure J Fund (260) •FY 21-22 revenue estimated at $16,500,000 +$7,200,000 prior yearcarryover=$23,700,000 •Measure J Commission FY 21-22 recommended appropriations: Street Repairs:$3,000,000 Downtown Maintenance:$1,350,000 Community Projects:$1,000,000 (TBD at discretion of Commission) Emergency Generators:$600,000 Recreation Field LED Lighting Upgrade:$600,000 Arnico Tract Sewer:$585,000 City of Palm Springs Preliminary FY 21-22 General Fund Budget 17 Measure J Fund (260) •Measure J Commission FY 21-22 recommended appropriations (Continued): Fire Training Tower Facility:$400,000 Victoria &Ruth Hardy Park Restrooms:$270,000 Palm/Indian/Camino Parocela Round-About:$100,000 Citywide HVAC Water Treatment:$100,000 •Total FY 21-22 Measure J Budget =$10,200,000 leaving $13,500,000 available for additional projects/programs City of Palm Springs Preliminary FY 21-22 General Fund Budget 18 Airport CFC Fund 405 •Revenue entirely generated by Customer Facility Charges (CFCs) included on car rental fees to finance car rental capital projects •Fund Balance =$25,300,000 +/-as of July 1,FY 21-22 revenue = $1,750,000 and will vary on actual #of car rentals •Revenue is accumulating for future Consolidated Airport Car Rental Facility (CONRAC)with estimated cost of $200,000,000 •Current fee is $10 per transaction;future consideration to increase CFC to $9 per day /5 day max ($45 per transaction) City of Palm Springs Preliminary FY 21-22 General Fund Budget 19 Airport PFC Fund 410 •Revenue entirely generated by Passenger Facility Charges (PFCs) levied on airline tickets to fund airport capital projects •City Council issued $22,270,000 in PFC Revenue Bonds in 2019 to help finance current Ticket Wing Expansion Project •PFC Bond debt service =$3,000,000 annually •FY 21-22 PFC revenue =$4,275,000 and is dependent on #of airline passengers flying through airport City of Palm Springs Preliminary FY 21-22 General Fund Budget 20 Airport Operations Fund 415 •This is the Airport’s “General Fund” •Revenue is entirely based on airport operations,airline fees,rental payments through concessions,food &beverage sales,etc . •FY 18-19 total passengers =2,547,260 •FY 18-19 total revenue =$25,000,000 +/- •COVID pandemic significantly impacted Airport revenuenationwideasairportsshutdownandhaveslowlyrecoveredpassengers City of Palm Springs Preliminary FY 21-22 General Fund Budget 21 Airport Operations Fund 415 City of Palm Springs Preliminary FY 21-22 General Fund Budget Month Year Passengers Year Passengers Year Passengers Year Passengers FY 21-22 vs. FY 18-19 Jul 2018 89,580 2019 97,834 2020 33,776 2021 53,800 -40% Aug 2018 85,548 2019 97,941 2020 36,482 2021 53,870 -37% Sep 2018 102,887 2019 106,211 2020 47,915 2021 69,040 -33% Oct 2018 167,459 2019 177,363 2020 88,777 2021 124,150 -26% Nov 2018 245,841 2019 235,656 2020 108,043 2021 164,960 -33% Dec 2018 254,739 2019 247,744 2020 83,262 2021 173,420 -32% Jan 2019 280,738 2020 276,099 2021 79,082 2022 196,520 -30% Feb 2019 317,535 2020 320,906 2021 120,657 2022 238,150 -25% Mar 2019 401,972 2020*198,850 2021 214,477 2022 301,480 -25% Apr 2019 304,855 2020 10,082 2021 215,777 2022 228,640 -25% May 2019 190,756 2020 19,154 2021 105,000 2022 133,530 -30% Jun 2019 105,350 2020 28,748 2021 58,000 2022 73,750 -30% 2,547,260 1,816,588 1,191,248 1,811,310 -28.9% Total Passengers (PAX)Percentage Change * First month airline passenger traffic impacted due to COVID-19 pandemic Total PAX % Chg.EstimateFiscal Year Fiscal YearFiscal Year 2018-19 2019-20 2020-21 FY 2021-22 Revised FY '21 FY '22 Operating Funds Budget Revenue Budget Revenue 1,327,150$ 2,130,000$ 60% 993,300$ 1,071,000$ 8% 1,350,000$ 1,605,000$ 19% 2,197,800$ 3,326,000$ 51% 1,540,000$ 2,197,000$ 43% 966,800$ 1,000,000$ 3% 3,250,000$ 5,837,000$ 80% 777,250$ 892,000$ 15% 2,120,000$ 4,442,000$ 110% Total Revenue 14,522,300$ 22,500,000$ 55% Source Airline Leased Space Terminal Non-Airline Rents Car Rental Fees Aircraft Parking/Hold Room All Other Landing Fees Project Use Fee Land Rental Public Parking % Change 22 Airport Operations Fund 415 City of Palm Springs Preliminary FY 21-22 General Fund Budget Airport Operations Fund 415 23 City of Palm Springs Preliminary FY 21-22 General Fund Budget Expenditures Revised FY '21 FY '22 % Change Department No.Department Name Budget ExpensesBudget Expenses 6002 4,262,915$ 4,662,490$ 9% 6022 2,726,500$ 3,023,765$ 11% 6050 1,025,800$ 1,052,500$ 3% 6075 3,685,000$ 3,619,226$ -2% 6100 1,593,000$ 1,548,400$ -3% 6175 773,100$ 721,600$ -7% 6200 6,394,000$ 6,605,630$ 3% 6225 4,008,400$ 4,132,397$ 3% 6250 206,000$ 212,900$ 3% 9005 750,000$ 750,000$ 0% Fund 416 Transfer Out for Capital Projects -$ 2,260,000$ 25,424,715 28,588,908 12% *6,088,908$ Surplus/(Deficit)(10,902,415)$ -$ Control Center Customs Total Expense PERS Cost Air Rescue - Fire Administration Airport Security Airside Operations Federal Stimulas Grant Landside Operations Grounds Maintenance Terminal Building Operations Airport Operations Fund 415 24 City of Palm Springs Preliminary FY 21-22 General Fund Budget Grant Type Beginning Balance Use as of 6/30/21 Projected Use Balances as of 6/30/22 CARES Act Apr 2020 11,067,877$ 6,712,452$ 4,355,425$ -$ CRRSA Act - Airport Dec 2020 4,783,916$ -$ 1,733,483$ 3,050,433$ CRRSA Act - Concessions Dec 2020 280,390$ -$ -$ 280,390$ American Rescue Plan Act Airport Operations Feb 2021 10,000,000$ -$ -$ 10,000,000$ American Rescue Plan Act Concession Feb 2021 1,000,000$ -$ -$ 1,000,000$ Sub-total 27,132,183$ 6,712,452$ 6,088,908$ 14,330,823$ Actual draw downs may differ by grant type due to specific grant requirements FAA Grants Wastewater Fund 420 25 City of Palm Springs Preliminary FY 21-22 General Fund Budget FY2015/2016 FY2016/2017 FY2017/2018 FY2018/2019 FY2019/2020 FY2020/2021 Actual Actual Actual Actual Actual Budget Revenue Sewer Connection 877,347$ 873,452$ 747,011$ 947,157$ 608,185$ 800,000$ Sewer Fees 9,648,239$ 10,616,963$ 10,599,529$ 10,642,255$ 10,397,824$ 10,600,000$ Other 278,538$ 348,642$ 1,492,257$ 1,648,570$ 1,287,512$ 405,000$ Total 10,804,124$ 11,839,057$ 12,838,797$ 13,237,982$ 12,293,521$ 11,805,000$ Expenditures Operations 4,077,732$ 4,429,628$ 4,054,523$ 5,202,216$ 4,787,237$ 5,570,982$ Capital Projects 1,838$ 80,392$ 520,060$ 794,726$ 45,739$ 250,000$ Other 2,459,655$ 2,499,619$ 2,881,339$ 3,604,402$ 3,968,911$ 1,541,500$ Total 6,539,225$ 7,009,639$ 7,455,922$ 9,601,344$ 8,801,887$ 7,362,482$ Operating Income 4,264,899$ 4,829,418$ 5,382,875$ 3,636,638$ 3,491,634$ 4,442,518$ Fund Balance 57,949,122$ 63,598,541$ 68,981,419$ 72,618,056$ 76,109,690$ 80,552,208$ Wastewater Fund Cash Flow Wastewater Fund 420 •Monthly sewer fees are lowest in region at $20 /month •Revenue is accumulating to fund the City’s $75 million 5-Year CIP •FY 21-22 revenue =$11,805,000 •FY 21-22 operational expenditures =$7,554,500 •FY 21-22 capital expenditures =$12,100,000 26 City of Palm Springs Preliminary FY 21-22 General Fund Budget Golf Fund 430 •Separate fund established for the City’s municipal golf course business enterprise to account for all golf revenues and expenditures separate from General Fund •New “Resort Course”constructed in 1990s with renovations to “Legends Course”financed with Bonds •Bonds refinanced in 2017;debt balance =$4,436,059 +interest as of June 30,2021;annual debt payments of $840,000;debt will be retired on May 1,2027 27 City of Palm Springs Preliminary FY 21-22 General Fund Budget Resort Course 28 City of Palm Springs Preliminary FY 21-22 General Fund Budget Legends Course 29 City of Palm Springs Preliminary FY 21-22 General Fund Budget Golf Fund 430 30 City of Palm Springs Preliminary FY 21-22 General Fund Budget Fund 430 - Golf Course FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 Actuals Actuals Actuals Actual Estimated Proposed Golf Courses Operations - Managed by Century Golf Fund Balance Beginning (6,556,054)$ (5,652,682)$ (3,828,772)$ 392,197 1,235,979$ 1,217,361$ Revenue Golf Revenues $4,317,981 $4,526,664 $4,286,852 3,543,292 $2,240,304 $4,203,681 Other 13,211 843,209 871,063 671,873 - - Total Revenue $4,331,192 $5,369,873 $5,157,915 4,215,165 $2,240,304 $4,203,681 Expenditures Materials, Supplies & Services 4,409,147 4,570,322 4,500,580 4,779,467 4,302,431 4,768,384 Management Fee 225,078 225,000 225,000 225,000 225,000 225,000 Special Charges, Legal & Auditing 12,167 12,167 16,808 16,900 17,100 25,385 Equipment Lease - - - 21,063 153,300 153,300 Total Expenditures 4,646,392 4,807,489 4,742,388 5,042,430 4,697,831 5,172,069 Operations Surplus / (Deficit)(315,200) 562,384 415,527 (827,265) (2,457,527) (968,388) Golf Courses Non-Operating Interest Bond Debt Service Expenses (494,925) (248,323) (205,768) (142,953) (150,000) (150,000) Gain/Loss Disposal of Assets - (152,724) - - - - Capital Contribution - 649,472 - - - - Supplemental Interfund Transfer In - GF - - - 820,000 1,594,909 - Interfund Transfer In - General Fund 1,713,497 1,013,101 4,011,210 994,000 994,000 1,124,000 Subtotal 1,218,572 1,261,526 3,805,442 1,671,047 2,438,909 974,000 Total Surplus / (Deficit)903,372 1,823,910 4,220,969 843,782 (18,618) 5,612 Fund Balance Ending ($5,652,682)($3,828,772)$392,197 $1,235,979 $1,217,361 $1,222,973 QUESTIONS? 31 City of Palm Springs Preliminary FY 21-22 General Fund Budget