HomeMy WebLinkAbout5BCITY COUNCIL STAFF REPORT
DATE: April 22, 2021 NEW BUSINESS
SUBJECT: PRELIMINARY OVERVIEW OF THE FISCAL YEAR 2021/2022 GENERAL
FUND BUDGET
FROM: Justin Clifton, City Manager
BY: Marcus Fuller, Assistant City Manager
Nancy Pauley, Director of Finance/Treasurer
SUMMARY
Staff is presenting a preliminary Fiscal Year 2021-2022 (FY 21-22) General Fund Budget
to the City Council for an initial review.
Presented are estimates for revenues and expenditures, including personnel-related
mandated cost adjustments (e.g. PERS retirement, health care, etc.) and projected
operational increases. Estimated revenues have been carefully reviewed in the context
of the City's "Rolling Budget" Model adopted last year due to the COVID-19 pandemic,
and in relation to estimated revenues and expenditures projected for end of current FY
20-21.
Total FY 21-22 General Fund revenues are estimated at $126,928,362 and total FY 21-
22 General Fund expenditures are estimated at $126,494,161 providing for a balanced
budget with a modest $434,201 surplus (0.3% of General Fund Budget). The proposed
FY 21-22 General Fund Budget of $126,494,161 restores funding to pre-COVID levels
with an increase of 1.95% as compared to actual FY 19-20 General Fund expenditure
levels.
Based on direction received, the preliminary FY 21-22 General Fund Budget will be
revised and updated for review at the City Council Meeting on May 6, 2021. The draft FY
21-22 Comprehensive Budget including the General Fund and budgets for Special
Revenue Funds, Capital Projects Fund, Enterprise Funds and Internal Service Funds will
be presented to the City Council Meeting on May 27, 2021.
On June 10, 2021, the City Council will hold a public hearing to consider adoption of the
FY 21-22 Comprehensive Budget as mandated by City Charter.
RECOMMENDATION:
Provide direction to Staff on any changes to the Preliminary FY 21-22 General Fund
Budget.
ITEMNO. s ·~ 1
City Council Staff Report
April 22, 2021 -Page 2
Draft Fiscal Year 2021-22 General Fund Budget
BACKGROUND:
COVID-19 Pandemic Impacts on Recent Budget Cycle
Over a series of meetings from March 19 to June 30, 2020, the City Council reviewed
financial projections for reduced General Fund revenues directly caused by the COVID-
19 pandemic. Considering reduced General Fund revenues, City Council was challenged
with revising the previously adopted biennial budget for FY 19-20 and FY 20-21 and
quickly implementing cost savings measures through both non-personnel and personnel
measures.
Given the unpredictability with how the C_OVID-19 pandemic would be mitigated and when
a vaccine would be readily available to the general public, the City incorporated a very
conservative approach to budgeted revenues generated in large part due to our tourism
economy through transient occupancy taxes ("TOT") at hotels and sales taxes at
restaurants, bars and retail stores.
The FY 19-20 General Fund budget was revised downward to reflect a 22% reduction in
revenues and an initial estimated deficit of ($33,700,000). Despite the immediate effects
of the state's shelter-in-place order in March/April 2020, after the state allowed for
reopening of some sectors of the economy the City's local tourism economy improved.
More importantly, sales tax revenues remained high as many consumers purchased on-
line or through delivery service, with those tax revenues continuing to be received by the
City.
The FY 19-20 final audit identified total General Fund revenue of $121,295,263 (inclusive
of transfers in) and total General Fund expenditures of ($124,074,932) (inclusive of
transfers out) resulting in a final FY 19-20 deficit of ($2,779,669) as compared to the initial
estimated deficit of ($33,700,000). It should be noted that the deficit was reduced in large
part through transfers of $8,855,433 in revenue from other Funds, including the Measure
J Capital Fund. Excluding this transfer, FY 19-20 General Fund revenue was
$112,439,828 and compared to FY 18-19 General Fund revenue of $140,127,840
reflecting a one-year decrease of ($27,688,012) reflecting the true impact of the COVID-
19 pandemic on the City's budget.
Current Fiscal Year 2020-21; Ending June 30, 2021
The currently adopted FY 20-21 budget was based on an overall reduction of $44,627,831
in General Fund revenue as compared to the original FY 20-21 budget adopted as part
of the biennial budget in June 2019 due to anticipated reduced business activity over the
entire FY 20-21 period due to the COVID-10 pandemic. This was an overall reduction of
36% from the originally budgeted FY 20-21 General Fund revenue of $125,482,131.
As noted in a separate Staff report relating to the FY 20-21 Third Quarter Budget Review,
throughout the current fiscal year the City has implemented the "Rolling Budget" Model
and responded to the increase in revenues over budget. At the FY 20-21 First Quarter
Budget Review, the City Council approved additional expenditures to fund 7 firefighters,
2
City Council Staff Report
April 22, 2021 -Page 3
Draft Fiscal Year 2021-22 General Fund Budget
4 sworn and 2 non-sworn Police Department positions, 4 Downtown Maintenance
Division positions, and 3 other City Hall positions. Similarly, at the FY 20-21 Mid-Year
Budget Review, the City Council approved additional expenditures to fund 2 additional
positions.
The Draft FY 21-22 General Fund Budget continues funding for these previously funded
positions, as well as the 18 positions identified in the FY 20-21 Third Quarter Budget
Review that were a part of the reduction-in-force to mitigate the anticipated reduction in
General Fund revenue due to the COVID-19 pandemic. At this time, Staff projects that
the FY 20-21 General Fund Budget will end with an estimated surplus of $2,110,305
which is subject to change depending upon the City Council's direction given as part of
that separate item. It should be noted that this projected surplus is due in part to the City's
receipt of federal stimulus funding that will be paid to Palm Springs through the American
Rescue Plan Act of 2021 (ARP), with $5,595,000 to be received by end of current fiscal
year.
FY 2020-21 Overview
Although the positive rate of COVID-19 cases and related hospitalizations remain low,
_ ... and with continued lower cases and hospitalizations the State may completely reopen the
economy on June 15, Staff remains cautiously optimistic in developing the draft FY 21-
22 General Fund · Budget. As demonstrated during the COVID-19 pandemic, the City's
local tourism economy remained strong as visitors traveled to Palm Springs to visit safely
following the City, County and State guidelines and orders to wear face masks and
socially distance. More importantly, consumer spending remained strong with online
ordering and delivery service allowing for strong sales tax revenues. Also, the real estate
sector is the strongest ever with a shortage of housing and increasing demand driving the
price of homes higher, which in turn continued the trend with increasing property tax
revenues.
FY 21-22 Budget Assumptions
Overall, Staff has identified a General Fund Budget that incorporates increased
expenditures to account for contractual personnel salary increases and other operational
expenditures.
General Fund Revenues
General information on the following five major tax revenue sources are listed as follows:
1. Transient Occupancy Tax (TOT) increases were based on actual trends
demonstrated annually between FY 17-18 to FY 19-20 with projections for FY 20-21
and FY 21-22. As noted, the COVID-19 pandemic had the most significant impact
transient short-term stays in hotels and vacation rental properties with a noted
reduction in TOT revenue directly related to the periods of time a shelter-in-place and
Regional Order were issued to restrict non-essential travel.
3
City Council Staff Report
April 22, 2021 -Page 4
Draft Fiscal Year 2021-22 General Fund Budget
; -----l -F~c1t~~l8 [ --F~c1t~~l9 f F~c1t~~~o -j Est. FY 20-21 ~ P;;~~~;: I
i i I I I I
1TOT $34,194,414 _ $36,453,872 $24,591,31 _9 _ $29,800,000 $30,843,000
!Annual% Chang~--n/a 6.61% -32.54% 21.18% 3.50%
The COVID-19 pandemic resulted in a significant -32.54% decline in overall TOT
receipts in FY 19-20. TOT revenues in FY 20-21 (July to March) were -17% below
TOT revenue received in same period FY 19-20 and FY 18-19. As TOT revenues were
most directly impacted by the COVID-19 pandemic, and due to uncertainty with a
potential surge in cases in the Fall that might potentially cause another limited shelter-
in-place order, Staff conservatively estimates TOT revenue of $29,800,000 for FY 20-
21 (-18.3% below FY 18-19 TOT revenue) and estimates a 3.5% increase for FY 21-
22 at $30,843,000 in TOT revenue (-15.4% below FY 18-19 TOT revenue).
2. Property Tax increases were based on actual trends demonstrated annually between
FY17-18 to FY 19-20 with projections for FY 20-21 and FY 21-22. As noted, the
housing market is in short demand in Palm Springs and several new residential
developments have sold out as soon as new homes were completed. Additional new
homes continue to be developed with four residential projects continuing with
construction into 2021/2022: (Cody Place, Elan, E~cena, and Miralon) and other
residential projects pursuing entitlements.
f-·----------·-.. ··•-··· -·••-···-·•-----··--·--····---··-·--·----···-----··-···T·--·-··--------------------· ·-··-· ···r ·-----... --------. ·-r .. •· -· ·--------,--·-,···-··--·----··-··-···-··--------------,
I----··-·-·-··----Actual I Actual I Actual ; E t FY 20_21 _ __J Proposed I
I FY 17-18 ! FY 18-19 I FY 19-20 I s. I I FY 21-22 1
:_:;::~h:-~g~=--$2~2~7,384 -j$24s::i!9~~ "!_~5a~::~84 L~~;~iio/~00 u·-$2:,;~!?oo-J
As shown, property tax revenues have increased from 3.77% to 7.92% on an annual
basis. Property tax revenues in FY 20-21 (July to March) were +8.7% above property
tax revenue received in same period FY 19-20 and were + 16.9% above property tax
revenue received in same period FY 18-19. Staff anticipates property tax revenue of
$27,500,000 for FY 20-21 and estimates a 3.84% increase for FY 21-22.
3. Sales Tax increases were based on actual trends demonstrated annually between FY
17-18 to FY 19-20 with projections for FY 20-21 and FY 21-22. As noted, the COVID-
19 pandemic did not have as significant an impact on consumer demand with a noted
reduction in sales tax revenue directly related to the periods of time a shelter-in-place
and Regional Order were issued to restrict non-essential travel.
~---·
Est. FY 20-21 r-~~-Proposed I Actual Actual Actual
i FY 17-18 FY 18-19 FY 19-20 FY 21-22
I -1
Sales Tax I_ $14,939,2a1 ____ $23,390,908 $20,923,634 $22,300,000 I $23,080,500 -
•-K-
Annual % Change I -56.57% -10.55% 6.58% L 3.50%
4
City Council Staff Report
April 22, 2021 -Page 5
Draft Fiscal Year 2021-22 General Fund Budget
Staff notes the annual increase of 56.57% in FY 18-19 is due to the first year's total
receipts from Measure D (½¢ sales tax) that was adopted in November 2017 and
effective April 2018. The COVID-19 pandemic resulted in a-10.55% decline in overall
sales tax receipts in FY 19-20. However, sales tax revenues in FY 20-21 (July to
March) were -4% below sales tax revenue received in same period FY 19-20 and were
generally equal to sales tax revenue received in same period FY 18-19. Staff
conservatively estimates sales tax revenue of $22,300,000 for FY 20-21 (-4.7% below
FY 18-19 sales tax revenue) and estimates a 3.5% increase for FY 21-22.
4. Utility Users Tax (UUT) increases were based on actual trends demonstrated
annually between FY 17-18 to FY 19-20 with projections for FY 20-21 and FY 21-22.
As noted, the COVID-19 pandemic did not have an appreciable impact on utility
consumption. As more residential development continues and houses are occupied,
increases in UUT receipts are anticipated.
Actual
FY 17-18
Actual
FY 18-19
As shown, UUT revenues have generally remained consistent at an annual average
of $7,054,265 from FY 17-18 to FY 19-20. UUT revenues in FY 20-21 (July to March)
were higher in FY 20-21 when compared to same period in prior fiscal years and were
+ 13% above UUT revenue received in same period FY 19-20 and were + 10% above
UUT revenue received in same period FY 18-19. Staff anticipates UUT revenue of
$7,200,000 for FY 20-21, however, to remain conservative the FY 20-21 General Fund
revenue is not being adjusted by this estimated amount. FY 21-22 UUT revenue is
estimated to increase by 1.35% for FY 21-22.
5. Motor Vehicle In Lieu (MVIL) Tax increases were based on actual trends
demonstrated annually between FY 17-18 to FY 19-20 with projections for FY 20-21
and FY 21-22. As noted, the COVID-19 pandemic had no impact on MVIL taxes.
r··----·--······ I
I I
... 1·-··
i Actual Actual Actual I Proposed
I I FY 17-18 FY 18-19 FY 19-20 Est. FY 20-21 1--FY 21-22
I I I l ---
Motor Vehicle In Lieu I $4,776,570 I $5,084,458 --1 $5,418,600 $5,700,000 I $5,889,500
Annual % Chang_~ __ _J -I 6.45% 6.57% 5.19% I 3.32% ...... ,
As shown, MVIL tax revenues have increased annually 6.5% from FY 17-18 to FY 19-
20. MVIL tax revenues in FY 20-21 (July to March) were higher in FY 20-21 when
compared to same period in prior fiscal years and were +5% above MVIL tax revenue
received in same period FY 19-20 and were + 13% above MVIL tax revenue received
in same period FY 18-19. Staff anticipates MVIL tax revenue of $5,700,000 for FY 20-
21, however, to remain conservative the FY 20-21 General Fund revenue is not being
5
City Council Staff Report
April 22, 2021 -Page 6
Draft Fiscal Year 2021-22 General Fund Budget
adjusted by this estimated amount. MVIL Tax revenue is estimated to increase by
3.32% for FY 21-22.
Other sources of tax revenue include: Franchise Taxes; Cannabis Taxes, and other
miscellaneous taxes. All General Fund tax revenue with comparisons to FY 17-18 to FY
20-21 (estimated) and proposed FY 21-22 is shown in the Table below.
r ·-· ·---· ---····----·---···--------·---·------1---------·-----------------·•·-,· -------· -----------·--···---1-
Actual FY 19-20 l Est. FY 20-21 .
·--------• ••---H----• •-~-• --• "---• "--~
Proposed
!CATEGORY j Actual FY 17-18 ! Actual FY 18-19 I >--
j FY 21-22 Budget
l I i I l I .,_,,_ ... --~·----,_ ...... ,_ .. , .,....,_.,_, _____ ..... -
;~:ra;ax ···-·· . $34, 194,4_14 $36,453,872 ·····---··-$24,591,31 ~--$29,800,9.Q_Q_ ··-$30,843,000
$23,207,384 $24,557,058 $25,482,084 -----··--$27,500,000 ·--$28,509,000
$14,939,287 $23,390,908 $20,923,634 $22,300,000 $23,080,500
i Utility Users .Tax ______ --· ---·-··-·$7,056,058 __ $7,081,134 ----_______ $7,025,604 _ ·--··--·-$6,278,814 _ ·----~ ... -, __ _$,7 ,297 ,200
Motor Vehicle in Lieu Tax ··----····· ·-$4,776,570 , -·--·---_J~§,084,458_ $5,418,600 -···-··-·---·$4,549 ,363 $5,889,500 --·-··-~·-·-· ·-·-·-··-··-·-·-, _____ ---·-· .......... -~ ........ ,_,.._...,_.,
£ranchise Tax $3,075,279 $3,723,066 ·--·-· $3,424,711 $2,765,179 ·--$3,283,600
Cannabis Tax $1,497,511 $2,332,869 $2,796,347 $2,203,10 L $3,600,000 .,
, All other taxes S19 496 932 s21296236 S6 916 077 S4 913 933 S5 015 60Q ___ .,., .... _, .. -"_, .. ..,_, .... -_......, ...... ,_., .... -·----·-•----... _, .... -·----·---..
lJotal_ Taxes ______ ---··-···-· $ 108,243,435 $ 123,919,601 $ ..... ,_, .... 96,578,376 _ $ ___ ,_ 100,310,390 __ -· _$ ... ,, 107,518,400
I Annual % ~h_ange n/a 14.48% -22.06% 3.86% 7.19%
*Measure J Sales Tax was received in General Fund in FY 17-18 & FY 18-19, these amounts have
been subtracted from total General Fund tax revenue to show trends with General Fund tax revenue
over the period.
As shown in the Table, the COVID-19 pandemic resulted in a reduction of ($27,341,225)
in tax revenue (-22.06%) when comparing FY 19-20 to FY 18-19. Total General Fund tax
revenues for FY 20-21 are projected at $100,310,3901 which represents a 3.86% increase
from FY 19-20 and for FY 21-22 are projected at $107,518,400 representing a 7.19%
increase over FY 20-21 estimate and approximately equal to total General Fund tax
revenues received in FY 18-19.
Additional General Fund revenue includes:
• Licenses & Permits (or "Fees"):
• lntergovernmental2 :
• Charges for Services:
• Fines & Penalties:
• Use of Money (Investments):
• Miscellaneous:
$ 6,220,180
$ 5,875,000
$ 5,861,213
$ 482,266
$ 707,552
$ 263,751
1 In the Third Quarter FY 20-21 General Fund Budget Review, Staff is not increasing UUT, MVIL Tax,
Franchise Tax, or Cannabis Tax based on projected estimates to remain conservative for final FY 20-21
General Fund estimated revenue. Including those estimated increased revenues would provide total
estimated FY 20-21 General Fund revenue from taxes of $104,850,000. These estimated tax revenues
were used to project FY 21-22 General Fund tax revenues for a more accurate annual increase of 2.5%.
2 The City's second payment of federal stimulus from the America Rescue Plan Act (ARP) of $5,595,000
will be received in May 2022 and is identified as an Intergovernmental revenue. 6
City Council Staff Report
April 22, 2021 -Page 7
Draft Fiscal Year 2021-22 General Fund Budget
Total FY 21-22 General Fund revenues are estimated at $126,928,362 as demonstrated
in the following chart and Table.
MAJOR GENERAL FUND REVENUES
The following graph & schedu le identify the major revenues for the 2021-22 General Fund Proposed budget.
2021-22 Revenues as a Percent of Total
ACTUAL
CATEGORY 2019-20
Transient Occupancy Tax (TOT) $25.49 '1,319
Property Taxes $25,482 ,084
Sales & Use Taxes $20,923 ,634
Util ity Users Tax $7,025 ,604
Motor Vehicle In Lieu Tax $5,418 ,600
Franchise Fees $3,424 ,711
Cannabis Tax & Fees $2,903 ,878
All Other Sources $30,625,43 1
TOTALS $121,295,261
• Transient Occupancy
Tax (TOT)
• Property Taxes
• Utility Users Tax
•Motor Vehicle In Lieu
Tax
• Franchise Fees
• Cannabis Tax & Fees
All Other Sources
ESTIMATED PROPOSED %
2020-21 2021-22 CHANGE
$29 ,800,000 $30,843,000 3.5%
$27 ,500,000 $28,509,000 3.7%
$22,300 ,000 $23,080,500 3.5%
$6,278,814 $7,297,200 16.2%
$4,549,363 $5,899,500 29.7%
$2,765,179 $3,283,600 18.7%
$2,203,101 $3,6001000 63.4%
$34,235,199 $24A15,562 -28.7%
$129,631,656 $126,928,362 -2.1%
FY 21-22 General Fund revenue is projected at-2.1 % below FY 20-21 estimated revenue,
and +4.6% above FY 19-20 revenue. It should be noted that projected FY 21-22 General
Fund revenue is less than estimated FY 20-21 General Fund revenue due to the
elimination of any budgeted transfers into the General Fund from other Funds (i.e.
Measure J or Capital Funds); in FY 20-21 there will be $11,550,000 in budgeted transfers
into the General Fund, whereas in FY 21-22 there will be $0.
7
City Council Staff Report
April 22, 2021 -Page 8
Draft Fiscal Year 2021-22 General Fund Budget
General Fund Expenditures
Staff reviewed the actual FY 19-20 General Fund expenditures, estimated FY 20-21
General Fund expenditures, and developed the proposed FY 21-22 General Fund Budget
to increase line item accounts to appropriate funds required for continuing operations and
services where accounts previously had insufficient budget (requiring intrafund transfers
within Departments during the fiscal year). Expenditure levels started from the "Rolling
Budget" Model, with expenditures evaluated from the adopted FY 20-21 levels (reduced
from the originally adopted FY 20-21 Budget in June 2019).
Secondly, budget line items have been adjusted for contractual obligations related to
salaries and benefits, workers compensation, etc., except for the Police Officers
Association (POA) and Police Management Association (PMA), whose Memoranda of
Understanding (MOUs) expired June 30, 2020. Any increases associated with new MOUs
with POA and PMA will require an additional budget appropriation.
Operational Expenses
The following summarizes the budget appropriation increases in the total sum of
$6,854,591 (5% of total budget) in the various Departments with those increases already
included in the draft FY 21-22 General Fund expenditure budget of $126,494,161. In the
event City Council elects to · exclude any of these increases, Staff will revise the draft FY
21-22 General Fund Budget accordingly and the total expenditure budget will be reduced.
Staff notes which of these increases are mandatory to cover contractually obligated costs
(estimated) that include in some cases CPI adjustments, and where full services are
proposed to be restored to pre-CO VI D service levels.
• City Council -An additional line item budget appropriation of $40,000 is included to
the extent a Council Member requests a legislative analyst or similar support during
FY 21-22
• Information Technology -Additional line item budget appropriations in the total of
$408,186 are required for annual support and maintenance of the new telephone
system and the Enterprise Resource Planner (ERP) software being implemented in
FY 20-21 . [ Mandatory]
• Office of Special Programs -Additional line item budget appropriations in the total of
$266,000 to purchase new vacation rental compliance software and operating system,
and related support for the Department. Additionally, not include but for separate
discussion is a recommendation to increase staffing (6 new Code Compliance
Officers) necessary to support this Department with 4 new Code Compliance Officers
for Vacation Rental Enforcement and 2 Code Compliance Officers for Cannabis
Regulatory Compliance. All increased costs in this area will be funded with increased
user fees (see discussion starting at bottom of Page 15 of this Staff report).
• Human Resources -Additional line item budget appropriations in the total of $32,150
to provide increased training opportunities and recruitment expenses.
8
City Council Staff Report
April 22, 2021 -Page 9
Draft Fiscal Year 2021-22 General Fund Budget
• City Attorney -An additional line item budget appropriation of $670,000 to cover the
anticipated annual expenses for both the City Attorney and outside legal expenses
that traditionally exceed the regular line item appropriation of $330,000. [Mandatory]
• Non-Departmental -An additional line item budget appropriation of $728,740 to cover
the anticipated contractually obligated annual expenses relating to vacation and sick
time conversion (cash-out). [Mandatory]
• Community & Economic Development -Additional line item budget appropriations in
the total of $671 ,520 to increase budget to: • Economic Development Program (business assistance): $435,500 • Consulting services: $100,520 • Restore IHub Funding of $212,200: $73,000 • Restore CVEP Funding of $125,000: $62,500
• Visitors Information Center-An additional line item budget appropriation of $192,000
to restore budget to reopen and staff the Palm Springs Visitor's Information Center
(VIC) aligned with AEG's proposed budget for the VIC [Mandatory]
• Bureau of Tourism -An additional line item budget appropriation of $428,000 to
restore budget to the full amount of $2,014,000 aligned with AEG's proposed budget
for the Bureau of Tourism and its proposed marketing strategy in partnership with the
Greater Palm Springs Convention and Visitors Bureau (CVB) [Mandatory]
• Special Events/Contributions -An additional line item budget appropriation of
$750,000 to allow City Council to consider funding for the City's various special
events, parades, and potential sponsorships
• Film Festival -An additional line item budget appropriation of $450,000 to restore
funding for the City's contractually obligated Title Sponsorship of the Palm Springs
International Film Festival in the amount of $350,000 with an additional $100,000 for
"in-kind" services traditionally provided by the Convention Center for the Gala (i.e.
waiver of certain Convention Center costs) [Mandatory: $350,000 sponsorship]
• Parks Maintenance -Additional line item budget appropriations in the total of
$963,283 to increase budget to: • Utility Cost Increases: $156,740 • Restore funding for palm tree trimming: $162,503 • Various maintenance service contracts (janitorial, landscape/park maintenance
contracts [restore weekly service]): $644,040 [Mandatory]
• Recreation -Additional line item budget appropriations in the total of $117,775 to
increase budget for operations, including temporary employees for Summer Camp
(partially offset with user fees)
• Tennis Center -An additional line item budget appropriation of $105,000 to restore
funding for maintenance and improvements to the City's tennis and pickleball courts
9
City Council Staff Report
April 22, 2021 -Page 1 0
Draft Fiscal Year 2021-22 General Fund Budget
• Skate Park -An additional line item budget appropriation of $18,000 to increase
funding to cover FY 21-22 contract cost of $98,000 for operation of the Skate Park.
Staff is also recommending the City Council consider cancelling this contract to
implement a different model for FY 21-22 for use as a "Teen Center'' providing
programs to the public while offering oversight of skate park use, requiring the addition
of two new Recreation Division positions (0.75 FTEs) at the same cost as the $98,000
Skate Park contract operations. [Mandatory]
• Swim Center -Additional line item budget appropriations in the total of $13,300 to
increase budget for operations
• Demuth Community Center -Additional line item budget appropriations in the total of
$4, 165 to increase budget for operations
• James 0. Jessie DHUC -Additional line item budget appropriations in the total of
$13,960 to increase budget for operations
• Library -Additional line item budget appropriations in the total of $45,825 to increase
budget for operations
• Welwood Library -Additional line item budget appropriations in the total of $32,225
to increase budget for operations.
• Animal Shelter -Additional line item budget appropriations in the total of $215,502 to
increase budget for operations pursuant to the amended contract recently approved
by City Council. [Mandatory]
• Fire-Additional line item budget appropriations in the total of $310,000 to increase
budget for operations, contractual services, parts and supplies, and training
• Planning Services -Additional line item budget appropriations in the total of $43,000
to increase budget for contractual services and historic preservation.
• Building & Safety -Additional line item budget appropriation of $50,000 to increase
budget for building plan check services (paid for with plan check fees). [Mandatory]
• Street Maintenance -Additional line item budget appropriations in the total of
$268,900 to increase budget for contractual services related to roadside / transient
camp cleanup and graffiti abatement pursuant to contracts recently approved by City
Council. [Mandatory]
• Downtown Maintenance -Additional line item budget appropriations in the total of
$1,700 to increase budget for required contractual services. [Mandatory]
• Railroad Station -Additional line item budget appropriation of $15,360 to increase
budget for required contractual services. [Mandatory]
10
City Council Staff Report
April 22, 2021 -Page 11
Draft Fiscal Year 2021-22 General Fund Budget
Staff notes that the FY 19-20 General Fund Budget appropriated $530,000 for "Homeless
Program" services with this funding removed from the FY 20-21 General Fund Budget.
Appropriations for this have been excluded from the draft FY 21-22 General Fund Budget,
but may be added at the direction of City Council (eliminating the current estimated
surplus of $434,201 if all items are included).
Personnel Expenses
In resolving the anticipated FY 20-21 General Fund deficit, the various employee
associations generously agreed to defer their contractually obligated Cost of Living
Adjustments (COLAs) until the end of FY 20-21. The FY 21-22 General Fund Budget has
incorporated these increases for the following groups of employees:
• Fi re Association -2%
• Fire Management Association -2.18%
• General Unit -2.5%
• Management Association -2.5%
• Unrepresented -2.5%
MOUs with the four employee associations expire on June 30, 2021 and labor
negotiations with these associations are being initiated. To the extent any personnel costs
increase as a result of these labor negotiations, a budget appropriation from General
Fund Balance will be required at that time.
Additionally, as recommended with a separate Staff report outlining the Third Quarter FY
20-21 Budget Review and end of FY 20-21 estimate, Staff is recommending
reinstatement of the 18 positions (17.75 FTEs) that are currently vacant and unfunded
due to the reduction-in-force (RIF) implemented at end of FY 19-20 as shown below.
~~~-·· C-'!J~~.-~"Ji""-i,:.· ..., ... :'"" ~ .. .;,l ,.. t\; ··~ ')"." ~~ w.-7• ~ _, .... ;:. , ...... ~ 11 . ·• ~ ' ! rC -,,. t SVI I ,.,..._
1
·' ;;., ~, o -.. = 't · ., f.'~ 'n"'os·1t'f'1·on . · ~•-•,:t i[':.;J,iJ? _ie-ea's' on-1 fT. -E !un,·t ·Ra~n=g-e'"' • -a ary4+ 1
'.~ :g: ,,::!:~~ . :pa "'~en --'· ,, .. ~"''" -;l ~ -o> _,.,,. ,_ r:o~ Wl.«hb ... -, s:J\;,;_.~"!.,,., :~~1 ,._,,'] ~~, ·• ~ -"-" ' I~.. ' t."' "' .,._ , . ~ 1J.3enefjt_S7' d
Development Services Planning Technician Layoff 1 GU 41 $ 133,153
Fire Clerical Assistant Layoff 1 GU 23 $ 85,396
Library Librarv & Public Services Manager Layoff 1 MX 49 $ 149,745
Administrative Secretarv Layoff 1 MX 39 $ 117,017
Fleet Maintenance Technician II Layoff 1 GU 39 $ 126,805
Fleet Maintenance Technician IIVService Writ Layoff 1 GU 45 $ 147,041
Maintenance Electrician Layoff 1 GU 45 $ 147,041
Maintenance Mechanic I Layoff 1 GU 35 $ 114,898
Maintenance & Facilities
Maintenance Supervisor Layoff 1 MX 51 $ 157,294
Maintenance Supervisor Layoff 1 MX 51 $ 157,294
Street/Traffic Maintenance Worker, Lead Layoff 1 GU 38 $ 123,652
Communitv Outreach & Media Specialist Layoff 1 GU 41 $ 133,153
Police Crime Scene Technician Layoff 1 GU 44 $ 143,398
Ranoemaster Layoff 1 GU 41 $ 133, 1 53
Lifeguard Layoff 0.75 GU 20 $ 59,478
Recreation Lifeouard Layoff 1 GU 20 $ 79,304
Secretary, Senior Layoff 1 GU 33 $ 109,338
Special Proo rams Account Clerk II Layoff 1 GU 31 $ 104,098
1[i~;~;~ ~=~:1siL.,,Ji'~~~~ -~~ -~,,ifi.OJ1AtifETE1EU6tij0_s:_l]J.ON$;f~BEili0tJP.EJ:tJrf:Z&: J ··="' 1!'. '"'=: t $2,221,25~
11
City Council Staff Report
April 22, 2021 -Page 12
Draft Fiscal Year 2021-22 General Fund Budget
The FY 21-22 total fully burdened cost of $2,221,258 is included in the draft FY 21-22
General Fund Budget.
Finally, Staff is recommending the City Council consider funding the following currently
vacant and unfunded positions to improve operations and services provided in the
respective Departments. The annual fully burdened cost of $793,487 for funding of these "'
7 positions (6 FTEs) is included in the draft FY 21-22 General Fund Budget.
• Development Services -One (1) Plans Examiner position at a fully burdened cost of
$150,707 to improve plan check services and reduce delays to the development
community, partially funded with user fees paid for plan check services
• Finance -One (1) Account Clerk I position at a fully burdened cost of $96,621 to
provide a dedicated cashier for improved services once City Hall is reopened to the
public; and one (1) Administrative Assistant position to provide support to the Director
and Staff at a fully burdened cost of $132,330
• Information Technology -One (1) Assistant Director position at a fully burdened cost
of $235,416 to assist the Deputy City Manager I IT with the day-to-day management
of the IT Department including oversight of the increasing number of remote/Zoom
meetings, allowing the Deputy City Manager to provide more technology-focused
attention in other Administrative Departments
• Library -One (1) Library Assistant (0.5 part time) at a fully burdened cost of $44,849
to return the Library to full staffing
• Recreation -One (1) Literacy Coordinator (or equivalent number of part time
Recreation Program Assistants) at a fully burdened cost of $96,613; and one (1)
Recreation Program Assistant (0.5 part time) at a fully burdened cost of $39,651 to
return the Recreation Division to full staffing.
12
City Council Staff Report
April 22, 2021 -Page 13
Draft Fiscal Year 2021-22 General Fund Budget
FY 21-22 General Fund Expenditure Summary
Total FY 21-22 General Fund expenditures are estimated at $126,494,161 as
demonstrated in the following chart and Table.
MAJO R GENERAL FUND EXPE NDITU RES BY CATEGORY
The fol lowing graph & schedul e iden tify major ex pendit s for th e FY 202 1-:22 Gene ra! Fund Budget.
2021-22 Ex pendi tures as a Percent of Total
8%
15%
28 %
A CT UAL ACTUAL
CATEGORY 2017 -18 2018-1 9
General Government $37,256,635 $39,944,048
Po lice $26,861,925 $30, 162,965
Fire $15,089, 146 $16 ,919 .802
Parks and Recreati on $7 ,345,319 $7 ,5 93.380
Cal PERS Reserve* $0 $3,000,000
Transfers Out $13,956,70 6 $21,908,330
TOTALS $100,509,730 $119,528,525
ACTUAL
2019-2 0
$39,362,4 16
$34,149,862
$18 ,657 ,5 14
$7,830,303
$0
$24,074,841
$124,074,936
37%
• General Government
•Police
•Fire
• Parks a nd Recreation
• Cal PERS Reserve*
• Transfers Out
ADOP TE D PROPOSED %
2020-2 1 2021-22 CHANG E
$37 ,330~379 $46,775,944 23.S0/4
$33,302,452 $35,1 5 5,426 6.1 %
$17F364 ,889 $18,581.449 7 .2%
$7,13 1,7 80 $9,451 .977 30.6%
$6,000,000 $6 ,000 .DDD 0.0%
$12,000,300 $10,529,365 -6.7%
$113,129,800 $126,494,161 5.8%
•tn some fiscal years, the conbibution to the CalPERS Reserve was made as a transfer f rom end of fiscal year
carryover balance a nd not as a budgeted expense. Commencing with FY 20-21 General Fund Budget. the full
$6,000,000 co nbibution i s identified as a 6n e item budgeted expense . Refer to 1he Cal!PERS section for a complete
discussion on co ntributions to this reserve fund.
13
City Council Staff Report
April 22, 2021 -Page 14
Draft Fiscal Year 2021-22 General Fund Budget
Pension Costs -PERS
In FY 18-19 the California Public Employee Retirement System (CalPERS) lowered its
discount rate, or expected rate of return on investment, from 7.25% to 7% and later the
CalPERS Board approved shortening the amortization period for investment gains and
losses from 30 years to 20 years. In FY 18-19 the CalPERS Unfunded Liability increased
by $7.1 million from $163.7 million in FY 17-18 to $170.8 million in FY 18-19 (actuarial
reports for unfunded liability lag by one year). Additionally, GASB Statement No. 75,
Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions"
is required for fiscal years beginning after June 15, 2017. This statement requires the
Other Post-Employment Benefits (OPEB) Unfunded Liability to be recorded in the
financial statements. In FY 18-19 the OPEB Unfunded Liability decreased by $10.2
million from $149.7 million in FY 18-19 to $139.5 million in FY 17-18. The projected
payment for OPEB in FY 21-22 is $4.2 million.
Beginning in FY 18-19, annual CalPERS pension obligations were increased as new
investment earnings assumptions, known as "the discount rate" (or CalPERS anticipated
20-year average rate of return on investments) were implemented state-wide. This was
expected to result in several years of higher required employer contributions. Additionally,
CalPERS changed the amortization term on unfunded liabilities from 30 years to 20 years,
which further impacted required employer contributions beginning in FY 21-22. The
projected ·payment to CalPERS in FY 21-22 is $20.5 million.·
In response to the increasing CalPERS pension obligations and to fund increasing Other
Post-Employment Benefits (OPEB -retiree medical insurance benefits), as part of the FY
17-18 budget process the City Council created a special CalPERS Reserve, setting aside
funds for future years' pension obligations and OPEB increases. This Reserve was
established as a "Restricted Fund" in General Fund and Airport Fund Balance subject to
415 th super-majority vote of the City Council for any other use. Contributions to the
CalPERS Reserve were made as follows:
Fiscal Year
• FY 17-18:
• FY 18-19
• FY 19-20
• FY 20-21
Current Total (FY 20-21 ):
General Fund
$ 7,250,000
$ 3,000,000
$ 6,000,000
$ 6,000,000
$ 22,250,000
Airport Fund
$ 800,000
$ 950,000
$ 500,000
$ 750,000
$2,250,000
Total
$ 10,250,000
$ 3,950,000
$ 6,500,000
$ 6,750,000
$ 24,500,000
The FY 21-22 General Fund Budget includes an additional contribution of $6,000,000 and
the FY 22-22 Airport Fund will also include an additional contribution of $750,000 to bring
the total General Fund CalPERS Reserve to $28,250,000 and the Airport Fund CalPERS
Reserve to $3,000,000 for a total CalPERS Reserve of $31,250,000 by June 30, 2022.
14
City Council Staff Report
April 22, 2021 -Page 15
Draft Fiscal Year 2021-22 General Fund Budget
The following graph illustrates the most recent update to the CalPERS projections as
compared to Staff's original estimates prepared in FY 17-18 for the increasing costs of
CalPERS pension obligations due to their changes to the discount rate and amortization
period:
Total PERS Costs 16-17 17-18 18-19 19-20 20-21 21-22 22-23
BEFORE Change
Discount Rate @ 7.5% $13.2 $14.4 $16.2 $18.2 $19.5 $20.8 $21.9
Total PERS Costs
AFTER Change
(Original Estimate) $13.2 $14.4 $16.7 $19.2 $21.9 $24.1 $26.0
Actual $11.6 $12.8 $14.7 $16.9
(Updated Estimate) $20.5 $21.6 $22.5
Difference ($1.6) ($1.6) ($2.0) ($2.3) ($1.4) ($2.5) ($3.5)
OPEB Costs
(Original Estimate) $2.6 $2.8 $3.0 $3.2 $3.4 $3.5 $3.7
Actual $3.0 $3.2 $3.4 $3.7
(Updated Estimate) $3.9 $4.2 $4.5
Difference $0.4 $0.4 $0.4 $0.5 $0.5 $0.7 $0.8
As shown in the Table, the projected annual increases in CalPERS pension obligations
were slightly higher than actual and updated estimates for FY 20-21 through FY 22-23.
However, OPEB actual costs exceeded projections.
Given the balances in the CalPERS Unfunded Liability ($170.8 million as of 6/30/19) and
in the OPES Unfunded Liability ($139.5 million as of 6/30/19), it is important to continue
the policy of contributing to the CalPERS Reserve Fund. With the CalPERS Reserve
Fund exceeding $30,000,000 as of June 30, 2022 Staff will evaluate investment
alternatives (i.e. Section 115 Trust) or financing options (i.e. a second Pension Obligation
Bond) for ways to make the most effective use of these funds.
Department Budget Modifications -Office of Special Programs
The Office of Special Programs was established to administer the City's regulatory
permitting and compliance programs for Vacation Rental Enforcement and Cannabis
Regulatory Compliance. All costs associated with this Department are intended to be
recovered through the annual vacation rental permit fees (for costs associated to that
specific program) and through the annual cannabis administrative permit fees (for costs
associated to that specific program).
15
City Council Staff Report
April 22, 2021 -Page 16
Draft Fiscal Year 2021-22 General Fund Budget
On November 30, 2016 the City Council formally established the Vacation Rental
Enforcement Department to address violations, provide the appropriate enforcement,
response, and ensure compliance with the City's Vacation Rental Ordinance. Considering
the 24/7 nature of vacation rental operations, the original organizational structure of the
Department allocated the following:
1 Vacation Rental
, Compliance
Official (2)
~.~
I I
I Vacation Rental
Coordinator (1) Building
Ins p ector {1 )
Vacation
Rental
Assistant (2)
~'
Vacation
Rental
Hotline
~ ~-
Vacation Rental Enforcement
Personnel
Materials, Services, and Supplies
Special Charges
--
Total Estimated Department Budget
Police
Departm ent
Back .. up
Code
C ompliance
Offrc ~r (3)
FY 16-17
1,175,000
320,000
205,000
$1,700,000
At that time, the City Council adopted an annual permit fee of $900 to fund the $1.7 million
estimated cost for Vacation Rental Enforcement. Subsequently, the annual permit fee
was increased subject to CPI in FY 17-18 and FY 18-19 to the current fee of $944.
The Department continues to administer and manage a growing number of vacation rental
properties, with 2,112 permitted vacation rental units increasing from the 1,936 permits
assumed in the original fee adoption.
In 2019 regulatory compliance and permitting of Cannabis Operations, and oversight of
Parking Enforcement, were incorporated into the Department. Staff has evaluated the
time commitments of personnel in this Department and determined that the Vacation
Rental Enforcement section consumes 85% of Staff time (with 2,112 permitted vacation
rental units), as compared to 14% associated with Cannabis Operations (with 67
permitted cannabis facilities of which 32 are operational), and 1 % related to Parking
Enforcement.
In evaluating current Department operations, including the assignment of Code
Compliance Officers (and related administrative oversight) from the Police Department,
Staff has determined that additional personnel are recommended to provide more
16
City Council Staff Report
April 22, 2021 -Page 17
Draft Fiscal Year 2021-22 General Fund Budget
complete coverage to respond to calls from the Vacation Rental Hotline in a more timely
manner, and to conduct proactive investigations and patrols of vacation rental units.
Currently, the Police Department has 8 Code Compliance Officers and 1 Code
Compliance Supervisor providing all various types of code enforcement throughout the
City, including Vacation Rental Enforcement and Cannabis Regulatory Compliance.
Although 3 Code Compliance Officers were intended to be assigned directly to vacation
rental compliance, some complaint calls are dispatched to Police Officers during times
the Code Compliance Officers are not available or on duty.
For Cannabis Operations, no Code Compliance Officer has yet been solely dedicated to
regulatory compliance and enforcement, and complaints are addressed as received with
available staff.
Staff has reviewed the calls for service and tracked days of week and times of day to
evaluate when dedicated Code Compliance Officers should be available to respond to
both Vacation Rental Enforcement and Cannabis Regulatory Compliance. Based on this
evaluation, Staff recommends the addition of 4 Code Compliance Officers (and the
related Police Department administrative oversight) for improved enforcement and
proactive inspections / investigations of Vacation Rental Enforcement. This ensures
adequate staffing for a 7-day work week with heightened coverage Thursdays through
Mondays when calls for service are highest. Two new vehicles will be shared by these 4
new staff.
Moreover, with ~ncreasing number of permitted cannabis facilities, Staff recommends the
addition of 2 Code Compliance Officers (and the related Police Department administrative
oversight) for improved enforcement and proactive inspections / investigations of
cannabis facilities. One new vehicle will be shared by these 2 new staff.
Additionally, the vacation rental permit fees have not accounted for time involved with
Finance Department staff in auditing and reviewing Vacation Rental TOT receipts.
The proposed Vacation Rental Enforcement budget for FY 21-22 is recommended as:
Vacation Rental Enforcement
Personnel (Existing Special Programs staff)
Personnel (Existing Police/ Code Compliance staff)
Personnel (Existing Finance Department staff)
Personnel (New Code Compliance Officers)
Materials, Services, and Supplies
Vehicles
Special Charges
Total Estimated Department Budget
FY 21-22
$739,238
$343,430
$569,530
$499,393
$210,252
$80,000
$69,600
$2,511,443
Based on 2,112 permits, Staff recommends the City Council consider increasing the
annual vacation rental permit fee effective July 1, 2021 from $944 to $1,189 (+26%) to
cover the anticipated costs for Vacation Rental Enforcement.
17
City Council Staff Report
April 22, 2021 -Page 18
Draft Fiscal Year 2021-22 General Fund Budget
The draft FY 21-22 General Fund Budget does not include this recommendation and the
additional costs. Staff requests City Council direction on this recommendation.
The proposed Cannabis Regulatory Compliance budget for FY 21-22 is recommended
as:
Cannabis Operations
Personnel (Existing Special Programs staff)
Personnel (Existing Police/ Code Compliance staff)
Personnel (Existing Finance Department staff)
Personnel (New Code Compliance Officers)
Materials, Services, and Supplies
Vehicles
Special Charges
Total Estimated Department Budget
FY 2021/2022
$130,454
$72,463
$111,889
$249,697
$87,899
$40,000
$43,500
$735,902
Staff is identifying this budget to demonstrate how this cost is segregated from Vacation
Rental Compliance. However, the additional cost of the 2 new Code Compliance Officers
and a new vehicle of $289,697 should be paid from the current permitted cannabis
facilities. Based on 67 existing operational cannabis permits, the administrative cannabis
renewal fee should be increased from $1,000 to $4,325 to support the dedicated
enforcement of these facilities. The initial application fee of $4,092 should be increased
to $4,325 to be in alignment with the proposed new renewal fee.
Alternatively, if the entire cost of Cannabis Regulatory Compliance is to be recovered
from the currently permitted cannabis facilities, an annual permit fee of $10,984 would be
required. However, this fee is a significant increase over the current fee. The 100% cost
recovery fee of $10,984 compares to regulatory permit fees charged by Desert Hot
Springs of $6,450 (dispensary/manufacturing) to $9,250 (cultivation), and permit fees
charged (initial deposit for full cost recovery) in Cathedral City of $7,500 (new) and $4,500
(renewal). Palm Springs fees would be higher based on Staff's proposed robust
compliance program and proactive inspection and investigation schedule requiring the
dedicated Code Compliance Officers. Santa Ana has the highest cannabis permit fee at
$16,781.58.
Next Steps
May 1
May22
May23
June 5
June 19
Preliminary General Fund Budget
All Funds Preliminary Budgets
Joint City Council/Measure J Committee Budget Meeting
Budget and Fee Schedule Public Hearings
Adoption of Budget (if needed)
18
City Council Staff Report
April 22, 2021 -Page 19
Draft Fiscal Year 2021-22 General Fund Budget
SUBMITTED:
Marcus Fuller
Assistant City Manager
City Manager
Attachments:
Preliminary Budget General Fund only FY 21-22
19
FISCAL Y
V
1 '
.,.
•
"
20
City of Palm Springs
FY 2021-22 Budget
Table of Contents
-General Fund -Fund Balance Summary for FY 2021-22
-General Fund -Revenues for FY 2021-22
-General Fund -Expenditures for FY 2021-22
2
3
7
1 21
Cit}! of Palm Springs
FY 2021 12 Bud er
City of Palm Springs
General Fund Working Fund Balance Summary
Fiscal Year 2021-2022
Beginning Projected Fund Balance -Unrestricted
Revenues
Addditional Revenues Taxes 11-12-20
Addititonal Revenue Taxes 02-11-21
Addititonal Revenue Taxes 4-22-21
Eliminate Measure J Transfer In 4-22-21
Transfers In
Total Revenues
Expenditures
Recommended Addt'I Expenditures 04-22-21
Recommended Addt'I Expenditures 02-11-21
Recommended Addt'I Expenditures 01-14-21 Small Business Asst.
Recommended Addt'I Expenditures 11-12-20
Appraisal of Taquitz Golf Course 09-24-20
Continuing Appropriations
Transfers Out
Total Expenditures
Surplus/ (Deficit)
Ending Projected Unrestricted Balance Sutotal
calPERS Reserve Set-Aside
CalPERS Set-Aside/Fund Balance
Fund Balance Unrestricted Total
Fund Balance calPERS Reserve Total
Fund Balance % Total
FY 2019-20
Actual
$ 33,462,461
112,439,830
8,855,433
121,295,263
(100,000,091)
(4,361,864)
(24,074,841)
(128,436,796)
(7,141,533)
$26,320,928
$ 16,250,000
$ 42,570,928
2
20.49%
12.65%
33.15%
FY 2020-21
Adopted
Budget
$ 17,925,700
80,854,300
14,350,000
95,204,300
(101,129,500)
(12,000,300)
(113,129,800)
(17,925,500)
$200
$ 22,250,000
$ 22,250,200
0.00%
19.67%
19.67%
FY 2020-21
Revised Fund
Balances
$ 26,320,928
80,854,300
8,637,694
8,356,781
20,232,881
(2,800,000)
14,350,000
129,631,656
(101,129,500)
(7,800,000)
(230,000)
(1,000,000)
(2,147,551)
(14,000)
(3,200,000)
(12,000,300)
(127,521,351)
2,110,305
$28,431,233
$ 22,250,000
$ 50,681,233
22.30%
17.45%
39.74%
FY 2021-22
Adopted
Budget
$ 28,431,233
..
126,928,362
126,928,362
'I
•(115,965,156)
(10,529,365)
(126,494,521)
t~ I 433,841 ...
• ' I
$28,865,074
$ 28,250,000
$ 57,115,074
22.82%
22.33%
45.15%
4/15/20213:16 PM 22
City of Palm Springs
FY 2021-22 Budget
General Fund Revenues (Proposed)
FY 2021-22
23
City of Palm Springs
FY 2021-22 Budget
Revised General Fund Revenue Summary
FY 2020-21 Adopted Revenues
TOT
17.5%
Account Account Description
Transient Occupancy Tax (TOT)
Property Taxes
Sales and Use Taxes
Utility Users Tax
Motor Vehicle in Lieu Tax
Franchise Fees
Cannabis Tax and Fees
All Other Sources
General Fund Subtotal:
Transfers from other Funds
Total:
*Measure J Sales Tax moved to Fund 260
/ales and Use
__ Motor Vehicle
__.--5 .6%
__ Fr a nchise
3.4%
l c a nnabis
2.7%
All Other
Sou rces
20.1%
FY 2019-20
Adopted
Budget
20,751,360
25,374,538
15,508,274
6,517,800
4,651,200
2,770,320
2,263,850
17,119,558
94,956,900
8,769,010
103,725,910
FY2019-20
Actual
25,491,319
25,482,084
20,923,634
7,025,604
5,418,600
3,424,711
2,903,878
21,769,998
112,439,828
8,855,433
121,295,261
3
FY 2021-22 Proposed Revenues 7
TOT ___ ....::
24.2%
FY2020-21 FY2021-22
Adopted Estimated
Budget Budget
14,162,666 29,800,000
25,832,091 27,453,500
8,847,358 22,300,000
6,278,814 6,278,814
4,549,363 4,549,363
2,765,179 2,765,179
2,203,101 2,203,101
16,215,728 26,009,694
80,854,300 121,359,651
14,350,000 11,550,000
95,204,300 132,909,651
Sales and Use
18.1%
Utility
/5.7%
--Motor Vehicle
4 .6%
19.7%
FY2021-22
Proposed
Budget
30,843,000
28,509,000
23,080,500
7,297,200
5,889,500
3,283,600
3,300,000
25,015,782
127,218,582
127,218,582
Percent
Change
-61.0%
-7.0%
-63.0%
-15.0%
-8.0%
-6.0%
-10.0%
-17.9%
-35.6%
-24.1%
24
City of Palm Springs
FY 2021-22 Budget
Account Account Description
Taxes
31101 Current Year Taxes -Secured
31102 Current Year Taxes -Unsecured
31103 Prior Year Taxes Unsecured
31104 In Lieu Prop Tax -MVIL
31106 Net AB 1 X 26
31130 CRA SB 211 Pass Thru to City
31201 Sales & Use Taxes
31205 Cannabis Tax
31206 M Cannabis Audit Recovery
31207 Cannabis Tax -Measure E
31208 Sales Tax -Measure D
31250 Parking Tax
31301 Franchises
31302 PEG Fees
31401 Transient Occupancy Tax
31402 Transient Occupancy Permit
31404 TOT Audit Recovery
31501 Documentary Transfer Tax
31601 New Development Tax
31701 Utility Users Tax
Subtotal -Taxes
Licenses and Permits
32101 Business License
32105 Alarm Fees -Police
32107 Village Fest Permits
32201 Building Permits
32202 Sewer Permits Ins Fee
32203 Construction Permits
32204 Permit Issuance
32205 Sign Permits
32206 Transportation Permit
32207 Pool Drain Permits
32209 Code Compliance Inspect
32210 Renewals/Misc Permits
32212 Zoning Fees
32213 Subdivision Fees
32217 Vacation Rental Permit
32218 Vacant Building Registration
32219 SB1473 Bldg Std Admin Fun
32221 Cannabis Permit Fee
32301 Rent Control Registration
32405 State Dis Access Fee 1186
Subtotal -Licenses and Permits
Intergovernmental
33102
33103
33109
33113
33634
33720
33XXX
State Homeowners Tax Rel
State Motor In Lieu Tax
Peace Off Training Funds
Mutual Aid Overtime
Bulletproof Vest Grant
County of Riverside
American Relief Act Grant Funding
Subtotal -Intergovernmental
Revenue Summary -General Fund
FY 2019-20 FY 2019-20 FY 2020-21
Revised Budget Actual Original Budget
24,239,250 24,483,261 26,535,600
1,087,788 998,823 1,190,842
47,500 -50,000
4,651,200 5,418,600 4,944,960
3,325,000 3,913,999 3,500,000
577,600 343,728 620,000
10,372,155 13,583,864 16,151,480
2,054,850 2,615,551 2,227,890
9,500 107,531 10,000
199,500 180,796 210,000
5,136,119 7,339,770 7,760,480
49,400 145,962 52,000
2,770,320 3,424,711 2,941,680
244,548
20,751,360 25,491,319 36,314,528
950 1,550 1,000
14,250 324,791 15,000
809,970 720,839 865,400
285,000 213,129 300,000
6,517,800 7,025,604 7,386,840
82,899,512 96,578,376 111,077,699
994,000 1,021,892 1,120,000
135,800 144,256 140,000
1,938,300 1,939,180 1,540,000
7,000 8,626 7,000
331,700 331,721 264,000
130,000 136,448 130,000
21,340 27,673 22,000
7,760 10,662 8,000
1,940 1,623 2,000
21,000 27,795 21,000
59,500 25,621 70,000
255,000 278,173 300,000
97,750 99,592 115,000
1,882,250 1,881,304 2,005,000
8,500 4,701 10,000
2,595
2,585 137,014
31,500 38,940 42,000
23,510
5,925,925 6,141,326 I 5,796,000
187,500 119,523 250,000
10,000
22,500 174,649 30,000
42,143
-6,467 -
220,000 342,782 280,000
4
FY 2020-21 FY 2020-21 FY 2021-22
Original Estimated Budget Proposed
Revised Budget Budget
24,678,108 26,346,017 27,220,500
1,107,483 1,107,483 1,242,000
46,500 46,500 46,500
4,549,363 4,549,363 5,889,500
3,255,000 3,255,000 3,255,000
558,000 558,000 558,000
5,975,981 14,500,000 15,007,500
2,005,101 2,005,101 3,300,000
9,000 9,000 9,000
189,000 189,000 300,000
2,871,378 7,800,000 8,073,000
46,800 46,800 46,800
2,765,179 2,765,179 3,283,600
14,162,666 29,800,000 30,843,000
900 900 900
13,500 13,500 13,500
772,733 772,733 865,400
267,000 267,000 267,000
6,278,814 6,278,814 7,297,200
69,552,505 100,310,390 107,518,400
840,000 840,000 1,120,000
135,800 135,800 140,000
195,000 5,000 25,000
1,386,000 1,939,180 1,939,180
7,000 8,626 7,000
264,000 331,721 264,000
130,000 136,448 130,000
21,340 27,673 22,000
7,760 10,662 8,000
1,940 1,623 2,000
21,000 27,795 21,000
52,500 25,621 70,000
255,000 278,173 300,000
97,750 99,592 115,000
1,704,250 1,881,304 2,005,000
8,500 4,701 10,000
-
31,500 38,940 42,000
5,159,340 5,792,859 6,220,180
250,000 250,000 250,000
-
30,000 30,000 30,000
-1
5,595,000 5,595,000
280,000 I 5,875,000 5,875,000
4/15/20213:15 PM 25
City of Palm Springs
FY 2021-22 Budget
Account Account Description
Charges for Services
31209 Cannabis Odor Control Recovery
33117 Local Dev Mitigation Fee
34106 Sale Of Maps & Publications
34107 Assess Dist Info Gen Fund
34109 Smoke Detector Inspection
34110 Other Charges Current Svc
34114 Multi Unit Fire lnsp Fee
34201 Shooting Range Revenue
34202 PS USD Officer
34203 Special Police Dept Service
34204 Fingerprint Fees
34205 Rent A Cell
34206 Special Fire Dept Service
34209 Fire Inspection Fee
34210 Fire Plan Check Fee
34211 Fire Commercial lnsp Fee
34212 Fire Fees Misc
34213 DUI Program
34218 Cannabis Audit Fee
34301 Building Plan Check Fees
34302 Engineering Plan Check Fees
34303 Miscellaneous Filing Fee
34304 Miscellaneous Engineering Fees
34307 In-House Fast Plan Check Fees
34308 Microfilming Fees
34309 Real Property Fees
34310 Gen Plan Maint Surcharge
34350 Admin Service Charges
34360 Henry Ford Arcade
34380 Nuisance Abatement
34381 Nuisance Abatement Admin
34403 Rancho Park Ii Landscape
34505 Issuance Fee
34506 TLC/PSVU Site Fees
34511 Library Fees
34602 Camp
34604 Fitness
34605 Preschool Programs
34606 Youth Programs
34608 Facilities Rent
34609 Special Activities
34610 Location Permits
34612 Daily Admissions
34613 Group Lessons
34615 Pool Rental Group
34616 Pool Passes
34621 Instructional Classes
34622 Hiking
34623 Tournaments
34624 PS Angels Stadium Rent
34625 JOJ DHUC Special Programs
34626 JOJ DHUC Facility Rent
34627 JOJ DHUC Vending
34652 Demuth/YMCA Fitness Center
34653 Demuth/YMCA Rental
37125 Fire Cert Program
Subtotal -Charges for Services
Revenue Summary -General Fund
FY 2019-20 FY 2019-20 FY 2020-21
Revised Budget Actual Original Budget
35,000 41,861
1,140 (7,774) 1,200
700 546 700
7,500
43,000 42,949 350,000
31,200 57,006 48,000
65,000 179,126 100,000
2,000 2,458 3,000
112,500 146,802 150,000
318,750 414,210 425,000
2,600 3,031 2,000
34,500 45,986 46,000
307,970 489,726 473,800
123,500 81,106 190,000
175,000 146,277 196,000
36,800 43,340
3,000 2,650 3,000
1,551
18,000
570,000 560,365 600,000
329,650 262,077 347,000
304,000 401,137 320,000
57,000 36,810 60,000
2,375 2,500
32,300 31,975 34,000
28,500 30,218 30,000
51,300 64,503 54,000
1,673,175 2,134,057 2,297,900
31,350 18,750 33,000
2,850 5,221 3,000
9,500 9,348 10,000
1,785
1,900 1,295 2,000
8,000 8,676 10,000
69,600 105,067 87,000
27,200 30,963 34,000
8,800 21,675 11,000
63,600 61,939 92,000
58,000 63,987 90,000
40,000 35,859 50,000
20,000 15,660 27,000
40,000 42,964 50,000
578 432 700
12,800 49,033 16,000
47,000 40,673 60,000
3,200 7,346 4,000
7,800 7,785 21,000
657
74,400 111,789 93,000
4,000 3,719 5,000
12,000 9,773 15,000
240 189 300
54,400 43,975 68,000
36,800 35,729 46,000
1,991
4,974,978 5,973,773 6,562,100
5
FY 2020-21 FY 2020-21 FY 2021-22
Original Estimated Budget Proposed
Revised Budget Budget
1,200 1,200 1,200
700 700 546
7,500
210,000
48,000 48,000 57,006
65,000 65,000 179,126
2,100 2,100 2,458
105,000 105,000 146,802
347,500 347,500 414,210
1,400 1,400 3,031
32,200 32,200 45,986
284,280 284,280 489,726
114,000 114,000 81,106
117,600 117,600 146,277
51,440 51,440 43,340
1,800 1,800 2,650
1,551
18,000
540,000 540,000 560,365
312,300 312,300 262,077
288,000 288,000 401,137
54,000 54,000 36,810
2,250 2,250
30,600 30,600 31,975
27,000 27,000 30,218
48,600 48,600 64,503
1,608,530 2,151,400 2,100,000
2,809 2,809
33,000 33,000 18,750
3,000 3,000 5,221
10,000 10,000 9,348
2,000 2,000 3,080
5,000 1,000 5,000
43,500 43,500 105,067
17,000 1,000 30,963
5,500 2,000 21,675
46,000 1,000 61,939
45,000 30,000 63,987
25,000 3,000 38,859
13,500 16,100 15,660
25,000 37,000 42,964
350 350 432
8,000 6,000 49,033
30,000 60,000 40,673
2,000 100 7,346
10,500 5,000 7,785
657
46,500 100,000 111,789
2,500 200 3,719
7,500 7,500 9,773
150 150 189
34,000 200 43,975
23,000 21,000 35,729
4,734,309 5,012,279 5,861,213
4/15/20213:15 PM 26
City of Palm Springs
FY 2021-22 Budget
Account Account Description
Fines & Penalties
35101
35102
35103
35104
35106
35108
False Alarm Fee
Vehicle Code Fines
Criminal Code Fines
Parking Violations
Library Fines & Fees
Administrative Citations
Subtotal -Fines & Penalties
Use of Money
36101 Interest Income
36105 Building/Facilities Rent
36106 Police Building Rent
36109 Village Green Rental
Subtotal -Use of Money
Miscellaneous Revenue
37101 Penalty/Interest for Delinquent Taxes
37102 Waste Disposal Clearing
37103 Audit Recovery
37105 Contrib Non-Govt Sources
37108 Legal Fee Reimbursement
37111 Smip
37112 Smip Ii
37113 Miscellaneous Revenue
37116 Vending Machines
37117 Park & Field Rental
37118 Banner Hanging
37121 Damage Recovery
37129 Walk Of Stars
37130 Reimbursement
37303 Settlement Revenue
37504 Contrib Non-Govt Sources
38146 Electrical Reimbursement
Subtotal -Miscellaneous
Sale of Real Property
37801 Sale Real Or Persnl Prop
Subtotal -Sale of Property
Subtotal -General Fund
39996 Budget Transfers -In
Total 001 General Fund
Revenue Summary -General Fund
FY 2019-20
Revised Budget
99,144
44,880
12,240
4,896
257,040
418,200
154,500
116,280
750
24,480
296,010
130,050
16,500
750
5,625
3,000
56,250
7,500
1,000
220,675
1,600
1,600
94,956,900
8,769,010
103,725,910
FY 2019-20 FY 2020-21
Actual Original Budget
170,518
82,819
13,928
5,075
7,128
202,798 1
482,266
1,435,792
181,832
98
25,676
1,643,398
141,565
25,309
1,243
374,894
275
700
364
351,271
3,239
91,056
6,555
20,321
181,700
29,394
39,428
5,500
1,937
1,274,751
3,156
3,1s& I
112,439,828
8,855,433
121,295,261
6
252,817
114,444
31,212
12,485
655,452
1,066,410
210,120
158,141
1,000
33,293
402,554
176,868
22,000
1,000
7,500
4,000
75,000
10,000
1,000
-
-
297,368 I I
-
125,482,131
125,482,131
FY 2020-21 I FY 2020-21
Original Estimated Budget
Revised Budget
126,409 126,409
57,222 57,222
15,606 15,606
70,000 70,000
6,242 6,242
327,726 327,726
603,205 603,205
157,590 157,590
118,606 118,606
750 750
24,970 24,970
301,915 301,915
132,651 132,651
16,500 16,500
750 750
5,625 5,625
3,000 3,000
56,250 19,232
7,500 7,500
750 750
223,026 186,008
--
80,854,300 118,081,656
14,350,000 11,550,000
95,204,300 129,631,656
~
;
.,.
'
FY 2021-22
Proposed
Budget
170,518
82,819
13,928
5,075
7,128
202,798
482,266
•
500,000
181,832
750
24,970
-
707,552
-
141,565
25,309
1,243
-
275
700
364
-
3,239
91,056
263,751
-
-
126,928,362
-
126,928,362
4/15/20213:15 PM 27
City of Palm Springs
FY 2021-22 Budget
General Fund Expenses (Proposed)
FY 2021-22
28
City of Palm Springs
FY 2021-22 Budget
Revised General Fund Expenditure Summary
FY 2020-21 Adopted Expenses
Account
Police
29.4%
General
Government
33.0%
Account Description
General Government
Police
Fire
Parks and Recreation
PERS Future Cost Reserve
General Fund Subtotal:
Transfers
Total:
Parks and
Recreation
6.3%
PE RS Fu ture Cost
Res erve
5.3%
FY 2017-18
Actual
37,256,635
26,861,925
15,089,146
7,345,318
86,553,024
13,956,706
100,509,730
FY 2018-19
Actual
39,944,048
30,162,965
16,919,802
7,593,380
3,000,000
97,620,194
21,908,330
119,528,524
7
General
Government
37.0%
FY 2019-20
Adopted
Budget
41,380,544
31,651,146
17,355,377
8,154,743
3,000,000
101,541,810
17,720,876
119,262,686
FY 2021-22 Proposed Expenses
Police
27.8%
FY 2019-20
Actual
39,362,416
34,149,862
18,657,514
7,830,303
100,000,095
24,074,841
124,074,936
FY 2020-21
Adopted
Budget
37,330,379
33,302,452
17,364,889
7,131,780
6,000,000
101,129,500
12,000,300
113,129,800
Fire
14.7%
Parks and
Rec reation
7.5%
PERS Future Cost
Reserve
4 .7%
Transfer s
8.3%
FY 2021-22
Proposed
Budget
46,776,304
35,155,426
18,581,449
9,451,977
6,000,000
115,965,156
10,529,365
126,494,521
Percent
Change
-16.7%
-10.5%
-13.2%
-20.7%
100.0%
-11.3%
3.4%
-9.9%
29
City of Palm Springs
FY 2021 -ZZ Budget
Dept # Department Description
General Government
1010
1100
1114
1120
1150
1155
1160
1180
1200
1220
1231
1261
1300
1330
1400
1402
2101
2116
2117
2118
2119
2120
2121
2123
2180
2197
2517
2710
2711
4151
4161
4171
4201
4210
4240
4301
4471
4472
9001
9004
3010
3011
3304
3305
3306
3400
3520
3522
City Council
City Manager/Admin
Neighborhood Involvement
Information Tech/PSCTV
City Clerk
Office of Special Programs
Human Resources
Rent Control
City Attorney
Non-Departmental
Public Affairs
Document Management
Finance
Procurement
Community and Economic Development
Homeless Program
GPSCVB
Visitor Information Center
Tourism
Special Events and Contributions
Special Contributions
Event Sponsorship
Special Contributions -PS Resorts
Chamber of Commerce
Convention Center
Plaza Theatre
Village Fest
Library
Library -Welwood
Planning Services
Building and Code Enforcement
Engineering
Street Maintenance
Downtown Experience Maintenance
Street Cleaning
Street Lighting
Railroad Station
Parking Structure Maintenance
Appropriation for Contingencies
Utilities (COGEN)
Subtotal -General Government
Police Administration
Jail Operations
Animal Control
Animal Shelter
Code Compliance
Dispatch Center
Subtotal -Police
Fire
Emergency Management
Subtotal -Fire
Parks and Recreation
Expenditure Summary -General Fund
FY 2019-20 FY 2019-20 FY 2020-21
Final Revised Actual Original Budget
Budget
676,936 572,989 868,800
1,595,381 1,686,890 1,630,100
190,652 182,324 203,600
3,456,701 3,019,424 3,276,800
1,368,184 1,244,737 1,259,000
1,047,476 999,767 1,324,100
696,153 507,003 905,800
77,028 70,910 85,200
1,332,000 998,298 332,000
38,600 700,000
422,391 369,639 348,300
333,500 308,233 332,800
5,823,243 5,475,816 7,599,300
545,413 603,256 600,700
2,142,467 2,014,881 2,602,800
573,892 456,245 530,000
595,000 456,164 595,000
6,968 4,343 5,000
2,117,200 2,042,641 2,091,000
639,503 542,777 323,500
94,000 34,483 94,000
350,000 350,000 350,000
254,707 204,954 -
144,000 86,382 55,000
2,942,644 2,594,682 2,499,200
181,477 29,891 31,100
2,498,989 2,464,050 2,687,900
241,388 64,703 243,900
2,899,743 2,256,590 2,217,400
2,768,300 2,781,480 3,150,500
3,029,098 2,896,186 3,434,200
1,724,663 1,691,775 1,832,400
1,441,094 1,444,728 1,607,800
26,400
909,500 888,813 915,700
34,173 17,362 40,900
1,708,372 -
44,900,836 39,362,416 44,800,200
30,343,841 29,742,767 32,655,100
284,681 365,384 423,100
357,209 442,428 442,100
1,176,184 1,139,827 1,154,400
861,075 969,347 1,009,700
1,178,957 1,490,109 1,537,100
34,201,947 34,149,862 37,221,500
18,541,906 18,523,495 19,841,300
166,176 134,019 155,400
18,708,082 18,657,514 19,996,700
8
FY 2020-21
Adopted
Budget
712,572
1,491,597
195,294
2,754,821
1,310,759
881,208
631,897
83,625
332,000
658,410
267,302
332,800
6,268,810
591,900
1,266,754
595,000
5,000
1,586,000
-
55,000
3,079,345
31,100
494,122
2,369,264
123,300
1,985,530
2,405,954
2,954,582
1,542,136
1,203,699
26,400
915,700
40,900
137,600
37,330,379
29,248,227
254,243
324,575
854,400
1,117,509
1,503,498
33,302,452
17,240,639
124,250
17,364,889
FY 2020-21
Revised
Variance
(156,228)
(138,503)
(8,306)
(521,979)
51,759
(442,892)
(273,903)
(1,575)
(41,590)
(80,998)
(1,330,490)
(8,800)
(1,336,046)
(530,000)
(505,000)
(323,500)
(94,000)
(350,000)
580,145
494,122
(318,636)
(120,600)
(231,870)
(744,546)
(479,618)
(290,264)
(404,101)
137,600
-
(7,469,821)
(3,406,873)
(168,857)
(117,525}
(300,000)
107,809
(33,602)
(3,919,048)
(2,600,661)
(31,150}
(2,631,811)
FY 2021-22
Proposed
Budget
805,047
1,524,910
225,529
3,873,087
1,390,895
1,282,880
813,897
97,606
1,002,000
1,387,150
287,178
350,338
6,954,474
631,099
1,916,883
595,000
197,000
2,014,000
750,000
450,000
55,000
3,179,229
37,801
446,230
2,732,956
155,525
2,543,998
2,833,880
3,460,347
1,995,066
1,508,856
26,400
1,042,029
56,960
153,054
46,776,304
30,551,752
283,146
340,093
1,069,902
1,275,771
1,634,762
35,155,426
18,457,199
124,250
18,581,449
4/15/20213:18 PM 30
City of Palm Spr111gs
FY 2021 -22 Budget
Dept # Department Description
2451 Park Maintenance
2510 Recreation
2511 Tennis & Pickleball
2512 Palm Springs Skate Park
2515 Swim Center
2516 Demuth Community Center
2590 James O Jessie DHUC
Subtotal -Parks and Recreation
PERS
9003 PERS Future Cost Reserve
Subtotal -PERS
Subtotal -General Fund
8000 Budgeted Transfers -Out
Total 001 General Fund
Expenditure Summary -General Fund
FY 2019-20 FY 2019-20 FY 2020-21
Final Revised Actual Original Budget
Budget
4,179,659 3,726,800 4,297,600
2,215,196 2,077,121 2,304,400
102,797 2,797 122,500
180,500 174,708 189,400
762,594 765,624 905,000
316,575 349,894 329,500
707,200 733,359 840,100
8,464,521 7,830,303 8,988,500
3,000,000 3,000,000
3,000,000 -3,000,000
109,275,386 100,000,095 114,006,900
23,978,205 24,074,841 11,604,100
133,253,591 124,074,936 125,611,000
9
' FY 2020-21 FY 2020-21 FY 2021-22
Adopted Revised Proposed
Budget Variance Budget
2,982,998 (1,314,602) 4,564,373
1,977,901 (326,499) 2,177,721
45,000 (77,500) 150,000
87,600 (101,800) 114,366
839,454 (65,546) 1,002,146
479,739 150,239 500,464
719,088 (121,012) 942,907
-
7,131,780 (1,856,720) 1 9,451,977
6,000,000 3,000,000 6,000,000
6,000,000 3,000,000 . 6,000,000
101,129,500 I (12,877,400) 115,965,156
12,000,300 396,200 10,529,365
113,129,800 (12,481,200} 126,494,521
4/15/20213:18 PM 31