HomeMy WebLinkAboutPresentation - 9-30-21 FY20-21 Financial Review.2 (eb_revisions 9.28.2021)City of Palm Springs
FISCAL YEAR 2020-2021 GENERAL FUND REVIEW AND FISCAL YEAR 2021-2022 BUDGET UPDATE
SEPTEMBER 30, 2021
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Fiscal Year 2020-21, Ending June 30, 2021
General Fund Revenues
(FY 2020-21 Amended Rolling Budget):$ 129,631,656
(FY 2020-21 Actual as of 9/22/21):$ 141,898,474
$ 12,266,818
General Fund Expenditures
(FY 2020-21 Amended Rolling Budget):$ 127,721,351
(FY 2020-21 Actual as of 9/22/21):$ 119,970,326
($ 7,751,025)
Due to higher than projected revenues in Transient Occupancy Taxes, Cannabis Taxes, Sales and Property Taxes, a $5.4 million grant from the American Relief Act, and with significant expenditure saving, the estimated surplus for FY2020-21 is $21,996,959.
City of Palm Springs
General Fund Budget Review
3
Fiscal Year 2020-21, Ending June 30, 2021
City of Palm Springs
General Fund Budget Review
6/10/2021 Estimated
GENERAL FUND Budget Budget Budget Estimated Increase/
Revised Amended Revised Final Actual (Decrease)
CATEGORY 2020-21 2020-21 2020-21 2020-21 2020-21
Revenues
Transient Occupancy Tax (TOT)14,162,666 29,800,000 29,800,000 35,011,254 5,211,254
Property Taxes 25,832,091 27,500,000 27,500,000 27,773,262 273,262
Sales & Use Taxes 8,847,358 22,299,999 22,299,999 25,232,107 2,932,108
Utility Users Tax 6,278,814 6,278,814 6,278,814 8,284,837 2,006,023
Motor Vehicle In Lieu Tax 4,549,363 4,549,363 4,549,363 5,703,803 1,154,440
Franchise Fees 2,765,179 2,765,179 2,765,179 3,277,734 512,555
Cannabis Tax & Fees 2,203,101 2,203,101 2,203,101 4,752,591 2,549,490
All Other Sources (1)16,215,728 22,685,200 23,373,844 20,309,802 (3,064,042)
Subtotal 80,854,300 118,081,656 118,770,300 130,345,390 11,575,090
Transfers In 14,350,000 11,550,000 11,550,000 11,553,084 3,084
Total Revenues 95,204,300 129,631,656 130,320,300 141,898,474 11,578,174
Total Expenditures (101,129,500) (109,323,051) (114,184,859) (101,280,247) (12,904,612)
Transfers Out (12,000,300) (18,398,300) (18,612,600) (18,621,268) 8,668
Total Expenditures (113,129,800) (127,721,351) (132,797,459) (119,901,515) (12,895,944)
Surplus/(Deficit)(17,925,500) 1,910,305 (2,477,159) 21,996,959 24,474,118
Table 1
(1) Includes a portion of $1,386,344 of the $5,410,411 from American Relief Act Grant
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Fiscal Year 2020-21, Ending June 30, 2021
City of Palm Springs
General Fund Budget Review
6/10/21 9/30/21
FY 2020-21 FY 2020-21 FY 2020-21 FY 2021-22 FY 2021-22
FY 2019-20 Adopted Amended Esimated Adopted Amended
Actual Budget Budget Actual Budget Budget
Beginning Projected Fund Balance - Unrestricted 33,462,461$ 17,925,700$ 26,320,922$ 26,320,922$ 28,231,227$ 48,317,881$
Revenues 112,439,828 80,854,300 115,281,656 130,345,390 127,556,425 134,956,425
Transfers In 8,855,433 14,350,000 14,350,000 11,553,084 - -
Total Revenues 121,295,261 95,204,300 129,631,656 141,898,474 127,556,425 134,956,425
Expenditures (100,000,095) (101,129,500) (105,908,751) (98,088,915) (116,986,008) (116,986,008)
Recommended Additional Expenditures 9-30-21 - - - - - (6,486,549)
Appropriations 7-22-21 & 9-9-21 - - - - - (914,092)
Continuing Appropriations (4,361,864) - (3,200,000) (3,200,000) - -
Transfers Out (24,074,841) (12,000,300) (18,612,600) (18,612,600) (10,529,365) (10,529,365)
Total Expenditures (128,436,800)(113,129,800)(127,721,351)(119,901,515)(127,515,373)(134,916,014)
Surplus / (Deficit)(7,141,539) (17,925,500) 1,910,305 21,996,959 41,052 40,411
Ending Projected Unrestricted Balance Sutotal $26,320,922 $200 $28,231,227 $48,317,881 $28,272,279 $48,358,292
CalPERS Reserve Set-Aside 16,250,000$ 22,250,000$ 22,250,000$ 22,250,000$ 28,250,000$ 28,250,000$
CalPERS Set-Aside/Fund Balance 42,570,922$ 22,250,200$ 50,481,227$ 70,567,881$ 56,522,279$ 76,608,292$
Fund Balance Unrestricted Total 20.49%0.00%22.10%40.30%22.17%35.84%
Fund Balance CalPERS Reserve Total 12.65%19.67%17.42%18.56%22.15%20.94%
Fund Balance % Total 33.15%19.67%39.52%58.85%44.33%56.78%
General Fund Working Fund Balance SummaryFiscal Year 2021-2022
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Fiscal Year 2021-22, Ending June 30, 2022
General Fund Revenues
Revenues associated with Transient Occupancy Taxes, Sales/Uses Taxes, Cannabis Taxes and Utility User taxes
are expected to exceed the initial budget projections for FY 2021-22, due to a stronger than anticipated
economy.
Staff Recommends increasing revenues by $7,400,000 as follows:
Transient Occupancy Taxes increase by $4,000,000, from $30,843,000 to $34,843,000
Sales/Use Taxes increase by $1,400,000, from $23,080,500 to $24,480,500
Cannabis Taxes increase by $1,100,000 from $3,600,000 to $4,700,000; and
Utility User Taxes increase by $900,000, from $7,297,200 to $8,197,300.
City of Palm Springs
General Fund Budget Review
6
Fiscal Year 2021-22, Ending June 30, 2022
General Fund Expenditures
Additionally, Staff is recommending amending the FY 2021-22 Budget by $6,386,549 from unrestricted
General Fund balance for the following expenditures:
•$3,965,849 for personnel costs in various Departments in accordance with the amended FY2021-22
Allocated Positions and Compensation Plan
•$1,841,900 for overtime costs in various Departments
•$215,000 to reinstate Ace Parking and Data Ticket Contracts for Downtown Parking
•$260,000 to reinstate Downtown Security Contract
•$13,800 for Wellwood Library Operations
•$50,000 to incentivize for police hiring bonuses
•$100,000 for outside personnel recruiting services
•$40,000 for the continued cost of K-Rail rentals
City of Palm Springs
General Fund Budget Review
7
Measure J Fund
The Measure J Capital Fund revenues amended adopted budget was $16,037,834
and is estimated to end FY 2020-2021 at $17,770,796,an increase of $1,732,962.
Revenues associated with Measure J are expected to exceed the initial budget
projections for FY 2021-22,due to stronger than anticipate economy.
Staff recommends increasing Measure J revenues in the amount of $1,300,000,from
$16,500,000 to $17,800,000
City of Palm Springs
General Fund Budget Review